Consolidated Sustainability Clauses for Supply Chain Contracts

A consolidation and updating of TCLP’s key supply chain clauses. This clause covers the setting of greenhouse gas emissions targets and sustainability requirements throughout the term together with a range of remedies, dispute resolution options and incentives.

A clause for supply contracts incentivising climate change adaptation in product supply chains. 

A clause obliging stakeholders in renewable energy technology supply chains to lower their carbon emissions, minimise their environmental impact and safeguard against modern slavery.

A simplified and consolidated version of TCLP’s existing supply chain clauses which includes responsibilities for meeting decarbonisation targets and reporting together with cascading obligations and price adjustment mechanism.

A standardised green supplier schedule that helps purchasers to reduce Scope 3 emissions by incentivising their supply chain to adopt environmental targets.

The clause gives customers a right to switch supplier if their existing supplier is unable to match a ‘greener’ offer made by an alternative supplier.

A Target Product Carbon Footprint budget (which reduces over time) for each product manufactured and supplied pursuant to the contract.

Using supply chain contracts to extend positive climate change measures adopted in one country to contracting parties in other countries that may have less of a legislative focus on climate.

A pro forma scorecard to be incorporated into commercial agreements as a schedule, allowing supply chain sustainability to be viewed through the lens of risk to business continuity.

Insert at purchase warranties for environmental performance and continuous improvement obligations. This will build in long term environmental improvements and transparency into supply agreements.

A questionnaire for a third party to put to a company or other organisation to find out more about its taking decarbonisation or net-zero transition plan.

A precedent clause for a supply agreement requiring the supplier/ contractor to procure energy from renewable sources.