ESG and credit risk

Chrysovalantis Gaganis, Fotios Pasiouras, Menelaos Tasiou

Research output: Chapter in Book/Report/Conference proceedingChapter (peer-reviewed)peer-review

Abstract

In recent years, the incorporation of environmental, social and governance (ESG) factors into credit risk assessments has received attention from both academics and market participants. The present chapter consists of two main parts. The first part discusses academic studies that provide empirical evidence of the ESG-credit risk nexus and the implied mechanisms behind it. The second part discusses how the three major rating agencies (Fitch, Moody’s, S&P) view and incorporate ESG aspects into their credit ratings.
Original languageEnglish
Title of host publicationSustainable Finance and ESG
Subtitle of host publicationRisk, Management, Regulations, and Implications for Financial Institutions
EditorsChrysovalantis Gaganis, Fotios Pasiouras, Menelaos Tasiou, Constantin Zopounidis
PublisherPalgrave Macmillan
Chapter6
Pages125-143
Number of pages19
Edition1st
ISBN (Electronic)9783031242830
ISBN (Print)9783031242823
DOIs
Publication statusPublished - 8 Mar 2023

Publication series

NamePalgrave Macmillan Studies in Banking and Financial Institutions
PublisherPalgrave Macmillan
ISSN (Print)2523-336X
ISSN (Electronic)2523-3378

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