Glossary term

Climate Change Event

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Definition 1

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 OR 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].

Drafting notes and guidance

Consider climate risks to the parties or the project to determine the relevant adverse events. The International Financial Reporting Standards Foundation (IFRS) is a good starting point.

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