ABSTRACT
The aim of this book was to provide a comprehensive analysis of ESG risk, focusing on the impact of regulations and initiatives related to ESG risk estimation on non-banking financial institutions, especially investment funds and insurance companies, and their business strategies. The study confirms that the European financial market is sensitive to US market decisions related to ESG risk (H1). It is observed that geographical, size, and sectoral biases affect ESG risk measurement and capital adequacy of insurance companies (H2, H2, H4). Changes in US regulatory policy under the Trump administration affected the activity of investment funds (H5). Changes in ESG risk regulation influence the greenium and the size of the green bond market (H6).
