What do we call a contractual clause that builds economic, social, or environmental conditions into public contracts?

A community benefit clause is a contractual provision included in public contracts that ensures the realization of various economic, social, or environmental benefits for the community. This clause is designed to maximize the positive impacts of public procurement by encouraging suppliers to contribute to local development, workforce diversity, and environmental stewardship.

Such clauses often stipulate that contractors engage local businesses, create job opportunities for disadvantaged groups, or adopt sustainable practices that reduce their environmental footprint. By incorporating these conditions into contracts, authorities can leverage public spending to drive broader social and environmental goals, aligning procurement practices with community interests.

While the other types of clauses mentioned, such as social responsibility or environmental sustainability clauses, may touch upon similar themes, the community benefit clause distinctly emphasizes the overarching benefit to the community as a whole, making it a comprehensive tool for promoting sustainable procurement in public sector projects.