As organisations set net zero targets, it is important that their policies, procurement documents and contract documents remain fit for purpose and reflect those goals. Not only is that important to achieve net zero across their value chain, but it helps signpost change to staff, stakeholders and suppliers.
Green drafting and precedents
We advise many of our clients on developing, managing and updating their precedent documents and strategies for supply chain engagement. That includes developing suitable climate related drafting for a range of commercial agreements, including building contracts, leases, procurement frameworks and wider supply chain contracts. For some clients this is about future-proofing documents, but many are already working closely with their wider value chain to identify and reduce emissions.
As a firm we have contributed to The Chancery Lane Project (TCLP) – a pro bono organisation that brings together leading lawyers from across the world to develop precedent climate focused drafting. While many of the clauses are a useful starting point, they need careful review and consideration.
Supporting collaborative behaviour
It isn’t just about drafting suitable clauses though. Delivering against net zero targets requires a more collaborative approach between the client and its wider value chain. Our work on green leases has demonstrated the benefits of more collaborative relationships – helping landlords and tenants (or customers and suppliers) work together to target emissions reductions and help mitigate climate change risks. Without suitable collaborative approaches to share relevant data, organisations will continue to struggle to accurately map and target their carbon footprint.
Understanding the context
Many organisations are not in a position to incorporate the full range of climate related drafting into active projects. There are natural concerns around added complexity leading to delay and additional costs. But increasingly interests are aligned, and landlords, tenants and suppliers are more engaged about sharing data and helping to achieve collective targets.
Legal input into procurement processes can help build-in suitable reporting obligations and aligned targets into leases and supply chain contracts – ensuring access to accurate data and aligned goals to deliver reduced emissions.
Our understanding of the nuances of the TCLP clauses (and how these have been modified in use) helps us deliver a proportional approach to contract drafting - tailoring clauses to meet our client's immediate and longer-term requirements.
Trajectory of change
While organisations continue to target reduction in carbon emissions, the increasing availability of data will help them more accurately map their wider Scope 3 emissions. It is likely that climate related drafting will become more ambitious and sophisticated. Our expertise in this area means we are well placed to advise on their potential impact.
Supply chain engagement
Our cross-departmental working group brings together lawyers from across the business to provide seamless advice on supply chain engagement for contracts and documents.
What is involved
We advise on a full range of contract documents across the firm's practice areas. Whether it carbon budgets in construction contracts, green lease provisions, renewable energy procurement, navigating climate related financial disclosures or placing obligations on your supply chain to report and reduce their Scope 3 emissions – we bridge the gap between precedent drafting and achievable project specific provisions that align with each client's net zero strategy.
What it will help you to achieve
The key challenge is obtaining data, and getting alignment of goals across your wider value chain. Our expertise in climate related drafting and wider supply chain engagement helps your business achieve its net zero goals, and the potential for more collaborative approaches.