Loading...
Toward a less incomplete contract: Merging smart contracts and ESG metrics contracts
de Araujo Meirelles Magalhaes,Fernanda Vieira,Bruno
de Araujo Meirelles Magalhaes,Fernanda
Vieira,Bruno
Abstract
Growing attention to environmental, social, and governance (ESG) concerns has pushed companies to include conditions and obligations linked to ESG indicators in their contracts. Those contracts, defined as ESG metric contracts include, for example, managers' remuneration plans, supply chain and merger and acquisition agreements. Such contracts are, however, incomplete, as they do not establish all the possible contingencies that can happen during the contractual relationship. Using smart contracts can lessen the incompleteness of those ESG metric contracts. Nevertheless, smart contracts are still incomplete. Although smart contracts have immutability as their most important characteristic, this paper suggests that different mechanisms can be used to address uncertainty and incompleteness in smart contracts. Oracles and upgradeable smart contracts can help address the incompleteness that still permeates smart contracts, adding a needed layer of flexibility to these contractual relationships.
Description
Date
2025-11
Journal Title
Journal ISSN
Volume Title
Publisher
Files
Loading...
692989a12210c.pdf
Adobe PDF, 854.64 KB
Research Projects
Organizational Units
Journal Issue
Keywords
K12 - Contract Law
Citation
de Araujo Meirelles Magalhaes, F & Vieira, B 2025, 'Toward a less incomplete contract : Merging smart contracts and ESG metrics contracts', Tilburg Law Review-Journal of International and European Law, vol. 30, no. 2, pp. 1-24. https://doi.org/10.5334/tilr.419