Mackenzie & Maggie’s Clause places a 'light green' obligation on shareholders to work towards operating the company in a carbon neutral manner.
Why use this?
Mackenzie & Maggie’s Clause does not set specific targets for when carbon neutrality should be achieved. As such, it might be appropriate for a company that is embarking on its emissions reduction journey, or which is a new or fast-growing company that does not yet have a good understanding of its emissions profile.
Mackenzie & Maggie’s Clause adapts [Callum & Theo’s Clause] Climate Standard Transaction Terms for use in Aotearoa New Zealand.
How to use this clause
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The clauses on this website have been prepared in good faith on a pro bono basis and are free to download and use. The clauses have been drafted and edited by a variety of lawyers and, as such, the approaches to drafting may not conform to any particular drafting norms. We acknowledge this as a consequence of the collaborative drafting process.
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Carbon Footprint means the total annual Scope 1, 2 and 3 Emissions relating to the Business operations.
Carbon Neutral means the reduction and offset of the Company’s Carbon Footprint on an annual basis, achieved by:
(a) first, using reasonable endeavours to reduce its Carbon Footprint; and
(b) second, offsetting* its residual Carbon Footprint (for example, by purchasing (and cancelling) New Zealand units as defined in the Climate Change Response Act 2002).
Scope 1, 2 and 3 Emissions means the three classifications of emissions in The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard, Revised Edition 2015, as updated periodically.
* [Drafting note: To define offsetting, consider using the TCLP Glossary: Offset or Offsetting.]
1. Carbon neutrality
The parties agree that their collective intention is that the Business of the Company should be conducted in a manner which is at least Carbon Neutral and agree to work together in good faith to further that intention.