Climate Contract Playbook Edition 3
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This clause will encourage suppliers to use recyclable/reusable materials in products, and to consider the entire lifecycle of the product (including end of life) from the design stage. This will ultimately help to reduce the amount of waste going to landfill, and reduce the reliance on natural resources thereby reducing the Carbon Footprint of the products. One of the UN’s Sustainable Development Goals is that of ‘responsible consumption and production’. A clause obliging suppliers to consider circular design will help to meet this goal. This clause will also bridge the gap between the aspirations for a circular economy and legislative initiatives by the EU and national governments being introduced.
Impact
1. Large consumables companies 2. Product designers 3. Procurement teams 4. Industry bodies 5. In-house lawyers 6. IP lawyers (design right specialists)
Stakeholders
This clause is intended to be used in procurement/supply agreements.
Application
Where the manufacturer and designer are different entities, encourage the two to work together to achieve the above.
Companies should also regularly communicate and collaborate with their Suppliers to ensure that the obligations are met, including requiring regular audits and reports from the Suppliers, and that design and procurement teams discuss and monitor the circular design requirements.
There needs to be a clear definition of ‘reusable’ and whether this means that an item can be reused once or multiple times.
The clause should be amended depending on the product being manufactured.
Notes for users
In addition, companies should also request that the Supplier incorporate the European Commission’s EU GPP criteria and Ellen MacArthur Foundation/IDEO Circular Design Guide. Drafters could decide to link the bonus payable to the Manufacturer under clause 3.6 to the GHG reductions made as a result of adopting the Circular Manufacturing Requirements.
Additional Recitals (A) The Parties hereby acknowledge that the primary consideration for the design and manufacture of the Product is to ensure, as far as possible, that the Product can be reused, repaired and/or recycled at the end of its life. a) the insolvency of a party;
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