Transition risks arise from the potential for loss resulting from a shift toward a lower-carbon economy, driven by policy, regulations, low-carbon technology advancement, consumer sentiment and preferences, and liability risks, impacting the value of certain assets. This transition can lead to stranded assets, cost to reinvest in and replace infrastructure, corporate asset devaluation, lower corporate profitability, lower property values, and lower household wealth. Adapted NYS DFS, 2020, paragraph 10. https://www.dfs.ny.gov/system/files/documents/2021/03/proposed_ins_climate_guidance_2021_public_comment_1.pdf.
