Interest Ratchet Clause for Carbon Saving
Laith & Irsa's Clause
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.
Climate clauses:
Finance, Accounting & Tax
Green or Sustainability-Linked Lending Requirement
Noah's Clause
Rider clauses (for LMA facilities agreements) that require each Lender to confirm that a percentage of its lending is sustainable or 'green' finance.
Landlord and Tenant Obligations to Create Additionality in Renewable Electricity Generation
Oisín’s Clause
A series of stepped options for commercial leases that help corporate landlords and tenants generate additional 'green' electrons for the electricity grid where their leasehold property is located.
Net Zero Obligations in FIDIC Engineering, Procurement and Construction (EPC) Contracts
Olivia's Clause
Clauses to include in the International Federation of Consulting Engineers (FIDIC) form of EPC contracts, obliging the contractor (and any subcontractors) to act sustainably in carrying out the works.
ESG-Linked Pricing Adjustment for Derivatives Transactions
Lara's Clause
A generic guide and checklist to introduce sustainability-linked principles into derivatives documents where the ESG-related performance criteria is not linked to any other underlying loan documents.
Environmental Targets for a Limited Partnership Agreement
Stella & Flora's Clause
Amendments and additions to the ILPA standard form Limited Partnership Agreement allowing ESG issues to be investigated, raised and incorporated in investment and pricing decisions.
Green Shareholders’ Agreement (Short Form for SMEs)
Ava's Clause
Amendments to a standard early stage shareholders’ agreement for SMEs that enable investors to hold an SME to account on climate change issues and align all parties’ interests with achieving net zero.
Repair or Refurbishment in Insurance Claims
Paolo's Clause
A clause granting insurers the right to repair damaged goods or replace these with a refurbished alternative, removing the legal barriers that insurance policies typically place against this.
Parametric Insurance Incentives for the Protection of Coral Reefs
Nemo's Clause
A set of clauses to sit within a parametric insurance policy that incentivise insured parties to provide for the rapid restoration of coral reefs after catastrophic weather events.
Climate-Related Knowledge Sharing Between Insurer and Insured
Lovisa's Clause
A clause designed to increase communication between insurers and insureds, put the topic of climate change on the agenda and promote sustainable practices in line with a net zero future.
Incentives for Insured Parties to Disclose and Meet GHG Emissions Targets
Millie's Clause
Millie’s Clause adapts Connor’s Clause to place additional disclosure obligations on the insured if it changes, meets or fails to meet its emissions reduction targets, linked to premium adjustments.
General Condition to Commercial Insurance Policies: Climate Change Risk Assessment
Kitty's Clause
A clause requiring companies to carry out a climate change risk assessment, to be inserted into the General Conditions of corporate insurance policies across all lines of business.
Debt Finance Clauses (and LMA Facility Amendments) Promoting Sustainable Water Usage
Evie's Clause
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).
Green Dispute Reporting in After the Event Insurance Policies
Charlotte's Clause
A clause for insurance policies covering dispute costs and expenses (such as After The Event (ATE) Insurance policies) that requires the insured to conduct disputes in an environmentally friendly way.
Insurance: Disclosure and Mitigation of Pending Climate Change Litigation
Cassie's Clause
A clause ‘extending’ insurance policies to cover pending climate change litigation, on the condition that the policyholder discloses its net zero targets and climate risk exposure.
GHG Emissions Management Plans in Infrastructure and Construction Project Finance
Rose's Clause
Rose's Clause builds climate change mitigation into the environmental/ social standards in Development Finance Institution (DFI) or Export Credit Agency (ECA) finance transactions.
Climate Checklist for Prospectuses and Other Public Offering Documents
Tilly's Clause
Helps issuers of debt securities tasked with drafting risk factors for prospectuses to assess the financial impacts of climate-related risks and provide climate-related risk factor disclosure.
A Beginner’s Guide and Checklist for Accessing Sustainability-Linked Loans (SLLs)
Clara's Guide & Checklist
This guide and checklist can be used to introduce borrowers to, and encourage them to access, Sustainability-Linked Loans (SLLs).
Net Zero Completion Adjustment Clause
Felix's Clause
A net zero/ carbon budget adjustment clause included as part of a completion accounts mechanism to provide “Carbon Certainty”.
Green Transaction Execution Protocols
Evan's Protocols
Green execution protocols which parties can adopt at the start of a transaction to minimise the carbon footprint of deal execution.
Climate-Related Disclosure in Loans
Anna's Clause
A generic reporting/disclosure clause that can be included in the Loan Market Association (LMA) information and undertakings provisions of any corporate loan and is not limited to 'green' loans.
Facility Agreement Clauses Promoting Sustainability-Linked Loans within the Cement Industry
Larissa's Clause
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.
Capital Markets ESG Due Diligence Questionnaire
Gordon's DDQ
A capital markets focused due diligence questionnaire (DDQ) requiring the company to provide information regarding its impact on and considerations of climate change issues for the present and future.
Exclusions from Insurance Coverage for Climate Harms
Connor's Clause
An explicit exclusion from cover for climate liability, costs and losses where the Insured fails to meet its GHG emissions reduction targets.
Sustainability-Linked Loans
Casper's Clause
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.
Climate Standard Transaction Terms
Callum & Theo's Clause
Model climate terms and conditions that an impact investor financing private sector infrastructure in developing countries can incorporate into its standard documents.
SPA/ Investment Agreement: Disclosure of Climate Change Plans
Zack's Clause
Including pro-active disclosure requirements in M&A or investment transactions brings climate targets and aims to the forefront of the minds of management of the target and the buyer/ investors.
Green Acquisition Obligations
Sienna's Clause
A share purchase/ asset purchase agreement clause requiring the purchaser to maintain/ improve the target company's green credentials post acquisition, linked to payment from escrow if successful.
Insurance Premium Adjustment for D&O Climate-related Financial Disclosures
Archie's Clause
This clause incentivises companies to mitigate climate risk through a reduction in insurance premiums for policyholders who meet agreed disclosure standards regarding climate-related financial risks.
Management Equity Ratchet Terms
Bella's Clause
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.
Net Zero Convertible Loan Note
Nozomi's Clause
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.
Green Shareholders’ Agreement
Lauren's Clause
Amendments to a standard early stage shareholders’ agreement which allow investors to hold the company to account on climate issues and oblige all shareholders to support Net Zero.
Green Loan “Starter Pack”
Harrison's Clause
Green loan clauses that are aligned to the Green Loan Principles (as defined below) by reference to Loan Market Association (LMA) style drafting.
Green Investment Obligations
Frank's Clause
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.
Climate Purchase Agreement and Underwriting Sponsor Warranties
Dottie's Clause
Extension of director and major shareholder warranties and issuer/director undertakings in underwriting, sponsor and similar agreements in respect of environmental position and climate risk.
Board Minutes: Consideration of Climate Change Factors
Darcy's Board Minutes
Introducing specific drafting into board minutes to encourage directors to consider their net zero targets and/ or carbon footprint and climate change risks as a routine part of their decision-making.