ESG Risk Transmission Channel
From Open Risk Manual
Definition
An ESG Risk Transmission Channel is any causal link that enables adverse realizations of ESG Factors to translate into ESG Risks[1].
Examples
- Lower Profitability
- Lower Real Estate Valuations
- Lower Household Wealth
- Lower Asset Performance
- Increased Cost of Compliance
- Increased Legal Costs
See Also
References
- ↑ EBA Report: On Management and Supervision of ESG Risks for Credit Instituions and Investment Firms, EBA/REP/2021/18