Climate Change and Transition Risk

Transition risk is one of the three principal categories of climate‑related risk. It is the risk associated with the response to climate change, namely the policy, legal, technology and market changes which result from the transition to a lower carbon economy. Transition risk is now a widely acknowledged threat to the stability of the financial system.

In this content we explore the characteristics of transition risk and its relationship with liability risk, including the potential for litigation arising from differing responses to climate and ESG‑related initiatives. We also include our Climate Change Risk and Liability Report, which looks at the key issues surrounding how organisations can best position themselves to withstand shocks and seize opportunities so that you can help deliver a future that is sustainable for all.