Future Transition Capital

Closing the gap between ambition and reality

Can Companies Afford the Path to Net Zero?

Getting to net zero is one thing. Paying for it is another.

As climate change intensifies and the transition accelerates, investors need to understand not only whether companies are aligned with net zero, but also what alignment would require financially.

METHODOLOGY

Pricing the Transition

Drawing on years of environmental data expertise, we have built a forward-looking framework to assess transition costs, green capex and corporate financial capacity.

What will it actually cost?

Rather than relying on a single blended abatement cost, our framework assesses transition technologies individually. Capex, opex, abatement potential, lead times, asset life and maturity are modelled separately, helping explain what is driving the cost of transition.

Can the company afford it?

The Osmosis technology library turns carbon reduction into a practical capital programme, matching relevant technologies to each company’s activities and assessing what may need to be built, when and at what cost.

Are the targets on track?

We do not simply take company targets at face value. Our framework combines company history with sector evidence to model a range of emissions pathways and resulting capital requirements.

“The transition-capital framework brings together three areas that are often considered separately. By connecting them, we can provide a more economically grounded view of future transition risk”

Jason Lee

Quantitative Researcher and Developer, Equities