The Value of Sustainability Initiatives
I recently participated in a panel at the IVAS-IVSC conference on Valuation, the topic of discussion was how to value sustainability efforts. It was an interesting question that I had been mulling over since I first began my own sustainability journey. Value is subjective, much like beauty it is in the eyes of the beholder. So in valuing sustainability , one would have to determine who the valuation is for, and the scope thereof. One of the speakers also mentioned an added complexity, in that some companies have already incorporated sustainability into their strategy and thus teasing out the value of sustainability per se becomes tricky. In my work as a board director, over the past 18 months alone, I have come across at least 5 instances where sustainability has appeared as an intangible but powerful affect. Three would require valuation specialists, the other two, market forces. The first is in the acquisition of a listed company, and the allocation of price for the ...