Difference between revisions of "ESG Risk Transmission Channel"

From Open Risk Manual
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* Increased Cost of Compliance
 
* Increased Cost of Compliance
 
* Increased Legal Costs
 
* Increased Legal Costs
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== See Also ==
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* [[How to Map Climate Risk to the Open Risk Taxonomy]]
  
 
== References ==
 
== References ==

Revision as of 14:53, 11 August 2021

Definition

ESG Risk Transmission Channel is causal link that enables adverse realizations 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

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