Climate Transition Assessment

The Climate Transition Assessment (CTA) is a qualitative opinion of how consistent with a low carbon, climate resilient future we expect an entity's economic activities will be once the entity's planned transition changes are realized and potential material implementation risks are considered. We express our opinion using a single Shade of Green ranging from Dark Green to Red.

The CTA is not a net zero assessment. Whereas many net zero targets are distant, reaching as far as 2050, the Climate Transition Assessment analyzes near-term actions and investments that the company has planned, and their likely implementation, considering potential risks and blockers.

Our CTA analysis includes three elements:

1. Current Activity

2. Climate Transition Plan

3. Future Shade (based on the Shades of Green spectrum)

With a Climate Transition Assessment, companies can:

• Demonstrate their company’s readiness to obtain sustainability or transition financing, either for labelled debt – in combination with a Second Party Opinion - or unlabeled debt, to demonstrate commitment to transition at entity-level.
• Obtain a Green Designation on certain stock exchanges (e.g.: Nasdaq Green Designations, B3 Ações Verdes (BAV), and the SIX Swiss Exchange 1.5°C Climate Equity Flag), either when going public as a green equity offering or as a listed company.
• Seek an external opinion, where relevant, on their activities for listing on stock exchanges or before an Initial Public Offering (IPO) announcement.
• Demonstrate the robustness of their transition plans in communications to investors or other stakeholders.
• Provide a qualitative, deeper dive opinion for investors and banks seeking to understand the climate transition risk of their portfolio companies.

From the impacts of climate change to the opportunities of sustainable development, a unique journey of discovery awaits every forward-thinking company, financial institution, government, and policy maker.