This clause gives businesses a tool to require their suppliers to use fewer Single Use Plastics (SUP) in the provision of facilities services.Skip to clause
Why use this?
Service providers will be financially incentivised to reduce the use of SUP.
If this became a standard requirement for public sector contracts this would create a new market norm.
Whilst the specific example of SUP has been used in the precedent clauses, the solution and concept can be applied to all manner of CO2 emitting products.
How it promotes a net zero future
Reducing demand for SUP will reduce the corresponding CO2 emissions created during their manufacture (although it is acknowledged that this will be qualified by paper or other alternatives used).
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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.
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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 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 Payment Deduction means a deduction from a Service Payment.
Service Provider means [●].
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.
Services means [●].
Single Use Plastics 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 [●].
- 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).
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
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 Reduction Target
|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 At Risk Amount shall be the maximum aggregate Service Payment Deduction in respect of a failure to meet the Reduction Target in the Measurement Period.
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 Payments made under this Agreement as appropriate.