Sustainability in business.

I have recently seen lawyers struggling to determine what is relevant to their advice on climate risk. The debate focuses on the appropriate extent of enquiry. Each of these has been in relation to property related matters.

In the second half of 2023, a discussion document sponsored by Ministry for the Environment and Department of Conservation circulated for input. The topic was biodiversity credits. The paper investigated whether “a biodiversity credit system could help to incentivise the protection and restoration of native wildlife” in Aotearoa, and if it could, what such a system might look like. Submissions closed in November. Nothing further has been published yet.

The Chancery Lane Project has been a powerhouse in the development of climate clauses for use in legal documents throughout the world. Operating out of the UK, it has since its inception in 2019, developed and freely provided clauses for use by lawyers in a range of practice areas. These include clauses for use in property and construction documents.

Despite the world looking more closely at greenwashing, it is tempting to think that property transactions are unlikely to be impacted greatly by the enquiries. The focus is far more on consumables like food, drink, clothing and fossil fuels, rather than real estate. But that may not be wise. Better perhaps to look closely at what actions are being analysed and challenged and to consider how lessons learned in those industries might impact on property matters.

Drafting a contract provides a perfect opportunity to impact climate change. It is not difficult either. This article looks at everyday practical steps for property lawyers and their clients do exactly that.

Have you read New Zealand’s adaptation plan? Well done if you have because it runs to about two hundred pages. Its importance is clear though, as it sets the tone for over-arching change that we can expect as we react to risks from changes in the Earth’s climate.