How this tool works

Consider obligations in relation to the future use of the property (e.g. development, or net zero development requirements), and restrictions on building in certain areas to allow for open space/biodiversity areas. Also consider obliging the parties to execute electronically (you could set this out in the sale contract).

[Rory's Clause] Net Zero Land Promotion Agreement includes an overage schedule, but this is drafted on the basis that the original value is that of the land with the climate positive planning permission. Climate-aligned drafting in an overage agreement is unlikely to be applicable in other scenarios — e.g. if dealing with sales overage and wanting to oblige the developer to build sustainably, this is better dealt with in the development agreement.

TCLP supported the launch of the Better Buildings Partnership's Green Lease Toolkit (Jan 2024), with model clauses and drafting guidance for commercial leases (external resource). Relevant TCLP clauses:

• [Hannah's Clause] Green Service Charge Provisions
• [Aatmay's Clause] Repairs and Alterations
• [Rosie's Clause] Alteration/Improvement Provisions
• [Lotta's Clause] Renewable Electricity
• [Emma's Clause] Green Residential Lease Clauses — can be adapted for commercial leases
• [Amélie & Lauri's Clause] Irish Green Lease Clauses — can be adapted for E&W
• [Matthew's Clause] Late Payment — consider adapting
• [Alice's Clause] Single Use Plastic — archived as unmaintained
• [Raphael's Questionnaire] Climate Change DDQ

[Emma's Clause] Green Residential Lease Clauses is designed for new-build properties, but older properties needing retrofitting are a bigger issue. Retrofit pressure will be greater for tenants who own a share of the freehold, but government funding will be needed to retrofit at scale. Buyers may get a better mortgage rate with a good EPC rating. Bigger landlords may report scope 3 emissions, but most won't, so it's not a strong incentive — finance is key (see UK Finance guidance). Where managing agents are involved, obligations to manage sustainably could sit in the property management agreement. Also: [Toryn's Clause] Assured Shorthold Tenancy Clauses. Consider obliging parties to execute electronically.

Restrict use to electric vehicles (EVs), or include a mechanism so the licence fee is lower if used solely for EVs. This needs to be agreed at Heads of Terms stage.

Include obligations to manage the property in an environmentally conscious way (see [Hannah's Clause] Green Service Charge Provisions). Include obligations to only instruct contractors who comply with Green Working Practices, which would need to be defined (see [Ashkan's Clause] Sustainable On Site Working Practices).

TCLP clauses: [Aatmay's Clause] Repairs and Alterations, [Estelle's Clause] Climate Standard of Care (Construction). For extensive works, consider provisions around practical completion not being achieved unless energy efficiency obligations are met ([Mary's Clause] JCT Environmental Obligations). Where you want to check contractors' environmental credentials, adapt [Robyn's Questionnaire] Self-Assessment Climate Questionnaire. Consider obliging the parties to execute electronically.

• [Tristan's Clause] Construction Materials: Procurement
• [Raphael's Questionnaire] Climate Change DDQ
• [Matilda's Annex] Net Zero Standard for Suppliers
• [Alex's Clause] Circular Economy Product Design Obligation

See TCLP's employment clauses.

Include details of how the borrower must act sustainably. Needs to be drafted as a non-financial covenant, so that breach allows the lender to enforce. Relevant clauses:

• [Larissa's Clause] Promoting Sustainability-Linked Loans — archived as unmaintained
• [Evie's Clause] Debt Finance Clauses
• [Noah's Clause] Sustainability-Linked Lending Requirement
• [Harrison's Clause] Green Loan "Starter Pack"
• [Casper's Clause] Sustainability-Linked Loans

Note: lawyers generally use lenders' precedents, so lenders would need to include the climate-aligned drafting — LMA endorsement will likely be needed for market standard status.

[Tomas' Disclosure Checklist] CLLS Certificate of Title. Used to flag issues/existing climate-aligned drafting; as most documents are unlikely to have provisions, it can flag climate change risk and prompt advice from a valuer/surveyor. Lawyers should advise clients of climate risk regardless of whether it's captured in the Certificate.

[Marni's Clause] Report on Title – Commercial Real Estate

Parties could specify the sustainability credentials of the party to whom the land is sold. Any obligations to build sustainably (so far as not specified in the planning permission) should be set out in the documents entered into with the purchaser. Consider obliging the parties to execute electronically.

Include an obligation on the developer to obtain a climate positive planning permission (see [Rory's Clause] Net Zero Land Promotion Agreement). Consider obliging the parties to execute electronically.

Obligations around only promoting for net zero/environmentally conscious development ([Rory's Clause] Net Zero Land Promotion Agreement). Consider obliging the parties to execute electronically.

Obligation in relation to the type of planning permission to be obtained. For climate positive planning permission drafting, see [Rory's Clause] Net Zero Land Promotion Agreement. Consider obliging the parties to execute electronically.

• [Evelyn & Ezra's Clause] Net Zero in Development Projects
• [Edgar's Clause] Landscape Design Projects

Caution: developers offering net zero obligations in the S106/unilateral undertaking that aren't required by the local plan could be seen as an inducement to secure planning permission. Developers may want to build more sustainably than obliged to, but if the built development isn't in accordance with the planning permission there's a risk it is unlawful — amendments need a section 73 application (or non-material amendment application); a materially different development needs a fresh planning permission. The biggest push for sustainable development will likely come from lenders requiring it as a condition of finance.

Include an obligation to build sustainably. Consider obligations on the fund to invest in sustainable projects (see [Frank's Clause] Green Investment Obligations). Consider obliging the parties to execute electronically.

• [Aatmay's Clause] Repairs and Alterations
• [Mary's Clause] JCT Environmental Obligations
• [Estelle's Clause] Climate Standard of Care (Construction)

Consider what happens if the constructed building doesn't meet required EPC standards — requiring retrofitting until it does may be impractical, and accepting the building and claiming damages doesn't meet the environmental objective, so ensure appropriate enforcement measures are in place. Consider TCLP's green dispute resolution drafting and obliging parties to execute electronically.

Reference needs to be to the "works" as defined in the Building Contract, so ensure there's an obligation to carry out the works sustainably; the definition will also link to the planning permission (which may specify the BREEAM rating). Also see the Environmental Requirements in [Mary's Clause] JCT Environmental Obligations (e.g. protecting/enhancing ecological features, minimising air/noise pollution, minimising water use/pollution, using local suppliers, promoting green travel) — though if part of a wider development these will likely sit in the building contract instead.

Largest clause set in the tool:

• [Ashkan's Clause] Sustainable On Site Working Practices
• [Tristan's Clause] Construction Materials: Procurement
• [Luna's Clause] Net Zero Aligned Construction Modifications
• [Madhavi's Clause] Modern Methods of Construction
• [Francis' Clause] Construction Waste Management
• [Estelle's Clause] Climate Standard of Care (Construction)
• [Mary's Clause] JCT Environmental Obligations
• [Rose's Clause] GHG Emissions Management
• [Jess & Rory's Clause] Gain-Share Incentive for Reducing GHG Emissions

Some drafting may sit in technical documents (e.g. Employer's Requirements) rather than the main contract body; in construction, Heads of Terms aren't used — provisions go straight into the tendered contract. Where government is the employer, TCLP-style clauses may appear more often due to policy pressure (e.g. the Construction Playbook).

Also relevant for Construction Works Task Orders issued under a framework: [Tessa's Clause] Sustainability Enterprise Delivery Measures and [Daniel's Clause] Sustainability Key Performance Indicators.

[Olivia's Clause] FIDIC EPC Contracts, plus the same set as Building Contract above (Ashkan's, Tristan's, Madhavi's, Francis', Estelle's, Rose's, Jess & Rory's). Olivia's and Madhavi's clauses may be particularly relevant for infrastructure projects; if using an NEC contract, Secondary Option X29 can be incorporated alongside or instead of TCLP clauses depending on the project.

Consultants are primarily involved in design or managing the project. [Estelle's Clause] Climate Standard of Care (Construction) can be inserted so consultants must have regard to it in their designs. [Tristan's Clause] Construction Materials: Procurement can apply where consultants are involved in specifying materials (though actual use sits with the contractor). Also: [Edgar's Clause] Landscape Design Projects.

Consider whether it's appropriate to specify the fuel used to power the crane. Also consider ensuring the oversailing area doesn't interfere with birds' flight paths.

[Ashkan's Clause] Sustainable On Site Working Practices; also see the Environmental Requirements in [Mary's Clause] JCT Environmental Obligations, although if part of a wider development these will likely already be dealt with in the building contract. Consider obliging the parties to execute electronically.

See TCLP's employment clauses.