Climate Contract Playbook Edition 3
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What gets measured gets managed. The scorecard can help reduce GHG emissions as companies realise the numerous benefits to investing in renewable technologies and energy sources, developing economies of scale and building strong relationships with clients and suppliers alike. The parties may agree to provide the information in the scorecard to other stakeholders, such as end-use customers and ESG investors who are increasingly factoring GHG emissions into their decision making. 1. Funders (lenders and investors); 2. Procurement Specialists (in the public and private sector); 3. Supply-chain managers; 4. Environmental officers/compliance officer; 5. CSR leads; 6. CEOs/board members; 7. Environmental specialists (best practice, success stories to be shared); and 8. Sector regulators. Companies may use the scorecard to impose sustainability requirements expected of the company with whom they are contracting - incentivising compliance with internationally accredited metrics such as Science Based Targets 34 . For example, a revolving credit facility could have pricing mechanisms linked to sustainability performance against an earlier baseline. By including it in commercial negotiations, the scorecard positions sustainability performance as a collaborative effort between the parties, while increasing the transparency of action taken by companies through a robust reporting framework. The scorecard will give the contracting parties a chance to precisely quantify where they are meeting sustainability requirements, where they are falling short, and steps being taken to improve their performance. The metrics and audit standards measured by this scorecard may change by company, sector, industry and geographical location and so the scorecard needs to be easily modifiable, without affecting its intended overall accessibility. The scorecard should be easily readable and adaptable and is not intended to be an onerous drafting burden. The operative clause triggering the obligation to complete the scorecard will depend on the agreement – various sample wording is provided below. It could be tied to existing reporting or information provision mechanisms in the agreement. EU Public procurement specialists will note an overlap between the information provided/asked for in this scorecard and the selection questionnaire. Caution needs to be taken to ensure that this information is not asked for or scored at the selection stage in the procurement process unless it is a lawful part of the selection criteria.
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Notes for users
34 https://sciencebasedtargets.org/
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