Sustainability Valuation

2 Part Course | Become proficient in sustainability, its impact on 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 sustainability valuation course presented over two-half days in a virtual class from 9:30am to 1:00pm UK time

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Download: Course Category Brochure | Course Outline

Part 1 Introduction

The evolution of sustainability factors and the recent impact on capital markets
Overview of the integration of sustainability 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

AI exercise on interpreting factors

Social Factors

Examining social aspects, labour practices, employee well-being, and community relations as value drivers
The 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 - When Enterprise Risk Models meet Sustainability within SM&CR. A T2V simulation will guide participants through decision-making scenarios involving governance frameworks. Using realistic, AI-generated governance dilemmas, participants will assess the adequacy of practices such as board diversity, executive compensation, and risk management within a corporate context

Sustainability Metrics and KPIs

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

Part 2 Sustainability Reporting Training

Overview of sustainability 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 Sustainability efforts to stakeholders
Comparing reporting content and quality across sectors and jurisdictions
Greenwashing: Detection and prevention
Case study: Norges Bank IM – Analysing a common sense-driven leader in Sustainability policy. In an AI-driven exercise, you will use T2S tools to explore sustainability reporting standards. Through a narrative audio simulation, evaluate key reporting frameworks (e.g., GRI, SASB) and detect potential greenwashing in reporting. This exercise encourages critical listening and regulatory acumen.

Integrating Sustainability in Valuation Models

What is ‘value’ and how is it created?
Introduction to valuation and sustainability models
Intrinsic vs extrinsic techniques to incorporate sustainability factors in valuation
Approaching discounted cash flows (DCF) and cost of equity with a Sustainability perspective
Pricing-in Sustainability materiality: Linking sustainability to long-term value
Modifying a DCF model to account for Sustainability risks and opportunities
Case study: Blackrock Sustainability integration vs Schroders – Applying fast volatile policies versus the effective steady approach

Assessing the Impact of Investing in Sustainability on Valuations

Why Sustainability needs to be priced into valuations
The corporate view: do corporates get a return on sustainability investment?
Empirical evidence of impact on valuations
Creating shareholder value through sustainability
The investor view: integrating sustainability into portfolio construction and risk management
Review of leading pension funds and institutional investors' approach to the Sustainability challenge. Take part in a T2S-enabled listening exercise that features institutional investors discussing strategies to price sustainability into portfolios. By analysing these audio discussions, gain insights into value creation and sustainability's financial implications.

Sustainability Reporting Course Conclusion

Redcliffe’s Sustainability Valuation course is delivered by an independent consultant who provides 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 CFO in a $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. This includes a senior representative at the World Bank/IIF annual meetings.

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

Throughout his career, our specialist has presented over 7,500 hours of financial and capital markets content to a broad range of financial stakeholders worldwide. Since 2014 has contributed to world-leading universities and business schools such as the IE Business School, LSE, The University of Chicago, UNAV (IESE) and ESADE. This includes undergraduate, MBA and professional education programmes.

He is an experienced face-to-face and online sustainability reporting course instructor (experienced in multiple LMS). Currently under contract with US and Singapore-based OPMs, our expert trainer makes financially complex concepts simple and accessible for you by adapting the jargon to your professional background.

Our trainer speaks 5 languages and has dual nationality; he is accustomed to 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.

Please note that sustainability reporting courses are delivered in English and Spanish.

This Sustainability Valuation training will cover the following:

The recent evolution of sustainability and why it has become a critical theme for corporates and investors when assessing value creation.
Identify sustainability metrics and data, their relevance and how they are assessed and compared by investors and rating agencies.
How to avoid pitfalls (like greenwashing).
Non-finance professionals will understand how companies are valued and how valuation and sustainability factors are incorporated in 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 regarding sustainability. Learn how to reflect these in fundamental valuation models.

This Sustainability Valuation course has updated market trends and regulations, which are critical in the fast-changing landscape of sustainability.
Review of the most recent academic outputs and their implications for valuations.
AI-driven video and audio simulations will replicate life-like situations and allow you to immerse yourself in the subject matter.
The objective approach to data is a tool for participants to nurture their stance on Sustainability.
A UK focus with a global perspective on sustainability.
A friendly approach to technical sustainability valuation aspects.
Practical analysis of companies' and investors’ evolving practices.

Sustainability factors have gained momentum over the last few years and are no longer only optional ethical concerns but critical for management and investors to understand companies’ valuations. This sustainability valuation workshop is designed for those who, without the need to have a financial background, want a critical understanding of the impact sustainability is having on corporate valuations.

This is also valuable for legal practitioners and consultants wanting to update their sustainability 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 sustainability regulatory developments.

Sustainability professionals will find this training enriching and a reference tool to validate their sustainability policies.

As sustainability becomes more prominent in the life of corporates, so does the need to understand the impact on their valuations. This has proven difficult so far, given the changing approach to sustainability factors by governments, corporates and investors.

This course provides you with critical sustainability valuation tools to have a view of the “push-pull” strategies that regulators are implementing across jurisdictions and to 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 simplify the process and give you a breakdown of the updated developments: building a proprietary argument on the state of sustainability impact on valuations based on fundamentally driven principles and updated corporate practices.

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(min. 50 participants)