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Climate Contract Playbook Edition 3

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The proposed amendments will: • ensure the Contractor or Service Provider is kept accountable to implement the Best Industry Practice throughout construction, and implements practices towards achieving the Green Objectives upon completion; • allow a Developer to terminate the contract if standard of care is not met. The requirement of good faith and reasonableness ensure that the clause is only used to meet climate goals and not for commercial convenience. In addition to the standalone clause below, user to consider whether breach of these obligations should give rise to a termination right or right to issue a default notice. Defined terms used in the below clause but not defined in the playbook should be adapted from terminology found in the construction contract. RCP means a Representative Concentration Pathway (RCP) - a greenhouse gas concentration (not emissions) trajectory set out in the reports of the IPCC. Clause 2 could be alternatively placed in the Project Control Group clause of the Contract (if applicable). Please also refer to Luna’s and Mary’s clauses.

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Notes for users

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Best Industry Practice means design, supply, construction, installation, commissioning and repair practices which are carried out: (a) with the standard of skill, care and diligence which may reasonably be expected of a skilled and experienced professional carrying out design, supply, construction, installation, commissioning and repair work similar to the delivery activities; (b) with adequate levels of resources, including personnel, materials and supplies; and (c) in a manner which maximises the prospects of achieving the Green Objectives. Green Objectives means the following shared objectives: (d) to carry out the Project responsibly, sustainably, ethically and in accordance with all applicable laws and good business practice; (e) in relation to the construction phase and the undertaking of the construction activities: (i) maximising: (A) the use of sustainable materials; (B) the use of materials which result in lower emissions of greenhouse gasses throughout the supply chain; (C) the protection of the natural environment; (ii) minimising: (A) emissions of greenhouse gases; (B) the use of environmentally harmful materials; (C) the use of water; (D) the generation of waste; (E) the generation, emission or transmission of pollution (without diminishing any obligation to avoid pollution in particular circumstances); (f) in relation to the Employer’s circumstances: (i) maximising the prospect of achieving the Employer’s Net Zero Target; (ii) ensuring, insofar as is relevant to the matters the subject of this definition, that the terms of [the Employer’s sustainability linked loan/terms of the Green Loan] are complied with and satisfied;

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