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ESG Impact on Valuations & Accounting

2 Part Course  |  Understand how ESG is impacting corporate valuations and how market and regulatory changes will affect these calculations

The delicate wings of a monarch butterfly on a pink flower

A one-day course presented over two-half days in a virtual class from 9:30am to 1:00pm UK time

Part 1

Introduction

  • Evolution of ESG factors and recent impact on capital markets
  • Overview of the integration of ESG into traditional valuation models
  • ‘To ESG or not to ESG’: The legal conundrum

Environmental Factors

  • Understanding environmental criteria (e.g., carbon emissions, water usage, waste management)
  • Tools for assessing a company's environmental performance (e.g., carbon footprint analysis)
  • The circular economy: Sustainability implications

Social Factors

  • Examining social aspects, including labour practices, employee well-being, and community relations as value drivers
  • Effectiveness of CSR initiatives
  • Methods to measure a company's social performance and stakeholder engagement
  • Examples of corporate evolution on social factors

Governance Factors

  • Review of governance criteria: Board diversity and practice, executive compensation, risk management framework (ERM) and transparency
  • Metrics for evaluating a company's governance. The second line of defence as a tool for governance
  • Case study of corporate governance adequacy: Lloyds Banking Group

ESG Metrics and KPIs

  • Sources of ESG data and key performance indicators (KPIs)
  • Challenges and limitations in ESG data collection and analysis. Assessing the information gap
  • Interpreting ESG scores and ratings
  • Rating the main ESG rating providers
  • Overcoming the measuring challenge

Part 2

ESG Reporting

  • Overview of ESG reporting frameworks (e.g., GRI, SASB, TCFD)
  • Regulatory approach in Europe and the UK: FCA, PSR and EU initiatives (SDR, SFDR, EU Taxonomy, SIP/IS)
  • The importance of transparent communication of ESG efforts to stakeholders
  • Comparing reporting content and quality across sectors and jurisdictions
  • Greenwashing: Detection and prevention
  • Case study: Norges Bank

Integrating ESG in Valuation Models

  • What is ‘value’ and how it is created?
  • Introduction to valuation models
  • Intrinsic vs extrinsic techniques to incorporate ESG factors in valuation
  • Approaching discounted cash flows (DCF) and cost of equity with an ESG perspective
  • Pricing-in ESG materiality. Linking ESG to long-term value
  • Modifying a DCF model to account for ESG risks and opportunities
  • Case study: Blackrock ESG integration vs Schroders

Assessing the Impact of Investing in ESG on Valuations

  • Why ESG needs to be priced into valuations
  • The corporate view: do corporates get a return on ESG investment?
  • Empirical evidence of impact on valuations
  • Creating shareholder value through ESG
  • The investor view: integrating ESG into portfolio construction and risk management
  • Review of leading pension funds and institutional investors' approach to the ESG challenge

Course Summary and Conclusion

The trainer is an independent consultant providing online finance Higher Ed and Executive Education (Corporate Finance, Accounting, Private Equity). He was a Financial Services Executive with over 25 years of experience in investment banking, wholesale and retail banking specialising in capital markets, risk oversight, compliance and regulation.

He is a former Deputy Chief Financial Officer in a US$>200bn international financial institution, a former Executive in the UK’s sixth-largest retail bank, and a former Equity Research Analyst at Citigroup, covering for 7 years institutional investors globally in a top-rated team. He is also a former Senior representative with financial regulators (ECB, PRA, FCA, FED) and the IMF. Senior representative at the World Bank/IIF annual meetings.

Experienced advisor in M&A and capital markets programmes; has led deals with top private equity firms and real estate investors including IPOs, buyouts, P2Ps, spin-offs and carve-outs.

Throughout his career has presented over 7,500 hours of financial and capital markets content to a broad range of financial stakeholders worldwide. Since 2014 has been a contributor to world-leading universities and business schools including IE Business School, LSE, The University of Chicago, UNAV (IESE)and ESADE in both undergraduate, MBA and professional education programmes.

Experienced face-to-face and online instructor (experienced in multiple LMS), he is currently under contract with US and Singapore-based OPMs. The trainer makes financially complex concepts simple and accessible by adapting the jargon to the audience’s background.

An experienced international professional(speaks 5 languages and has dual nationality) he is accustomed to and enjoys rich cultural and diverse environments. On an ongoing basis, he has students and professionals from more than 15 different countries including EMEA, APAC and The Americas. Courses are delivered in English and Spanish

  • Understand ESG’s recent evolution and why it has become a critical theme for corporates and investors when assessing value creation.
  • Identify ESG metrics and data, their relevance, how they are assessed and compared by investors and rating agencies and how to avoid pitfalls (like greenwashing).
  • Gain a detailed understanding as a non-finance professional of how companies are valued and how ESG factors are incorporated into such valuations by mutual funds, pension funds and private equity investors.
  • Learn about the latest reporting requirements from a multiple jurisdiction and stakeholder perspective
  • Understand the dilemma between compliance and fiduciary duties of both management and investors concerning ESG and learn how to reflect these in fundamental valuation models.

  • Updated market trends and regulations, critical in the fast-changing ESG landscape.
  • Review of the most recent academic outputs and their implications for valuations.
  • The objective approach to data is a tool for participants to nurture their own stance on ESG.
  • UK focus with a global perspective on ESG.
  • A friendly approach to technical valuation aspects.
  • Practical analysis of companies and investor’s evolving practices.

ESG factors have been gaining momentum over the last few years and are no longer optional ethical concerns. They are now critical for management and investors to understand companies’ valuations. The ESG valuation course is designed for those who, without the need to have a financial background, want to gain a critical understanding of the impact ESG is having in corporate valuations.

This course is essential for legal practices and consultants wanting to update their ESG knowledge to assist their clients, as well as in-house risk managers and fund managers wanting an in-depth update on the practical aspects of recent ESG regulatory developments. They will find this training enriching and a solid reference tool to validate their ESG policies.

As the ESG theme becomes more prominent in the life of corporates, so does the need to understand the impact on their valuations. This has so far proven difficult given the changing approach to ESG factors by governments, corporates and investors. This ESG valuation course provides the tools to have a critical view of the “push-pull” strategies that regulators are implementing across jurisdictions and gain a thorough understanding of how investors are reacting to them to ensure they combine their mandates with developing regulatory obligations.

The course materials will enable the participants to gain a critical understanding of the most updated developments. This will enable course attendees to build a proprietary argument on the state of ESG's impact on valuations based on fundamentally driven principles and updated corporate practices.

Number of places:
Part 1

Places Filling – book quickly

£ 695.00

Number of places:
Part 2

Places Filling – book quickly

£ 695.00

Discounts available:
Virtual Class

  • 2 places at 30% less
  • 3 places at 40% less
  • 4 places at 50% less
  • 5 places at 55% less
  • 6+ places at 60% less
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