---
title: Carbon Neutral Agreement Clause
excerpt: 
date: 2024-03-27T14:15:53Z
modified: 2025-07-23T11:12:19Z
file_type: md
permalink: clauses/carbon-neutral-agreement-clause.html
wpid: 2017
status: publish
type: clause
jurisdiction:
  - Aotearoa New Zealand
maintenance-status:
  - Not maintained
practice-area:
  - Corporate, mergers and acquisitions (M&A)
eleventyComputed:
  clause_child_name: Mackenzie and Maggie’s Clause
  clause_summary: "This clause places a 'light green' obligation on shareholders to work towards operating the company in a carbon neutral manner."
  clause_last_updated_date: 2023-05-23
layout: layouts/clause.njk
---

# Carbon Neutral Agreement Clause

## Child’s name

Mackenzie and Maggie’s Clause

## Summary

This clause places a 'light green' obligation on shareholders to work towards operating the company in a carbon neutral manner.

## What this clause does

Enables a company to place an obligation on shareholders. It may be appropriate for use by a company that is embarking on its emissions reduction journey, or which is a new or fast-growing company that does not yet have a good understanding of its emissions profile. This clause does not set specific targets for when carbon neutrality should be achieved.

This clause adapts \[Callum & Theo’s Clause\] Climate Standard Transaction Terms for use in Aotearoa New Zealand.

## Clause Content

**1. Carbon neutrality**

The parties agree that their collective intention is that the Business of the Company should be conducted in a manner which is at least Carbon Neutral and agree to work together in good faith to further that intention.