Climate clause

Sustainability Enterprise Delivery Measures within Construction Works Task Orders

Tessa's Clause

Tessa’s Clause adds wording to construction works tasks orders explicitly addressing climate change-related temperature increase and deconstruction for reuse in their appraisal and design.

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.

Skip to clause

Why use this?

Tessa’s Clause facilitates and encourages contractors/ suppliers to work in ways that improve resilience and respond to the climate emergency through appraisal and design. It does this by establishing metrics (Enterprise Delivery Measures (EDMs)) that incentivise improvement in environmental and sustainability outcomes.

Disclaimer - please read

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.

The clauses on this website 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.

The clauses on this website do not comprise, constitute or provide personal, specific or individual recommendations or advice of any kind, and do 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.

The clause

Additional definitions 

[Drafting note: Capitalised terms relate to either a defined term in this clause or a defined term in the main agreement that this clause is designed to be inserted into.]

 

Additional clauses

1. EDM 1: Environmental improvement – Improved [insert environment type e.g. river corridor]

1.1 Description of the benefit 

Delivery of improved [river corridor*].

* [Drafting note: Insert relevant environment type here. Tessa’s Clause uses the landscape features of a river corridor, waterbody and intertidal habitat for illustrative purposes. These terms are square bracketed in Tessa’s Clause to reflect optionality. Users of Tessa’s Clause can replace this wording with different types of environments/ habitats as required.]

1.2 Programme target

1.2.1 Projects are to evaluate opportunities for improving the [waterbody] improvement measures within their appraisal/business case.  

1.2.2 Identified [waterbody] improvement measures approved within a project’s appraisal/ business case are delivered during construction. 

1.2.3 Contractor delivers a positive balance of [intertidal habitat provision] (measured in hectares) in the [river corridor] improvement area.

1.3 Measurement time frame

1.3.1 Annual. 

1.3.2 Programme ([number]-year target).

1.4 Performance criteria

1.4.1 Green

a) [number] of projects, as agreed at the start of the annual plan year, shall include a section within their appraisal/ business case evaluating opportunities to implement [waterbody] improvement measures during construction.  

b) [number] of projects with approved [waterbody] improvement measures within their appraisal/ business case deliver the stated improvement measures during construction. 

c) Contractor keeps an up to date (quarterly) balance sheet that details [net balance of intertidal habitat] in the [river corridor] improvement area.

1.4.2 Amber

a) [number/ percentage] project(s) identified as applicable to this target at the start of the annual plan year, [does/ do] not include a section within [its/ their] appraisal/ business case evaluating opportunities to implement [waterbody] improvement measures during construction. 

b) [number/ percentage] project(s) with approved [waterbody] improvement measures within the appraisal/ business case fail[s] to deliver the stated improvement during construction. 

c) For each of the projects in the [river corridor] improvement area, the balance sheet that details Contractors performance against the stated improvement measures is [number] [days/ months] out of date. 

1.4.3 Red

a) [number/ percentage] or more projects identified as applicable to this target at the start of the annual plan year by the Employer, do not include a section within their appraisal/ business case evaluating opportunities to implement [waterbody] improvement measures during construction. 

b) [number/ percentage] or more projects with the approved [waterbody] improvement measures within the appraisal/ business case fail to deliver the stated improvement during construction. 

c) For each of the projects in the [river corridor] improvement area, the balance sheet of [intertidal habitat] is [number] [days/ months] or more out of date.

2. EDM 2: Environmental improvement – resilience to temperature increase

2.1 Description of the benefit 

Delivering the Employer’s [2030/ 2040/ 2050] [net zero/ decarbonisation/ sustainability target[s]] in response to the climate emergency. 

2.2 Programme target

Construction works Task Orders that explicitly address a [1.5℃/ 2℃/ •℃] temperature increase in their appraisal and design.

2.3 Measurement time frame

Annual. 

2.4 Performance criteria

2.4.1 Green

[number/ percentage] of projects, as agreed at the start of the annual plan year by the Employer, include a section within [its/ their] appraisal/ business case identifying how the preferred solution can provide resilience to a  [1.5℃/ 2℃/ •℃] temperature increase.

2.4.2 Amber

[number/ named] project, identified as applicable to this target at the start of the annual plan year by the Employer, does not include a section within its appraisal/ business case identifying how the preferred solution can provide resilience to a  [1.5℃/ 2℃/ •℃] temperature increase.

2.4.3 Red

[number/ percentage] or more projects, identified as applicable to this target at the start of the annual plan year by the Employer, [does/ do] not include a section within [its/ their] appraisal/ business case identifying how the preferred solution can provide resilience to a [1.5℃/ 2℃/ •℃] temperature increase.

3. EDM 3: Environmental improvement – optimising resources to deliver environmental net gain and benefit people and communities

3.1 Description of the benefit

Meeting the Employer’s [2030/ 20404/ 2050] [net zero/ decarbonisation/ sustainability target[s]] concerning optimising use of resources, delivering environmental net gain and benefiting people and communities.

3.2 Programme target

3.2.1 Construction works Task Orders that explicitly address de-construction in their appraisal, design and operation and maintenance manuals by considering de-constructable elements of the preferred option. 

3.2.2 Construction works Task Orders are to record environmental net gain activities including unplanned opportunities identified during delivery. 

3.2.3 Construction works Task Orders are to record benefits to people and communities. 

3.3 Measurement time frame

Annual. 

3.4 Performance criteria

3.4.1 Green 

3.4.1.1(a) [number/ percentage] of projects, as agreed at the start of the annual plan year by the Employer, include a section within [its/ their] appraisal/ business case evaluating the potential use of de-constructable elements within the preferred option.

3.4.1.1(b) [number/ percentage] of projects with approved de-constructible elements within the appraisal/ business case deliver the stated element during construction.

3.4.1.2 [number/ percentage] of projects which deliver environmental net gain that fall outside of [KPI1: Sustainability*] record the activity and outcome. The outcome and activity are reported to the Employer every [six (6)] months]. 

3.4.1.3 [number/ percentage] of projects, as agreed at the start of the annual plan year by the Employer, will deliver and record activities for on-site or adjacent activities that benefit people and communities. These will be reported to the Employer every [six (6)] months]. 

* [For KPI [1: Sustainability] see [Daniel’s Clause] Sustainability Key Performance Indicators in Construction Works Task Orders.]

3.4.2 Amber

3.4.2.1(a) [number/ named] project, identified as applicable to this target at the start of the annual plan year by the Employer, does not include a section within its appraisal/ business case evaluating the potential use of de-constructable elements within the preferred option. 

3.4.2.1(b) [number/ named] project with approved de-constructible elements within the appraisal/ business case, fails to deliver the stated element during construction. 

3.4.2.2 [number/ percentage] of projects which deliver environmental net gain that fall outside of [KPI1: Sustainability*] record the activity and outcome. 

3.4.2.3 [number/ named] project, identified as applicable to this target at the start of the annual plan year by the Employer does not identify opportunities for on-site or adjacent activity which will deliver benefits to people and communities AND OR the record of completed activities is [number] [days/ months] or more out of date.

* [For KPI [1: Sustainability] see [Daniel’s Clause] Sustainability Key Performance Indicators in Construction Works Task Orders.]

3.4.3 Red

3.4.3.1(a) [number/ percentage] or more projects, identified as applicable to this target at the start of the annual plan year by the Employer, do not include a section within [its/their] appraisal/ business case evaluating the potential use of  de-constructable elements within the preferred option. 

3.4.3.1(b) [number/ percentage] or more projects with approved de-constructible elements within the appraisal/ business case, fail to deliver the stated element during construction.

3.4.3.2 Record for projects delivering known environmental net gain is [number] [days/ months] or more out of date. 

3.4.3.3 [number/ percentage] or more projects, identified as applicable to this target at the start of the annual plan year by the Employer, do not identify opportunities for on-site or adjacent activity which will deliver benefits to people and communities AND OR the record of completed activities is [number] [days/ months] or more out of date.

4. Key Performance Indicators 

[Drafting note: Tessa’s Clause is designed to be used with the KPIs in [Daniel’s Clause] Sustainability Key Performance Indicators in Construction Works Task Orders. EDMs are separate from KPIs, which report on performance rather than drive it.]

Join the largest global network of lawyers and business leaders using climate contracting to deliver fast and fair decarbonisation

Join us