Clauses

Climate-aligned clauses you can use in commercial contracts and legal documents

17 clauses

Wendy's Clause

Climate-Related Disclosure and Emissions Data in Loans (Australian law or APLMA)

A generic reporting or disclosure clause that can be included in the Asia Pacific Loan Market Association (APLMA) information and undertakings provisions of any corporate loan, and is not limited to those loans which are either (i) linked to sustainability goals or (ii) are considered ‘green’ projects. 

Jurisdiction: Australia

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Casper's Clause

Sustainability-Linked Loans

Model clauses, as a set of optional riders divided into product categories and ESG goals, to incorporate SLPs into traditional financing documents, standard T&Cs and finance products. 

Jurisdiction: England & Wales

Updated:

Nozomi's Clause

Net Zero Convertible Loan Note

Makes the qualifying criteria for receiving finance conditional on setting a net zero target and reflects this obligation in a convertible loan note instrument that incentivises net zero performance.

Jurisdiction: England & Wales

Updated:

Bella's Clause

Management Equity Ratchet Terms

A template clause for inclusion in investment documents to financially incentivise management teams to meet targets which are linked to climate change and environmental issues.

Jurisdiction: England & Wales

Updated:

Laith and Irsa's Clause

Interest Ratchet Clause for Carbon Saving

An interest ratchet mechanism for loan facility agreements that lowers the cost of capital for companies who (directly or indirectly) save carbon in their operations. 

Jurisdiction: England & Wales

Updated:

Noah's Clause

Green or Sustainability-Linked Lending Requirement

Rider clauses (for LMA facilities agreements) that require each Lender to confirm that a percentage of its lending is sustainable or 'green' finance.

Jurisdiction: England & Wales

Updated:

Harrison's Clause

Green Loan “Starter Pack”

Green loan clauses that are aligned to the Green Loan Principles (as defined below) by reference to Loan Market Association (LMA) style drafting.

Jurisdiction: England & Wales

Updated:

Frank's Clause

Green Investment Obligations

Amendments to standard non-leveraged investment documents to focus the founders and investee company on climate change and environmental issues with their products, services, and operations.

Jurisdiction: England & Wales

Updated:

Rose's Clause

GHG Emissions Management Plans in Infrastructure and Construction Project Finance

This clause builds climate change mitigation into the environmental/ social standards in Development Finance Institution (DFI) or Export Credit Agency (ECA) finance transactions.

Jurisdiction: England & Wales

Updated:

Larissa's Clause

Facility Agreement Clauses Promoting Sustainability-Linked Loans within the Cement Industry

A set of sustainability-linked clauses to be incorporated into Facility Agreements: including covenants, representations and a ratcheted interest rate linked to emissions reduction performance. 

Jurisdiction: England & Wales

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Stella and Flora's Clause

Environmental Targets for a Limited Partnership Agreement

Amendments and additions to the Institutional Limited Partners Association (ILPA) standard form Limited Partnership Agreement allowing environment, social and governance (ESG) issues to be investigated, raised and incorporated in investment and pricing decisions.

Jurisdiction: England & Wales

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Evie's Clause

Debt Finance Clauses (and LMA Facility Amendments) Promoting Sustainable Water Usage

Drafting for corporate finance documentation whereby interest payments are adjusted based on the borrower group’s performance measured against water sustainability key performance indicators (KPIs).

Jurisdiction: England & Wales

Updated:

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