FAQ
Frequently Asked Questions
THE BASICS
What are negative externalities?
Negative externalities are costs imposed by one party on another without that party being held accountable for those costs. When a factory emits CO2, the cost of the resulting climate damage falls on society — not on the company's income statement. When a business consumes water at below its true replacement cost, the shortfall is borne by the local community and environment. These are real economic costs. They are simply not yet reflected in corporate accounts. Quanturisk measures the gap.
What is externality internalisation?
Externality internalisation is the process by which these hidden costs are being forced back onto corporate balance sheets — through regulation, litigation, carbon pricing, and shifting market expectations. It is not a question of whether this happens, but how fast and through which channels. Quanturisk quantifies the financial magnitude of this process for individual companies and their value chains.
What is Quanturisk Analytics?
Quanturisk is an emerging-risk analytics platform that quantifies the financial impact of externality internalisation on companies and their value chains. It translates carbon exposure, physical climate risk, and (in development) water and land use costs into the financial language decision-makers already use — Adjusted EBITDA, margin impact, supply chain resilience — so that leadership teams can act on these risks rather than just report on them.
What problem does Quanturisk solve that traditional risk tools do not?
Most risk tools describe some of the risks but do not show the P&L impact when environmental and social costs are allocated back to the company. And most tools focus on either the company or its supply chain, not both. Quanturisk closes that gap by modelling the cost across the company's own operations and across its value chain, and showing how these costs can materially reduce profitability.
WHAT WE MEASURE
What is the difference between Adjusted EBITDA and Fully Adjusted EBITDA?
Adjusted EBITDA captures the externality costs within your own operations — your direct carbon exposure, physical climate risk, and (in development) water and land use costs. Fully Adjusted EBITDA extends this analysis across your supply chain, revealing which suppliers carry externality risk that flows back to your P&L.
What risk categories do you cover?
Currently: carbon transition risk and physical climate risk. In development: water consumption risk and land use risk (which encompasses biodiversity), both using the same social cost methodology as our carbon transition risk model.
What scenarios do you model?
Physical climate risk is modelled across three NGFS-aligned scenarios: Current Policies, Net Zero 2050, and Delayed Transition. Carbon transition risk uses a separate framework built around the EPA Social Cost of Greenhouse Gases, with three discount rates and three timing curves producing nine independent model runs. Together, the three physical risk scenarios and nine transition risk scenarios give decision-makers the full range of outcomes for robust planning.
Can Quanturisk help with supply chain and value chain risks?
Yes. The platform is designed to surface exposures across the entire value chain, so you can see where vulnerabilities to disruption or higher costs would impact your revenue and margins. This is a major blind spot for many companies — and many boards — right now.*
* Supply chain analysis requires you to identify your key suppliers. Quanturisk can analyse each supplier's externality exposure once you tell us who they are — but we cannot map a supply chain you do not yet have visibility over. If your supplier landscape is unclear, that is a useful discovery in itself, and one we can help you work through. Please note: Currently we can only model T1 value chain risk.
Does Quanturisk cover uninsurable or hard-to-insure risks?
Yes. Insurance typically covers a one- to two-year horizon. Quanturisk models exposure over five years, ten years, all the way to 2050 — capturing risks that sit beyond the insurance market's time horizon or that insurers can no longer fully absorb. That longer view allows you to budget for resilience rather than rely solely on risk transfer.
HOW IT WORKS
Can I see how each number is calculated?
Yes. Every output has a six-layer audit trail: headline result, cost components, calculation logic, input data, scenario parameters, and source attribution. You can drill from the top-level number down to the individual data point and assumption behind it.
How is Quanturisk different from ESG ratings?
ESG ratings score and rank companies on relative sustainability performance. Quanturisk quantifies the financial cost of externalities in currency terms, under explicit scenarios, with a full audit trail. The output is not a score or a grade — it is a number your CFO can put into a capital allocation model, your CRO can integrate into enterprise risk frameworks, your CSO can use for disclosure and strategy, and your CPO can apply to supplier evaluation and procurement decisions.
How often is the data updated?
Updates are aligned to how frequently your organisation makes decisions. The platform can support regular budget and capital allocation cycles, quarterly risk reviews, or more frequent runs depending on the use case — capital allocation, strategy, risk management, supply chain resilience, or reporting.
Can Quanturisk integrate with our existing risk or finance systems?
Yes. Quanturisk is designed to sit alongside existing risk registers, ERP, or business intelligence environments and supply data back into the tools your teams already use — rather than replacing them. Our solutions can also be delivered via MCP (Model Context Protocol), allowing full integration into your organisation's own data architecture.
Can it integrate with other sustainability solution providers?
Yes. The platform can integrate the output of more granular, more specialised solutions where appropriate — acting as the analytical layer that brings everything together into a single financial view.
WHO IT IS FOR
Who is Quanturisk built for?
CFOs, Chief Risk Officers, Chief Sustainability Officers, and Chief Procurement Officers — anyone responsible for understanding, managing, or disclosing the financial impact of externality risks. Our primary focus is corporates, from large listed groups and mid-market companies to SMEs.*
* The platform can also be adapted for use by banks, insurance companies, asset managers, and asset owners.
Is this only for ESG or sustainability teams?
No. The output is finance-ready, strategy-ready, and board-ready. ESG and sustainability teams can feed data in, but the analytics belong in the hands of the people making capital allocation, procurement, and risk management decisions.
Can Quanturisk be used by advisors or consultancies?
Yes. Advisors use the platform to give clients a quantified view of externality risks in bids, board packs, or due diligence — particularly where investors are asking what the real EBITDA impact looks like.
How does Quanturisk help boards make decisions faster?
Because the risks are expressed in the same language as capital decisions — EBITDA, margin, payback — boards can see which risks to fund first and which to monitor. That reduces the back-and-forth between finance, sustainability, and operations.
COMPLIANCE AND DISCLOSURE
Which regulatory frameworks does Quanturisk align with?
Our methodology is compatible with CSRD (ESRS), TCFD, NGFS, and ISSB (IFRS S2) disclosure requirements. The platform provides the quantitative foundation — scenario-based financial impacts, documented methodologies, and transparent assumptions — that these frameworks demand. And because the same data serves both internal decisions and external disclosure, you do not need a separate compliance workstream.
How does Quanturisk support disclosure and investor confidence?
By quantifying the financial impact of externality risks within a transparent methodological framework, the platform gives leadership teams and boards defensible numbers for annual reports, regulatory disclosures, and investor conversations — showing how the business is exposed and how resilient it is. That tends to reduce unknowns and therefore reduce risk premia.
GETTNG STARTED
What data do I need to provide?
For a demo, we ask for a sample portfolio: your own company and ten of your key suppliers. For each entity, we need five data points: company name; country of incorporation (or, if it operates across multiple geographies, the countries in which it operates); revenue (if operations are split by geography, we will also need the revenue split across those geographies); industry classification; and the accounting period that the revenue figures relate to. For your suppliers, we also need the business volume your company has with each of them.
If you are a publicly listed company, we can source most of this from public data. Private companies will need to provide it directly, and we will guide you through the process. For your suppliers, you will need to provide the information yourself — and where revenue data is not available, we can work with you to model it using additional data points you can share.
How do we get started?
Send us a sample — your own company and ten of your key suppliers — and we will run the full analysis. You will see Adjusted and Fully Adjusted EBITDA, the cost drivers behind the numbers, and what they mean for capital allocation, risk management, procurement strategy, and disclosure. Your data in. Your insights back. That is the fastest way to see whether Quanturisk belongs in your decision-making toolkit.