Glossary
Stranded assets

Stranded assets

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Definition

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.

Example in context

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.

Why it matters

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.

See which holdings are exposed

FAQ

What causes an asset to become stranded?

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.

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