--- title: Paris Aligned Company Articles date: 2024-03-27T14:17:40Z modified: 2025-07-23T11:26:45Z permalink: "https://chancerylaneproject.org/clauses/paris-aligned-company-articles/" type: clause status: publish excerpt: "" wpid: 2231 jurisdiction: - England & Wales maintenance-status: - Not maintained practice-area: - Corporate, mergers and acquisitions (M&A) sector: - Environment clause_child_name: "Pasfield's Clause" clause_summary: "

A net zero focused variation of Arlo’s Clause (ESG Aligned Company Articles) to include in a company’s articles of association, drafted by reference to TCLP’s net zero resources.

" clause_last_updated_date: 2021-09-30 related_clauses: false --- ## Child’s name Pasfield’s Clause ## Summary A net zero focused variation of Arlo’s Clause (ESG Aligned Company Articles) to include in a company’s articles of association, drafted by reference to TCLP’s net zero resources. ## What this clause does This clause requires company directors to undertake that the company’s business and activities align with the specified high level climate ambition set out in the clause. This will require directors to keep that climate ambition at the fore in decision-making and corporate governance. Furthermore, publicising the company’s alignment with Paris Agreement goals will bolster the corporate brand, reputation and trust with clients and consumers. ## Clause Content **Additional Articles** 1\. The company’s objects are to carry on business as a general commercial company and, through its business and operations, to: 1.1 \[in so far as is possible\] reduce or eliminate any process or activity within its control which releases GHGs and to pursue all efforts to achieve Paris Agreement Goals by implementing continuous, measured reductions in GHG Emissions consistent with a maximum effort toward achieving or exceeding a fair share of the 50% global reduction in CO2 by 2030; 1.2 set a Net Zero Target for the company that is aligned with achieving Paris Agreement Goals \[aligned with the latest climate science as consistent with avoiding the worst effects of Climate Change, as validated and published by\]/\[validated by\] the Science Based Targets initiative, being both the reduction of GHG Emissions overall referred to in article \[1.1\] and the removal of GHG emissions associated with Offsets referred to in article \[1.3\] by \[insert date\]\* to achieve the Net Zero Target; _\*_ \[_Drafting note: this date should be no later than 2050 and ideally before._\] 1.3 implement an Offsetting Strategy \[and establish a programme of contributions (in addition to those made through the purchase of offset credits and not linked to either the offsetting of Residual Emissions or the calculation of net zero) to the preservation and restoration of natural sinks of GHGs\]; 1.4 \[consider \[and, where practicable, implement,\] methods in which the Company\[, in the course of \[or adjunct to\] its business,\] can increase the ability of all individuals to adapt to Climate Change; 1.5 foster climate resilience and low GHG emissions development, including to: 1.5.1 take Climate Change considerations into account, when determining the company’s relevant social, economic and environmental policies and actions; 1.5.2 employ appropriate methods with a view to promote public health and improve on the quality of the environment, through projects or measures undertaken by the company to mitigate or adapt to Climate Change; 1.5.3 where appropriate, cooperate in scientific, technological, technical, socio-economic and other research and education, training and public awareness related to Climate Change; 1.5.4 provide an environmental and sustainability training programme on a regular basis \[at least annually\] for employees, personnel and contractors during their usual working hours (and online as required) which will cover: (a) details of the company’s public and contractual commitments, targets and governance in relation to Climate Change and sustainability; (b) the latest climate science as presented by the [Intergovernmental Panel on Climate Change](https://www.ipcc.ch/); (c) climate change policy and relevant legal context (including core terms of the Paris Agreement and any national implementation measures); (d) the economic and social (e.g. health) benefits to the company in reducing the workplace’s environmental impact; (e) sustainable lifestyle changes and issues relating to the workplace; and (f) other topical climate and sustainability issues; \[_Drafting note: users of this clause should consider the types of training and educational content relevant to the specific company, as well as the company’s capacity and resources._\] 1.5.5 seek to enable all actors to contribute to the global transition toward \[net/gross\] zero through engagement, information sharing, access to finance, and capacity building; 1.5.6 use finance that is consistent with \[1.5\] above; and 1.5.7 formulate a plan for the company’s GHG emissions to be Net Negative; 1.6 periodically update and report to members (at least annually) and publicly on the company’s progress towards meeting the NZ Target (externally verified by a suitably qualified professional), which shall include: \[1.6.1 inventories of anthropogenic emissions by sources and removals by sinks of all Greenhouse Gases (including specifying what sinks or credits are used to make what, if any, neutralisation or compensation claims and details of the underlying offsetting projects); 1.6.2 measures being taken by the company to facilitate adequate adaptation to Climate Change; and\] \[_Drafting note: delete the bracketed text of articles 1.6.1 and 1.6.2 if already covered/ overlapping with existing reporting requirements of the Company_\] 1.6.\[3\] compliance by the company with the objects set out in article \[1\]; \[_Drafting note: consider whether to replace or combine this with the requirement to disclose to_ [_CDP_](https://www.cdp.net/en/)_, or_ [_Sustainability Accounting Standards Board_ ](https://www.sasb.org/)_(SASB)_\] 1.6.\[4\] the climate risks and opportunities to the Company in accordance with the recommendations of the [International Financial Reporting Standards Foundation (IFRS)](https://www.ifrs.org/sustainability/tcfd/); 1.6.\[5\] how the effects on key stakeholders (including but not limited to employees, clients, end customers and supply chain partners) of the measures taken by the company to mitigate its GHG Emissions can align with a just transition to net zero; and 1.6.\[6\] details of all climate policy engagement, climate leadership, lobbying activities, trade association memberships and public policy positions that directly or indirectly relate to the Paris Agreement. ## Topics **Jurisdictions:** [England & Wales](https://chancerylaneproject.org/news/jurisdiction/england-wales/) **Maintenance status:** [Not maintained](https://chancerylaneproject.org/news/maintenance-status/not-maintained/) **Practice Areas:** [Corporate, mergers and acquisitions (M&A)](https://chancerylaneproject.org/news/practice-area/corporate-mergers-and-acquisitions-ma/) **Sectors:** [Environment](https://chancerylaneproject.org/news/sector/environment/)