Climate clause

Report on Title – Climate Change Clauses

Marni's Clause

Where climate change risk searches are unavailable, standard climate change statements should be added to a report on title to make buyers aware of the future risks that may affect the property.

This is a net zero clause

This clause aligns with Paris Agreement goals, Race to Zero requirements and the Oxford Principles for Net Zero Aligned Carbon Offsetting. For tools and support to use this clause, use our toolkit or join one of our events.

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Why use this?

To improve transparency and reporting about the physical, transition and future liability risks of climate change for properties in the UK.

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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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The clause

Additional provisions to add to a report on title

1. Interpretation

The following terms are used in this report:

Climate Change means the long-term and material changes in global or regional weather patterns including, temperature, humidity, precipitation, or wind.

2. Scope of the Review and Limitation of Liability

[No searches are available to clarify the risks to the Property from Climate Change and] [We/ we] have not sought advice from Climate Change scientists or consultants specialising in climate risk analysis. We have summarised the general risks to the Property from Climate Change based on the Bank of England risk analysis but have not taken any steps to verify these risks and express no opinion on the likelihood of their occurrence.

[Drafting note: Property searches are likely to become increasingly available for climate risks to properties, at differing levels of granularity.]

3. Climate Change Risks

The Property could be subject to the following risks in the future as a result of the impacts of Climate Change and the transition to a net zero emissions economy. These risks could affect the future value as well as the ability to obtain future borrowing against the property and policies of insurance.

3.1 Physical Risks – According to the Bank of England, Climate Change ‘means we may face more frequent or severe weather events like flooding, droughts and storms’* and gradual onset changes. As such you should consider whether such events could interrupt your intended use of the Property. For example, it may be more likely that the risks identified in your Flood Risk Report will occur as a result of Climate Change [or even that flooding not shown in that report may be likely]. You may also like to discuss with your surveyor how the Property could be made more resilient to the effects of Climate Change, including heatwaves, drought and energy blackouts.

3.2 Transition Risks – UK government policy has set a target to achieve net zero emissions by 2050. The Property has an Energy Performance Certificate Rating of []. It may be that as a result of policy changes required to achieve net zero you will be required by law to invest in improving the energy efficiency of the Property such as using additional insulation, installing solar panels and battery storage, installing an electric vehicle charging point, swapping gas boilers or wood-burning stoves for heat exchange pumps and taking steps to avoid embedded carbon within the materials of the property when repairing and renovating.

3.3 Future Liability Risk – If you are buying the Property as an investor or business you should report the potential Physical and Transitional Risks to your investors, shareholders or funders so that you have adequately disclosed the Climate Change related financial risks to them.

* [Drafting note: See Bank of England, Climate change: what are the risks to financial stability?]

Glossary references: Climate Change

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