Climate Contract Playbook Edition 3
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To reassure the supplier that the right will not be abused, the parties can set limits on the number of times the customer can use this clause according to the circumstances of the contract (e.g. once per term, or only once every 12 months etc.). This drafting is deliberately designed to be relatively fair and provide a commercially acceptable arrangement for both parties. However, the customer may find that it triggers some further discussions with the supplier about how this clause will work in practice.
Notes for users
Termination for Greener Supplier: Contractual Provisions
Insert into recitals: The parties acknowledge their common intention in the fulfilment of their obligations under this agreement to minimise their impact on climate change.
Insert into preliminary obligations: The parties agree that the information provided by the Supplier before the start date of the agreement concerning measures of the impact on climate change by the Supplier and the products and services will form the baseline environmental credentials of the Supplier for the purpose of this agreement ( “Green Baseline” ). The Green Baseline may be amended by written agreement or otherwise in accordance with this agreement. The Supplier will provide at the Customer’s request reasonable evidence of its compliance with the Green Baseline.
Insert into clause or definitions: In this clause, “equivalent” or “equivalence” means: a)
If assessing the [goods OR services] of a Green Supplier, [goods OR services] that are [comparable OR identical or similar in all material respects] (including in terms of [scope,] complexity, specification, volume and quality [of performance], supporting technology, compliance with standards, and in terms of ancillary obligations such as delivery terms) to the [Goods OR Services] under this agreement. If assessing the pricing of a Green Supplier, pricing for equivalent [goods OR services] that is [within the lower quartile OR less than or equal to the mean price over a previous 12-month period] of the pricing for [Goods OR Services] under this agreement.
b)
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