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Climate Contract Playbook Edition 3

31

Clauses

Supplier Net Zero Obligations 8.1

The Supplier acknowledges and understands the Customer’s Net Zero Target. Accordingly, the Supplier shall: a) set its own [Net Zero/Gross Zero] target (the “Supplier NZ Target”) with a target achievement date the same as or earlier than the Net Zero Target Date (the “ Supplier NZ Date ”);

b)

agree the Contract Target with the Customer;

c)

achieve the Contract Target;

d)

ensure that this clause 8 will be copied into any and all of its supply chain contracts that relate to its obligations under this agreement; introduce emission reduction technologies, processes and policies as well as offsetting and, where technologically and commercially feasible, carbon removal initiatives, to achieve the Supplier NZ Date; undertake and keep up to date full and complete records of Carbon Reporting activity and data and provide the same to the Customer each year and more frequently as the Customer may reasonably request; attend, on reasonable notice, meetings with the Customer’s Sustainability Manager or other nominated representative to present the Supplier’s plan to achieve, and current progress towards, the Supplier NZ Date; not do or omit to do anything which could reasonably be expected to cause the Customer to miss its Net Zero Target Date, whether pursuant to this contract or otherwise.

e)

f)

g)

h)

8.2

If: a)

the Supplier fails to comply with any of the obligations in clause 8.1; or

b)

the Customer, having reviewed the Carbon Reporting and discussed with the Supplier its progress to achieve the Supplier NZ Date, determines (acting reasonably) that the Supplier is making insufficient progress towards achieving the Supplier NZ Date; or the Supplier fails to achieve the Supplier NZ Target by the Supplier NZ Date, the Customer may, without affecting any other right or remedy available to it:

c)

d)

terminate this agreement by giving one month’s written notice to the Supplier;

e)

require the Supplier to plant a number of Native Trees in the UK sufficient to compensate for the Customer’s shortfall in progress towards the Supplier NZ Date attributable to the [production of the Goods/ delivery of the Services]; and/or

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