See the full suite of US clauses in detail here.
The Chancery Lane Project (TCLP) and US attorneys have collaborated to publish 10 climate clauses for use in contracts under US law. The copyright-free clauses are freely available to incorporate into commercial agreements and other legal documents, enabling parties to address climate risks and regulatory requirements.
As global regulatory requirements tighten, the practice of climate contracting has gained momentum and continues to grow in popularity. This move marks a significant step in TCLP’s global expansion, with climate clauses now available for use in the world’s largest economy.
Teresa Garcia-Moore, Manager of science and impact at The Sustainability Consortium, comments:
“We are now seeing a total shift in the way businesses view climate change. Addressing climate change is no longer a CSR exercise, but rather, a risk management one. Climate change poses a real threat to businesses, in terms of their bottom line, regulatory, supply chain, procurement and investment risk. And, with that shift, we have seen an increase in the number of attorneys being asked to address these issues for clients through climate contract law, which is one of the most effective ways for companies to protect themselves.
That’s why The Chancery Lane Project’s climate clauses being available in the US is so significant. With the regulatory and business environments changing constantly to adapt to climate risks, these clauses are a fantastic resource for attorneys and firms looking to manage climate risk for their clients. We encourage lawyers and other organizations to leverage and incorporate these clauses into their contracts.”
Becky Annison, TCLP’s Head of Engagement, said:
“The risks of climate crises are felt more deeply year on year. Simultaneously, time is running out to protect the planet, protect businesses and make good on all the net zero goals set across the globe. Contracts, once signed, lock in carbon emissions for the duration, so early insertion of climate clauses is vital. Many lawyers now realize the power of contracts to make or break climate goals and manage climate risk and are gearing up their teams to take action. The publication of many of our clauses in the United States provides an amazing opportunity to American businesses to get a jump start. We look forward to seeing how these clauses pave the way for new legal solutions to climate issues in American contracts as they do in the UK.”
The USA clauses span different practice areas and range in climate ambition. They include:
Buildings & Land (including Property, Construction, Environment & Planning)
- [Adam’s clause] Sustainable and circular economy principles in leasing arrangements for repairs and alterations: encouraging use of circular economy principles in repair and alterations.
- [Briony’s clause] Landlord and tenant obligations to provide renewable electricity: a low barrier to entry clause delivering emissions reductions for landlords and tenants.
- [Dorothy’s clause] Alteration/improvement provisions in leases to improve climate/environmental impact of buildings and better use of shared space: a clause encouraging tenants to propose alterations to their premises which have a positive climate impact.
- [Madeline’s clause] Sustainable soil management obligations: a set of sustainable soil management obligations allowing businesses to manage their reliance on soil, its functions and related ecosystem services.
- [Willow’s clause] Construction materials: procurement: a formal ‘carbon budget’ alongside the traditional financial budget for construction projects, to incentivize industry participants to reduce GHG emissions through use of more sustainable materials.
- [Drew’s DDQ] Climate change due diligence questionnaire: asking the target company to provide information regarding a wide range of climate change-related issues.
- [Justin’s clause] Representations, warranties and covenants for investment agreements: including proactive disclosure requirements in mergers and acquisitions or investment transactions.
Public Sector (including Public Law & Local Government)
- [Kristen’s clause] Dockless mobility data sharing clauses: open-source data-sharing agreement clauses that can be used by cities to enable development of the sustainable mobility sector.
- [Benton’s clause] Deforestation and land use clause and questionnaire: a questionnaire to make businesses aware of adverse environmental impacts relating to land use within their supply chain.
- [Rafa’s clause] Renewable energy requirements in supply contracts: requiring the supplier/ contractor to procure energy from renewable sources.