The Sustainable Contract - 中欧社会论坛 - China Europa Forum

The Sustainable Contract

Authors: Yann Queinnec

Date: 2010

Extract from ” Responsabilités de l’entreprise transnationale et globalisation de l’économie“

Published by Bruylant-LGDJ

“A Sustainable Contract is a contract that, in its purpose, or in the provisions for its implementation, balances economic, social and environmental aspects, so as to allow enhancing protection of fundamental human rights and of the environment.”

Context and objectives

Yann Queinnec, Director, Sherpa (NGO, France) proposes the concept of Sustainable Contract. This type of contract would be used for commercial contracts between two enterprises. It would include provisions allowing protecting the “general interest” (social and environmental aspects). Such a contract builds on sustainable development concept as defined by the United Nations, and would refer to related international standards. It would help balancing the lack of an international convention mandating companies on sustainable development.

Benefits and potential utilisations

Such a contract could help judges for contract interpretation. Contract provision would set precise and internationally agreed provisions on social and environmental aspects, instead of letting these aspects to the discretion of companies.

Sustainable Contracts would contribute to corporate decision-making, once again thanks to reference to social and environmental standards. They could help evaluating company performance on the basis of the triple bottom line concept.

At last, Sustainable Contracts could pave the way for integration of sustainable development to contract international law.

How would Sustainable Contracts work?

Potential social and environmental impacts of a contract should be assessed so as to include relevant social and environmental provisions in the contract. The contract would also allow identifying and eliminating unbalances between the signatories of the contract. For example, a contract that would require a sub-contractor to respect the ethical commitments of the client, without financial support to make the necessary investment, would not be sustainable. Sustainability would be integrated to the different stages of the contract: negotiation, writing, implementation, reporting, possible modifications and breaches.

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