Climate clause

Supply Chain Emissions Scorecard

Maria's Scorecard

A pro forma scorecard to be incorporated into commercial agreements as a schedule, allowing supply chain sustainability to be viewed through the lens of risk to business continuity.

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?

In commercial negotiations, to position sustainability performance as a collaborative effort between the parties, increase the transparency of a supplier’s climate action through a robust reporting framework and give contracting parties the opportunity to precisely quantify where they are in meeting their sustainability requirements.

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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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The clause

Additional Clause 

[Company specific – indicative drafting]

“The pricing mechanisms referred to in clauses [ ] will take effect on the [Effective Date], being the date by which the [main party] receives the Scorecard described in Schedule [ ]”

“The provisions of the [GHG Emissions Agreement] referred to in clause [ ] will take effect on the [Effective Date], being the date by which the [main party] receives the Scorecard duly completed by the [other party] in accordance with Schedule [ ]”

“Supplier must [within [14] days of entry into this agreement/annually/on written request of the Customer] provide the Customer with a completed Scorecard set out in Schedule [ ].”

 

SCHEDULE [ ]
[EMISSIONS SCORECARD]

Target:

Absolute emissions contraction

  • Base year
  • Target year
  • Base year emissions, disaggregated by scope co2

i.e. reduce annual CO2e emissions to x% by 20xx from 20xx levels

Additional Definitions 

Carbon Dioxide Equivalent (CO2e or CO2eq) means the standard metric measure used by [the UN’s Intergovernmental Panel on Climate Change (IPCC)] to compare the emissions from various greenhouse gases on the basis of their global warming potential over a specified timescale.

Scope 1, 2 and 3 Emissions means the three classifications of emissions in the The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard, Revised Edition 2015 as updated from time to time [Drafting note: Scope 1, 2 and 3 emissions defined on page 27 of the GHG Protocol].

Background Information
Company Name: Date:
Number of Employees:
Contact Name: Title:
Contact Email: Contact Phone:
Environmental Policy and Targets 
Do you have a sustainability/environmental/climate policy statement? Yes ☐ No ☐
If yes, please provide link or attach document:
Do you publish a Corporate Social Responsibility (CSR)/Sustainability report? Yes ☐ No ☐
If yes, please provide link or attach document:
Do you have a sustainable procurement policy? Yes ☐ No ☐
If yes, please provide link or attach document:
Do you monitor and track energy consumption at your facility(ies)? Yes ☐ No ☐
If yes, please describe:
Do you have short, medium and long term interim goals or targets to reduce greenhouse gas emissions and/or energy use? Yes ☐ No ☐
If yes, what is/are the target(s):
Are your goals or targets aligned with any best practice standards or initiatives? (e.g. You have signed up to the Race to Zero or validated your targets with the science based targets initiative  Yes ☐ No ☐
If yes, please provide details:
Are your targets aligned to what the latest climate science says is necessary to limit the temperature increase to 1.5°C above pre-industrial levels? Yes ☐ No ☐
If yes, please provide details:
Have you identified (a) year-on-year percentage decarbonisation goal(s) that you aim to meet, consistent with the goal of halving absolute emissions every decade? Yes ☐ No ☐
If yes, please provide details, link or attach document:
Do you have a zero emissions target or net negative target (a target for your emission removals to exceed your emissions and any removals to be “like for like”)?  Yes ☐ No ☐
If yes to either, please provide details:
Do you have a strategy for offsetting your greenhouse gas emissions i.e. to gradually reduce offsetting of only those emissions remaining after all reasonable efforts have been made to reduce emissions of all scopes, as you reduce absolute emissions?  Yes ☐ No ☐
If yes, please provide details, link or attach document:
Do you purchase your offset credits from a recognised provider through a project that has been verified in accordance with [insert name of voluntary standard] (with a view to the offsets being additional, permanent and verifiable)? Yes ☐ No ☐
Please provide details of any offsetting providers and projects, or link or attach document:
Does your offsetting strategy consider the implications of the offsets purchased on global equity and wider social and ecological goals? Yes ☐ No ☐
If yes, please provide details, link or attach document:
Does your offsetting strategy plan to transition the underlying offsetting projects to long lived storage methods which have low risk of reversal over centuries to millennia? Yes ☐ No ☐
If yes, please provide details, link or attach document:
Does your offsetting strategy plan to transition the underlying offsetting projects to offsets that remove emissions, rather than avoid or reduce others’ emissions? Yes ☐ No ☐
If yes, please provide details, link or attach document:
Have you received additional requests from stakeholders to disclose environmental information? Yes ☐ No ☐
If yes, describe the types of information requested and specify the type of stakeholder that has requested the information:
Do you report greenhouse gas emissions and/or energy use either publicly or to another customer? Yes ☐ No ☐
If yes, describe where and how often:
Do you report the climate risks and opportunities to the Company and the Business in accordance with the recommendations of the Task Force on Climate-related Financial Disclosures or otherwise? Yes ☐ No ☐
If yes, please provide details, link or attach document:
Do you collect information on how your wider local and global stakeholders (including employees, clients, end customers and supply chain partners) are affected by both climate risk and the transition to a low carbon economy and how you can help to improve their resilience? Yes ☐ No ☐
If yes, please provide details, link or attach documents:
Do you have board level oversight of and engagement with climate and sustainability matters and are your directors appropriately qualified or advised with the appropriate skills and experience to improve sustainability, make decisions on climate risk and mitigate climate impact ? Yes ☐ No ☐
If yes, please provide details:
Do you have a policy to align your climate policy engagement, climate leadership, lobbying activities, trade association memberships and public policy positions with the goals of the UNFCCC’s Paris Agreement? Yes ☐ No ☐
If yes, please provide details, link or attach documents:
If yes, do you have procedures to ensure and evaluate compliance with that policy? Yes ☐ No ☐
If yes, please provide details, link or attach documents:
Do you report, publicly or otherwise, on your climate policy engagement, climate leadership or the alignment of your lobbying activities, trade association memberships and public policy positions with the goals of the UNFCCC’s Paris Agreement?
If yes, please provide details, link or attach documents:
Is the remuneration of any of your key or senior employees linked to the achievement of climate or sustainability related targets? Yes ☐ No ☐
Do you include emissions reduction, climate or sustainability requirements or any other reference to your Net Zero Target or related plans, targets and policies, in your contracts with other parties? Yes ☐ No ☐
If yes, please provide details, link or attach documents:
Do you provide climate or sustainability related education, training, leadership, information sharing, engagement, access to finance or capacity building to your employees, clients, suppliers, stakeholders or others in your sector or business network, or otherwise engage in similar collaboration? Yes ☐ No ☐
If yes, please provide details:
Greenhouse Gas Emissions 
Do you calculate your Scope 1 and 2 Emissions? Yes ☐ No ☐
If yes, what is the most recent year that data is available?
If yes, please provide: Total Scope 1 Emissions: [ ] Metric Tons CO2e
Total Location-Based Scope 2 Emissions: Metric Tons CO2e
Total Market-Based Scope 2  Emissions: Metric Tons CO2e
Please provide a description of your major Scope 1 and Scope 2 Emissions sources: [you can use the source (Conversion Factors) below to measure Scopes 1 and 2 emissions.]
Do you seek third party verification/assurance of your Scope 1 and 2 Emissions? Yes ☐ No ☐ If yes, please attach your most recent verification statement.
Do you calculate your Scope 3 Emissions? Yes ☐ No ☐
If yes, what is the most recent year that data is available?
For each Scope 3 category, state if it is relevant to your business and provide emissions, if available.
Scope 3 Category Relevant?  Quantified Sources Emissions
Purchased good and services (Y/N)  [ ] Metric Tons CO2e
Capital goods 
Fuel-and-energy-related activities 
Upstream transportation and distribution
Waste generated in operations 
Business travel
Employee commuting 
Upstream leased assets
Investments 
Downstream transportation and distribution 
Processing of sold products 
Use of sold products 
End of life treatment of sold products 
Downstream leased assets 
Franchises
Do you seek third party verification/assurance of your Scope 3 emissions? Yes ☐ No ☐ If yes, please attach your most recent verification statement.
Energy and Greenhouse Gas Emissions Reduction. Are you able to compare the greenhouse gas emissions reported above with emissions in a previous year? Yes ☐ No ☐
If yes, please describe if Scope 1, 2, and 3 emissions have increased or decreased compared to prior years:
Do you have a program and/or procedures to reduce energy use and greenhouse gas emissions? Yes ☐ No ☐
If yes, please describe:
Do you produce or purchase renewable energy? Yes ☐ No ☐
If yes, please describe:
Do you have strategies to reduce Scope 3 Emissions? Yes ☐ No ☐
If yes, please describe:
Do you engage with your suppliers around environmental issues and performance? Yes ☐ No ☐
If yes, please describe:
Do you collect environmental data from your suppliers? Yes ☐ No ☐
If yes, please describe the type(s) of data collected and how it is used internally:

 

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