The companies needed to assess the impact of transition risks driven by government policies and carbon price changes, on their operations and financial performance, focusing on carbon pricing and emissions reduction.

Solytics performed a comprehensive scenario analysis:

1. Collecting financial and market data for all the firms – financial statements, carbon pricing, NGFS climate scenarios, Companies informed emission plans, and EIA projections of Oil and Gas production and consumption.
2. Define the baselines and other scenarios and the associated carbon price projections.
3. Define different transition risk settings based on the NGFS climate scenarios.
4. Develop carbon price/tax pathways associated to the different scenarios.
5. Calibrate the impact of costs/revenues/cash flows/asset values of the companies’ adaptation to each carbon price/tax pathway.
6. Adjust the companies’ Performance Metrics (Profitability and Coverage) under the various scenarios.

• Improved understanding of transition risks for oil and gas companies.
• Improved understanding of the impact of government policies on financial performance.
• Enhanced financial performance metrics under different scenarios.
• Provided strategic insights for emissions reduction and green investments.