Glossary entry

Carbon Neutral Date

Definitions

Option 1 (as defined in Lauren's Clause)

Carbon Neutral Date means the date set by [the Board of the Company] to achieve Carbon Neutral status [which date should not be more than 24 months from the date of the meeting convened under clause [x]].

Option 2

Carbon Neutral Date means the date set by [the Board of the [Company] [Borrower]] to achieve Carbon Neutral status [which date should not be more than [24] months from [the date of the meeting convened under clause [x]][the date of this Agreement][INSERT OTHER DATE]].

Option 3

Carbon Neutral Date means the date set by the Board of the [Company] [Borrower] for [any Eligible Transaction [funded by the Company using monies provided by the [Shareholder] [Lender]] [or guaranteed by the [Guarantor] to achieve Carbon Neutral status[, which date should not be more than [24] months [from the date of [signing][execution][implementation] of the relevant Eligible Transaction][INSERT OTHER DATE].

Drafting notes

A carbon neutral date could be set voluntarily by any entity wishing to show its climate change ambitions, or could be required by investors if an entity has not already voluntarily set a date.

Whether carbon neutrality is possible will depend on jurisdiction and the entity’s access to carbon offsetting mechanisms and renewable energy, amongst other factors. Carbon neutrality may be too ambitious in some jurisdictions and thought could be given to alternative actions that would have a positive impact, or less negative impact, for example transitioning to a renewable power source when available.

Application

Articles of Association, supply chain agreements, financing agreements, corporate policy documents.