Climate Transition Assessment

The Climate Transition Assessment (CTA) provides a qualitative opinion on how consistent we expect an entity's economic activities to be with a low-carbon, climate-resilient future.

Service Provider Information

At S&P Global Ratings, our analyst-driven credit ratings, research, and sustainable finance opinions provide critical insights that are essential to translating complexity into clarity so market participants can uncover opportunities and make decisions with conviction. By bringing transparency to the market through high-quality independent opinions on creditworthiness, we enable growth across a wide variety of organizations, including businesses, governments, and institutions.

The Climate Transition Assessment (CTA) provides a qualitative opinion on how consistent we expect an entity's economic activities to be with a low-carbon, climate-resilient future, once the entity's planned transition changes are realized and potential material implementation risks are considered. We express our opinion using a single Shade of Green, ranging from Dark Green to Red.

The CTA is not a net-zero assessment. While many net-zero targets are distant, reaching as far as 2050, the Climate Transition Assessment focuses on analyzing the near-term actions and investments a company has planned, as well as their likely implementation, considering potential risks and obstacles.

Our CTA analysis includes three elements:

  • Current Activity
  • Climate Transition Plan
  • Future Shade (based on the Shades of Green spectrum)
Input
Excel
Output
PDF

Use Cases

With a Climate Transition Assessment, you can:

  • Demonstrate your company’s readiness to obtain sustainability or transition financing, either for labelled debt – in combination with a S&P Global Second Party Opinion – or unlabeled debt, to demonstrate commitment to transition at entity-level
  • Obtain a Green Designation on certain stock exchange (e.g.: Nasdaq Green Designations, B3 Ações Verdes (BAV), SIX 1.5°C Climate Equity Flag), either when going public as a green equity offering or as a listed company
  • Seek an external opinion, where relevant, on activities for listing on stock exchanges or before an Initial Public Offering (IPO) announcement
  • Demonstrate the robustness of your transition plans in communications to investors or other stakeholders
  • Provide a qualitative, extensive opinion for investors and banks seeking to understand the climate transition risk of their portfolio companies

Benefits

  • Credit and Climate Analytical Excellence: Our global team of 1,600 credit analysts and 70 sustainable finance analysts brings together credit, climate science, sector and company capabilities in one place
  • Award-Winning Shades of Green Approach: At the heart of the Climate Transition Assessment is the Shades of Green scale, recognized as an industry-leading approach in green financing, both on quality and volume of deals, and winner of multiple industry awards
  • Transparent, Science-based Approach: Our Shades of Green spectrum provides additional transparency to investors that seek to understand contribution to a low carbon climate resilient future. Our methodology is public and shading scale is clearly defined

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