Promoting sustainability in the real estate market: an approach through Green Leases

In a business context increasingly oriented towards sustainability, the real estate sector stands out as one of the main contributors to climate change, accounting for approximately 40% of global carbon dioxide emissions and one-third of greenhouse gas emissions in the European Union. Faced with the urgent need to implement more sustainable practices, recent revisions of European directives on the energy performance of buildings have introduced ambitious emission reduction targets for 2030 and 2050. Within this framework, environmental certifications such as BREEAM, LEED, WELL, and GRESB have assumed a central role in adding value to real estate assets and promoting sustainable practices across the sector. In parallel, Green Leases, or green lease agreements, have emerged as strategic legal instruments incorporating clauses aimed at encouraging energy and water efficiency, waste management, and emissions reduction in leased buildings. By establishing mutual obligations between landlords and tenants, these clauses contribute to the achievement or maintenance of certifications and allow for the definition of concrete metrics to mitigate environmental impact, thereby fostering greater accountability and cooperation in the sustainable management of buildings. This dissertation aims primarily to evaluate the concept and importance of Green Leases in promoting sustainability in the rental market for sustainable buildings in Portugal, exploring their potential in the formulation of specific contractual clauses. Based on a qualitative methodology, interviews were conducted with stakeholders in the Portuguese real estate sector, enabling the identification of current practices, challenges, and opportunities. The results highlight mutual benefits for both landlords and tenants, such as cost reduction and asset value enhancement, as well as a growing openness to collaboration and contractual innovation. Thus, this dissertation contributes to the promotion of Green Leases as a fundamental tool in the transition towards a more sustainable real estate sector in Portugal.

Supervision: João Pedro Gouveia