How to future-proof your office lease for upcoming climate regulations

Future-proofing your office space is no longer optional. It is a proactive measure that protects your business from legal, financial, and operational risks. That is especially true with the rising legal obligations in leasing and net-zero building compliance. Therefore, here is how you can future-proof your office lease for upcoming climate regulations.

Firstly, familiarise yourself with key climate regulations affecting London office leases

Several regulations exist to monitor the environmental performance of commercial rental spaces.

MEES 2030 deadline and EPC B requirement

The Minimum Energy Efficiency Standards (MEES) regulation requires all commercial properties to achieve a minimum Energy Efficiency Rating (EER) of B by 2030. As of now, buildings must have at least an EPC E rating to be leased. However, landlords and tenants must plan upgrades to meet the EPC B office requirement before the MEES 2030 deadline.

Sustainability reporting frameworks

As a tenant looking for office space to lease, ensure the landlord meets the following non-domestic energy rules London.

  • CRREM pathways: The Carbon Risk Real Estate Monitor (CRREM) outlines science-based carbon reduction strategies. Tenants must assess whether their office spaces meet these strategies to avoid stranded asset risks.
  • ISSB S2: The International Sustainability Standards Board (ISSB) S2 framework defines climate-related disclosures. It influences how tenants and landlords report environmental performance.
  • SDR (Sustainability Disclosure requirements): The framework requires firms to disclose climate-related risks in alignment with TCFD and ISSB S2.

Benchmarking tools

Landlords must also comply with the following green building certifications (1) for energy-efficient benchmarking.

  • BREEAM-UK: The Building Research Establishment Environmental Assessment Method (BREEAM) rates a building’s sustainability across categories like water, energy, and waste.
  • NABERS UK: The NABERS UK (1-6 stars) system rates a building’s actual energy usage, not just design projections.

The list below summarises key sustainability requirements. Understanding these rules is the first step toward securing an energy-efficient office space. They’re structured with this format: The name of framework/standard – Its purpose – How its benchmark works

★ MEES 2030 (EPC B) – Minimum legal energy efficiency standard – EPC B rating

★ CRREM Pathways – Carbon risk tracking and decarbonisation – Aligned with a 1.5 °C warming scenario

★ ISSB S2 – Climate-related financial disclosure – ESG-aligned financial reporting

★ SDR – UK-specific sustainability disclosures – Linked with TCFD, ISSB

★ NABERS UK – Real energy performance – 1–6-star scale (≥ 4 stars ideal)

★ BREEAM UK – Design and operational sustainability benchmark – Outstanding rating for new build and excellent rating for refurbishment.

Here are simple ways to future-proof your office lease

To turn regulations into lease-ready strategies, follow this structured four-step approach.

Step 1: Include green lease clauses in your agreement

Green lease clauses introduce sustainable obligations into tenancy agreements to align landlord and tenant incentives for environmental performance. They mandate tenants and landlords to:

  • Share data on energy, water, or carbon usage.
  • Set energy use targets, such as reducing consumption to meet EPC B ratings.
  • Coordinate sustainable works, including retrofits and renewables.

Real-world examples include break clauses that are triggered if a building’s EPC rating falls below B and joint sustainability KPIs, such as maintaining ≤ 90 kWh/m²/yr energy intensity. Including ESG clauses and green lease provisions ensures both parties share responsibility for compliance. Moreover, a Transition-Plan taskforce (TPT) or phased compliance clause sets clear timelines, cost-sharing arrangements, and accountability milestones. These prevent last-minute or disruptive leasehold sustainability upgrades.

You might want to know more about EPC ratings in Fitzrovia (2).

Step 2: Improve your office’s energy performance

Improving your office’s energy performance is a vital step toward future-proofing your office and ensuring long-term cost savings. To meet the upcoming regulations, you should plan for targeted upgrades like high-efficiency HVAC systems, LED lighting, and upgraded insulation.

Landlords should aim for an energy intensity of ≤ 90 kWh/m²/yr, as required by the UK’s sustainability plan. They should also pursue green certification benchmarks to show their commitment to sustainability and credibility. These include BREAM-UK, which evaluates design and in-use sustainability, and the NABERS-UK scheme, which reflects real-world energy use and renewable energy sourcing.

Step 3: Collaborate with your landlord and other stakeholders on sustainability reporting

Effective sustainability reporting is a shared responsibility between landlords and tenants. Collaboration ensures alignment across essential environmental targets and strengthens legal obligations in leasing. Therefore, ensure you partner with your landlord to align your sustainability reporting with the UK SDR and CRREM frameworks. This provides useful climate info, which allows you to make leasing decisions based on environmental principles. It also creates a trust-based, value-driven partnership that supports commercial lease flexibility and long-term sustainability goals.

Step 4: Plan for climate change and risks

Planning for climate change and resilience means proactively addressing the financial and logistical challenges of leasehold sustainability upgrades. Start by assessing and budgeting for major retrofits like HVAC, electrical systems, heat pumps, insulation, and solar PV. These ensure compliance with the EPC B office requirement and ≤ 90 kWh/m²/yr metrics.

The average building retrofitting costs to improve energy performance range from £30 to as high as £567. That is especially true if you plan to move from EPC C by 2028 to EPC B by 2030. However, under green lease clauses, you can negotiate cost and responsibility splitting for these upgrades. This coordination across planning, construction, and financing minimises disruptions and supports business continuity during retrofits.

Looking for office space that’s ready for 2030?

 

If you’re planning ahead for a more sustainable, compliant, and cost-efficient future, The Langham Estate has office space that’s already doing the heavy work for you. Our future-proof, ready-to-occupy offices are designed to help you:

  • Cut energy costs from day one with 100% renewable electricity.
  • Stay ahead of regulations with buildings aligned to our sustainability standards (3).
  • Meet your ESG goals without the need for retrofitting or starting from scratch. This aims to minimize your future lease liability.

We know future-focused businesses want more than just offices. They want spaces that support their values and help reduce their environmental impact. That’s why we are removing gas boilers, phasing out fossil fuels in our landlord-controlled areas, and targeting a ≥ 4.5-star base-building rating by 2027. Most importantly, we are proudly committed to reaching net zero by 2040, as seen in these key steps:

Get in touch with our team today to discuss your low-carbon tenancy pathways.

In this article:

(1) Essential green building certifications for UK office spaces

(2) EPC ratings – Avoid fines when leasing older office spaces in Fitzrovia

(3) The Langham Estate ESG & sustainability

(4) The Langham Estate’s environmental commitment strengthens as we partner with Planet Mark

(5) The Langham Estate joins Westminster City Council’s Sustainable City Charter

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