sustainAX ESG Risk Library

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STRATEGIC RISKS

There are many types of ESG risks, what they have in common is that they are all risks that will have an impact on the longevity of a company’s business model and the valuation of the company.

MOSTLY LONGER HORIZON

It should be noted though that some of these risks can be relevant in the short run when there are disruptions due to disruptive business models emerging, price dislocations. inevitable political action, etc.

ESG RISK INTEGRATION

The ESG risks are taken into account in ESG Risk Integration and can impact P&L, Balance sheet item valuation or required risk premiums. There may be specific fixed income aspect to take into account, like impact on covenant compliance and credit rating impact.

ESG RISK AND ESG OPPORTUNITY

Keep in mind that when we talk about ESG risks, this can of course be turned around and represent opportunities for the companies being best on ESG risk mitigation. In general, it is harder to dig up the ESG risks than the ESG opportunities.

THE sustainAX ESG RISK LIBRARY

In the sustainAX ESG Risk Library, we have divided these in General ESG risks, Environmental, Social and Governance risks. Under each section you will find subcategories with detailed explanations.