Model clause

Climate Aligned Alteration/Improvement Provisions for Leases

Rosie's Clause

Require landlords to act reasonably when tenants propose alterations to their premises (and associated change of use) or improvements to common areas, which have a positive climate impact.

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Why use this?

To achieve their environmental commitments, commercial landlords will need to allow (and encourage) occupiers to make changes to the buildings which will have a positive impact on their environmental performance.

This clause will:

- help tenants to carry out environmental improvements knowing that landlords need to act reasonably in allowing these;

- lead to better and more efficient use of land and buildings (e.g. empty roof space being used for renewables or as green space; shared areas being used for recycling etc.); and

- lead to a more collaborative landlord/tenant relationship and improve the environmental performance of both parties as well as the environmental impact of buildings and shared areas.

How it promotes a net zero future

This will encourage a shift towards a more collaborative landlord/tenant relationship and reduce the climate or other environmental impact of buildings and shared areas in a move towards Net Zero.

Disclaimer - please read

The clauses on this website (and published in our Climate Contract Playbook) have been prepared in good faith on a pro bono basis and are free to download and use. The clauses have been drafted and edited by a variety of lawyers and, as such, the approaches to drafting may not conform to any particular drafting norms. We acknowledge this as a consequence of the collaborative drafting process.

The clauses on this website (and published in our Climate Contract Playbook) are provided on an ‘as is’ basis and without any representation or warranty as to accuracy or that the clauses will achieve the relevant climate goal or any other outcome.

This website (and the Climate Contract Playbook) does not comprise, constitute or provide personal, specific or individual recommendations or advice of any kind, and does not contain legal or financial advice. The clauses are precedents for legal professionals to use, amend and negotiate using their professional skill and judgement and at their own risk.

While care has been taken in the drafting of these clauses, neither The Chancery Lane Project nor any of its contributors owe a duty of care to any party in relation to their preparation and do not accept any liability for any errors or omissions, nor for any loss incurred by any person relying on or using these clauses or any other person. Users should use their own professional judgement in the application of these clauses to any particular circumstance or jurisdiction or seek independent legal advice.

At present, all the clauses are based on the laws of England and Wales. We encourage the conversion of these precedent clauses for use in other jurisdictions.

The clause

Environmental Improvements means alterations made by the Tenant which improve the Environmental Performance of the Premises, the Estate or the Building;

Environmental Performance means all or any of the following:

(a) the consumption of energy and associated generation of greenhouse gas emissions;

(b) the consumption of water;

(c) waste generation and management; and

(d) any other environmental impact arising from the use or operation of the Premises, the Estate or the Building;

For Tenant’s alterations covenant

The Tenant may, with the Landlord’s consent, which is not to be unreasonably withheld or delayed, carry out [structural and] non-structural works to the Premises [or to unbuilt parts of the Estate] which [the Tenant can demonstrate by the provision of an [energy efficiency report/ecology report/other report]] will improve the Environmental Performance of the Premises, Building or Estate. The Landlord can refuse consent to any proposed works which in the Landlord’s reasonable opinion would have a detrimental impact on the investment value of the Landlord’s reversionary interest in the Premises, Building or Estate.

For Tenant’s Yielding Up covenant

By the End Date the Tenant must have removed…. 

save that the Tenant shall not be required to remove any Environmental Improvements [unless the Landlord has given it at least [X] months’ notice that it is requiring the Tenant to remove all or part of any Environmental Improvements on the basis that those works remaining after the End Date would have a detrimental impact on the investment value of the Landlord’s reversionary interest in the Premises, Building or Estate].

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