Green Lease in retail: sustainable & efficient
An essential fixture for the sustainable operation of a shopping center is a green lease contract. This is because climate targets can only be achieved if both parties - ownership and tenants - work together. Real estate plays a decisive role on the path to climate neutrality, as around a third of CO2 emissions are attributable to the operation of buildings.
Contents:
- Green Lease Definition
- Green Lease at ECE
- Advantages of the Green Lease 2.0
- Conclusion on the Green Lease
Green leasing to reduce CO2 emissions and increase energy efficiency
In view of the climate targets set by the German government and the EU, regulatory requirements have increased. It is therefore becoming increasingly important to significantly reduce CO2 emissions in shopping centers through sustainable operations.
A comprehensive sustainability strategy is necessary for a sustainable future for properties such as shopping centers. This should include various measures to increase energy efficiency.
The measures can be diverse: from the use of green energy to the use of modern LED illuminants and smart lighting and ventilation concepts to the expansion of e-charging stations and the installation of photovoltaic systems on the roofs of shopping centers.
➤ With an energy-efficient refurbishment plan, such as the one developed by ECE Marketplaces, shopping centers can even become climate-neutral.
Green Lease Definition: What is Green Leasing?
A green lease is a lease contract that focuses on promoting sustainability. The green lease clauses integrated into it aim to encourage the tenant to use its space sustainably and the owner to manage the property sustainably.
As there are no legal requirements in Germany, these clauses can vary. Over the past ten years, it has therefore been the aim of various market initiatives to establish a definition for green lease contracts in Germany in order to achieve a similar level of sustainability and transparency in the real estate sector.
The green lease thus represents an effective tool for retailers and landlords to prepare for new statutory ESG (environmental, social, governance) requirements in the long term while promoting their own ESG corporate strategy.
Internationally, there are already numerous "green" requirements for lease contracts. One example of this is France, where a green annex to commercial leases has been mandatory since 2013.
Green lease concept at ECE Marketplaces
As part of its comprehensive sustainability strategy, ECE Marketplaces has been relying on green lease agreements with its tenant partners since 2016. The aim is to promote the most sustainable use of properties and make an important contribution to climate protection targets. Around 40 percent of ECE Marketplaces' current lease contracts already include a green lease agreement for a more efficient use of resources.
➤ Discover our annual and sustainability report "Future Forward" now and find out what measures ECE is taking in the area of sustainable real estate management.
Green Lease becomes an obligation at ECE
Until now, sustainability for real estate has essentially been a voluntary commitment on the part of tenants and landlords, including the use of LED lighting and green energy.
ECE has now taken the next step: in order to invoice the European Commission's liabilities set out in the EU Climate Law as well as receivables from tenant partners, banks and owners, ECE Marketplaces has revised its Green Lease Agreement 2023 and made it a mandatory component of its lease contracts. The aim is to work together with the tenants to get one step closer to the goal of a CO₂-neutral building stock.
In order to find the best possible solution for all parties, ECE worked with its sustainability experts in the run-up to the project to engage in intensive discussions with interested tenants as part of its sustainability forge, as well as holding talks with the owners.
The green lease contract : ECE's "Green Lease 2.0" obligations
ECE's new green lease contract contains the following specific obligations:
Use of green energy
As is already the case in the general areas of the shopping centers, only electricity from renewable energy sources is to be used in the lease areas. Proof, e.g. in the form of a green electricity certificate, must be provided on request.
Use of energy-saving illuminants
When illuminants are replaced, only LED lighting or comparable energy-saving illuminants are used in the shopping center and in the lease area.
Disclosure of consumption data
Only if you know the CO2 balance sheet of the entire property can you determine sensible and effective measures to reduce and save energy. It is therefore important to know not only the electricity consumption for the general areas of a center, but also that for the rental spaces. To do this, the consumption data of the tenants must be recorded and stored. In addition to annual electricity consumption, this also includes CO2 emissions.
The main advantages of the "Green Lease 2.0"
The green lease offers both ecological and economic potential and helps to ensure that the property remains competitive and fit for the future.
The most important advantages include:
- Improvement of the CO₂ balance sheet through lower energy consumption
- Maintaining or, ideally, reducing ancillary costs through lower resource consumption
- Creating transparency through the annual disclosure of tenants' consumption data
- Compliance with increasing legal requirements through the revision of the standard and continuous adjustments
- Less risk of additional costs due to short-term changes thanks to forward-looking action through tightening and long-term planning
- Sustainable corporate management through more efficient use of resources
- Sustainable safeguarding of the value of the property through consistent compliance with legal requirements
Our conclusion on green leasing
With "Green Lease 2.0", ECE Marketplaces has taken an important step towards climate neutrality, both for tenants and for itself as the operator. One of the current challenges is to find the most efficient method of recording and transmitting consumption data from tenants to the owner.
ECE is looking for the best solution for this. It is currently working on a holistic energy and environmental management system, which will also include the efficient recording of a center's total energy consumption, including tenant electricity.
What is certain, however, is that the climate targets can only be achieved by joining forces. This means that ownership, operators and tenants must pull together as partners - the sooner the better. This is where the Green Lease comes in.
ECE EDITORIAL TEAM
In our blog, we give our experts a voice and provide interesting insights into topics that move us across all asset classes.
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