Monitoring and reporting
Where the reduction of embodied carbon is a key issue within the contract, performance indicators need to be developed to ensure delivery. These may include the provision of evidence of the origin of materials or independent verification of process methods.
The benefits of the contractual requirement must be quantifiable and measureable; otherwise there is a risk that it may be unenforceable. The buyer must also consider whether this requirement is core to the contract or a secondary issue, as any remedy for breach of performance may be difficult to quantify.
In this case a pre-agreed service credit or rebate would enable recompense for non-performance where termination of the contract would not be an option. Specific requirements may include:
'Establish a baseline of embodied carbon emissions within [insert] months/years of commencement of the contract.'
'Provide evidence of measures undertaken in the delivery of the service/supply of product at the end of each 12 month period from commencement of the contract, showing changes undertaken and planned to reduce embodied carbon, where practical.'
It may be appropriate to independently verify calculations against an agreed standard for example, ISO1407, PAS 2050, or GHG Protocol product standard, etc. This would ensure that a consistent and accurate calculation method has been used, and act as an ‘audit’ for the results.