How Is ESG Changing Commercial Leases In Poland?

• Jurisdiction: European Union
• Law Firm: Penteris
• Subject Matter: Corporate/Commercial Law, Real Estate and Construction, Energy and Natural Resources, Corporate Governance, Contracts and Commercial Law, Energy Law, Real Estate, Landlord & Tenant - Leases, Renewables
• Author: Mr Konrad Pecelerowicz
• Published date: 02 October 2023

Konrad Pecelerowicz has great experience working with clients active in the Polish and international real estate markets. Konrad has vast experience working on lease agreements of major Polish shopping centres, class A and A+ office buildings as well as warehouses, both on the side of landlords and tenants not to mention great experience in transaction due diligence projects.

European Green Deal and Climate Neutrality

In the pursuit of climate neutrality by 2050, the European Union has set forth an ambitious vision encapsulated within the European Green Deal policy. This sweeping endeavour seeks to transform the European economy into a beacon of environmental responsibility. This transformation extends its green tendrils into various facets of real estate, encompassing both construction and long-term occupancy. Among the manifold consequences of the EU's resolute climate neutrality legislation is the burgeoning evolution of sustainable solutions within the commercial lease sector. For tenants, the pivotal consideration now revolves around whether the premises they inhabit align with sustainability goals. Such spaces promise not only lower utility costs but also enhanced comfort. Simultaneously, landlords reap the rewards, as adopting 'green' tenancy solutions elevates the quality and allure of their offerings, leading to potentially higher rental income.

Unfolding Trends in Sustainable Leases

Beyond the general commitment made by lease agreement parties to uphold sustainable development principles in both their operations within leased premises and the management of the buildings, concrete strategies are materialising in the Polish commercial lease market. These strategies wholeheartedly support sustainable practices within tenant operations and building management. Key among these measures are stipulations regarding waste segregation, encompassing hazardous waste, as well as the promotion of recyclable products. There is also a growing emphasis on the use of environmentally-friendly materials within the leased spaces. Notably, leasing...