Managing Sustainable Finance Risk: Analytics, Economics and Structuring

Managing sustainable finance risk requires clear definition, measurement and forecasting, along with understanding its connection to financial, economic, political and legal decisions. This book considers the original definition of ESG sustainability risk adopted in key institutional documents, as “an environmental, social, or governance event, or condition that, if it occurs, could cause an actual or a potential material negative impact on the value of the investment or on the value of the liability”, to inform practical decision making. The purpose of the book is to provide decision makers with clear analytical and conceptual tools for ESG sustainability risk assessment as proposed by both the market and academia and assess their relative strength, along with evidence on sustainable asset pricing in debt and equity markets, the structuring of transactions and the response of institutions representing public interest. Expected readership includes decision makers in corporations, creditors, investors, policy making as well as students in MBA and graduate courses.