Definition 1
Emissions Statement means the statement setting out [the Company's] Greenhouse Gas Emissions in the year [ ●] ] [and the Completion Net Carbon] prepared in accordance with the carbon footprinting principles, policies, standards, practices, evaluation rules and estimation techniques referred to in [Schedule [ ●] ]].
An emissions statement can be used in any transaction involving emissions reduction targets. The statement will state the company's GHG emissions at a specific point in time (e.g. at a specific year or at completion). This will then be compared against a carbon budget or other emissions reduction target.
If the GHG emissions are higher or lower than the target, then the contract can provide incentives or penalties, such as discounts or fees.
Drafting notes and guidance
An emissions statement can be used in any transaction involving emissions reduction targets. The statement will state the company's GHG emissions at a specific point in time (e.g. at a specific year or at completion). This will then be compared against a carbon budget or other emissions reduction target.
If the GHG emissions are higher or lower than the target, then the contract can provide incentives or penalties, such as discounts or fees.