In Ireland, there is a growing trend towards integrating ESG (Environmental, Social, and Governance) clauses in commercial leases.  

Initially, these clauses were aimed at newly built ‘A’ rated multi-occupation buildings, in which occupiers share common areas and pay service charges, but they are becoming more common in older buildings. 

The following are some considerations: 

1. Environmental Clauses (E) 
   • Energy Efficiency & Sustainability Requirements: 
     • Landlords may require tenants to use energy-efficient systems, such as LED lighting, or to maintain minimum Building Energy Ratings (BER). 
   • Green Fit-Out & Refurbishments: 
     • Tenants may be obliged to carry out fit-out in an environmentally responsible way, using sustainable materials and minimising waste. 
   • Waste & Recycling: 
     • Tenants often must follow recycling protocols, reduce landfill waste, and use waste contractors that meet environmental standards. 

2. Social Clauses (S) 
   • Accessibility & Inclusivity: 
     • Leases may incorporate requirements for the premises to remain accessible under equality legislation (e.g., for people with disabilities). 
   • Community Engagement: 
     • Some landlords encourage or require tenants to support local community initiatives or report on social value contributions. 
   • Employee Welfare Provisions: 
     • Clauses might address amenities like cycling facilities, showers, or healthy workplace design. 

3. Governance Clauses (G) 
   • Data Sharing & Reporting: 
     • Tenants and landlords may need to share data related to energy use, emissions, and other ESG metrics for compliance or reporting purposes. 

Green lease clauses are not mandatory in Ireland, yet. They an area of development and need thought and negotiation. Ideally, they are first agreed at heads of terms stage and, especially if being introduced into older buildings, should be tailored to suit the specific building, the users and the various vested company environmental charters. 

Our commercial team will be happy to advise you in these matters please contact us at 01 873 5012 or info@mcgrathmullan.ie 

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Who Can Apply?

To be eligible for STEP, applicants must meet specific criteria:

• Good Character: No criminal convictions in any jurisdiction.
• Funding: A minimum of €50,000 in available funds to invest in the business.
• Innovation: An innovative business proposal with high potential for growth, job creation, and international scalability.

Application Process

STEP applications are submitted electronically at any time and are reviewed quarterly by an independent evaluation committee. The process includes:

1. Online Application: Submission of business details and proof of funds.
2. Application Fee: Payment to formalise the process.
3. Evaluation: Review by an independent committee assessing the proposal’s viability and compliance with STEP requirements.
4. Approval: Final approval by the Minister for Justice based on the committee’s recommendations.
5. Residency Letter: If successful, the applicant receives a residency letter allowing them to live in Ireland while working on their business.

Conditions of Residency

Successful applicants must adhere to strict conditions to maintain their residency under STEP:

• The business must be established and actively operated in Ireland.
• The entrepreneur must work exclusively on this business; employment in any other capacity is not permitted.
• The applicant cannot become a financial burden on the Irish State.
• Any criminal conviction can result in the withdrawal of residency.
• Failure to meet these conditions may lead to the revocation of residency status.

What Happens if an Application Is Refused?

If an application is unsuccessful, the Department of Justice will notify the applicant in writing, explaining the reasons for refusal. Please note that rejections under STEP cannot be appealed or reviewed, so careful preparation and a well-structured application are crucial.

Is STEP the Right Path for You?

Ireland offers a thriving ecosystem for startups, particularly in technology, pharmaceuticals, and financial services. If you have an innovative business idea, secure funding, and the ambition to expand internationally, STEP could be a valuable route to both entrepreneurship and residency in Ireland.

For assistance with your STEP application, McGrath Mullan LLP can provide expert guidance to improve your chances of success. Contact our team today to discuss your business proposal and eligibility. info@mcgrathmullan.ie or 01 873 5012

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Many landlords and tenant seek to let property on short term leases of between 12 months and 4 years and 9 months.

The reason the cut-off point of 4 years 9 months is used is because once a tenant is in occupation for more than 5 years they obtain a statutory entitlement to a new long lease of up to 25 years at market rent.

This can be at odds with the landlord’s long term strategy for the use of the property.

Often tenants are asked to sign a renunciation – a legal acknowledgement by the tenant that even if the tenant remains in occupation for 5 years or more, they will not automatically be entitled to a new long lease.

The tenant needs obtain independent legal advice before signing the renunciation.

We can advise landlords and tenants on the merits of putting a renunciation in place before entering into short terms leases of commercial property. Contact our team today at info@mcgrathmullan.ie

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