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.
Natural Capital means the stock of all renewable and non-renewable resources and natural assets [of which [society depends/that combine to yield a flow of benefits to people both directly (e.g. by delivering clean air) and indirectly (e.g. by underpinning the economy)], which includes plants, animals, air, water, soils and minerals.
Parts of this definition are adopted from the Dasgupta Review: Independent Review on the Economics of Biodiversity Interim Report (April 2020) (see References below).
Natural Capital means those elements of the natural environment which provide valuable goods and services to people, such as the stock of forests, water, land, minerals and oceans.
This definition was developed by the UK’s Natural Capital Committee for its Natural Capital Valuation (see References below). TCLP has adopted it without significant amendments as we consider it will be suitable for the precedent clauses drafted by TCLP participants.
Option 3 (based on the definition in Rory's Clause)
Natural Capital means the natural assets in and around the Property including the geology, soil, air, water and all living things that the residents and community use, [which make their lives possible].
These definitions may be tailored to refer to the specific ‘natural assets’ of the project or site.
The term ‘natural capital’ is used to emphasise it is a capital asset, like produced capital (roads and buildings) and human capital (knowledge and skills). The benefits provided by natural capital assets to people are either direct (for example, delivering clean air) or indirect (for example, by underpinning the economy).
In Option 3, the words ‘which make their lives possible’ narrows the definition to exclude natural assets which are not necessary for residents of the Property (as defined). Drafters that wish to use a wider definition could delete this wording.
Supply chain clauses, national climate laws.
All governments, companies and organisations are reliant on the health of the natural world, and to varying extents use ‘Natural Capital’ in their supply chains and business dealings. This definition can be used when re-contracting for an obligation to promote the sustainable use of Natural Capital in the business dealings or supply chains.
Corporate governance / ESG benchmarking – where corporations are considering their impacts and dependencies on natural capital as part of their strategic and operational decision making (see National Capital Protocol in References below).
Promoting net zero land developments – see Rory’s Clause [Net Zero Land Promotion Agreement].