Green leases will be common by 2026.

Savills prepared “ESG Top 10” to guide companies through the process of setting the successful strategy.

Currently, sustainability and ESG responsibility are not being addressed only in real estate, it affects virtually every company. Savills’ “Sustainability Report” says that by 2026, green leases will become a common part of lease agreements. Absolutely key to the implementation of an ESG strategy will be the cooperation between tenant and landlord, and the setting up of ESG reporting. Reporting of non-financial data is required by EU legislation and data from the sustainability report will be mandatory from 2024.

For better orientation, Savills has prepared the ESG Top 10 to guide companies through the necessary terminology to successfully ESG strategy.

Pavel Novák, Head of Office Agency at Savills, says: “A key aspect of green leases is the cooperation between landlord and tenant, and the agreement to operate the building in a sustainable manner. However, for a real positive impact on the environment and society, a change in attitude and mindset is essential for an ESG strategy to have an effect.”

Jan Jurčíček, Head of Building and Project Consultancy at Savills, adds: “Partial inefficiencies of heating, cooling and air conditioning systems caused by inappropriate regulation is currently one of the biggest problems of building energy performance. At the same time, it is very common for one part of a building to be heated and another to have the sun shining all day and cooling, creating the potential for more efficient building operation in the future.” 

Some of the buildings are generally ESG-ready, but landlords do not have the right processes in place. They have the data they need, but they don’t know how to provide relevant reporting to tenants.

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