Climate clauses:
Net Zero Best in Class

SME’s Net Zero Objectives

David's Clause

A 'plug and play' clause for use by SMEs in a variety of contracts. Imposes mutual obligations on the parties to take steps towards net zero, with payment of a climate remediation fee for breach.

Green Shareholders’ Agreement (Short Form for SMEs)

Ava's Clause

Amendments to a standard early stage shareholders’ agreement for SMEs that enable investors to hold an SME to account on climate change issues and align all parties’ interests with achieving net zero.

The Net Zero Standard for Suppliers

Matilda's Annex

A simplified and consolidated version of TCLP’s existing supply chain clauses, the ‘Net Zero Standard for Suppliers’ can be annexed to any supply agreement, across all sectors and industries.

Entire Business Net Zero Objectives

Sebastian's Clause

A menu of climate aligned practical steps organisations can require their counterparties to take to transition to net zero.

Climate Policy Footprint

Emilio's Checklist

A checklist that requests one off or repeated disclosure of a company’s climate-related lobbying, financing, sponsoring and climate leadership activities.

Climate Recitals

Eddie's Recitals

Recitals that frame a contract and the intentions of the parties in terms that are aligned with achieving net zero or net negative emissions and Paris Agreement goals.

Employee Climate Engagement Provisions

Athena's Clause

A clause in employment contracts requiring the employer to provide, and the employee to participate in, a range of climate education and awareness-raising interventions.

Net Zero Completion Adjustment Clause

Felix's Clause

A net zero/ carbon budget adjustment clause included as part of a completion accounts mechanism to provide “Carbon Certainty”.

Green Transaction Execution Protocols

Evan's Protocols

Green execution protocols which parties can adopt at the start of a transaction to minimise the carbon footprint of deal execution.

Energy Efficiency in Shipping

Otto's Clause

A contractual duty in charterparties for both parties (charterers and owners) to take all reasonable steps to maximise energy efficiency.

Capital Markets ESG Due Diligence Questionnaire

Gordon's DDQ

A capital markets focused due diligence questionnaire (DDQ) requiring the company to provide information regarding its impact on and considerations of climate change issues for the present and future.

Green Litigation and Arbitration Protocols

Emilia's Protocols

Two similar protocols (litigation and arbitration) with modules which parties can opt into at the start of a dispute to make it lower carbon and greener.

Sustainability-Linked Loans

Casper's Clause

Model clauses, as a set of optional riders divided into product categories and ESG goals, to incorporate SLPs into traditional financing documents, standard T&Cs and finance products.

Supply Chain Emissions Scorecard

Maria's Scorecard

A pro forma scorecard to be incorporated into commercial agreements as a schedule, allowing supply chain sustainability to be viewed through the lens of risk to business continuity.

Climate Standard of Care (Construction)

Estelle's Clause

Revising the standard of care to require Contractors and Service Providers to adhere to "Best Industry Practice" in mitigating climate risk and ensure that the Project meets its "Net Zero Objectives".

Green Residential Lease Clauses

Emma's Clause

Drafting for leasehold agreements that impose obligations on buyers and tenants to use the property in an environmentally conscious way.

Net Zero Culture Employment Handbook

Elliot's Handbook

Net Zero and sustainability clauses into employment handbooks so that these issues permeate all levels of the employment relationship and encourage development of a Net Zero Culture in the company.

Net Zero Convertible Loan Note

Nozomi's Clause

Makes the qualifying criteria for receiving finance conditional on setting a net zero target and reflects this obligation in a convertible loan note instrument that incentivises net zero performance.

Net Zero Aligned Construction Modifications

Luna's Clause

A clause that incentivises building contractors to propose 'Net Zero Modifications' to project works, which will benefit the Employer, the overall Project and the environment into the future.

Climate Change Due Diligence Questionnaire

Lola & Harry's DDQ

A due diligence questionnaire which asks the target company to provide information regarding a wide range of climate change-related issues going far beyond the standard compliance-focused questions.

Green Shareholders’ Agreement

Lauren's Clause

Amendments to a standard early stage shareholders’ agreement which allow investors to hold the company to account on climate issues and oblige all shareholders to support Net Zero.

Climate Contract Risk Sharing (ex Force Majeure)

Iris' Clause

Amendments and additions to standard Force Majeure agreements to ensure contracting parties work together to balance financial risks and avoid unintended adverse environmental and social issues.

Green Loan “Starter Pack”

Harrison's Clause

Green loan clauses that are aligned to the Green Loan Principles (as defined below) by reference to Loan Market Association (LMA) style drafting.

Climate Change Clauses for Heads of Terms

Hanley's Clause

A dedicated section in heads of terms precedents so that climate change issues become a key issue for any deal team. This will be particularly relevant where parties have public net zero targets.

Green Investment Obligations

Frank's Clause

Amendments to standard non-leveraged investment documents to focus the founders and investee company on climate change and environmental issues with their products, services, and operations.

Board Minutes: Consideration of Climate Change Factors

Darcy's Board Minutes

Introducing specific drafting into board minutes to encourage directors to consider their net zero targets and/ or carbon footprint and climate change risks as a routine part of their decision-making.

Environmental Business Charter

Chloe's Clause

The Environmental Business Charter – a “soft touch” introduction to how environmental concerns can be integrated into the corporate and legal services environment.

Green Supplier Agreement Terms

Zoë & Bea’s Clause

Green procurement clauses and a checklist to make a standard supplier agreement focus on emissions across a value chain.

Supplier Environmental Threshold Obligations

Teddy's Clause

Insert at purchase warranties for environmental performance and continuous improvement obligations. This will build in long term environmental improvements and transparency into supply agreements.

Net Zero Target Supply Chain Cascade Clauses

Owen's Clause

Clauses that “back to back” or align a business’ net zero target with its supply chain and business partners, thus enabling the business to achieve its target or take control to achieve it.

Report on Title – Climate Change Clauses

Marni's Clause

Where climate change risk searches are unavailable, standard climate change statements should be added to a report on title to make buyers aware of the future risks that may affect the property.

Green Termination Provision (Short Form)

Annie's Clause

A clause that allows a right of termination for a customer so that they can pivot to a greener supplier to meet their sustainability, climate or other environmental objectives.