Five ways to unlock nature-positive action through contracts

We recently shared key insights from our research on how legal contracts help mitigate nature-related risks and promote nature-positive action across industries.

Our findings revealed that while nature-positive contracting practices are emerging across sectors, challenges still hinder or delay progress. 

This blog outlines key areas where organisations can take action to help unlock the full potential of nature-positive contracts.

1. Strengthen nature governance from the top down: Integrate the consideration of nature into your transition plan, strategic decision-making and delivery of key transactions and contracts at the board level and across management and delivery functions.

2. Use contracts to identify nature risks and opportunities: Leverage due diligence questionnaires and obligations in supply contracts to get information from your supply chain. Consider providing finance or training resources to help suppliers and partners respond, where necessary.

3. Leverage established processes and knowledge: Save time and enhance efficiency by building on existing processes. For instance, leverage data collection, environmental compliance, and procurement practices to guide how contracts can be used to address nature risk. Whenever possible, draw on relevant experience and insights gained within your organisation from the adoption of climate-aligned contracting.

4. Use contracts to respond to nature risks and opportunities: Engage key stakeholders across your organisation—including legal, procurement, finance, and commercial teams—to explore how contracts can support your response to the priority risks and opportunities identified within your operations and supply chains. This will depend on your organisation’s specific nature goals, as well as the sectors and jurisdictions in which you operate.

5. Strengthen collaboration and coordination: Foster collaborative and coordinated efforts among key stakeholders involved in nature governance and contract management within your organisation. Additionally, engage external partners such as suppliers, business collaborators, and investors to ensure alignment and shared goals.

How are you and your colleagues using contracts to drive nature-positive action within your organisation? Share your insights with us, or sign up to support us with further research in this crucial and evolving area of legal practice.