Investor Primer to Transition Risk Analysis


Investor Primer to Transition Risk Analysis

Since the Financial Stability Board Task Force on Climate-related Financial Disclosures (FSB TCFD) released its recommendations, there has been a greater emphasis on scenario analysis in the financial community to assess the opportunities and risks related to efforts to limit temperature change. Given the uncertain nature, probability and magnitude of these issues, scenario analysis is a particularly useful tool, to complement traditional financial analysis. This report builds on models developed by The CO-Firm, KECH climate research, and a growing body of literature on how scenario analysis could be performed and included in company valuations and investment decision-making.