Identifying and assessing the fairness and acceptability of climate mitigation policies requires not only the application of sound interdisciplinary scientific methods, but also the consideration of stakeholder expertise and values. We applied such an approach to a model analysis of climate mitigation measures and compensation measures for vulnerable households in the buildings and mobility sectors in Austria. We integrated stakeholder knowledge and values by conducting two interactive stakeholder workshops and by a continuous engagement dialogue with a Stakeholder Board (SB) representing key Austrian institutions. The first workshop highlighted: (1) important characteristics to consider for vulnerable households, i.e. households that are likely to be substantially negatively affected by climate mitigation policies; (2) a ranking of both mitigation and compensation measures tailored to the buildings and mobility sectors. We were able to incorporate most of the stakeholders’ findings and recommendations into our analysis and the model simulations. The continuous dialogue with the SB ensured the refinement of the implementation of these measures. Finally, the second workshop was used to critically reflect on the results of the model simulations and to highlight blind spots and special cases of hardship which were outside of the modelling framework. The results of the simulated mitigation and compensation policy scenario were generally considered reasonable and fair by the participants. However, further research and surveys are needed to explore the acceptability of the policy packages to decision-makers and the general public.