Climate clause

Reduction of CO2 from Single Use Plastic

Alice's Clause

This clause gives businesses a tool to require their suppliers to use fewer Single Use Plastics (SUP) in the provision of facilities services.

This is a climate clause

This clause brings climate considerations to your drafting. It is not yet net zero aligned. To align this clause with net zero, use our toolkit or join one of our events.

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Why use this?

This clause enables facilities management providers to continuously reduce the volume of single use plastic (and the corresponding embedded greenhouse gas emissions) used in their operations, providing a framework for measurement and payment deductions that will incentivise the supplier. The drafting is easily transferable to other purposes that mitigate climate impacts.

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The clauses on this website (and published in our Climate Contract Playbook) 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.

The clauses on this website (and published in our Climate Contract Playbook) are provided on an ‘as is’ basis and without any representation or warranty as to accuracy or that the clauses will achieve the relevant climate goal or any other outcome.

This website (and the Climate Contract Playbook) does not comprise, constitute or provide personal, specific or individual recommendations or advice of any kind, and does not contain legal or financial advice. The clauses are precedents for legal professionals to use, amend and negotiate using their professional skill and judgement and at their own risk.

While care has been taken in the drafting of these clauses, neither The Chancery Lane Project nor any of its contributors owe a duty of care to any party in relation to their preparation and do not accept any liability for any errors or omissions, nor for any loss incurred by any person relying on or using these clauses or any other person. Users should use their own professional judgement in the application of these clauses to any particular circumstance or jurisdiction or seek independent legal advice.

At present, all the clauses are based on the laws of England and Wales. We encourage the conversion of these precedent clauses for use in other jurisdictions.

The clause

Additional Definitions 

Annual Service Payment means the sum in pounds sterling calculated in accordance with [●].

Business Days means a day other than a Saturday, Sunday or public holiday [in the UK].

Commencement Date means [●].

Commencement Volume has the meaning given to it in clause 1.2.

Employer means [●].

First Measurement Period means the period of [three (3)/ six (6)/ twelve (12)] consecutive months commencing on [the Commencement Date/[●]].

Maximum At Risk Amount means [●]% of the Service Payment paid in that Measurement Period.

Measurement Period means each period of [three (3)/ six (6)/ twelve (12)] consecutive months following the expiry of the First Measurement Period.

Plastic(s) means a material consisting of a polymer within the meaning of Article 3(5) of Regulation (EC) No 1907/2006, to which additives or other substances may have been added, and which can function as a main structural component of final products, with the exception of natural polymers that have not been chemically modified.

Reduction Target has the meaning given to it in clause 1.4.

Service Failure means any breach by the Service Provider of its obligations to provide the Services in accordance with this Agreement and in particular in accordance with the Service Level Specifications.

Service Payment means the sum in pounds sterling payable by the Employer to the Service Provider for the provision of the Services in accordance with this Agreement.

Service Payment Deduction means a deduction from a Service Payment.

Service Provider means [●].

Services means [●].

Single Use Plastic(s) means a product that is made wholly or partly from Plastic and that is not conceived, designed or placed on the market to accomplish, within its life span, multiple trips or rotations by being returned to the producer for refill or reused for the same purpose for which it was conceived.

Supplies means [●].

 

Additional Clauses

1. Reduction of Single Use Plastics

1.1 Over the course of the First Measurement Period, the Parties shall assess and identify the volume by weight [and/ or other measurements] of Single Use Plastics in the provision of the Services [and/ or Supplies] during the First Measurement Period.

1.2 The Parties shall (acting reasonably) agree in writing the volume by weight [and/ or other measurements] of Single Use Plastics used in the First Measurement Period and this volume shall be the Commencement Volume.

1.3 The Service Provider shall provide the Employer with a [monthly/ quarterly/ annual] service report within [five (5) days] [of the end of each Measurement Period] indicating the then current volumes by weight [and/ or other measurement] of Single Use Plastic used in the Services.

1.4 The Service Provider shall reduce the volume of Single Use Plastics used:

(i) in the Services in each Measurement Period by [●]% of the [Commencement Volume/ previous Measurement Period’s volume]; and

(ii) in relation to the [number of meals/ amount of food] provided under the Services (expressed as [[kilogrammes/ tonnes/ other measurement] of Single Use Plastics per [100 meals]] or [[kilogrammes/ tonnes] of Single Use Plastics per [kilogrammes/ tonnes/other measurement] of food] so that reductions are shown to relate to measures taken by the Service Provider rather than any reduction in the [amount of food/ number of meals] provided under the Services) (together the Reduction Target).

[Drafting note: The fixed percentage could be replaced by quantifiable interim targets (in line with the volume of Single Use Plastic(s) used and an ambitious target for reducing and eliminating Single Use Plastic(s) and include a requirement that the Service Provider prepares and delivers a plan to the Employer which sets out how it will achieve the interim targets towards eliminating Single Use Plastic(s) (by way of regular reporting and updating for transparency) rather than just reporting on the volume of SUPs used over the period. Alternatively, this could be an obligation that is triggered if the Supplier fails to reach the Reduction Target.]

1.5 If the Service Provider fails to reduce the volume of Single Use Plastics over the Measurement period by the Reduction Target then:

(a) this shall be deemed a Service Failure; and

(b) a Service Payment Deduction shall be made by the Employer.

1.6 The percentage amount of the Service Payment Deduction made by the Employer pursuant to clause 1.5 shall be calculated as follows (all calculations shall be made for a Measurement Period):

Service Payment Deduction = (Maximum At Risk Amount * 0.1) * Multiplier 

where: 

the Maximum At Risk Amount is as defined at 1.7 below, and 

the Multiplier shall be determined by reference to the table below, depending on the difference between the volume reduction achieved and the Reduction Target:

Band The difference between volume reduction
achieved and the Reduction Target
Multiplier
A Less than or equal to [0.2]% 1
B Less than or equal to [0.4]% but more than [0.2]% 2
C Less than or equal to [0.6]% but more than [0.4]% 4
D Less than or equal to [0.8]% but more than [0.6]% 8
E More than [0.8]% 10

1.7 The maximum aggregate Service Payment Deduction in respect of a failure to meet the Reduction Target in the Measurement Period shall be the Maximum Risk Amount.

1.8 At the date that is [six (6) calendar months] after the Commencement Date (the First Review) (and [annually] thereafter) the Service Provider shall arrange a service review meeting (the Service Review Meeting). The Service Provider and the Employer shall in each Service Review Meeting, review:

(a) the Reduction Target; and

(b) the additional costs incurred by the Service Provider in achieving or exceeding the Reduction Target, 

and make adjustments to the Reduction Target and/ or the Service Payment(s) made under this Agreement as appropriate.

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