Both tenants and property owners benefit from energy efficiency, especially when it is improved in cooperation

Functioning cooperation requires interaction, which might seem burdensome. Nevertheless, these efforts are worthwhile as both parties benefit not only from improved energy efficiency but the cooperation itself.

Tenant: If the property owner knows that you are active, interested in cutting emissions and committed to energy efficient actions, they are more likely to make larger energy efficiency investments in the property if the need arises. It is even better if the property owner knows that you are willing to participate in a window renovation project or acquire a heat pump.

Property owner: Your tenants might not know that they can participate in energy efficiency investments and that these could result in savings as well. For example, you can tell them that investing in a heat pump solution would reduce the consumption of thermal energy in the property, which would naturally be reflected in the rate of the rent. If tenants are aware of the options and the related advantages, they are more likely to make investments.

It should also be noted that reducing energy consumption requires resources from the tenant, which are often limited. Consequently, it is important to provide the tenant with readily available and clear instructions and contact details. If regular meetings are held and the tenant knows who they can be in contact with, it is much easier to improve energy efficiency and other matters.

Energy efficiency benefits everyone

The most important reason for improving energy efficiency is all around us: Reducing the emissions caused by properties mitigates climate change and supports biodiversity. Improving energy efficiency is responsible, essential and absolutely necessary.

It also has financial advantages by reducing the energy bills of properties and, consequently, their maintenance costs. These efforts also improve the reputation and attractiveness of the property when tenants can rely on low energy costs. The opportunity to work in premises that reflect the values of the organisation is increasingly important in the rental market.

“Sustainability is a major factor for many organisations or even a required condition when selecting the appropriate premises,” says WWF Green Office Partnership Manager Helka Julkunen. According to the Green Office model, the organisation will develop an environmental management system fit for their purposes with a ready-made template provided by WWF. Julkunen is well aware of the perspective and needs of tenants: The Green Office network includes more than 150 organisations and a little more than 400 offices with a total of approximately 60,000 employees. The premises of several organisations are leased.

Energy efficiency is about sustainability and, consequently, reinforcing the responsible brand of the property owner and the tenant leasing the premises. It also promotes other targets related to the responsibility of an organisation, such as acquiring environmental certificates. Furthermore, focusing on energy efficiency is useful when conducting a sustainability audit.

An increasing number of organisations have a self-imposed environmental or corporate responsibility programme where reducing the emissions caused by the office plays an important part in order to meet the targets of the programme.

“Corporate responsibility and environmental programmes are vital to many organisations. These programmes can be included in the criteria for participating in various competitive tendering processes. For example, an organisation must be capable of showing that they have reached their environmental targets with concrete indicators and figures,” says Julkunen.

In addition, ensuring that the heating and cooling of the office functions properly and that the premises are arranged correctly improves well-being at work and the flow of work.

Ready-made models make it easier to make joint investments

Cooperation and joint investments are easier with ready-made models. WWF Green Office is a tool that helps you determine the targets and indicators that are suitable for your organisation. This makes it easier to work together with the property owner or manager.

“Property owners and managers can help by making it easy for tenants to contact them. Clear instructions and contact information as well as regular meetings help improve energy efficiency and other matters together,” says Julkunen.

Another example of a system that benefits both parties is the Green Lease agreement templates. These are agreements between tenants and lessors that are aimed at saving money, working hours and natural resources.

The main advantage of the agreement template is that all matters agreed and the indicators and targets of both parties are recorded, which requires establishing unambiguous targets and indicators in the first place. If a clear plan is established in black and white, it is easy to follow the progress towards these targets and discuss any related matters. The Green Lease agreement model also includes regular discussions for monitoring progress and, most importantly, updating the agreement whenever necessary.

This yields various advantages by saving energy and money, improving the recycling of natural resources and making communication between the tenant and the lessor better and easier. It also makes it easier to identify any weaknesses in the system and optimise the use of the property.