Module II. Contracts as drivers of sustainability
- I. Setting the Stage: Corporate Sustainability Regulation
- II. Contracts as drivers of sustainability ↓
- III. Defining the Problem: What is wrong with current contracts?
- IV. How to Make Contracts Work Better
How to use this module
This module focuses on how contracts drive sustainability in practice. It builds on Module I and explains why contracts are central to supply chain sustainability, what key sustainability regulations expect from your contractual relationships, how to embed sustainability expectations into contracts so that they become a part of the contract stack, and how to assess where your company stands in terms of sustainability contracting.
You can use this module in three main ways:
1. As a shared orientation and change of lens
Align procurement, contract management, sustainability, legal/compliance, business, product, technical and quality teams on why contracts matter for supply chain sustainability and what current EU law (e.g., Corporate Sustainability Due Diligence Directive, Battery Regulation, Conflict Minerals Regulation, Ecodesign for Sustainable Products Regulation, Construction Products Regulation, Forced Labour Regulation) mean for contracts.
2. As a guided reading and discussion tool for your sustainability related contract stack
Keep your real “contract stack” at hand: main agreement, General Terms and Conditions, product/service specifications, (Supplier) Code of Conduct, Supplier Requirements and relevant policies. Check that sustainability content is consistent across documents and that all documents become part of the contract.
3. As a roadmap for gradual improvement
Assess your company’s current maturity (inactive, reactive, proactive, transformative) in sustainability contracting and plan next steps with the scorecard. Start small: add or calibrate clauses where risks are highest, design verification processes that fit your context, and strengthen supplier dialogue. Over time, co-develop targets with key suppliers, invest in capacity building, and improve contract clarity and usability to support continuous improvement.
Use clause libraries and model clauses as starting points – but always tailor to your risks and relationships.