ESG Risk Transmission Channel
From Open Risk Manual
Contents
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
