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:
(a) unavailability of water, clean air or other Natural Capital required by a party to manufacture or supply the [products/services];
(b) hurricanes, tornados, floods and unusually severe rain, wind, snow and temperature;
(c) disruption of logistics and transport systems relied on for the supply and distribution of key inputs or outputs;
(d) unsafe working conditions due to heat stress, extreme weather or increased disease;
(e) damage or disruption to food supply chains (including changes to crop growing patterns), housing or transport affecting the availability of food, shelter or transport for workers;
(f) unavailability of insurance as a result of actual or perceived physical impacts of Climate Change;
(g) unavailability of workers as a result of actual or perceived physical impacts of Climate Change;
(h) changes in soil conditions caused by increased precipitation, either over time or as a result of intense, single-day precipitation;
(i) changes to crop growing patterns; and
(j) [Insert other adverse events].
Consider climate risks to the parties or the project to determine the relevant adverse events. The Task Force on Climate-related Financial Disclosures ( TCFD ) is a good starting point.
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.