footer shape

Hit enter to search or esc to close

Introduction

In May 2025, the Law Society of England and Wales issued a new practice note on the relationship between climate change and property transactions, following earlier guidance published in 2021 and 2023. This latest update sets out the duties and best practices for solicitors advising clients in conveyancing matters, with a particular emphasis on physical climate risks and practical responses. There is growing support for the Irish legal profession to adopt a similarly forward-looking and climate-conscious approach[1] and the Irish Government’s commitment under the Climate Action and Low Carbon Development (Amendment) Act 2021 (to reach net zero emissions by 2050 and cut emissions by 51% by 2030) will drive significant policy, regulatory, and market changes. Changes will also be necessitated by the European Union’s Energy Performance of Buildings Directive[2], which promotes the improvement of the energy performance of buildings and the reduction of greenhouse gas emissions from buildings within the Union, with a view to achieving a zero-emission building stock by 2050. These changes introduce legal risks for property owners and developers, such as liability for emissions or non-compliance with new standards.

Key Responsibilities

Climate change is affecting every sector of society, and legal professionals (particularly conveyancers) must now incorporate climate-related risks into their legal advice. The built environment, including the construction, heating, and cooling of properties, is responsible for nearly 40% of all global carbon emissions.[3]

The risks associated with climate change fall into three principal categories:

  • Physical Risks: These include direct threats such as flooding, coastal erosion, and subsidence. For example, if a property lies within a floodplain, solicitors must consider and communicate the implications of increased flood risk, insurance availability, and the potential impact on value and financing.
  • Transition Risks: These arise from shifts in policy, public opinion, or market conditions in response to climate change. A change in buyer sentiment could affect asset values, or certain properties may become uninsurable or unmortgageable. A property’s Building Energy Rating (BER) will influence retrofit costs and/or mortgage decisions.
  • Liability and Legal Risks: These stem from the consequences of physical and transition risks, including legal obligations and potential claims. For example, failing to disclose material climate risks might lead to litigation or regulatory penalties. The Law Society advises that, where relevant, solicitors should inform clients of the legal implications associated with such risks as part of their due diligence and advice.[4]

 

Broader Implications for Legal Practice

Climate-related legal issues may not always fall within the core scope of a solicitor’s retainer, but like tax or regulatory matters, they can have a material impact. As climate change accelerates, such risks will increasingly influence legal practice.

Legal duties may therefore evolve to reflect a broader responsibility to account for climate risks. Solicitors may need to address climate issues even if they fall outside the client's explicit instructions, particularly when acting for clients focused on sustainability, insurance coverage, or long-term asset value.

Practical Guidance for Conveyancers

The Law Society of England and Wales recommends that conveyancers explain to clients the option of commissioning a climate risk report and document the client’s decision. These reports are similar in function to traditional environmental due diligence but now encompass a broader scope, including:

  • A Property’s Carbon Footprint (particularly large-scale commercial properties)
  • Coastal erosion risk (e.g., cliffside properties)
  • Subsidence vulnerability
  • Existing and projected flood risks

Reports should provide tailored insights into how specific climate risks impact the individual property and offer practical recommendations.

Solicitors should clarify that they are not qualified to advise on the technical or financial consequences of climate risks. Instead, they should recommend that clients consult relevant professionals such as building surveyors. If a solicitor is also acting for a lender, they must seek the lender’s instructions regarding any climate risk findings.

The scope of climate-related legal advice should be clearly defined in the engagement letter and/or, addressed in the report on title to reflect findings as the transaction progresses.

Conclusion

While not all solicitors currently have the expertise to provide in-depth advice on climate risks, these issues are becoming increasingly material to property transactions. It is likely climate-related considerations will become intertwined with legal instructions will over time as the issue becomes increasingly central to the basis upon which such decisions are made.

In that context, there is a need for increased education and awareness in the Irish legal profession to ensure climate risks are properly assessed and communicated. By taking proactive steps now, legal practitioners can better protect clients, support informed decision-making, and align with the evolving regulatory landscape.

 

[1]   Gordon Smith, ‘The Change Agent’ [2023] 117(1) Law Society Gazette 27 https://www.lawsociety.ie/globalassets/documents/gazette/gazette-pdfs/gazette-2023/jan-feb-2023-gazette.pdf
[2] Directive (EU) 2024/1275 of the European Parliament and of the Council of 24 April 2024 on the energy performance of buildings (recast) (Text with EEA relevance) https://eur-lex.europa.eu/eli/dir/2024/1275/oj/eng
[3] United Nations Environment Programme [2020] ‘2020 Global Status Report for Buildings and Construction: Towards a Zero‑emission, Efficient and Resilient Buildings and Construction Sector’ Nairobi. https://globalabc.org/sites/default/files/inline-files/2020%20Buildings%20GSR_FULL%20REPORT.pdf
[4] Law Society of England and Wales, [2025] ‘Climate change and property’ https://www.lawsociety.org.uk/topics/climate-change/climate-change-property

Awards, Membership and Recognition

Law Society Badge
PNLA
LQSI Green Practice Charter

Meet the Team

Related