Green leases are no longer an afterthought in commercial property. Throughout 2025, they have been gaining traction by helping landlords and tenants work together on energy, water, waste and fit‑out choices.
The payoff? Lower running costs and stronger compliance.
Raeesah Dudhwala, Solicitor in our Commercial Property and Corporate team at Bromleys, shares why now is the time to review your leases and build sustainability measures that protect property value and eco compliance.
What is a green lease?
A green lease is a standard commercial lease that includes extra clauses which are focused on sustainability.
These clauses encourage both landlords and tenants to share responsibility for improving a property’s environmental performance.
They also encourage cooperation and openness, whilst creating long-term benefits by aligning the lease with shared environmental, social, and governance (ESG) goals.
Why are green leases important in 2025?
- Support ESG reporting and sustainability certifications
- Reduce energy, water and waste costs through data sharing
- Strengthen tenant relationships and asset resilience
- Align with recognised frameworks like the Better Buildings Partnership (BBP) Green Lease Toolkit
Green leases help you stay ahead of regulatory changes, cut costs, and future-proof your property portfolio.
What clauses are typically included in a green lease?
Whilst every green lease is bespoke and tailored, most include clauses that promote shared responsibility and measurable sustainability outcomes. Common examples include:
- Shared responsibility – Landlords and tenants collaborate to meet sustainability goals, replacing the older model of one‑sided obligations.
- Tiered clauses – Using the BBP toolkit, parties can choose from light, medium or dark green clauses, allowing flexibility across sectors and building types.
- Operational data sharing – Clauses often require transparent reporting of energy, water and waste usage to help both parties monitor performance and meet ESG targets.
- Green energy commitments – Many green leases include provisions for obtaining 100% renewable electricity via credible routes (e.g., PPAs or certified tariffs) and in line with the CMA Green Claims Code.
- Certification cooperation – Tenants are expected to support landlords in achieving sustainability certifications such as BREEAM or NABERS UK.
- Sustainable fit‑outs – Tenants are encouraged to use low‑emission materials, LED lighting and eco‑friendly cleaning products during refurbishments.
These clauses create a framework for accountability and collaboration, ensuring sustainability goals are practical and enforceable.
How can Bromleys help?
At Bromleys, our Commercial Property team provides practical, cost‑effective support to help you:
- Draft and negotiate green lease clauses
- Align lease terms with your ESG strategy
- Understand landlord and tenant responsibilities
- Future‑proof your property portfolio with sustainable practices
Contact our Commercial Property team today on 0161 330 6821 or email bromleys@bromleys.co.uk for a free initial discussion.