ESG remains a priority on boardroom agendas. Earlier this year, we conducted a green lease webinar (which you can view [here]), where we provided a comprehensive overview of green lease provisions: ranging from fundamental sustainability commitments to more advanced, enforceable clauses. However, many green lease clauses are aspirational and non-binding, which is increasingly misaligned with market expectations. Stakeholders now demand clear progress on sustainability, measurable outcomes, and alignment with corporate ESG strategies.
The focus has shifted now that green leases are more established. So, what are astute corporate occupiers actually doing to ensure those commitments lead to tangible results?
Demanding real-time data and transparency
If you can't measure it, you can't manage it and let alone improve it. While many green leases oblige landlords to share usage data (e.g. energy or water usage), this data is often fragmented, retrospective or delivered in unusable formats. We are seeing corporate occupiers implementing - or requiring landlords to implement - systems that enable regular or real-time data flows. Whether through building management systems or structured reporting processes, these occupiers have greater control over their costs, insight into inefficiencies and the ability to ensure that the premises align to wider sustainability goals.
Interrogating green upgrades
Another area where we are observing a more assertive approach from corporate occupiers pertains to cost transparency and landlord-initiated upgrades. An increasing number of corporate occupiers are now meticulously examining green upgrade proposals and questioning the allocation of costs. When landlords undertake environmental upgrades, such as enhancements to HVAC (heating, ventilation, and air conditioning systems) or insulation improvements, tenants are frequently requested to contribute via the service charge. Nevertheless, we are witnessing corporate occupiers respond by scrutinising the lease terms, demanding a detailed breakdown of anticipated savings, and evaluating these benefits in relation to the remaining lease duration. These payments are regarded as commercial decisions rather than sunk costs, as occupiers are reluctant to finance long-term improvements that do not yield tangible value during their tenancy.
Measurable KPIs and performance – holding landlords to account
Leading corporate occupiers are also introducing internal processes to monitor delivery of green lease commitments. While many clauses reflect an "intention" to improve environmental performance, corporate occupiers tend to take it a step further by scheduling periodic reviews, requesting data updates and benchmarking performance across their landlord's portfolio. These processes do carry administrative and relationship challenges, through its administrative burden and overly "hands-on" perception. However, failing to follow up risks reputational damage and missed targets. By proactively managing the relationship and maintaining open channels of communication, corporate occupiers can hold landlords to account while maintaining a collaborative approach.
Take-home
Green leases were only ever meant to be a starting point. The real shift now is behavioural and thus, we are seeing a growing demand for better systems, clearer accountability and commercial discipline. Corporate occupiers that treat green lease delivery as a passive, legal formality will fall behind. Those who treat implementation as a live, managed process are increasingly better placed to report credibly, manage cost risk and unlock long-term value. The corporate occupiers assuming leadership in implementation are likely to continue defining the new standard.
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