As part of its net zero by 2050 strategy, NatWest’s legal team have introduced sustainability clauses across their template supply contracts. They have used Zoë & Bea’s Clause as a jumping-off point, adapting it to reflect the role of the bank’s sustainability ratings partner.
The new clauses act as a benchmarking tool. They require suppliers to take steps to improve their sustainability score following the production of a scorecard by NatWest’s ratings partner. A failure to improve that score over a period of time will allow NatWest to terminate the contract.
See the full case study here.