--- title: Get information on contract emissions date: 2024-02-14T12:43:00Z modified: 2026-03-25T10:16:29Z permalink: "https://chancerylaneproject.org/guides/get-information-on-contract-emissions/" type: guide status: publish excerpt: Gather data on emissions related to contracts to help measure, manage and report on them wpid: 2909 climate-or-nature-outcome: - Decarbonisation climate-solution: - Alignment with Paris Agreement - Configuring contracts to prevent increased emissions - Measuring managing and reporting on emissions - Setting emissions reduction targets contract-lifecycle-stage: - Contract drafting and negotiation - Contract execution application: - Universal application law-or-regulation: - Paris Agreement legal-concept-activity: - Contract obligations - Supply chain management practice-area: - Commercial - Supply chain sector: - Any standard-or-framework: - GHG Protocol - Intergovernmental Panel on Climate Change (IPCC) - Science-based Targets Initiative (SBTI) tclp-principle: - Implement obligations in contracts - Introduce climate provisions - Prepare contracts use-case: - Commercial contract - Supply contract featured_image: "https://chancerylaneproject.org/wp-content/uploads/2024/04/Get-information-on-contract-emissions.png" --- ## This guide enables organisations to: - get data on contract-related [greenhouse gas emissions ](https://chancerylaneproject.org/glossary/greenhouse-gas-emissions/) - better understand, measure and reduce emissions arising from contractual performance, especially where such performance involves large emissions - consider and comply with reporting and disclosure requirements, especially on [scope 3 emissions](https://chancerylaneproject.org/glossary/scope-1-2-and-3-emissions-and-total-emissions/) - calculate and manage carbon budgets for existing and future contracts - monitor the performance of counterparties against the emissions-reduction targets which they commit to. [ Download this guide as a DOCx file ](#)## Commit counterparties to measure, manage and report on emissions Whether counterparties commit to reduce emissions is a matter of negotiation before entering into a contract. Ideally, they will commit to measure, manage and report on: - the emissions arising from their performance of the contract ([scope 1 and 2](https://chancerylaneproject.org/glossary/scope-1-2-and-3-emissions-and-total-emissions/)) - the emissions arising from the value chain which is related to the performance of their contract ([scope 3](https://chancerylaneproject.org/glossary/scope-1-2-and-3-emissions-and-total-emissions/)). Agree on a reporting standard or a common supplier to measure and calculate emissions. Domestic law may mandate a reporting standard, which may be helpful to the parties agreeing to adopt a mutually acceptable reporting standard. Where there is no legal requirement, use internationally recognised standards for: - reporting on emissions. For example, the [Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard](https://ghgprotocol.org/corporate-standard) (as amended or replaced). - emissions-reporting frameworks. For example, the [International Financial Reporting Standards (IFRS)](https://www.ifrs.org/sustainability/tcfd/)). #### Example wording \[Party B\] agrees to measure, manage and report on the [scope \[1 and 2\] \[and 3\] emissions](https://chancerylaneproject.org/glossary/scope-1-2-and-3-emissions-and-total-emissions/) related to \[activities governed by the agreement\] in accordance with \[[The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard](https://ghgprotocol.org/corporate-standard), as amended or replaced periodically\]. ## Require counterparties to reduce emissions during the contract term If possible, have your counterparties agree on the emissions reductions as part of the contractual obligations. Ideally, the emissions-reduction targets will: - define the scope of emissions covered by the target. Best practice is to set absolute targets relating to an organisation’s own emissions ([scope 1 and 2](https://chancerylaneproject.org/glossary/scope-1-2-and-3-emissions-and-total-emissions/)) and emissions from its value chain ([scope 3](https://chancerylaneproject.org/glossary/scope-1-2-and-3-emissions-and-total-emissions/)) - include short- (annual) and medium-term (2 to 5 years) interim targets - be validated by the [Science Based Targets initiative](https://sciencebasedtargets.org/) - align with [Paris Agreement goals](https://chancerylaneproject.org/glossary/paris-agreement-goals/) and latest [Intergovernmental Panel on Climate Change](https://www.ipcc.ch/) findings. #### Example wording \[Party B\] shall reduce the [scope \[1 and 2\] \[and 3\] emissions](https://chancerylaneproject.org/glossary/scope-1-2-and-3-emissions-and-total-emissions/) relating to the activities governed by the agreement by \[●\] percent every year. This: - aligns with \[Party A\]’s emissions-reduction targets set out in its [transition plan](https://chancerylaneproject.org/glossary/transition-plan/) - is consistent with the [Paris Agreement goal](https://chancerylaneproject.org/glossary/paris-agreement-goals/) to limit global temperature increase to 1.5C above pre-industrial levels. ## Establish reporting content and frequency Ensure the contract specifies: - a frequency for parties to report on emissions arising from contractual performance. For example, every 3, 6 or 12 months from the contract start date. - minimum requirements for the content of emissions reports. #### Example wording \[Party B\] shall report to \[Party A\] on the [scope \[1 and 2\] \[and 3\] emissions](https://chancerylaneproject.org/glossary/scope-1-2-and-3-emissions-and-total-emissions/) relating to the activities governed by the contract (the **Contract Emissions**) within \[time period\] from the contract start date. Thereafter, \[Party B\] shall report the Contract Emissions to \[Party A\] every \[time period\] for the rest of the contractual term. \[Party B\] will include all of the following in its emissions report: - industry best practices on managing and reducing scope \[1 and 2\] \[and 3\] emissions used by \[Party B\] during the reporting period - total scope \[1 and 2\] \[and 3\] emissions measured during the reporting period - any reduction in the total scope \[1 and 2\] \[and 3\] emissions for the reporting period measured against the total scope \[1 and 2\] \[and 3\] emissions in the year preceding the reporting period - the difference (if any) between the total scope \[1 and 2\] \[and 3\] emissions for the reporting period and the emissions-reduction targets. ## Verify emissions reports As part of the contract, agree a process to independently verify emissions reports. For example, the parties may agree to appoint an external auditor to verify their emissions reports. The auditor should be an impartial third party and subject matter expert who can provide independent climate-impact assessment and emissions reporting (for example, [The Carbon Trust](https://www.carbontrust.com/)). The party responsible for appointing the auditor and paying their fees is a matter for commercial negotiation. #### Example wording \[Party B\] shall appoint an external auditor or verification authority \[such as [The Carbon Trust](https://www.carbontrust.com/)\] to independently certify its [greenhouse gas emissions ](https://chancerylaneproject.org/glossary/greenhouse-gas-emissions/)report. The auditor shall be an impartial third party with recognised expertise in climate-impact assessment and emissions reporting. #### Updates **December 2025** This guide was updated following a quality assurance maintenance review. ## Case studies using the contractual solutions in this guide Case study #### [ Cambridge University Press & Assessment ](https://chancerylaneproject.org/case-studies/cambridge-university-press-assessment/) Requiring alignment of net zero targets through the value chain, supported with emissions reporting and reductions ![Cambridge University](https://chancerylaneproject.org/wp-content/uploads/2023/08/photo-1605470207062-b72b5cbe2a87-640x384.jpg) Case study #### [ Salesforce ](https://chancerylaneproject.org/case-studies/salesforce/) Requiring suppliers to set ambitious science-based emissions reduction targets by 2024 ![Sydney Salesforce Tower Skyline](https://chancerylaneproject.org/wp-content/uploads/2022/01/Sydney-Salesforce-Tower-Skyline-640x384.jpeg) ## Related guides Guide #### [ Introduce climate provisions to contract parties ](https://chancerylaneproject.org/guides/introduce-climate-provisions-to-contract-parties/) Create the right conditions for using contracts to reduce emissions from the very beginning ![](https://chancerylaneproject.org/wp-content/uploads/2024/04/Introduce-climate-provisions-to-contract-parties-640x384.png) Guide #### [ Request climate information in due diligence questionnaires ](https://chancerylaneproject.org/guides/request-climate-information-in-due-diligence-questionnaires/) Assess the climate performance of other organisations and how they will impact your transition plan ![](https://chancerylaneproject.org/wp-content/uploads/2024/04/Request-climate-information-in-due-diligence-questionnaires-640x384.png) ## Climate clauses using the contractual solutions in this guide Kori’s Clause #### [ Consolidated Sustainability Clauses for Supply Chain Contracts ](https://chancerylaneproject.org/clauses/consolidated-sustainability-clauses-for-supply-chain-contracts/) Jurisdiction: [England & Wales](https://chancerylaneproject.org/news/jurisdiction/england-wales/) Updated: 16 September 2025 Maintained ## Glossary definitions used in this guide Glossary term #### [ Greenhouse Gas Emissions ](https://chancerylaneproject.org/glossary/greenhouse-gas-emissions/) Updated: 8 July 2025 Definitions: 3 Glossary term #### [ Paris Agreement Goals ](https://chancerylaneproject.org/glossary/paris-agreement-goals/) Updated: 19 June 2025 Definitions: 1 Glossary term #### [ Scope 1, 2 and 3 Emissions and Total Emissions ](https://chancerylaneproject.org/glossary/scope-1-2-and-3-emissions-and-total-emissions/) Updated: 18 September 2025 Definitions: 3 Glossary term #### [ Transition Plan ](https://chancerylaneproject.org/glossary/transition-plan/) Updated: 18 September 2025 Definitions: 1 ## Topics **Climate or nature outcomes:** [Decarbonisation](https://chancerylaneproject.org/wp-content/uploads/wp-mfa-exports/taxonomy/climate-or-nature-outcome/decarbonisation.md) **Climate solutions:** [Alignment with Paris Agreement](https://chancerylaneproject.org/wp-content/uploads/wp-mfa-exports/taxonomy/climate-solution/alignment-with-paris-agreement.md), [Configuring contracts to prevent increased emissions](https://chancerylaneproject.org/wp-content/uploads/wp-mfa-exports/taxonomy/climate-solution/configuring-contracts-to-prevent-increased-emissions.md), [Measuring managing and reporting on emissions](https://chancerylaneproject.org/wp-content/uploads/wp-mfa-exports/taxonomy/climate-solution/measuring-managing-and-reporting-on-emissions.md), [Setting emissions reduction targets](https://chancerylaneproject.org/wp-content/uploads/wp-mfa-exports/taxonomy/climate-solution/setting-emissions-reduction-targets.md) **Contract lifecycle management stages:** [Contract drafting and negotiation](https://chancerylaneproject.org/wp-content/uploads/wp-mfa-exports/taxonomy/contract-lifecycle-stage/contract-drafting-and-negotiation.md), [Contract execution](https://chancerylaneproject.org/wp-content/uploads/wp-mfa-exports/taxonomy/contract-lifecycle-stage/contract-execution.md) **Guide Applications:** [Universal application](https://chancerylaneproject.org/wp-content/uploads/wp-mfa-exports/taxonomy/application/universal-application.md) **Law or regulations:** [Paris Agreement](https://chancerylaneproject.org/wp-content/uploads/wp-mfa-exports/taxonomy/law-or-regulation/paris-agreement.md) **Legal concept, activity or principles:** [Contract obligations](https://chancerylaneproject.org/wp-content/uploads/wp-mfa-exports/taxonomy/legal-concept-activity/contract-obligations.md), [Supply chain management](https://chancerylaneproject.org/wp-content/uploads/wp-mfa-exports/taxonomy/legal-concept-activity/supply-chain-management.md) **Practice Areas:** [Commercial](https://chancerylaneproject.org/wp-content/uploads/wp-mfa-exports/taxonomy/practice-area/commercial.md), [Supply chain](https://chancerylaneproject.org/wp-content/uploads/wp-mfa-exports/taxonomy/practice-area/supply-chain.md) **Sectors:** [Any](https://chancerylaneproject.org/wp-content/uploads/wp-mfa-exports/taxonomy/sector/any.md) **Standard or frameworks:** [GHG Protocol](https://chancerylaneproject.org/wp-content/uploads/wp-mfa-exports/taxonomy/standard-or-framework/ghg-protocol.md), [Intergovernmental Panel on Climate Change (IPCC)](https://chancerylaneproject.org/wp-content/uploads/wp-mfa-exports/taxonomy/standard-or-framework/intergovernmental-panel-on-climate-change-ipcc.md), [Science-based Targets Initiative (SBTI)](https://chancerylaneproject.org/wp-content/uploads/wp-mfa-exports/taxonomy/standard-or-framework/science-based-targets-initiative-sbti.md) **TCLP principles:** [Implement obligations in contracts](https://chancerylaneproject.org/wp-content/uploads/wp-mfa-exports/taxonomy/tclp-principle/implement-obligations-in-contracts.md), [Introduce climate provisions](https://chancerylaneproject.org/wp-content/uploads/wp-mfa-exports/taxonomy/tclp-principle/introduce-climate-provisions.md), [Prepare contracts](https://chancerylaneproject.org/wp-content/uploads/wp-mfa-exports/taxonomy/tclp-principle/prepare-contracts.md) **Use cases:** [Commercial contract](https://chancerylaneproject.org/wp-content/uploads/wp-mfa-exports/taxonomy/use-case/commercial-contract.md), [Supply contract](https://chancerylaneproject.org/wp-content/uploads/wp-mfa-exports/taxonomy/use-case/supply-contract.md)