KPMG and the IVSC have both contributed to the continuing debate on how ESG rates and business valuation standards overlap.

At the recent Global Financial Reporting and Valuation Conference, a KPMG panel shared their perspectives on valuation compliance and ESG data. KMPG argues that sustainability drives business results, and not the reverse, but financial analysts responsible for valuation work will need to place “great emphasis on assessing risk” and watching multiple regulatory proposals. The point out that EFRAG are particularly active, with a dozen or more granular proposals in the process.

This April, the International Valuation Standards Council (IVSC) will release their exposure draft outlining proposed updates to the International Valuation Standards (IVS). The draft will seek feedback on changes including new standards on “data and inputs” and explicit references to environmental, social, and governance (ESG) within the valuation process. The public comment period will last 12 weeks, during which time the IVSC will organize a series of webinars and roundtables to present details of the exposure draft. An updated version of IVS is expected to be published in 2024. For more information on the project, click here.