Difference between revisions of "ESG Factors"

From Open Risk Manual
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* [[ESG Risks]]
 
* [[ESG Risks]]
 
* [[ESG Criteria]]
 
* [[ESG Criteria]]
 +
* [[Risk Transmission Channel]]
  
 
== References ==
 
== References ==

Revision as of 14:24, 11 August 2021

Definition

ESG Factors are environmental, social or governance matters that may have a positive or negative impact on the financial performance or solvency of an entity, sovereign or individual.[1]

ESG factors can lead to negative financial impacts through a variety of risk drivers. The causal chains that explain how these risk drivers impact institutions through their counterparties and invested assets are called transmission channels.

See Also

References

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