Disclaimer - please read
The definitions 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 definitions 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 definitions 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 definitions 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 definitions 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 definitions, 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 definitions or any other person. Users should use their own professional judgement in the application of these definitions to any particular circumstance or jurisdiction or seek independent legal advice.
At present, all the definitions are based on the laws of England and Wales. We encourage the conversion of these precedent definitions for use in other jurisdictions.
Carbon Insetting means a carbon reduction project, verified by a carbon offset standard, which occurs within a company’s supply chain or supply chain communities.
The concept of carbon insetting is an extension of the concept of Carbon Offsetting. The location of the carbon offset is what differentiates the two concepts. Offsetting refers to carbon credits purchased from carbon reduction projects that are unrelated to the purchaser, whereas, in the case of insetting, the location of the carbon offset project is within the company’s own supply chain and supply chain communities.
In practice “supply chain, and supply chain communities” means any carbon reduction project that is directly within the upstream supply chain or within the geographical region that is directly impacted by the insetting organisation’s supply chain activity.
The Chancery Lane Project is focused on climate change issues. Drafting organisations that wish to take an insetting approach to reducing their Carbon Footprint may also want to invest in projects within their supply chain or supply chain communities that generate other environmental, social or corporate governance (ESG) values. Our definition and clauses can be adapted to reflect a wider ESG approach if required.
Several different market standards have been developed to verify credits from carbon reduction projects for the voluntary carbon market. The most widely used standards are the:
- Gold Standard
- Climate, Community and Biodiversity Standards
- CarbonNeutral Protocol
- Verified Carbon Standards (VCS)
This definition was developed by the International Carbon Reduction and Offset Alliance (CROA). TCLP has adopted it without significant amendments as we consider it will be suitable for the precedent clauses drafted by TCLP participants.
Corporate climate change commitments and supply chain clauses.
See also the voluntary market standards that can be used to verify credits from carbon reduction projects referenced in the drafting notes for Carbon Offsetting.