ESGrisici

ESGrisici is a term used to describe a conceptual framework for assessing environmental, social, and governance risks in corporate activity and financial portfolios. It is not an official standard, but it appears in academic and industry discussions as a synthesis of ESG risk assessment.

The name blends ESG with risici, a word for risks in several languages, signaling cross-border adoption in multilingual risk discourse. It commonly appears in case studies, textbooks, and policy debates as a teaching and analytical tool.

Scope covers environmental risks such as climate change, resource depletion, and pollution; social risks including labor practices, human rights, and data privacy; and governance risks like board independence, executive compensation, and transparency. Financial materiality and scenario analysis are central ideas.

Methodology relies on risk scoring, qualitative assessments, and quantitative indicators, complemented by scenario analysis and stress testing. It emphasizes mapping exposures at both portfolio and corporate levels and tracing supply chain risks.

Applications include banks, asset managers, insurers, and corporations that use ESGrisici to inform risk dashboards, investment decisions, and disclosure strategies. In practice, it aligns with established frameworks such as the TCFD, SASB, and EU taxonomy.

Criticism focuses on data gaps, inconsistencies in metrics, and the risk of greenwashing if standards are not enforced.

See also: ESG, climate risk, sustainable finance.