Climate Contract Playbook Edition 3
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Directors and Officers means a natural person holding past, present, or future management or supervisory position or equivalent position under the laws of any jurisdiction, including any member of the supervisory board or management board of the company. Greenhouse Gas (“GHG” or “GHGs”) means the natural and anthropogenic gases which trap thermal radiation in the earth’s atmosphere and as specified in Annex A to the Kyoto Protocol to the United Nations Framework Convention on Climate Change (UNFCCC) or otherwise specified by the UNFCCC and which currently include to: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulphur hexafluoride (SF6), and nitrogen trifluoride (NF3). Greenhouse Gas Emissions (“GHG Emissions”) means emissions of Greenhouse Gases over a specified area and period of time, each expressed as a total in units of carbon dioxide equivalent (CO2e) [and calculated in accordance with the GHG Protocol Corporate Accounting and Reporting Standard or such other equivalent and generally recognised greenhouse gas emission calculation methodology]. Insurer means [specify insurer].
Policy Period means the period specified in item [..] of the Schedule of the policy. Policyholder means the entity specified in item [..] of the Schedule of the policy.
TCFD Recommendations means the recommendations by the Task Force on Climate-related Financial Disclosures to assess, collate and disclose the [material] financial impacts of climate-related risks and opportunities for an organisation, including those related to the global transition to a lower-carbon economy.
Additional Clauses 1.1
The Insurer and the Policyholder acknowledge that accurate, climate-related financial disclosures in the Policyholder’s Annual Accounts benefit the Policyholder by ensuring greater transparency of its climate-related risks, as well as any Climate Change Mitigation steps, reducing the risk of a Claim being brought against the Policyholder and/or its Directors and Officers. 1.2 [To incentivise the Policyholder to make climate-related financial disclosures in its Annual Accounts,] the Policyholder may avail itself of a pro-rata return of premium of [10%], provided that during the relevant Policy Period: a. the Policyholder has publicly reported and accurately disclosed to the Insurer all climate- related risks and opportunities relevant to its business in the areas of: (i) governance; (ii) strategy; (iii) risk management; and (iv) metrics and targets, in line with the TCFD Recommendations, and/or in line with the environmental standards agreed between the Policyholder and Insurer (the “Disclosures”); and b. the Policyholder has declared to the Insurer that it, and/or its Directors and Officers, have not been involved in any Claim in respect of any breach or alleged breach relating to the Disclosures and have no actual knowledge of any facts or circumstances that may lead to any such Claim.
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