Stress-test two quantifiable components of corporate climate-transition exposure: a higher carbon price on operational emissions and revenue at risk during market or policy disruption. The calculator then compares gross modeled exposure with planned mitigation spending. It is a scenario tool, not a probability-weighted valuation or a complete assessment of legal, technology, reputation, and asset-stranding risks.
The main result is gross modeled exposure before mitigation. The uncovered figure is a simple comparison with spending, not proof that each dollar of spending removes a dollar of risk.
Transition risk is broader than these two components. Use scenario-specific evidence and avoid adding unlike impacts if their time horizons or probability bases differ.
For 20,000 tCO₂e, a price increase from $20 to $75, $5 million of exposed revenue, 4% disruption, and $300,000 mitigation spend, modeled exposure is $1.3 million and the simple uncovered gap is $1 million.
No. It calculates exposure under the entered scenario and does not multiply impacts by a probability.
The transition component isolates added exposure above the entered current price rather than the full existing carbon cost.
No. It is shown as a simple funding comparison; actual risk reduction depends on the effectiveness and timing of the measures.
The tool may omit technology shifts, litigation, reputation effects, asset impairment, financing changes, and supply-chain impacts.
No. This calculator models downside exposure from zero to 100%; potential upside should be analyzed separately.
| Variable | Meaning |
|---|---|
| Incremental carbon price | Exposed emissions × positive price increase |
| Revenue disruption | Exposed revenue × disruption percentage |
| Gross exposure | Sum of the two modeled components |
| Uncovered gap | Gross exposure less mitigation spend, floored at zero |