Sectors 
Built environment
Learn how legal contracts can help to reduce carbon emissions throughout the built environment value chain.
Why climate contracting is important in the built environment
38%
of global greenhouse gas emissions come from the built environment.
Source: Word Green Building Council
30%
of the world’s waste comes from the built environment.
Source: CBRE
Our sector can play a critical role in reducing global carbon emissions. And we’re incentivised to do so. Real estate is highly vulnerable to the physical effects of a fast-changing climate (think heatwaves, flooding or land erosion). Whatever these assets mean to your business – be it an investment, global HQ for your business to occupy or security for your loan – the asset’s usability and long-term value need protecting. Built environment deals must get greener, and contracts provide the legal framework for that to happen.
Meet the team
How contracts can reduce carbon emissions
Every choice you make for your investment, development or occupational asset contains a carbon footprint. The carbon associated with these choices is locked into your emissions profile through the associated legal document, such as the building contract or lease.
You can unlock and reduce these emissions by reconsidering your choices and recording them in these contracts. Contracts allow you to take a more precise, bespoke approach to carbon reduction than you could if you simply waited for regulatory change to address these issues. You can tailor your carbon reduction commitments to your overarching climate goals, or to a particular project or counterparty.
Who is using our clauses
Case study
Buro Happold
Leading engineering and consulting firm Buro Happold uses standard terms and conditions to facilitate decarbonisation in the built environment sector
“Climate contracting principles are already being adopted in the built environment. There has been no pushback on any of the contracts entered into on these standard terms. Buro Happold observes that other parties’ contracts often contain sustainability criteria or objectives.”
Case study
Environment Agency (TEAM2100)
Requiring contractors to meet circular economy and decarbonisation requirements in flood management
“TCLP clauses are a reliable and workable starting point for contract-specific drafting. Sharing of resources and educating your suppliers and consultants is a huge part of cascading sustainability obligations down the supply chain.”
How we can help you
We’re a non-profit organisation working with the most ambitious organisations who want to be sustainability leaders in the sector. Our content is free for anyone to use and we also provide bespoke services, such as those below, free of charge.
Build awareness in your organisation
- Identify areas for clause use
- Present to your team or board on how to use our content
- Connect you to other organisations or advisors using clauses
Guide you on implementation
- Which clauses you can consider alongside your legal team, and how they can benefit your organisation
- Troubleshoot common barriers you may face during the negotiation process
Support your advocacy
- Upskill you to become a sustainability leader and champion our content
- Develop your ambition to enable you to take the next step on your climate contracting journey
Useful guides
Guide
Introduce climate provisions to contract parties
Create the right conditions for using contracts to reduce emissions from the very beginning
Guide
Request climate information in due diligence questionnaires
Assess the climate performance of other organisations and how they will impact your transition plan
Construction clauses
Mary’s Clause
JCT Energy Efficiency and Environmental Obligations
Jurisdiction: England & Wales
Updated:
Not maintained
Estelle’s Clause
Climate Standard of Care (Construction)
Jurisdiction: England & Wales
Updated:
Not maintained
Caroline’s Clause
Climate-Aligned Construction Waste Management
Jurisdiction: USA
Updated:
Not maintained
Real estate clauses
Aatmay’s Clause
Commercial Lease: Repairs and Alterations (circular economy)
Jurisdiction: England & Wales
Updated:
Not maintained
Lotta’s Clause
Lease: Renewable Energy Obligations
Jurisdiction: England & Wales
Updated:
Not maintained
Insights and news
How contracts can deliver nature-positive outcomes: reflections from our event
Contracts can be powerful tools for embedding nature-positive action. Our recent event with UKGBC and Hoare Lea explored how to turn ambition into binding outcomes.
Why contracts in the built environment need to get greener
When you think of legal contracts and processes, your first thought probably isn’t innovation, collaboration, or fighting climate change.
External resources
Find relevant built environment clauses
We have a lot of clauses! Our friends at TLT LLP have created this resource to help you find climate-aligned drafting for different stages of your transaction and building life cycle.
Better Buildings Partnership’s Green Lease Toolkit
The Chancery Lane Project sat on the steering committee and legal working group for the development and re-launch of the Better Buildings Partnership’s latest Green Lease Toolkit, which was substantially revised in January 2024. We support the industry using these high quality clauses in commercial leases.
