ESG-related risks are the environmental, social and governance-related risks and/or opportunities that may impact an entity. There is no universal or agreed-upon definition of ESG-related risks, which may also be referred to as sustainability, non-financial or extra-financial risks.a Each entity will have its own definition based
on its unique business model; internal and external environment; product or services mix; mission, vision and core values and more. The resulting definition may be broad (for example, may include all aspects of the International Integration Reporting Council’s (IIRC) six capitals, discussed in Chapter 2) or narrow (for example, may include only a selection of priority environmental and social issues) and may evolve over time.

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