Interview with Henri Chapouthier, Head of Sustainable Development at Icade

ICADE is an integrated real estate company—both a developer and a landowner—with a long-standing commitment to the low-carbon transition.

After 10 years of "green lease" And in response to the climate emergency, ICADE’s real estate arm has decided to launch the Bail Engagé Climat© in 2022, the first lease in France to require a shared goal for both parties to reduce GHG (greenhouse gas) emissions in line with the Paris Agreement.The Bail Engagé Climat® is methodologically based on the NZI framework^[1] in order to ensure its alignment with global carbon neutrality goals.

Carbone 4 spoke with Henri Chapouthier, head of sustainable development at Icade, to learn more about this initiative.

Carbon 4: How can a real estate company like ICADE contribute to global carbon neutrality?

Henri Chapouthier : The Paris Agreement established the principle that Every stakeholder must contribute, to the extent appropriate, to achieving carbon neutrality. This goal is particularly ambitious for the construction sector in France, which is committing to one of the most demanding greenhouse gas emission reduction trajectories. For the real estate company Icade, which means reducing the carbon intensity of its real estate portfolio by 60% between 2019 and 2030.

At ICADE, we have analyzed the potential of all the solutions available to us for reducing emissions from our building portfolio: replacing gas boilers with heat pumps, renovating our buildings, promoting energy efficiency, raising awareness among our tenants, and so on. However, even with the implementation of these measures, we have found that it would be impossible to achieve our goals without the active participation of our tenants in this effort.

“Since the emissions reduction target for the building sector is particularly ambitious, it is essential to involve tenants in order to make it achievable.”

Carbone 4: How did the Bail Engagé Climat© come about, and what challenges does it address?

Henri Chapouthier : Recognizing the importance of dialogue between landlords and tenants in achieving environmental goals, Icade introduced green leases and established environmental committees for its property portfolio as early as 2010. However, the green lease does not address climate issues or include emissions reduction targets.

As a result, Icade wanted to take things a step further by developing a The “Engagé Climat©” Lease, which commits both the tenant and the landlord to contributing their fair share toward carbon neutrality, including a shared, quantified goal for reducing greenhouse gas emissions from buildings. Incorporating this concept into a commercial lease is a first in France.

Carbon 4: In practical terms, what is the Climate Commitment Lease©?

Henri Chapouthier : The Bail Engagé Climat© is a charter attached to the lease that sets out the level of ambition, the methodology, and the commitments of each party regarding the building’s carbon performance.

Each party bears its share of responsibility : For example, if the carbon reduction target is not met due to poor insulation, this affects the building’s envelope, and it is therefore the landlord’s responsibility to correct this. Another example: if the tenant sets the thermostat too high in winter, the tenant must take action; otherwise, the Climate-Committed Lease© becomes null and void.

The Bail Engagé Climat© goes even further by proposing measures to reduce GHG emissions outside of buildings, focusing on transportation, waste, and other areas.If the targets for the first two pillars (inside and outside buildings) are met, ICADE commits to helping increase carbon sinks in France, particularly through the French Low-Carbon Label, to an amount equal to the residual GHG footprint of the buildings.

Carbon 4: How do you go about launching such an initiative, and what pitfalls should you avoid?

Henri Chapouthier:The key element of the Bail Engagé Climat© is people. To ensure its implementation, it is essential to establish a ongoing and constructive dialogue between the lessor and the lessee, as ICADE has done, for example, through its Environmental Committees over the past decade.

The Climate-Committed Lease© is an innovative pilot program. It is essential to begin by understanding and recognizing the initiatives already implemented by tenant companies, raising their awareness of the implications of the Climate-Committed Lease© at all levels, and adapting its framework to each tenant company’s specific climate strategy.

The key is to start by working with companies that are willing to commit, to demonstrate that this approach is feasible, and to create positive momentum which encourages other tenant companies to follow suit.

Carbon 4: What are the benefits for tenant companies of getting involved in this initiative?

Henri Chapouthier :For tenant companies that are already committed and have already implemented initiatives, the Bail Engagé Climat® offers the opportunity to accelerate progress toward their carbon footprint reduction goals… For tenant companies looking to get started, the Bail Engagé Climat® provides a structured, established framework that allows them to organize their approach with the support of their landlord and facilitates the launch of an internal climate policy.

Carbon 4: In 2040, what is the status of the Bail Engagé Climat®?

Henri Chapouthier : In 2040, The Bail Engagé Climat® is standardized, among all ICADE tenants, of course, but also among all real estate stakeholders. In fact, it is no longer just a Climate-Committed Lease®, but a lease that more fully incorporates the major environmental and social issues facing the construction industry, such as biodiversity, inclusion, and the circular economy.

➡️ Read the interviews with Seqens and the La Rochelle Carbon Cooperative, who discuss their respective approaches to the transition to carbon neutrality and achieving it.