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 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

(viii) [INSERT OTHER ADVERSE EVENTS].

Drafting notes

This definition is taken from Iris’ Clause.

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.