Baker Mckenzie

New sustainability requirements for office buildings as of 1 January: BAKER MCKENZIE SHARES INSIGHTS ON SUSTAINABLE

REAL ESTATE

Effective as of this year, most office buildings with a floor area larger than 100 m2 are required to have a minimum energy label C (energielabel C in Dutch). This label implies that groundwork and measures have to be compliant, but the new rules raise all kinds of questions. International law firm Baker McKenzie has decided to step into the breach and set up its own desk to inform the market about the transition to environmentally friendly and sustainable office buildings.

Sustainability has long been at the heart of international law firm Baker McKenzie’s strategy. More than twenty years ago, they established the world’s first climate change practice and haven’t stopped innovating since. Paul Goedvolk is partner at Baker McKenzie Amsterdam and heads the real estate practice. He is also the contact for sustainability in the Netherlands.

Paul Goedvolk

“Our expertise in transactions, advisory and disputes across all major markets and industries gives us a top-down view of sustainability. We share our vision and our clients’ sustainability experiences and challenges in a number of ways. In our Amsterdam real estate practice, advising on sustainable real estate is one of our focus areas, in all respects. We have recently developed a tool that allows clients to quickly ask their questions about sustainable real estate. From green financing to renewable energy and energy certificates. As for the latter, the Label C has generated a lot of interest in the market lately.”

Difficulties Paul explains that Label C has come as quite a surprise to some. “There are tens of thousands of smaller offices that still haven’t ticked all the boxes to secure this sustainability rating, but that’s mainly because for so many years it wasn’t treated as a priority.” Despite that the new requirement has been in the offing for almost a decade, many organizations felt the investment was too high. Add to this all the regulations there are to untangle, and it has become a race against the clock for many owners to get their energy label ratings up to scratch in time. Not to mention having to understanding the grey areas and all the questions these raise.

Responsibility for the environment “In fact, many people know little about the consequences of not having a proper energy rating or how to get one”, Paul continues. “We received all kinds of questions. Since ‘sustainability’ is one of Baker McKenzie’s key pillars, we decided to set up a ‘Label C Desk.” This desk is primarily meanth for the Zuidas, given the high density of office buildings here. “But of course people from offices outside the district can also contact us. Obviously, there are many organizations here that also own properties in other areas. Everyone in our team is fully up to speed on the laws and regulations and is able to answer all kinds of questions. We see this as our environmental responsibility: questions are answered for free.” For example, Paul and his colleagues advise on the practical aspects of the requirements, the deadlines and how to apply for a rating.

Municipal priority There are also many questions about enforcing the minimum energy label rating, Paul notes. “If you are required to have one, but you don’t have it (yet), you could wind up facing huge fines, administrative enforcement or even forced closure of the office building. Which essentially means that that you’re not allowed to use the building any longer, so then it’s lights out.” All the same, Paul says many organizations are doubtful such inspections will actually be carried out. “The system of enforcement is not geared to this at the moment, but that doesn’t mean you can’t expect a visit.” According to Baker McKenzie, this sustainability transition is one of the top priorities for many municipalities. Inspectors have even been around already to check out their office building on Claude Debussylaan. “Fortunately, we’ve held an ‘A’ energy-efficiency rating for quite some time and we’ve got more investments in the works to upgrade our office in order to meet energy standards. But those inspectors really tend to show up at random moments.

On board This is why Paul stresses the importance for property owners of making sure their office buildings meet the minimum energy label standards. “This transition is happening, and we all have to do our bit. But that compulsory aspect, and mainly the big investments that may be needed – this concerns people. On top of all of the other measures happening in the real estate market, this is yet another one that is simply going to cost money.” It complicates things, Paul agrees, but he has also seen that many organizations are on board. “Everyone is willing to do their part, but I get that people are grappling with how to go about it. And that’s precisely why we set up this Label C Desk, to answer all those questions about the energy label rating requirements.”

As from 1 January 2023, all office buildings (with some exceptions) are required to have an energy label C. Go green and avoid fines by investing in an environmentally friendly office! Questions about where to start? Get in touch with the Baker McKenzie’s Energy Label C Desk via labelc-desk@bakermckenzie.com.

Baker McKenzie Amsterdam Claude Debussylaan 54 1082 MD Amsterdam www.bakermckenzie.com