The Chancery Lane Project ESG
As part of the Built Environment focus on ESG, we, along with our clients, are looking ever more closely at contracts from a sustainability perspective. This includes property contracts and leases. The wording of such contracts and leases is being considered and negotiated in a bid to encourage and enhance the environmental performance of buildings and to futureproof against ever increasing regulation in the area.
We have advised landlords, tech companies and other occupiers on some of the largest office leasing deals in Ireland in recent years, which has involved advising on and negotiating green lease provisions.
We have also been involved in the Irish property group of The Chancery Lane Project, or TCLP, which is a collaborative initiative of international legal professionals working together to develop contractual clauses aimed at delivering climate solutions.
As part of that project, we have been involved in developing a comprehensive suite of green lease clauses, which may be used in commercial leases in Ireland. Lawyers from our construction and dispute resolution teams have also given helpful input into the clauses.
The clauses range from data sharing to repair and alteration provisions to service charge provisions. They include:
- clauses promoting co-operation between landlords and tenants in relation to the environmental performance of buildings (Odhran’s Clause);
- repair and alteration covenants, rent review assumptions and covenants for the protection of energy and sustainability ratings (Emily & Tom’s Clause); and
- clauses incorporating circular economy and sustainability principles into a service charge regime, landlord’s regulations and landlord’s works (Amélie & Lauri’s Clause).
Mason Hayes & Curran LLP, together with Arthur Cox LLP and ByrneWallace LLP, spearheaded the development of the above clauses by the Irish Property Working Group of TCLP. The group includes other law firms and members of the Law Society Conveyancing Committee Landlord and Tenant Task Force. (Read more about this suite of green lease clauses.)
Of course, we are always happy to steer our clients through the ever changing and complex ESG landscape, including advising them on how they can adapt their real estate contracts in order to achieve their sustainability objectives.