---
title: Supplier Environmental Threshold Obligations
excerpt: 
date: 2024-03-27T14:17:57Z
modified: 2025-07-23T11:27:20Z
file_type: md
permalink: clauses/supplier-environmental-threshold-obligations.html
wpid: 2265
status: publish
type: clause
jurisdiction:
  - England &amp; Wales
maintenance-status:
  - Not maintained
practice-area:
  - Commercial
  - Supply chain
eleventyComputed:
  clause_child_name: "Teddy's Clause"
  clause_summary: Insert at purchase warranties for environmental performance and continuous improvement obligations. This will build in long term environmental improvements and transparency into supply agreements.
  clause_last_updated_date: 2021-09-27
layout: layouts/clause.njk
---

# Supplier Environmental Threshold Obligations

## Child’s name

Teddy's Clause

## Summary

Insert at purchase warranties for environmental performance and continuous improvement obligations. This will build in long term environmental improvements and transparency into supply agreements.

## What this clause does

Incentivises the reduction of carbon emissions and creates legally enforceable standards in mainstream supply contracts.

## Clause Content

**At Purchase Warranty**

**1. As a Condition of this Agreement the Supplier Warrants that:**

1.1 it has undertaken an assessment of the Carbon Footprint;

1.2 the Carbon Footprint projected to be incurred as set out in \[the Schedule\] is true and accurate as at the date of this Agreement.

**2. The Supplier Undertakes:**

2.1 to develop and implement a plan of continuous improvement and quantifiable short, medium and long term interim targets, approved by \[a director/committee of the directors/its board of directors\], to reduce the Carbon Footprint by a minimum of \[*insert percentage*\] per Contract Year (being the minimum estimated percentage reduction required to halve emissions every decade to limit warming as described in the Recitals) and shall provide a copy of that plan to the \[Customer\];

2.2 to re-assess the Carbon Footprint and the plan referred to at clause \[2.1\] at least \[annually/once per Contract Year\];

2.3 to provide the \[Customer\] with a written confirmation of the results of each assessment within one month of the completion of each assessment under clause \[2.2\];

2.4 to \[annually\], or more often at the \[Customer’s\] request (the cost of such additional request to be paid for by the \[Customer\]) arrange for \[the Carbon Trust/an independent, unconnected third party with no conflict of interest that is an appropriately qualified and experienced environmental, sustainability or climate professional\] to carry out an independent assessment and verification of the Carbon Footprint and make a copy of the results of that assessment and verification available to the \[Customer\] as soon as reasonably practicable after receipt;

2.5 to ensure that clauses \[2.1-2.4\] will be copied into any and all of its supply chain contracts that relate to its obligations under this Agreement, and provide any support (financial or otherwise) required to its subcontractors to assist them in fulfilling those obligations\[; and\]\[.\]

2.6 \[not to undertake any direct or indirect climate policy engagement, lobbying activities, trade association memberships or public policy positions that may undermine the goals of the UNFCCC’s Paris Agreement\].
