A strategic business risk that focuses on technological advancements, digital transformation and increasing pollution.

A risk associated with changes in economic indicators such as inflation or interest rates.

A predictable financial event that leads to negative outcomes for companies operating in high-risk and high pollution sectors.

An environmental, social, or governance event or condition that, if it occurs, could cause a material negative impact on the value of a business.

A guideline developed to support financial institutions in integrating ESG risks into capital adequacy and liquidity planning.

A voluntary global standard primarily aimed at helping organizations report their sustainability impacts in a consistent and stakeholder-relevant way.

A marketing and communications tool designed to enhance brand reputation through simplified sustainability labeling.

A regulatory framework that enforces mandatory ESG disclosures for all multinational corporations, focusing on compliance with emission targets.

Due to improved claims processing technologies that speed up payouts.

Because the frequency and severity of climate-related disasters are rising, and more assets are located in high-risk areas.

Because global insurance companies are lowering premiums to increase competition.

Because people are buying more life insurance policies than ever before.

Because MSCI and Sustainalytics apply different methodologies, rating philosophies, and definitions of materiality when assessing ESG risks.

Because both agencies use identical ESG criteria but rely on outdated data.

Because ESG ratings are strictly determined by company size and revenue.

Because both agencies are legally required to assign higher scores to companies in developed markets.

Probability of occurrence and operational reach.

Magnitude of harm and probability of exposure.

Likelihood of occurrence and magnitude of harm.

Frequency of risk reports and degree of compliance.

It offers a high coupon rate and is traded in a stable currency.

It is linked to government spending on environmental and social initiatives and is aligned with ESG principles.

It is issued by a country with a high credit rating and low inflation.

It is issued to fund military and infrastructure expansion.