Our latest research quantifies the climate transition risk for over $24trillion of outstanding global corporate debt.  We combine Scope 1, 2 & 3 emissions for over 42,000 listed companies and carbon pricing under 10 different climate scenarios to stress-test the carbon liabilities of the majority of outstanding corporate debt, along with over $2 trillion in 'Green Bonds'.

Key Findings:

• By 2030, over US$1 trillion of corporate debt will face extreme financial liability under 1.5°C scenarios, covering ~4% of the listed corporate bond market
• By 2030, over $200 billion of corporate debt will face significant exposure even under the more modest Paris-aligned 2°C scenarios
• We find 18% of 'green bonds' may also carry significant climate transition risk
• Green bonds alone, do not offer lower climate transition risk for investors

This research is particularly relevant as mandatory climate disclosure requirements commence globally in 2025. Our methodology helps investors understand their true exposure and manage transition risk effectively.

The white paper details our methodology to quantify climate transition risk for bonds, climate scenario analysis, green bond data and implications for investment decision-making. Download it below.