ESG Risk Transmission Channel

From Open Risk Manual


ESG Risk Transmission Channel is causal link that enables adverse realizations ESG Factors to translate into ESG Risks.[1]


  • Lower Profitability
  • Lower Real Estate Valuations
  • Lower Household Wealth
  • Lower Asset Performance
  • Increased Cost of Compliance
  • Increased Legal Costs

See Also


  1. EBA Report: On Management and Supervision of ESG Risks for Credit Instituions and Investment Firms, EBA/REP/2021/18