August 18, 2026 · Risk & Governance · 3 min read
Is it possible to express how much a business will be affected by climate change, and how prepared it is, in a SINGLE number? The EU Taxonomy and TCFD frameworks try to do exactly that. In this guide, we explain step by step how a "Climate Risk Score" between 0 and 100 is calculated — and, most importantly, what YOUR score actually means.
The EU Taxonomy is a classification system that defines which economic activities the EU considers "environmentally sustainable" — it helps investors verify "green" claims. TCFD (Task Force on Climate-related Financial Disclosures) is a globally recognized framework for how companies should report their climate-related financial risks. Together, they provide investors and regulators with a common language to answer the question, "how prepared is this company for the climate transition?"
Our platform's risk score is made up of four components combined through a weighted average:
| Component | Weight | What It Measures |
|---|---|---|
| Carbon Intensity | 40% | Ton CO2e / million ₺ revenue |
| Renewable Energy Share | 25% | Renewable share of total energy |
| CBAM Exposure | 20% | Share of revenue within CBAM scope |
| Reduction Target Presence | 15% | Whether a science-based target exists |
The Carbon Intensity component is itself calculated across three tiers: below 15 ton CO2e/million ₺ is considered low, up to 45 is medium, and above 90 is high carbon intensity (see the full formula on our Bibliography page). The HIGHER the renewable energy share, the LOWER this component's risk contribution (formula: (1 − renewable share) × 100). CBAM exposure is directly proportional. A reduction target contributes 15 points if present, and 85 points if absent — meaning that having a concrete target alone makes a large difference.
The calculated score is always between 0 and 100, and the platform automatically divides it into three tiers:
| Score Range | Tier | What It Means |
|---|---|---|
| 0 – 32 | Low Risk (Taxonomy-Aligned Direction) | Your business is low-carbon-intensity and/or renewable-energy-heavy; you're relatively less exposed to climate transition risk. |
| 33 – 65 | Medium Risk (Should Be Monitored) | There's room for improvement in some components; regular monitoring and a gradual reduction plan are recommended. |
| 66 – 100 | High Risk (Urgent Action Required) | Carbon intensity and/or CBAM exposure is high, and a concrete reduction target is likely missing; a priority action plan is needed. |
These are the ACTUAL thresholds the platform's own calculation engine uses — meaning the "Low Risk / Medium Risk / High Risk" label you see in the calculator is determined precisely according to the table above.
The single largest impact usually comes from setting a concrete reduction target (a drop from 85 points to 15 points — a ~10.5-point improvement in the total score at 15% weight). This is followed by increasing your renewable energy share (25% weight). Reducing carbon intensity (energy efficiency, process improvements) carries the highest weight (40%), but it is usually the component requiring the most time/investment.
For a business with a carbon intensity of 120 ton CO2e/million ₺ (above the high threshold), a
renewable energy share of 5%, CBAM exposure of 50%, and NO reduction target:
Carbon score = min(100, 66 + ((120−45)/90)×34) = 66 + 28.3 = 94.3
Renewable score = (1−0.05)×100 = 95
CBAM score = 0.50×100 = 50
Target score = 85 (no target)
Total = 94.3×0.40 + 95×0.25 + 50×0.20 + 85×0.15 = 37.7 + 23.75 + 10 + 12.75 =
≈ 84 points → High Risk
Calculate your own climate risk score
The EU Taxonomy/TCFD risk score module is available in our Enterprise plan.
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