Glossary entry

Net Zero Target Plan

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Definitions

Net Zero Target Plan

Net Zero Target Plan means a plan [as agreed by the [Parties]] to deliver the Net Zero Target and to remain Net Negative thereafter that:

(i) includes an Offsetting Strategy;

(ii) sets interim reduction targets for the Parties’ [GHG Emissions/ Scope 1, 2 and 3 Emissions] that are aligned with Paris Agreement Goals];

(iii) links executive remuneration to the achievement of the interim targets; and

(iv) promotes a just transition to a low carbon economy.

Drafting notes

When using certain combinations of definitions of Net Zero Target and Net Zero Target Plan both definitions of Offset/Offsetting and Offsetting Strategy may be incorporated, creating duplication and overlap. This can be addressed by combining the definition of Offset(ting) and Offsetting Strategy into one definition of Offsetting Strategy, and amending the reference in Net Zero Target to read “associated with the implementation of an Offsetting Strategy” in place of “associated with Offsets acquired”, as demonstrated in Cassie’s Clause.

Application

Supply chain clauses, national climate laws, green leases, investment agreements and corporate governance documents.

Net Zero Target Plan is used in the following TCLP clauses:

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

[Emma’s Clause] Green Residential Lease Clauses; 

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

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