Practical Law Editors Draft Climate Clauses for Finance and Construction Law
Practical Law editors helped The Chancery Lane Project (TCLP) draft and provide peer review for new climate clauses, as well as revise existing clauses and climate drafting resources. Announced yesterday, the new clauses and resources reflect the latest climate science, legislation, and user feedback from TCLP’s global community of 2,500 participants.
Ten new clauses focus on the finance and built environment sectors. They come amid a surge of investment in construction – from new housing to infrastructure projects – that may be an opportunity for legal professionals to help fight climate change.
“The carbon needs analysis that TCLP did this year confirmed there are significant opportunities to use contracts to decarbonize the built environment and finance sectors,” explained Becky Clissmann, managing director of TCLP. “These new clauses are key resources for these sectors where lawyers can have a significant impact on the transition to net zero. The built environment clauses provide additional tools for the legal community forming part of the Built Environment Project that we are running this year.”
Yassir Mahmood, senior editor, Practical Law, Construction co-hosts the monthly Practical Law Construction Briefing podcast and serves on TCLP’s Built Environment Advisory Committee. He shared how TCLP construction-related clauses in Practical Law resources are being used.
“Practical Law subscribers say there is a demand from clients to address climate change in contract clauses, and they are on the lookout for suitable wording,” Mahmood said. “That is because many clients and their funders have Environmental, Social, and Governance (ESG) policies that require climate action; indeed, many are subject to ESG reporting obligations by law.”
The new finance-focused clauses can help legal professionals align contracts with climate targets.
“The new clauses extend TCLP’s support to lawyers working in asset management and derivatives, providing resources to help their clients have a positive impact on our climate,” said Lucy Cutler, director, Practical Law Finance. “It has been a privilege to collaborate with colleagues from world-class law firms, financial institutions and companies, as well as having our Practical Law editors help draft and provide peer review of these new clauses.”
Thomson Reuters has long supported TCLP, a collaborative initiative of lawyers worldwide working to make climate sustainability a part of every commercial agreement and precedent to help fight climate change. The clauses developed by TCLP are freely available to law firms, corporations, and governments worldwide.
For more insights, subscribe to TCLP’s new podcast series Contracts for the Climate. It focuses on the built environment and how lawyers can get climate-friendly clauses into contracts.