Climate clauses

SME’s Net Zero Objectives

David's Clause

A 'plug and play' clause for use by SMEs in a variety of contracts. Imposes mutual obligations on the parties to take steps towards net zero, with payment of a climate remediation fee for breach.

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.

Sustainable Soil Management Obligations

Soren's Clause

A set of sustainable soil management obligations allowing businesses to manage their reliance on soil, its functions and related ecosystem services.

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.

Landlord and Tenant Obligations to Provide Renewable Electricity

Lotta's Clause

A low barrier to entry clause that delivers emissions reductions for landlords and tenants by ensuring that electricity supplied to a leasehold property is from renewable sources.

Green Service Charge Provisions for Commercial Leases

Hannah's Clause

Allows landlords to include the costs of improving the environmental performance of leased buildings in the service charge costs (where such works are not otherwise required by statute).

CLLS Certificate of Title: Climate Change Disclosures

Tomas' Disclosure Checklist

Voluntary disclosures to the standard form CLLS Certificate of Title to update investors on environmental and climate disclosures that may affect the long term value of the property.

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.

Modern Methods of Construction (MMC) and Net Zero Provisions for Construction or Development Agreements

Madhavi's Clause

Adapts sustainable practices and net zero aligned provisions from TCLP’s construction clauses for use in MMC contracts.

Conservation Covenant for Soil Preservation and Enhancement

Orli's Clause

A conservation covenant between a landowner or leaseholder and a ‘Responsible Body’ to secure the long-term preservation and enhancement of soil on privately owned, non-agricultural land.

Heads of Terms for Landowner Collaboration on Environmental Schemes

William's Clause

Heads of terms between two or more landowners for a comprehensive collaboration agreement in which they can designate land for entry into a publicly-funded environmental scheme, or a private project.

Promotion of Regenerative Farming Methods through Profit of Pasturage Agreements

Helen's Clause

Clauses for a ‘Profit of Pasturage’ agreement - as an alternative to traditional farm business tenancy clauses - to promote regenerative farming methods controlled by the landowner.

Renewable Energy Requirements in Supply Contracts

Viola's Clause

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

Transparent Sourcing of Greener, Fairer Renewable Energy

Ayshe's Clause

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

Model Smart Mobility Data Sharing Clauses

Suki's Clause

Open-source data sharing agreement clauses, compliant with the general data protection regulation (GDPR), that can be used by cities to enable development of the sustainable mobility sector.

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.

The Net Zero Standard for Suppliers

Matilda's Annex

A simplified and consolidated version of TCLP’s existing supply chain clauses, the ‘Net Zero Standard for Suppliers’ can be annexed to any supply agreement, across all sectors and industries.

Supply Chain Sustainable Land Use Clause and Questionnaire

Rowen's Clause

A Self-Assessment Questionnaire for supply chain contracts to make businesses aware of adverse environmental impacts relating to land use within their supply chain.

Reducing Supply Chain Food Waste

Runa's Clause

Clauses to redress the balance in the food chain by promoting fairness for the producer whilst supporting the customer to ensure produce is not wasted at any point throughout the supply chain.

Maximising the Laden Ratio of Vessels in Shipping Charterparties

Bradleigh's Clause

A charterparty clause encouraging the parties to consider opportunities and cooperate to maximise the laden ratio of the vessel and minimise repositioning voyages in ballast during the charter period.

Incentivising Fuel Efficiency Investments In Time Chartered Vessels

Ariel's Clause

An optional mechanism for time charterparties, to share the cost (between owners and charterers) of upgrades which improve the fuel efficiency of time chartered vessels.

Fuel Reporting Clause for Shipping Charterparties

Aiden's Clause

A clause to be inserted as a rider to time and/ or voyage charterparties combining 'green' fuel use, reporting and disclosure obligations with a levy for using fuels with a higher carbon content.

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.

Green Company Articles

Ragnar's Clause

An underlying framework of green obligations, which target a company’s decision making, internal investments and reporting in addressing material environmental issues for the company.

Auditing Water Usage in Supply Chains

Lagatha's Clause

A clause aimed at reducing the use and wastage of water throughout a company's supply chain by requiring suppliers to provide audit results to the company.

Net Zero Within Company Whistleblowing Policies

Sasha's Clause

Guidelines to incorporate wider environmental protections into companies’ whistleblowing regimes in line with their adopted policies on net zero.

Paris Aligned Company Articles

Pasfield's Clause

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.

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.

Entire Business Net Zero Objectives

Sebastian's Clause

A menu of climate aligned practical steps organisations can require their counterparties to take to transition to net zero.

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.

Subcontractor/ Supplier Self-Assessment Climate Questionnaire (Construction)

Robyn's Questionnaire

A questionnaire which identifies the climate change risk expectations of an organisation and asks subcontractors/ suppliers to self assess across these criteria.

Climate Change Due Diligence Questionnaire for Suppliers

Raphael’s Procurement DDQ

A due diligence questionnaire that asks potential suppliers to provide information regarding a wide range of climate change-related issues going beyond the standard questions.

Stakeholder Company Climate Questionnaire

Javier's Clause

A set of questions that explore the climate position and net zero ambition of an organisation, specifically companies.

Template Board Paper for Significant Contracts/ Transactions

Griff's Clause

Template drafting for board papers with detailed prompts for consideration of the climate impacts of a significant contract/ transaction and the associated climate risks to the business.

Climate Policy Footprint

Emilio's Checklist

A checklist that requests one off or repeated disclosure of a company’s climate-related lobbying, financing, sponsoring and climate leadership activities.

Shareholder Resolutions Relating to a Company’s Climate Change Commitments

Elsie's Resolutions

A template shareholder resolution that sets out obligations relating to a company's climate change commitments.

Net Zero Sponsor Activation Clause

Alexandros’ Clause

A clause focusing on activation of sponsor rights relating to net zero to incentivise change, including a ‘reverse win bonus’ for the Sponsor if they hit their net zero target sooner.

Board Paper Implementing Net Zero for SMEs

Lila's Clause

A board paper for building net zero objectives and targets into corporate strategy and for ongoing monitoring and evaluation of a company’s progress against its net zero targets.

Climate Recitals

Eddie's Recitals

Recitals that frame a contract and the intentions of the parties in terms that are aligned with achieving net zero or net negative emissions and Paris Agreement goals.

Target Product Carbon Footprint (Schedule for Consumer Goods Contracts)

Ming's Clause

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

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).

Benchmarking of Project Greenhouse Gas Emissions

Izzy's Clause

A mechanism that benchmarks a contractor's carbon footprint against the market.