Glossary entry

Adverse Climate Outcome (ACO) & Adverse Social Outcome (ASO)

Definitions

Option 1

Adverse Climate Outcome (ACO) means any outcome directly resulting from the non-performance of an affected obligation, or the enforcement of this clause [force majeure] in relation to that non-performance, which may have an adverse effect on the climate, and includes but is not limited to:

(a) reduced Air Quality;

(b) an increase in Greenhouse Gas (GHG) Emissions;

(c) dumping of stock that was created using Natural Capital;

(d) wasted Embedded Carbon; or

(e) [insert other adverse effects].

Option 2

Adverse Social Outcome (ASO) means any outcome directly resulting from the non-performance of an affected obligation, or the enforcement of this clause [force majeure] in relation to that non-performance, which may have an adverse social effect, and includes but is not limited to:

(a) the insolvency of a party;

(b) redundancies over and above [  ];

(c) an increase in poverty, deprivation or hunger; or

(d) [insert other adverse social effects].

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Drafting notes

TCLP’s definition of Greenhouse Gas Emissions refers to scope 1, 2 and 3 emissions. TCLP’s definition of Scope 1, 2 and 3 Emissions aligns with how they are defined in the Greenhouse Gas Protocol.

Application

Commercial, supply chain, insurance, public procurement contracts, and any other contract where a clause is activated when an event increases the climate or social impacts of a contract.