Green Lease FAQs
- Why are green leases good for my business?
- They can help you reduce the environmental impact of your business in a low effort way, which can also reduce your operating costs.
- Increasingly, a wide range of stakeholders, including customers, investors, employees, media and governmental officials, care what a company is doing for — or to — the environment. A green lease adds a further dimension to your brands sustainability story.
- All tenants on green leases are able to join our Sustainability Forum where businesses can learn from each other to drive their own sustainability performance and help Grosvenor continue to improve.
- What exactly will green leases mean for my business?
In creating our green leases, our focus was on making it as easy as possible for businesses to be green. For example, our green electricity and waste collection services save you time and the administrative burden of dealing with, setting up and switching providers. You can read about what clauses the green leases contain here. Existing tenants can also contact their Asset Manager.
- How do I move onto a green lease?
From April 2020, all new leases in our properties are green leases. If you are an existing tenant, please speak to your Asset Manager/Leasing Manager about moving on to our green lease. Once the documents are completed, our dedicated electricity and waste collection service providers will be in contact to arrange a smooth setup (or transfer).
- How much will signing up to a green lease cost?
Our focus in setting up our green leases has been to make going green easy and find ways to reduce operating costs – e.g. through competitive energy provision.
However, there are limited circumstances where a tenant can reasonably expect to incur costs within the lease. This includes:
- A fair and reasonable portion of costs for works we might carry out to improve the environmental performance of the property. You would be consulted prior to works to ensure they are reasonable and conducted cost effectively. We are committed to only acting reasonably in doing this, and we would consult with you before going ahead. If there is a benefit to your business, for example in savings on energy costs as a result of our works, that is when we may ask for a fair and reasonable contribution to those works reflecting those energy savings.
- In certain circumstances, you may be asked to cover the cost of obtaining a new EPC, principally where one is required because of works you have undertaken. This is already a standard lease provision.
- Signing any legal documentation may incur legal fees where you seek professional advice. Where you are signing a new lease with us, the inclusion of green clauses is unlikely to incur material additional legal fees above a solicitor’s usual fees for dealing with a commercial lease, although of course please check this with your solicitor. We pay our own legal fees when we enter agreements with you, and would not ask you to contribute to our legal costs for green provisions
- What are the environmental credentials of Grosvenor’s green energy?
The energy we procure for tenants is 100% Renewable, and is UK REGO certified. Currently our green electricity is procured via Scottish Power and mainly comes from their wind farm Whitelee (www.whiteleewindfarm.co.uk). The remaining energy comes from some small scale hydro schemes. Our current provide is Scottish Power as of March 2021, however we keep our provider under review to ensure our energy is competitively priced and represents the most sustainable option available to us.
- What happens if we are already with a 100% green energy provider?
When tenants move to our green leases, we still ask that they sign up to our electricity provider/service. This means that we can gain much greater insights into how our properties are performing, as well as sharing useful insights with you into how to reduce your carbon footprint and lower your bills.
- I am a current Grosvenor tenant and I procure gas and electricity together at the moment – can I move over both?
We only offer electricity, as unfortunately there is no ‘green’ option for gas provision. If you are looking into replacing any gas-powered equipment with electric, eco-friendly equipment, we are supportive of this (subject to any relevant planning requirements etc).
- I am a current Grosvenor tenant and I have a fee for breaking my current energy contract – I don’t want to have to pay this.
Our green lease is still an option as it might be that we can arrange to switch you across once your current tie-in period has expired. Please contact your Asset Manager to discuss.
- What is the cost of Grosvenor’s electricity provision?
We have a flexible contract which means that on a daily basis we switch to highly competitive green pricing in the market. You benefit in full from this daily price switch as we don’t charge any administrative fees or a commission. The average cost in 2020 was between £0.15 and £0.17 per kWh. This is around 7-10% more than fossil-fuel provided energy as of March 2021, but is on average 6% cheaper than other UK REGO certified deep green energy providers for the 2020 period.
- Does Grosvenor get any financial benefit from being my provider?
No. We do not charge any administration fees or mark-ups on the price we pay under our bulk-buy contract. We also do not accept any commission from our energy provider.
- How can I be assured that your costs will stay competitive?
Our flexible contract with our provider means that we switch to highly competitive deep green pricing in the market on a daily basis. You pay the same price we do, so you benefit in full from the daily price switch.
- Who pays for the installation of smart meters?
Where these are not provided by our electricity supplier, Grosvenor will pay for smart meter installation as part of setting you up with our electricity service.
- What data does Grosvenor collect?
To understand how trends are changing, we collect data on utility consumption and waste collected. Our energy provider can provide you with a breakdown of your property’s energy consumption and how to reduce use, but any data used for external reporting will be anonymous.
- What does Grosvenor do with my energy data?
We use aggregated energy data to monitor progress a towards our net carbon zero goals. We also work closely with sustainability consultants to gain insights into energy usage and will share these insights and recommendations with you on an annual basis.
- Who should I contact if I have any questions or concerns?
Please speak to your Property Manager.
- Who is Grosvenor’s provider?
Currently we use First Mile. We regularly review our contracts to ensure these are delivering good value. The reasons that we use First Mile include improved waste sorting and zero waste-to-landfill. As they are active in the West End for other landlords, this also reduces traffic in the area overall.
- Why does Grosvenor procure waste for occupiers?
As your waste collection provider, we can reduce the number of different providers (and therefore vehicles) collecting waste locally. This reduces air pollution and traffic levels.
- How can I be sure that the costs will stay competitive?
We regularly review our contracts with service partners to ensure best value and quality of service.
First Mile is currently (as of 2021) matching Westminster City Council’s waste collection prices. First Mile also regularly benchmark pricing to ensure they remain competitive. The provision of additional recycling services provides further opportunities for savings versus those achieved through use of competitor services. Any price increases from First Mile will be applied in line with market factors and representative of those passed on across the industry; however, First Mile will also cap any annual increase at 5% should market forces push increases above this threshold.
- Who should I contact if I have any questions about my waste collection service?
Please speak to your Property Manager.
Other Green Lease clauses
- What is the Sustainability Forum?
We will shortly be launching a knowledge sharing initiative for our occupiers to come together to share ideas and insights about improving their sustainability. We may also engage external speakers on specific topics. We encourage all our occupiers to take part. We plan to offer this initiative as a benefit of being one of our occupiers and you won’t be asked to pay towards it.
- What works might Grosvenor want to carry out at my property and how will this affect my business?
We may wish to implement energy improvement works to improve the environmental performance of the building. We are committed to only acting reasonably in doing this, and we would consult with you before going ahead. If there is a benefit to your business, for example in savings on energy costs as a result of our works, we may ask for a fair and reasonable contribution to those works reflecting those energy savings.
- What is Grosvenor’s Environmental Policy?
In 2019, we set stretching environmental goals relating to carbon, waste and biodiversity. Each goal requires us to work collaboratively with our suppliers and tenants to ensure we can meet them. You can read about or commitments here.
- What if I am not able to consolidate my deliveries?
We strongly encourage the reduction of traffic to reduce local air pollution and make the streets where we all work nicer places to be. So we ask that you take so we ask that you consolidate your deliveries as much as is reasonably possible.
- What is an EPC rating?
EPC stands for Energy Performance Certificate. It is one means of assessing how energy efficient a property is, using grades from A to G (‘A’ being the most efficient) and it often contains recommendations for how to improve the environmental performance.