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Tilburg Law Review
Article . 2025 . Peer-reviewed
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Tilburg Law Review
Article . 2025
License: CC BY
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Toward a Less Incomplete Contract: Merging Smart Contracts and Esg Metrics Contracts

Merging smart contracts and ESG metrics contracts
Authors: Bruno Vieira; Fernanda de Araujo Meirelles Magalhães;

Toward a Less Incomplete Contract: Merging Smart Contracts and Esg Metrics Contracts

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.

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average
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