CFA Institute propose performance- and attribution-based scheme to measure ESG for business investors

BVWire–UKIssue #45-1
December 6, 2022

A new research paper from the CFA Institute proposes a performance evaluation and attribution framework for ESG investment strategies. This approach may help business valuers quantify the impact of ESG factors on firm value.

Highlighting the challenges for financial experts, the International Valuation Standards Council (IVSC) also released a new ESG survey, primarily based on responses from valuation firms in the UK and Europe (67%). Respondents were a mix of small and medium-sized firms and multinational organizations. Over half of the valuation firms say they are unable to estimate the financial impacts of any ESG factors in their forecasting. Of the rest, 42% say they could partially estimate the impacts and 4% said they could fully estimate it.

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