Difference between revisions of "ESG Factors"
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== Definition == | == 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.<ref>EBA Report: On Management and Supervision of ESG Risks for Credit Instituions and Investment Firms, EBA/REP/2021/18</ref> | '''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.<ref>EBA Report: On Management and Supervision of ESG Risks for Credit Instituions and Investment Firms, EBA/REP/2021/18</ref> | ||
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| + | ESG factors can lead to negative financial impacts through a variety of [[Risk Factor | 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 == | == See Also == | ||
Revision as of 14:18, 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
- ↑ EBA Report: On Management and Supervision of ESG Risks for Credit Instituions and Investment Firms, EBA/REP/2021/18
