IVSC publishes a Perspectives Paper on ESG and Business Valuation
05 March 2021
The International Valuation Standards Council (IVSC) has published a Perspectives Paper on Environmental, Social and Governance (ESG) factors and business valuation.
The Perspectives Paper observes that ESG factors have become central tenets in the capital allocation process for both the providers of capital and the users of capital. It notes the initiatives related to ESG framework undertaken by various authoritative bodies/ standard setters including IFRS Foundation, EFRAG, CFA Institute.
The Perspectives Paper emphasises the need to incorporate ESG factors into business valuation framework and discusses approaches towards that objective.
The Perspectives Paper may be accessed here.