ESG RISK MANAGEMENT

This course investigates modern techniques of risk management to tackle ESG Risks, focusing on identification, data collection, quantification and monitoring of ESG risks within the european regulation remit.

Knowledge of EU sustainability regulatory framework, ESG risk management principles, ESG risk quantification, ESG risk reporting.

Mathematics, Statistics, Econometrics.

1. ESG Risk Assessment Process: general theory
- The steps of the Enterprise Risk Management (ERM) Process: risk identification, risk appetite statement, risk quantification, risk monitoring
- Forward Looking Approach
- Double Materiality Principle: financial and impact materiality
- Sources of information: scientific data and expert judgement
- Limits of traditional practices
2. Physical Risk Assessment
- Causes identification: acute and chronic physical hazards
- Effects evaluation: company key performance indicators over the short, medium and long term
- Case studies of Physical Risk Assessment for companies
3. Transition Risk Assessment
- Causes identification: policy, regulation, technology, market and reputation factors
- Effects evaluation: company key performance indicators over the short, medium and long term
- Case studies of Transition Risk Assessment for companies
4. European Regulation part a): Corporate Sustainability Reporting Directive (CSRD - UE Directive 2022/2464)
- Double materiality as the basis for sustainability disclosures
- Reporting areas
- General requirements
- Topical standards
5. European Regulation part b): EU Taxonomy (EU Regulation 2020/852)
- Scope and Definitions
- Criteria for environmentally sustainable economic activities
- Technical screening criteria
- Transparency of undertakings in non-financial statements
6. European Regulation part c): European Banking Authority Guidelines on the management of ESG risks (2025)
- Financial materiality assessment
- Companies engagement procedure

- Giacomelli, A. (2021). EU Sustainability Taxonomy for non-financial undertakings: summary reporting criteria and extension to SMEs. Working Papers Series (No. 29/WP/2021). Ca' Foscari University of Venice, Deptartment of Economics. ISSN 1827-3580.
- European Commission, Joint Research Centre, Alessi, L. and Giacomelli, A., Quantitative assessment of the financial materiality of climate physical risks: a case study, European Commission, Ispra, 2024, JRC139793

Written examination consisting in three questions about three different topics analysed in the course

written

The instructor is responsible for ensuring the authenticity and originality of all examinations and coursework. In cases of suspected academic misconduct, an additional on-site assessment may be required during the exams, which may differ from the standard format.

Graduation of grades in thirtieths

Assessment grid, regardless of whether students attend or not:
28-30L: mastery of the topics covered in class; ability to prioritize information; use of appropriate technical terminology;
26-27: good knowledge of the topics covered in class; reasonable ability to organize information and present it orally; familiarity with technical terminology;
24-25: knowledge of the topics covered in class is not always thorough; oral presentation is orderly but uses technical terminology is not always correct;
22-23: knowledge of the topics covered in class is often superficial; presentation is unclear and lacks technical terminology;
18-21: knowledge of the topics covered in class is at times incomplete; presentation is confusing, with little use of technical terminology.

Frontal lessons using slides and scientific papers