This paper introduces a risk-based approach to resilience designed specifically for hard-to-abate sectors such as cement, metals and mining. These sectors are central to the real economy, but they are also highly exposed to policy shifts, technology constraints, infrastructure bottlenecks, operational disruption, and changing financing conditions. The paper sets out a practical framework for assessing resilience through two core lenses:
- Transition resilience: How well a company can navigate policy change, cost pressures, technology shifts, demand changes, and capital cycle lock-in
- Physical resilience: How exposed and prepared a company is in relation to climate-related hazards, operational sensitivity, and adaptive capacity
The paper links resilience to cash-flow stability, downside risk, credit relevance, and long-term strategic positioning. The proposed framework is relevant for applications such as:
- portfolio analysis and monitoring
- issuer engagement and stewardship
- credit and insurance risk assessment
- watchlists, limits, and long-horizon allocation decisions
About the Publisher
Value Balancing Alliance is an alliance of international companies coming together with a common goal: to create a way of measuring and comparing the value of contributions made by businesses to society, the economy, and the environment – a metric not previously reflected in a company's balance sheet. The Alliance translates environmental and social impacts into comparable financial data. Members test the methodology to ensure feasibility, robustness, and relevance.
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