Guiding the integration of sustainability in valuation: A framework​ for integration, research examples and reflections



In today’s financial landscape, sustainability is emerging as a key driver in investment decision-making processes, and has the potential to incentivize and scale capital allocation via the integration into intrinsic valuation and pricing. 

Our primer explores sustainability in intrinsic valuation, offering a structured framework, exploring key intervention points for integration including forecasted financials and model assumptions such as terminal value. This framework, accompanied by real-world examples, shows how investors, including Robeco, UBS, abrdn and DWS, are already incorporating sustainability factors into fundamental research and valuation processes.  

Understanding these dynamics empowers companies pursuing sustainable business transformation to communicate relevant information to investors and research providers, facilitating their access to vital capital resources. This latest primer on valuation complements prior WBCSD finance guidance for sustainability professionals and our continued efforts to enhance sustainability competency among both finance and real economy. 

Within this guide, we champion a dual approach:  

For Companies: 

  1. Gain insights into how investors are incorporating sustainability into their valuation approaches. 
  2. Effectively communicate sustainability ambition, plans and action to further enhance integration. 

For Investors: 

  1. Elevate practices integrating sustainability in fundamental equity research and valuation. 
  2. Foster transparent communication with companies, clients, and stakeholders to encourage better information flow and, through leadership, drive innovation and sustainable decision-making. 

Access this publication today to unpack challenges and opportunities to integrate sustainability in intrinsic valuation and scale capital flows towards sustainable transitions. 



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