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Commercial Contracts
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Each of the precedents has a child’s name chosen by the drafting team. This is to encourage long-term thinking and to focus on the next generation as they will be most affected by the serious consequences if we fail to effectively respond to the climate crisis.
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#duediligence #riskmanagement
#climate #disclosure #confidentiality
Issue Climate Change risks do not have sufficient prominence in transactions and are often omitted from heads of terms. Solution Hanley’s Clause would incorporate a section on Climate Change issues in heads of terms precedents which would highlight climate risks to the deal teams. Impact Climate Change would be considered from the earliest stage of the transaction and carbon saving opportunities would become part of the DD exercise.
Issue Climate Change issues are often neglected in the primary stages of development of new commercial relationships. Solution Kaia’s Clause would incorporate a section on Climate Change issues in NDA agreements to encourage discussion about climate risks from the earliest stages in new transactions and set the tone for future documentation. Impact Climate Change issues would be openly considered from outset and discussion around Net Zero targets and climate risks would be placed at the forefront of business decisions.