Nature-related transition risk

transition_risk · v1.0.0

Combines regulatory, market and reputational channels into a transparent transition-risk indicator using parameters pinned by the active methodology pack.

Inputs

• Country regulatory-stringency lookup from the pinned pack.
• Commodity market-exposure lookup from the pinned pack.
• Operator incidents, grievances and IRMA tier where available.
• Pack-pinned channel weights and sector incident baseline.

Calculation

Regulatory and market scores are resolved from versioned pack tables. Reputational exposure compares incident and grievance frequency with the pack baseline and applies an IRMA-tier offset. The three channels are combined using the pack's weights.

Outputs

• regulatory, market and reputational component scores;
• composite transition-risk indicator from 0 to 1;
• calculation inputs, weights, model version and signed manifest.

Limitations

The model is a transparent screening indicator, not a forecast of policy, price or reputation loss. Missing operator profiles use a disclosed moderately elevated default. Lookup tables and weights reflect the pinned pack and require contextual review for a specific transaction.