ABSTRACT
In recent years, the global financial sector has taken part in a transformation in which responsible investment and ESG (Environmental, Social, and Governance) are playing significant roles in business decisions. The presented decision is a result of the changes in the structure of the risk and the increasing role of the environmental and climate risk in the financial sector. As a result, investors and regulators expect financial institutions to pay attention not only to the financial measures but also to the non-financial indicators. In this context, the concept of ESG risk has become an important element of both investment strategies and risk management practices.
