Each year on April 22nd, Earth Day serves as a powerful reminder of our collective responsibility to safeguard the environment.

What began in 1970 as a grassroots movement has evolved into a global initiative, urging individuals, governments, and businesses alike to take action against climate change and work towards a more sustainable future.

As we mark Earth Day 2025, it is worth reflecting on how our built environment – particularly commercial property – plays a crucial role in this journey.

In Northern Ireland, the conversation around sustainability in real estate has been gaining momentum for some time, and a focal part of this is a concept known as the ‘green lease’.

At their core, green leases are designed to address environmental and energy issues by promoting sustainability and energy efficiency in how properties are managed and occupied.

For example, clauses may prohibit alterations that would reduce a building’s energy performance, oblige landlords to share environmental management information, or even establish joint building management committees to oversee environmental action plans.

This concept is becoming increasingly significant in Northern Ireland, especially in light of the Executive’s Path to Net Zero Action Plan. While there is not yet a local equivalent to the Minimum Energy Efficiency Standards (MEES) in England and Wales, which place legal obligations on landlords to meet certain energy performance benchmarks, such regulation may not be far off.

In anticipation, many landlords and tenants in Northern Ireland are proactively adopting green lease clauses to reduce their environmental footprint, enhance property efficiency, and future-proof their investments.

What do Green Leases typically include?

They often begin with a mutual recognition from both landlord and tenant of the importance of improving the environmental performance of the premises. Both parties may agree to share data on energy and water usage, waste production, and recycling – providing a transparent foundation for sustainability efforts.

Furthermore, any planned alterations to the property are to be carried out in a sustainable manner that does not negatively impact the building’s Energy Performance Certificate (EPC) rating. Ultimately, the goal is to work in partnership to reduce carbon emissions and improve the building’s overall sustainability profile.

The Royal Institution of Chartered Surveyors (RICS) also endorses this approach, encouraging the inclusion of tailored sustainability clauses in both new and renewed leases. Even for existing agreements, a memorandum of understanding can be adopted to reflect these shared objectives. Crucially, green lease provisions are not one-size-fits-all, they can be adapted to suit the environmental ambitions and commercial needs of both parties.

Beyond the clear environmental advantages, green leases also offer tangible business benefits. For landlords, a stronger EPC rating can reduce overheads, improve marketability, and make the asset more attractive to investors concerned about long-term regulatory risk.

A commitment to sustainability can also enhance reputation and help secure high-quality, ESG-conscious tenants.

For tenants, green leases support corporate sustainability goals, including Environmental, Social and Governance (ESG) policies and Corporate Social Responsibility (CSR) initiatives.

In today’s competitive labour market, a demonstrable commitment to environmental values can help attract and retain talent. Moreover, operating from a building that reflects those values reinforces a company’s credibility in the eyes of customers, clients, and stakeholders.

It is becoming increasingly clear that sustainability is not just an environmental imperative, it is also a commercial one. Green leases represent a meaningful step that property owners and occupiers in Northern Ireland can take to align with global sustainability goals, manage future regulatory risk, and contribute positively to the planet’s future.

It is time to make sustainability standard practice – not just on Earth Day, but every day.