Publication Overview

Managing Facility-Level Transition Risk

January 2025 | Featured, Publications, Reports and Briefing Notes

This project adopts a facility-level, material-flows view of the decarbonisation challenge, examining the risks to investors of transitioning high-emitting facilities to a low-carbon future. The project highlights the concepts of facility concentration and contagion risks, and the importance of understanding the material interconnectedness of facilities within their value chains. The Briefing Note introduces the problem statement, explaining why existing decarbonisation reporting and strategy frameworks overlook the risks embedded in large high-emitting facilities, and argues that a facility-level approach is needed to complement these. The Engagement Guidance (along with the accompanying Excel Template) then provides a step-by-step process for investors to analyse these facilities and engage asset owners to better manage transition risks across their portfolios. Finally, the Industrial Facility Study utilises the Project’s approach in a deep dive analysis of the transition challenges facing South Africa’s six top-emitting industrial facilities, and the implications for each facility’s value chain.

Resources

Briefing Note: Why Facility-level Transition Risk Should Matter to Investors

High-Emitting Facility Transitions: Engagement Guidance

Engagement Guidance: Excel Template

Transition Risk in South Africa’s Top Emitting Industrial Facilities

All Publications$