Effect of sustainability risks on returns

Sustainability risks are defined as events or circumstances in ESG that, if they were to occur, could have a negative effect on the value of the investments. And therefore on the returns on those investments. Sustainability risks may be a stand-alone risk or may impact other portfolio risks. They can also contribute significantly to the overall risk. In the form of market risk, liquidity risk, credit risk or operational risk.

The assessment of sustainability risks has been integrated in the investment decision-making process. The sustainability risks and the measures taken to limit the negative impact on returns differ per investment solution.