Glossary entry

Climate Change Event

Definitions

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].

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Drafting notes

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.

Application

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.