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Climate Contract Playbook Edition 3

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The proposed clauses will ensure environmental, sustainability and net zero initiatives are interwoven into employment policies. Active collaboration between the board and HR teams is necessary to effectively implement such clauses into the employment handbook. Consequently, the importance of these provisions will be cascaded to employees. This should: • Increase awareness and opportunities for carbon and cost saving; • Incentivise employees to opt for and advocate “greener choices” helping the transition to Net Zero; • Reverse/erase high energy consuming habits; and • Reduce the carbon footprint of the company. The following key stakeholders should be engaged to deliver the potential impacts identified above: 1. Law firms (including Environmental Committees and active participation from internal business and marketing teams); 2. Chartered Institute of Personnel and Development; 3. Guild of Human Resource Professionals; 4. Unions 5. Employees; 6. Shareholders;

Impact

Stakeholders

7. Non-Executive Boards; and 8. Non-Executive Directors.

The Green Employment Handbook clauses should be modified and adapted by each company to create a handbook which aligns with their strategic plan and net zero or environmental targets. The drafting provided clauses for sections of a handbook. They are not full policies. The structure follows the standard employment handbook published by Practical Law 126 . The Green Employment Handbook clauses are an illustrative and non-exhaustive list. There will be many other opportunities to align formal policy with Net Zero and other environmental ambitions. For example a company could have a pensions policy that says that ESG fund will be default fund for its workplace pension if no other selection is made by an employee. Companies are encouraged to incorporate them as applicable within their existing handbook but also consider whether their spirit and intention could be adapted for the business in question and/or reflected in other policies or clauses which do not currently form part of the Green Employment Handbook clauses. The Green Employment Handbook clauses introduces the concept of ‘Sustainability Team’ but some organisations may already have a joint environmental committee 127 . The drafting assumes a list of suppliers has been researched and created to reflect the Net Zero targets of the organisation. For example confirming all suppliers operate using 100% renewable energy.

Application

Notes for users

126 https://uk.practicallaw.thomsonreuters.com/8-386-8683?view=hidealldraftingnotes 127 https://www.tuc.org.uk/sites/default/files/extras/gogreenatwork.pdf

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