Climate Contract Playbook Edition 3
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Companies can choose to incorporate this drafting into their board minutes at their discretion, however the following stakeholders could be consulted for example to encourage their members to incorporate environmental considerations into their governance processes, update precedents etc. 1. Department for Business, Energy and Industrial Strategy (BEIS) 2. Confederation of British Industry 3. Institute of Directors 4. Federation of Small Businesses 5. Precedent and know how Providers 6. Professional Support Lawyers 7. Private Practice Firms 8. Investor/shareholder bodies and GC groups
Stakeholders
Application
This drafting can easily be incorporated into existing board minutes precedents.
Wording will of course need to be bespoke for the company using it, however the drafting is intended to encourage boards to specifically confirm that they have properly considered their environmental objectives and/or the environmental risks associated with their decisions. Boards should keep detailed notes of the matters discussed for accountability and audit purposes.
Notes for users
Example Clause After due and careful consideration of the above matters and each of the documents produced to the meeting, including consideration of: a) the matters referred to in section 172 of the Companies Act 2006; b) [the environmental and social impact policies and objectives of the Company (as stated in its accounts for the year ended [●]/sustainability report dated [●]);
c)
the Company’s [net zero carbon emissions] OR [carbon emissions reduction] target (as stated in its strategic plan for the period [●]); the carbon footprint of, and the climate change risks (including, physical, liability and transition risks) associated with, the transactions under contemplation at the meeting); alternatives with a lower carbon footprint and giving rise to less climate change risk; measures for reducing the Company’s carbon footprint and reducing, mitigating and/or avoiding the climate change risks,
d)
e)
f)
It was resolved that [insert resolutions].
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