The Climate Contract Playbook presents over ten precedent clauses, created by Hogan Lovells lawyers in more than sixty jurisdictions, addressing climate change risks and opportunities in various corporate and financial sectors. The report aims to assist parties who wish to achieve the Net Zero targets set forth by the UK government and other authorities.

Impact theory

The report includes a discussion on the impact theory and how it can be achieved through specific clauses in the contract and future documentation. The clauses will help make climate change a mainstream topic in commercial teams and demonstrate a commitment to environmental, social and governance (ESG) factors. Furthermore, boards who consider climate change when entering commercial relationships can mitigate the risks of future liability relating to climate change.

Precedent clauses

This section of the report covers different clauses addressing various ESG issues and how they can be incorporated into different agreements, depending on the sector and financing scenario. Some notable clauses include the Climate Purposed NDA Terms, Net Zero Supply Chain Cascade, and Residential Green Lease.

Participants

The participants section outlines the key stakeholders required to accomplish the report’s proposed additions into future documentation. The report suggests in-house counsel, commercial and partnership teams, professional support lawyers, private practice firms, contract automation platforms, and precedent and know-how providers should be engaged in the process.

Conclusion

The Climate Contract Playbook presents an essential resource for parties interested in achieving Net Zero targets through commercial agreements. With precedent clauses addressing climate change risks and opportunities in various sectors, parties can demonstrate a commitment to ESG factors, mitigate future liability risks, and set the tone for future documentation.