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  "documentTitle": "Sustainability Risk Under Solvency II",
  "authorId": "OliverWyman",
  "authorName": "Oliver Wyman",
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  "notes": "The chart shows a dual-axis combination of bar charts (profitability shock) and a line chart (CO2 intensity) across three regions.",
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      "kind": "callout",
      "text": "Impact: The margin shocks on both North America and (developed) Asia Pacific are relatively high due to relatively high price shocks, although the CO2-intensity is moderate. The margin shock on the European index is substantially smaller, since pre-existing CO2-prices are substantially higher, while the CO2-prices from the scenarios under consideration are moderate.",
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      "kind": "callout",
      "text": "The margin shock on the European index is substantially smaller, since pre-existing CO2-prices are substantially higher, while the CO2-prices from the scenarios under consideration are moderate.",
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      "kind": "chart",
      "text": "Margin shocks and CO2 intensity",
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      "text": "At the scenario level, we distinguish between the 10 LIMITS-superregions. For impact assessment, we calculate the impacts on 3 regional equity indices. We assume a short-run price elasticity of 0. As a consequence, the primary shocked KPI is business profitability. Note that for the ESG-tilted portfolio, ESG leaders have lower CO2-intensities on average.",
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      "text": "Profitability Shock [bp]",
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      "kind": "title",
      "text": "THE ECONOMIC IMPACTS ARE MEASURED ON AN AGGREGATED REGIONAL LEVEL WITH PROFITABILITY AS THE MAIN KPI",
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