If a business lacks a formal statement of its social and/or environmental mission, or investors want changes in the language of such a statement, requiring the description of the mission, in a formal written agreement or statement, at the term sheet stage may be helpful.
- If closing a deal before mission is defined:
Sample language: Within [X days or X months] after the Closing, the Company and the Investors shall agree upon a written statement of the Company’s [social and environmental purpose] OR [the impact goals of the Company and the investment].
- Policies for adoption after closing
Sample language: Within [X days or X months] after the Closing, the Board (which vote shall include the Preferred Director) shall adopt policies relating to each of the following rules:
- If Mission is defined at the time the deal is closed:
Sample language: The Company and the Investors have agreed upon the Company’s [purpose or goal definition] OR [the shared goals or goal definition] OR [the goal definition contained in Exhibit X], and mutually intend to support this purpose and the achievement of these goals
- Extending standards of practice to partners
Sample language: The Company shall enter into and maintain business relationships only with suppliers and contractors who comply with the policies described in the preceding paragraph.