Éanna’s Clause is a set of draft clauses that new (or existing) private limited companies can include in their constitution. The clauses are designed to embed sustainability awareness and reporting into a company’s core structure, business practice and ethos.
The clauses require the board to meet annually to discuss their corporate sustainability policy, sustainability report and sustainability due diligence measures being taken. They also oblige the company to produce an annual sustainability report.
In the changing landscape around sustainability due diligence and reporting, it is becoming increasingly important for companies to:
- have corporate sustainability policies in place,
- discuss these policies regularly discuss at board level, and
- update them as necessary.
Including Éanna’s Clause in a company’s constitution obliges boards to have an ongoing commitment to business-wide sustainability.