Climate risk, scenarios & resilience · Specialist

Transition risk premium

Also called: climate risk premium

ELI5

Additional return demanded for exposure to climate-transition uncertainty.

Used in conversation

“Add transition risk premium to the risk register with an owner and mitigation.”

Pitch context

You will see “Transition risk premium” in sustainability reports, impact decks, climate plans and assurance materials when the discussion reaches climate risk, scenarios & resilience.

Why it matters: In climate risk, scenarios & resilience, different calculation boundaries, periods or accounting treatments can change the number and the decision.

Caution

Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.

Sources & evidence · 3

Direct term-level sources and supporting source families.