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This report constitutes the first attempt to develop transition scenarios involving over 30 parameters across 8 sectors directly tailored for financial risk and scenario analysis by companies, equity and credit research analysts, and financial institutions.

The report contains two transition risk scenarios – a limited climate transition (LCT) scenario associated with 3°-4°C decarbonisation range and an ambitious climate transition (ACT) scenario, seeking to approximate an outcome associated with a 2°C transition and building in particular on the 2°C scenarios of the International Energy Agency (IEA). The report develops over 30 individual risk parameters across 8 sectors (fossil fuels, electric power, automobile, cement, steel, aviation, and shipping). You can get access to the dynamic version of the indicators through the ET Risk project Scenario Selector online tool here. Part I presents the analytical framework for the scenarios. Part II provides the detailed parameters and indicators for use in financial modelling.