Find a potentially interesting, but somewhat abstract paper on ESG and real asset valuation attached.
Key Themes Explored in the Paper:
- Incorporating ESG in Valuation Practice: The paper discusses how ESG criteria can influence the valuation of a wide range of tangible assets, including real estate, infrastructure, and commodities. It provides practical guidance on identifying and measuring relevant ESG factors and their potential impact on asset value.
- Regulatory Landscape: With heightened global regulation-such as the EU Taxonomy and the IFRS Sustainability Disclosure Standards-the paper highlights the need for valuers to stay informed about the regulatory environment and integrate these considerations into their valuation analyses.
- Valuation Methodologies: The paper addresses common concerns about existing valuation methodologies and provides clarity on how traditional approaches, such as the market, income, and cost approaches, can be adapted to incorporate ESG factors effectively.
- Challenges and Opportunities: Recognising the challenges faced by valuers in quantifying ESG impacts, the paper encourages a pragmatic approach, leveraging existing standards and professional judgement to navigate this evolving landscape.
***Disclaimer: I am not a member nor affiliated with IVSC in any way
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Tarjei Lode
Sustainability Champion
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