Boston’s 2013 Building Energy and Reporting Disclosure Ordinance (BERDO) was amended in September 2021 to expand the energy reporting and disclosure requirements to a targeted carbon reduction regime. Adoption of environmental, social, and governance (ESG) regulations, like BERDO 2.0, impose new obligations on commercial buildings. The amendments, known as BERDO 2.0, enhance existing regulations to reduce carbon emissions for several categories of large existing buildings, and include several new benchmarks and requirements commencing in 2025. Owners and managers of commercial buildings should be aware that failure to comply with emissions standards or to accurately report data may result in costly fines, and should implement strategies to comply in advance of the new deadlines.
The effect of ESG regulations will vary depending on a building’s infrastructure, uses, and tenants. Building owners and managers should review and update leases to comply with enacted, imposed, or voluntary ESG procedures, including BERDO 2.0.
To read more, click here: https://www.sherin.com/real-estate/2024/07/16/updating-commercial-real-estate-leases-for-esg-regulations-including-bostons-berdo-2-0/