New Green Leasing Standard Could Sweep Across Nation

Image: Better Buildings Partnership founders: City of Sydney BBP Support Officer Alberto Tobia, City of Sydney CEO Monica Barone, City of Sydney Sustainability Programs Leader Ben Thomas, Dexus Legal Counsel and BBP Tenant and Communities Co-Chair Claire Hashman, and Dexus Head of Sustainability Paul Wall. Credit: Katherine Griffiths / City of Sydney.

A world-first green leasing standard was recently released to deliver better sustainability outcomes for tenants and landlords.

The leasing standard was developed in response to a growing appetite from businesses to connect with like-minded landlords on operating their workplaces sustainably, under the Better Buildings Partnership (BBP).

The BBP was created as a result of a collaboration between major property owners, building managers and the City of Sydney, and will help landlords and tenants benchmark their agreements against others and save on power and water bills.

The BBP leasing standard identifies 20 categories that help classify a lease as ‘green’, and provides an online tool that enables leases to be assessed.

A scorecard and badge is then generated, making it easy to identify the strength of sustainability of the proposed lease and compare it against other leases.

Applauding the initiative, Property Council of Australia Chief Executive Ken Morrison said the BBP has the potential to be rolled out across Australia for a nation-wide approach to sustainability.

“It recognises that the leasing of most commercial properties is not a case of ‘set and forget’, but it is an active partnership between landlords and tenants," he said.

City of Sydney CEO Monica Barone said the partnership demonstrates the huge demand for sustainability initiatives in the commercial office sector.

“BBP members have reduced their emissions by 45 per cent since 2006, saving $30 million per year," she said.

"The development of the BBP leasing standard will help members further reduce their emissions and make even greater savings over the coming years.

“We are increasingly seeing businesses of all different sizes with a desire to operate out of buildings that complement their green focus.

“While owners and tenants may not be able to build all 20 categories into the lease, they have the option to work together and agree on a set of clauses achievable by both parties over the life of the lease,” Ms Barone said.

She believes the new standards under the BBP, with the support from major corporations and landowners in the city centre, will play a big role in helping the City achieve its Sustainable Sydney 2030 target of reducing emissions by 70 per cent compared to 2006 levels.