This document is a Bonterms Standard Agreement Climate Addendum, designed to be incorporated into an existing main agreement between a customer and a supplier. It allows parties to add climate-related terms and commitments to their commercial contracts. The addendum includes key terms and provides space for additional modifications.

This Climate Addendum outlines sustainability obligations for a Supplier to a Customer. It requires the Supplier to commit to and pursue science-based targets for reducing greenhouse gas emissions, aligned with the Science-Based Targets initiative (SBTi). The addendum also includes reporting requirements and environmental compliance representations, integrating these terms into a main agreement between the parties. This document is designed to be incorporated into an existing commercial contract to enhance its environmental provisions and corporate responsibility aspects. It ensures that the supplier actively works towards and reports on its climate goals, contributing to the customer's overall sustainability objectives. The addendum also allows for public disclosure by the customer regarding the supplier's commitment to these climate initiatives. This helps both parties demonstrate their commitment to environmental stewardship and transparency in their supply chain operations. The document is structured to clearly define terms and responsibilities, making it a practical tool for implementing corporate environmental policies within business relationships. It also includes provisions for the term and termination, linking it directly to the main agreement it amends. This ensures that the sustainability commitments are aligned with the broader contractual relationship. The addendum also clarifies the relationship between its terms, the cover page, and the main agreement, establishing a clear hierarchy in case of conflicts. This structured approach helps in managing the legal and operational aspects of sustainability commitments effectively. The document is designed to be adaptable, allowing for additional terms and modifications through its cover page, which provides flexibility for specific business needs. This adaptability ensures that the addendum can be tailored to various contractual contexts while maintaining its core purpose of promoting environmental responsibility. The inclusion of signature fields for both customer and supplier, along with details like names, titles, and companies, ensures proper execution and accountability. This formalizes the commitment to the climate addendum and its integration into the existing legal framework between the parties. Overall, the Climate Addendum serves as a robust mechanism for embedding environmental sustainability into commercial agreements, fostering greater accountability and transparency in supply chain practices. It is a forward-looking document that addresses contemporary environmental concerns within a contractual framework. This makes it a valuable tool for businesses aiming to enhance their environmental, social, and governance (ESG) performance. The document's focus on measurable targets and reporting mechanisms further strengthens its effectiveness in driving real-world environmental improvements. This comprehensive approach ensures that sustainability is not just a statement but an actionable commitment within the business relationship. The addendum's clear language and structured format make it accessible for implementation while maintaining legal rigor. This balance is crucial for practical application in diverse business environments. The document also implicitly encourages a collaborative approach between customer and supplier towards achieving shared environmental goals. This partnership aspect is vital for successful sustainability initiatives across value chains. The addendum's emphasis on science-based targets reflects a commitment to credible and impactful environmental action. This aligns with global best practices in corporate sustainability and climate action. The document's design supports both compliance with environmental laws and proactive engagement in climate change mitigation. This dual focus ensures both legal adherence and voluntary leadership in sustainability. The addendum's role as an incorporated part of a main agreement highlights the growing importance of environmental considerations in core business contracts. This signifies a shift towards more integrated and holistic approaches to business and sustainability. The document's clear definitions and clauses minimize ambiguity, facilitating smoother implementation and dispute resolution. This legal clarity is essential for the effective functioning of any contractual agreement. The addendum's structure, with a cover page for key terms and additional terms, allows for customization without altering the standard terms. This modularity is beneficial for managing different contractual scenarios. The document's focus on greenhouse gas emissions and 1.5°C warming targets demonstrates its alignment with critical global climate goals. This makes it a relevant and timely legal instrument for businesses operating in the current environmental landscape. The addendum's provisions for reporting ensure transparency and accountability, which are fundamental to building trust and demonstrating progress in sustainability. This reporting mechanism is key to tracking and verifying environmental performance. The document's overall intent is to formalize and strengthen environmental commitments within commercial relationships. This contributes to a broader movement towards sustainable business practices. The addendum's clear articulation of responsibilities helps both parties understand their roles in achieving climate objectives. This clarity is vital for effective collaboration and execution. The document's emphasis on