This Practice Note is part of the Environment new starters lease transactions collection. It highlights the key environmental issues that landlords and tenants should consider at the outset of a lease transaction, such as whether environmental reports (desktop, phase 1, phase 2, asbestos, fire assessment) are required, who the asbestos dutyholder is, what the energy performance certificate (EPC) indicates in terms of the building’s energy efficiency, whether the tenant will require environmental permits, what the position is where contaminated land liabilities are relevant and whether any tenant environmental covenants are required. It also highlights key areas of liability such as land contamination, water pollution, flooding, invasive species (such as Japanese knotweed), underground storage tanks, illegal deposit of waste, landfills, permits, asbestos, Energy Performance Certificates (EPCs), obligations under the minimum energy efficiency standards (MEES) regime, climate change risk and nature and biodiversity. It has been produced in partnership with ELM Law.