Glossary entry

Greenhouse Gas (GHG) Emissions

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Definitions

Option 1

GHG Emissions means emissions of the greenhouse gases listed at Annex A of the 1998 Kyoto Protocol to The United Nations Framework Convention on Climate Change, as may be amended from time to time including: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), nitrogen trifluoride (NF3), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulphur hexafluoride (SF6), each expressed as a total in units of carbon dioxide equivalent (CO2e).

Option 2

GHG Emissions means [a party’s] [the [Company’s/ Parties’] emissions of GHGs from all sources [related to this Agreement/Contract], categorised as Scope 1, 2 and 3 Emissions.

Option 3

GHG Emissions means [a party’s] [the Company’s/ Parties’] emissions of GHGs from all sources [related to this Agreement/ Contract], categorised as scope 1, 2 and 3 emissions by The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard, Revised Edition 2015 as updated from time to time.

Drafting notes

Option 1 combines the definition of Greenhouse Gases (GHGs) and GHG Emissions into a single defined term. Option 1 is distinct from Options 2 and 3 which attribute the GHG emissions to a party and caps them at emissions relating to activities governed by the agreement. Only use this combination if you do not need the GHG definition in isolation (e.g. when referring to offsetting, the definition of GHGs may be needed to refer to GHGs being removed that do not fall within the definition of emissions (if that definition of emissions is party specific)).

Option 2 attributes the GHG emissions to a party and caps them at the emissions relating to activities governed by the agreement. This requires additional definitions of Carbon Dioxide Equivalent, Greenhouse Gases (GHGs) and Scope 1, 2 and 3 Emissions.

Option 3 attributes the GHG emissions to a party and caps them at the emissions relating to activities governed by the agreement. This requires additional definitions of Carbon Dioxide Equivalent and Greenhouse Gases (GHGs).

Application

Supply chain clauses, national climate laws, Articles of Association, finance documentation.

Greenhouse Gas (GHG) Emissions is used in the following TCLP clauses:

[Aatmay’s Clause] Sustainable and Circular Economy Principles in Leasing Arrangements for Repairs and Alterations;

[Alex’s Clause] Circular Economy Product Design Obligation; 

[Alexandro’s Clause] Net Zero Sponsor Activation Clause; 

[Austen’s Clause] Sustainability Clauses in Supply Chain Contracts;

[Caesar’s Clause] Greener and More Efficient HGVs in Road and Multimodal Transport Agreements;

[Callum & Theo’s Clause] Climate Standard Transaction Terms; 

[Cassie’s Clause] Insurance: Disclosure and Mitigation of Pending Climate Change Litigation; 

[Connor’s Clause] Exclusions from Insurance Coverage for Climate Harms; 

[Dottie’s Clause] Climate Purchase Agreement and Underwriting Sponsor Warranties; 

[Elliot’s Handbook] Net Zero Culture Employment Handbook; 

[Emma’s Clause] Green Residential Lease Clauses; 

[Estelle’s Clause] Climate Standard of Care (Construction); 

[Felix’s Clause] Net Zero Completion Adjustment Clause;

[Gordon’s DDQ] Capital Markets ESG Due Diligence Questionnaire; 

[Iris’ Clause] Climate Contract Risk Sharing (ex Force Majeure); 

[Izzy’s Clause] Benchmarking of Project Greenhouse Gas Emissions; 

[Jessica’s Clause] Carbon Contract Clauses for Environmental Performance, and Associated Incentives and Remedies; 

[Joni’s Clause] Promotion of Sustainable Consumption and Travel in TV Production; 

[Larissa’s Clause] Facility Agreement Clauses Promoting Sustainability-linked Loans within the Cement Industry; 

[Luna’s Clause] Net Zero Aligned Construction Modifications; 

[Ming’s Clause] Target Product Carbon Footprint (Schedule for Consumer Goods Contracts);

[Owen’s Clause] Net Zero Target Supply Chain Cascade Clauses; 

[Pasfield’s Clause] Paris Aligned Company Articles; 

[Ragnar’s Clause] Green Company Articles; 

[Raphael’s Procurement DDQ] Climate Change Due Diligence Questionnaire for Suppliers; 

[Rose’s Clause] GHG Emissions Management Plans in Infrastructure and Construction Project Finance; 

[Rosie’s Clause] Alteration/ Improvement Provisions in Leases to Improve Climate/ Environmental Impact of Buildings and Better Use of Shared Space; 

[Sasha’s Clause] Net Zero Within Company Whistleblowing Policies; 

[Sebastian’s Clause] Entire Business Net Zero Objectives; 

[Tristan’s Clause] Construction Materials: Procurement; 

[Zain’s Clause] Carbon Footprint Reduction – Mutual Notification Right (Carbon Footprint Reduction Notice)Mutual Sustainability Rights; and 

[Zoë and Bea’s Clause] Green Supplier Agreement Terms.