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Climate Contract Playbook Edition 3

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2.3

If a party does not to provide its Disruption Liquidity Ratio in accordance with clause 2.1, that party is deemed to have a Disruption Liquidity Ratio above the figure stated in clause 2.2.

3.

Carbon mitigation to avoid ACO

3.1

In the event of a Climate Change Event or Pandemic, the parties acknowledge that the Embedded Carbon in the [Products/Services] might be wasted where the [Products/Services] are manufactured but not delivered, or delivered but not used. To avoid an ACO from wasted Embedded Carbon resulting from a Climate Change Event or Pandemic, either party may by written notice to the other party request that it: : (a) stops providing the affected [Products/Services] during the Period of Disruption without terminating this agreement; (b) offers to sell the affected [Products/Services] to other customers and provide a corresponding payment discount to the notifying party; or (c) reuse, resell or recycle the [Products or their constituent parts OR the input materials allocated to the Services] and provide a corresponding payment discount to the notifying party; or (d) donate the [Products or their constituent parts OR the input materials allocated to the Services] to an agreed community project, social enterprise or other charitable cause. If a party receives a notice under clause 3.2, it will consider the request in that notice within [NUMBER] days and shall only reject the request to the extent that: (a) it will have a materially disproportionate effect on that party compared to comparable businesses in its sector; or (b) other steps can be taken to avoid the ACO from wasted Embedded Carbon.

3.2

3.3

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