LS&HC Horizons 2023 - Flipbook - Page 45
Hogan Lovells | 2023 Life Sciences and Health Care Horizons | ESG
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Life sciences and ESG: where do we stand?
While the life sciences and health care industry
has developed technologies which are helping
to further ESG goals, the way that the industry
has developed so far is sometimes difficult to
square with the ESG agenda. This is something
that the UK Real Estate industry is able to
help address:
• The “E”: Over the last decade, commercial
leases have become much greener, with
many leases including binding ‘green’
obligations. As a result, landlords may look
to include green obligations in leases with
LS&HC operators relating to the use and
sources of energy and waste management.
governance issues, such as executive pay
transparency and tax reporting. While such
an approach is not currently ‘market’, over
the coming years we expect to see more
governance-related obligations included
in commercial leases.
What is clear is that the UK Real Estate
industry has an important role to play in
helping the UK’s life sciences and health
care sector develop and grow in an ESGcompliant way.
• The “S”: The LS&HC workforce tends to be
highly skilled, which has historically resulted
in certain barriers to entry. Developers and
investors will often have a role to play in
the development of LS&HC clusters which
provide social enterprise opportunities
allowing those in local communities to
become involved in the sector.
• The “G”: Given the high demand for LS&HC
space, landlords may have a strong enough
bargaining position to require LS&HC
operators to sign up to a memorandum of
understanding which touches upon certain
Graham Cutts
Partner, London
Benjamin Willis
Senior Associate, London
