Climate Contract Playbook Edition 3
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Additional Definitions “Capital Purpose” means to preserve the value of the Investors capital invested in the Company; “Commercial Purpose” means to make the company profitable so as to provide a return to shareholders whilst having regard to the Social Purpose and Capital Purpose; “Company” means [Insert name of Company that is being invested in] “Founders” means the founders and senior Founders of the Company listed in schedule [INSERT] “Investor Consent ” means the consent of 75% of the Investors. “Net Zero Target” means a reduction of greenhouse gas emissions from all operations [including value and supply chains] to net zero by [INSERT DATE] so there is a balance between sources and sinks of greenhouse gases in a calendar year and for each subsequent year thereafter. “Social Purpose” means [Insert relevant purpose for investee company which is likely to be linked to a UN Sustainable Development Goal] Sustainable Promotion of the Company’s Business 4.1 The Founders and the Company shall promote the best interests of the Company and ensure that its Business is conducted responsibly, sustainably, ethically and in accordance with all applicable laws and good business practice.
4.2
The Founders and the Company shall run and manage the business: 4.2.1 Primarily to advance the Social Purpose; 4.2.2 Secondly to achieve the Capital Purpose; and 4.2.3 Thirdly to achieve the Commercial Purpose.
4.3
The Founders and the Company undertake to procure, in so far as it is in their respective powers to do so, that the Company shall: 4.3.1 [publicly] set a Net Zero Target and within 6 months of Completion provide the Investors with a plan to deliver the Net Zero Target; 4.3.2 as soon as reasonably practical and no later than 12 months after Completion: 4.3.2.1 purchase electricity for its offices [and factory] on a green tariff that uses a 100% renewable energy; 4.3.2.2 use web hosts and cloud service providers which run their servers on 100% renewable energy or have a net zero target; 4.3.2.3 source all consumables used by the Company from sustainable and ethical sources; 4.3.2.4 create KPIs to measure the Company’s impact of its operations and goods and services it provides; 4.3.2.5 [ensure the [casing/packaging] for the Company’s products are sourced from as much recycled material as possible and are themselves designed to have the smallest environmental impact]; 4.3.2.6 [For online businesses][provide the Company’s customers the option to offset the carbon footprint of delivering the Company’s products at the point of sale on the Company’s website];
4.3.2.7
establish a sustainability committee as a committee of the board chaired by a non-executive director with experience of improving sustainability and mitigating carbon footprint;
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