A stranded asset is an asset that loses value, or becomes a liability, before the end of its useful life — written down by physical climate damage or by transition shifts such as new regulation, carbon pricing, or falling demand.
You're an infrastructure investor holding a coastal logistics hub carried at €40M. Rising flood exposure and tightening rules could force a write-down years before your modelled exit — the difference between selling at value and selling at a loss.
Stranding hits the balance sheet directly, and the market reprices it once the risk is obvious — by then it's too late to act. Spotting exposure early lets you re-underwrite, divest, or hedge first. EarthScan flags which assets face the steepest exposure and roughly when.
Physical climate damage that erodes its value, or transition shifts — regulation, carbon pricing, lost demand — that make it uneconomic before the end of its life.
