Environmental Performance (contracts definition) meaning

In contracts, Environmental performance describes how a company (and, if agreed, its Affiliates), premises or estate performs against agreed environmental KPIs and standards. It is not defined by statute or case law; it is a descriptive term used across contracts, finance and leases in the UK and Ireland. Typical KPIs include: - scope 1, 2 and 3 greenhouse gas emissions (the GHG Protocol or GRI 305). - Environmental management systems (ISO 14001). - Biodiversity impacts (IUCN guidance, IFC PS6 or GRI 304). - Energy use (GRI 302). - Waste (IFC PS3, DEFRA KPI 12 or GRI 306). - Emissions to water (DEFRA KPIs 7–8), land (DEFRA KPIs 9–11, 13) and air (UK/EU air‑quality limits). In property and construction, it may cover materials sourcing and use; water sources, consumption and discharge; flexibility, durability and resilience; transport; landscape and ecology; deconstruction and disposal; and other adverse environmental impacts. Performance is commonly verified by an Independent Expert or auditor appointed under the agreement, with periodic reporting. Drafting should specify the framework, baseline year, calculation methodology and assurance level. Usage is broadly consistent across England & Wales, Scotland, Northern Ireland and Ireland; align references to UK SECR/UK ETS or EU/Irish CSRD/EU ETS.