The Chancery Lane Project (CLP) is the code name for the focused and collaborative effort of UK lawyers to develop new contracts and model laws to help fight climate change. Its mission is to create contracts and model laws to enable communities and businesses to fight climate change and achieve net zero carbon emissions for a 1.5 degree world. The first editions of the Climate Contract Playbook and Green Papers of Model Laws were published in February 2020 following a successful legal hackathon.
Travers Smith's first CLP project – namely the production of a template management equity ratchet term for inclusion in investment documents to financially incentivise management teams to meet targets which are linked to climate and environmental issues as opposed to purely financial targets – was included in CLP's 2nd Edition of the Climate Contract Playbook which has since been downloaded over 20,000 times in 75 countries.
This re-alignment of traditional corporate targets with broader societal and environmental targets will be a key tool in the fight for a more sustainable climate. We have since seen this concept evolve in our financial instrument drafting and, most recently, in relation to employee incentives.