ESG and company valuations – hype or “new” standard

published on 18 January 2024 | reading time approx. 2 minutes

The “hype” surrounding the term ESG often assumes that there is an automatic increase in value by taking ESG into account. In particular, flat-rate premiums or discounts (if not taken into account) on valuations are often discussed. This falls short of the mark. Value can only be implied by analysing the expected cash flows and the impact of ESG on the cost of capital in detail. The considerations that can be made in this context are briefly described below.

Read more about the considerations that should be taken into account in this context in our ESG Newsletter.