Trucost produced this report as part of our commitment to the EU Commission funded Energy Transition Risk project. The project, spear headed by the 2 degree investing initiative, aims to develop key analytical building blocks to facilitate the integration of energy transition risk assessment in financial analysis. This report explores how energy transition scenarios and scenario adjusted financials could be integrated into credit models to determine whether there could be a material impact on a company’s credit quality.
- Overview of the Energy Transition Risk project, the challenges posed to investors from the disconnect between climate scenarios and financial models and the work of the consortium.
- Trucost’s role in the project and the findings of our analysis.
- Potential future directions for the integration of energy transition scenarios in credit modelling.