In 2017, we completed and incorporated revisions to our standard Green Leasing Language. This new language allows us to: pass through energy efficiency-related capital expenses to tenants, require disclosure of tenant utility consumption information for the purposes of whole building benchmarking in Portfolio Manager, require tenants to purchase ENERGY STAR and/or WaterSense certified equipment and fixtures during tenant improvements, and install submeters to track tenant space energy consumption. As a result of these efforts, we earned the 2017 Green Lease Leaders Award from the Institute of Market Transformation and the U.S. Department of Energy. This leasing language is currently being rolled out across our portfolios.
Principal Real Estate Investors encourages the use of green lease language for its transactions and is developing further guidance for property managers, brokers, and staff. We have also adjusted our standard lease language and direction to property managers to ensure that we and our building occupants remain in compliance with local energy disclosure mandates as they become increasingly prevalent. We recognize that utility costs are part of the total cost of occupancy for tenants and encourage leasing brokers and property managers to recognize this and factor into any lease negotiations.
Lease language is modified to fit specific situations, property types and market conditions. More comprehensive language may be used especially if the building is LEED certified or intends to become LEED certified. The building rules and regulations are also modified to address building standards and building operations and practices.
All leases are required to include the following minimal information:
Energy and Environmental Initiatives. Tenant shall fully cooperate with Landlord in any programs in which Landlord may elect to participate relating to the Building's (i) energy efficiency, management and conservation; (ii) water conservation and management; (iii) environmental standards and efficiency; (iv) recycling and reduction programs; and/or (v) safety, which participation may include, without limitation, the Leadership in Energy and Environmental Design (LEED) program and related Green Building Rating System promoted by the U.S. Green Building Council. All carbon tax credits and similar credits, offsets and deductions are the sole and exclusive property of Landlord.