Sustainability risk is “an environmental, social or governance (ESG) event or condition that, if it occurs, could cause an actual or a potential material negative impact on the value of investments.” (SFDR, Article 2 (22)). Sustainability risk does not refer to risks that could harm the environment, but to risks that could threaten the value of an investment (e.g., the NAV of a fund). The starting point for the focus on sustainability risk was the Paris Agreement of 2015. This course covers sustainability risk and sustainability investing across the fund industry.