Sustainability Risk Management of Firms

Abstract

Sustainability is designed in a long-run perspective, and it is based on the synergy of the triple factors, i e , economic, social, and natural environment Since each of these factors is associated with uncertainty, it results that sustainability risk management is a complex construct with a powerful impact on the managerial strategic thinking and decision-making The paper shows how, starting from a solid analysis of the sustainable and responsible investment, it is feasible to develop a natural and flexible integration of the sustainability principles in active investment strategies for the emerging capital markets By using data extracted from the Bloomberg Professional platform for the period 2010-2020, and considering consolidated risk measurement methodologies, the authors reveal that the companies included in the Euro STOXX Sustainable Index have a lower level of risk than the other companies contained only in the STOXX 600 index