Recent breakthroughs in the policy environment of climate change shifted the paradigm for companies engaged in the fossil fuel value chain. Policy “shocks” with respect to the regulation and pricing of carbon emissions may accelerate the carbon transition, thereby causing harm to those companies whose business model is still centred around oil, gas and coal. The financial sector is exposed to the fossil fuel industry primarily via equity holdings, bonds and loans. Using a DCF analysis based on the 450 Scenario of the International Energy Agency and a pricing formula for bonds, a carbon stress test is applied to determine the expected loss for the vast majority of Dutch banks, insurers and pension funds. While the direct fossil fuel portfolio losses seem manageable, policymakers need to require more carbon related data disclosure for all carbon intensive industries in order to improve the comprehensiveness of carbon stress tests.