environmental, social and governance risk

Definitions over time (1)

01/01/2025 – today applies on 11/11/2026 Article 4, Capital Requirements Regulation (CRR) Scope: Whole act Also: ESG risk

For the purposes of this Regulation, the following definitions shall apply:

‘environmental, social and governance risk’ or ‘ESG risk’ means the risk of any negative financial impact on an institution stemming from the current or prospective impact of environmental, social or governance (ESG) factors on that institution’s counterparties or invested assets; ESG risks materialise through the traditional categories of financial risks;