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  "documentTitle": "Sustainability Risk Under Solvency II",
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      "text": "An alternative possibility is to use suitable relative valuation models (e.g. EV/EBITDA) or regression over significant explanatory variables.",
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      "text": "From the values of the shocked KPIs, we can calculate shocks on equity valuation using fundamental valuation models such as the Dividend Discount model: P_E = sum(Dividend(t)/(1+r)^t)",
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      "text": "Standardized ESG characteristics can be used in order to differentiate between “greener” and “browner” issuers or sectors, e.g. by carbon-intensity of revenue.",
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