Page 21 - BOSS Today Issue 52
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DOWN TO BUSINESS    BOSS Today      #52
















             hether it’s meat-free Mondays or   n  A requirement to reduce business
          Wplanting a tree for the planet, we   travel.
          have all become accustomed to seeing   n  A carbon footprint target for each
          initiatives intended to reverse the effect   product produced that reduces over
          of climate change. However, businesses   time.
          now need to put their best (green) foot   n  A mechanism that benchmarks the
          forward, and place measures to tackle   contractor’s carbon footprint against
          climate change at the centre of their   the market.
          planning.                         n  A clause requiring contracting carriers
           The UK will host the 26th UN Climate   to use energy-efficient vehicles for
          Change Conference of the Parties     any road carriage under a transport
          (COP26) in Glasgow on 1–12 November   agreement, or otherwise specify that
          2021. The UK Government is keen to take   a percentage of road journeys will use
          the lead on initiatives to tackle climate   green HGVs.
          change, and this is likely to increasingly   n  Creative interest rate remedies by
          become an issue which businesses need   which payments are made either to a
          to consider.                         green cause or an offsetter.
           The UK Government currently has a   n  A clause in employment contracts
          legally binding target of achieving net   requiring the employer to provide, and
          zero carbon emissions by 2050 and    the employee to participate in, a range
          has now announced a commitment to    of climate education and awareness-
          reduce UK carbon emissions by 78%    raising interventions.
          by 2035, compared to 1990 levels. This
          commitment will be made legally binding   Suppliers responding to invitations to
          this year.                        tender may also be asked to complete
           With the efforts to tackle climate   a due diligence questionnaire requiring
          change becoming a hot topic, many   them to supply information on a wide
          businesses will have to consider where   range of climate related issues. In
          they can reduce the use of carbon in   addition, businesses may see financial
          their operations and supply chains,   institutions offering more favourable
          whether by legal requirement or by   terms to organisations that hit carbon
          commercial necessity.             reduction targets.
           Big businesses have used their buying   At the time of writing, we don’t yet
          power to bring about change and to   know what the content of the new
          improve their own public image by   legislation will be, but if the UK is to meet
          requiring their suppliers demonstrate   the ambitious targets being set, the next
          their commitment to energy efficiency   two years are likely to see significant   For further information on this and
          and to driving costs down. It is likely   changes in terms of regulations, policies   on contract clauses to support the
          that suppliers will soon be required to   and the financial implications of the   reduction of carbon emissions, please
          sign up to contracts containing green   Government’s industrial decarbonisation   contact Nicola Langley, Head of Legal, at
          clauses.                          strategy.                          nicola.langley@bpif.org.uk
           There is even a global collaboration   All UK businesses should be ready to
          of commercial lawyers who are seeking   respond to any new legal obligations to
          to encourage businesses to put tackling   reduce their carbon footprint, and to
          climate change at the heart of their   put climate change reduction at the core
          operations, and who have come up   of business planning. BOSS is currently
          with a range of ideas for clauses to be   producing an Environmental Roadmap
          included in commercial contracts which   to help members through environmental
          introduce legally-binding obligations   compliance and best practice, and has a
          to reduce the use of fossil fuels. These   number of tools to assist its members to
          include:                          measure their environmental impact.


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