Groundsure: Law Society Releases 2025 Climate Change Practice Note for Property Transactions

 12th May 2025, the Law Society of England and Wales published its much-anticipated Practice Note on Climate Change, building on its 2023 guidance that addressed solicitors’ professional duties across various practice areas in the context of climate change.

The new Practice Note focuses specifically on solicitors’ responsibilities in property transactions. While not legally binding, it sets out the Law Society’s view of best practice, lists a whole host of possible physical risks to property and offers practical advice. For those already factoring climate risks into their work, it won’t require major changes, if any change at all. Yet, it’s a welcome addition and, for anyone waiting until it was launched, offers guidance on climate change reporting for property transactions.

Climate Risks are Broadly Grouped into Three Categories:
  1. Physical Risks – such as extreme weather events that could affect a property’s insurance, financing, market value or usability. The most significant concerns include flooding, coastal erosion and ground subsidence. 
  2. Transition Risks – stemming from policy, regulatory or market changes aimed at supporting the move to Net Zero. For property, this includes impacts from the Minimum Energy Efficiency Standards (MEES), especially relevant to commercial properties and residential landlords.
  3. Liability or Legal Risks – arising from the consequences of physical or transition risks. Examples include increased insurance costs due to flooding or penalties for failing to comply with or advise on MEES obligations.
Which Transactions Might be More Susceptible to Climate Than Others?

It’s our view that climate change is just an extension of the more traditional environmental risks, such as contaminated land or flooding. It’s difficult to pinpoint exact areas where climate change may be more of a concern but we can offer a broad guide.

  • Cliffside Areas: Cliffside areas along the coast are more susceptible to coastal erosion which will be exacerbated through climate change. 
  • London and the South East: Areas such as London and the South East are more susceptible to increasing subsidence risks due to the shrink-swell nature of clay soils. 
  • Areas Already at Risk of Flooding: These are more than likely going to get worse without significant investment in flood defence infrastructure. 

Whilst there are other physical risks listed in the practice note, these are just some examples of risks that may pose an issue to property, and the list could have been endless. 

Selecting Climate Searches: What to Consider

When choosing a climate or environmental search, keep these points in mind:

  • Avoid data-only reports: Raw data, maps and tables without interpretation aren’t helpful. Opt for providers that offer clear, actionable analysis.
  • Ensure property-specific insights: The search should relate directly to the building and the potential impacts on its use and enjoyment. Whilst the practice note lists out a whole host of physical risks, it’s important to consider if these are just dumped in the report or if they link back to how they may impact the property, whether its the use/enjoyment, saleability, insurance, or mortgageability. There always needs to be an analysis of the risk and information on how it actually impacts the property. Without this, no actionable steps can be taken.
  • Understand the climate model used: Climate projections are based on RCPs (Representative Concentration Pathways), which model future greenhouse gas concentrations.
    • RCP 2.6 (1.6°C) – already surpassed
    • RCP 4.5 (2.4°C) – the most likely scenario
    • RCP 8.5 (4.5°C) – worst-case scenario

Know which scenario your search provider is using and how it influences the results. Some climate data is only available in one RCP, so it’s important to understand how the climate search uses this data within its search.

Finally, remember that property solicitors are legal experts, not climate scientists or specialists in AML or contaminated land. It’s vital to use a search provider whose reports are supported by professional indemnity insurance, can be relied upon by all parties involved in the transaction, and from a company who offers personal support when needed, whether that’s through example client care clauses, advice on risks or just a friendly ear to listen. 

Our Role with ClimateIndex

In 2022, we launched ClimateIndex, integrating climate risk analysis directly into our premium environmental searches for both residential and commercial properties. We deliberately avoided adding extra fees or separate products. Climate risk is simply part of the broader picture. At the time, we were the only provider to do so. Now, others are following our lead. To date, our multi award-winning ClimateIndex analysis has been used in over 1.1 million transactions, and we’re confident we know what we’re doing through listening to our clients and understanding what the market requires. 

Kindly shared by Groundsure