Are green leases or green lease provisions mandatory or optional? If mandatory, to whom do they apply? If optional, is there significant take up?
Green leases or green lease provisions are optional in Malaysia. The landlords may opt to adopt/implement green leases as part of their environmental, social and governance (ESG) agenda. For instance, Sunway REIT created the Green Lease Partnership Programme with the goal of achieving 100% tenant involvement by 2030. Setia City Mall also introduced green leases to its tenants as part of its green initiatives.
Based on a survey conducted by JLL in 2022, up to 42% of occupiers and large developers have signed leases incorporating green clauses across Asia Pacific.