Glossary entry

Climate Change Event

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Climate Change Event

Climate Change Event means an event, series of events or circumstance arising from the physical impacts of Climate Change that is either Pan-terra or Epi-terra in scope and prevents a party from performing its obligations under this agreement [including an obligation to pay money], and includes but is not limited to:

(i) unavailability of water, clean air or other Natural Capital required by a party to manufacture or supply the [products/services];

(ii) damage to a party’s premises, including flooding due to sea level rise or an increased intensity of rain and storms;

(iii) disruption of logistics and transport systems relied on for the supply and distribution of key inputs or outputs;

(iv) unsafe working conditions due to heat stress, extreme weather or increased disease;

(v) damage or disruption to food supply chains, housing or transport affecting the availability of food, shelter or transport for workers;

(vi) unavailability of insurance;

(vii) unavailability of workers; and


Drafting notes

This definition is taken from Iris’ Clause.


Commercial agreements, supply chain clauses, public procurement contracts – any clause that is activated when an event increases the climate impacts of a contract, insurance contracts.