Warranties and undertakings in underwriting and sponsor agreements are not required to go into significant and granular detail as regards an applicant/issuer’s environmental position and climate change risk. It is necessary to increase transparency in this area and create the prospect of real accountability for non-compliance (or material non-compliance).
The Chancery Lane Project, a collaborative effort of UK lawyers to develop new contracts and model laws to help fight climate change, has published a model clause for underwriting/sponsor agreements that would impose full and specific disclosure of the applicant/company’s position and performance by reference to Specified Metrics; and disclosure thereafter on a continuing basis as to how any deficiencies that have been identified are being/to be addressed, with a view to continuous improvement by reference to Specified Metrics.
The model clause is available in the attached volume at page 44 (“Dottie’s Clause”).