As the term suggests, a Green Lease typically addresses environmental aspects (i.e., the “E” in ESG). In Switzerland, lease agreements for GEAK- or Minergie-certified buildings often include provisions related to operational use—such as the collection and exchange of consumption data for water, electricity, and heating; the use of renewable energy sources; concepts for waste separation and reduction; the use of environmentally friendly cleaning products; and green mobility. For maintenance and refurbishment, requirements often include the use of low-emission or eco-friendly building materials.
Such clauses are generally introduced during the initial letting of a building or following extensive energy-efficient renovations. Building to high energy standards often enables owners to obtain tax exemptions or increase the market value of their property (see next section). Some of these environmental certifications refer not only to the construction or renovation process but also to the operational lifecycle of the building, which is subject to strict regulations—such as those concerning energy consumption (e.g., Minergie-A or BREEAM). In these cases, it is crucial that tenants comply with the label’s requirements so that the building does not lose its certification (which would negatively impact the property’s market value—again, see next section).
In more progressive countries, such provisions are part of the basic standard for a Green Lease. More common are clauses that ensure an appropriate response to current sustainability-related market expectations for the coming years. Market leaders understand the long-term nature of lease relationships and implement clauses that support goals beyond 2030. The economic aspect of these clauses should also not be overlooked, and investors are increasingly recognizing their long-term financial value: buildings with better energy efficiency and precise monitoring of various consumption metrics are in high demand today, which in turn boosts their market value.
Measures to reduce the environmental impact of property operations may seem self-evident—according to the Federal Office for the Environment (FOEN), buildings in Switzerland account for around one-third of total CO₂ emissions2. However, a "Green Lease" can also address broader sustainability aspects. Internationally, a shift toward “Green Lease 2.0” is underway. The outdated approach—focused on a static checklist of obligations set during contract negotiations, typically covering basic green topics like energy, water, and waste—is being replaced. The new model emphasizes cost savings through cooperation, collaboration, and co-investment before and throughout the lease term. At the forefront are measurable performance indicators, supported by transparent technical data collection. The focus has expanded to include broader environmental topics such as the circular economy and climate resilience, along with social and governance factors—the “S” and “G” in ESG. In commercial properties, for example, attention is given to health and well-being (e.g., enhanced indoor environmental quality through improved air quality, temperature control, and noise reduction) and community engagement (e.g., partnerships with NGOs to support local communities). In this way, green leases evolve into responsible leases.
