Willis Towers Watson

Climate Transition Value at Risk

WTW's Climate Transition Value-at-Risk (CTVaR) quantifies transition risk through forward-looking, bottom-up company valuation analysis — re-pricing future cash flows under different transition pathways rather than relying on emissions footprints — across thousands of listed issuers, complemented by physical-hazard diagnostics. It is delivered to investors and corporates together with WTW's advisory and analytics services, and is catalogued in the UNEP FI dashboard. Distinctive for its valuation-based, fundamentals-driven view of transition risk, focusing on how decarbonisation pathways affect asset values rather than on disclosure-style carbon scoring.

Vendor methodology

Transparency Score

Beta

Public transparency, not model quality iThe Transparency Score (0–3) estimates public methodological transparency: the degree to which the vendor's analytical approach to modeling climate and nature risk can be assessed from publicly available sources. It is explicitly not a measure of vendor quality or accuracy.

1

Product-level: public materials indicate risk scope and outputs, but little detail on modeling approach.

Product-level: public product pages plus expert commentary describe the CTVaR logic (bottom-up cashflow revaluation from business-as-usual to Paris-aligned, commodity + asset-by-asset company models across 30 commodities and 500 sectors); no single public methodology document, so reconstructability sits at 1 rather than 2. (Corrected from 0: the prior UNEP-FI-floor removal dropped it to 0 on a dead link; direct review shows product-level public method substance.)

For further information, see the section 'Transparency Score methodology' in the Readme.

Contact us to point out or add relevant source or references.