Difference between revisions of "ESG Risk Transmission Channel"
From Open Risk Manual
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== Definition == | == Definition == | ||
| − | '''ESG Risk Transmission Channel''' is causal link that enables adverse realizations [[ESG Factors]] to translate into [[ESG Risks]] | + | An '''ESG Risk Transmission Channel''' is any causal link that enables adverse realizations of [[ESG Factors]] to translate into [[ESG Risks]]<ref>EBA Report: On Management and Supervision of ESG Risks for Credit Instituions and Investment Firms, EBA/REP/2021/18</ref>. |
== Examples == | == Examples == | ||
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== References == | == References == | ||
<references/> | <references/> | ||
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[[Category:ESG Risk Management]] | [[Category:ESG Risk Management]] | ||
Latest revision as of 18:46, 8 February 2024
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
