Investors typically have proprietary approaches and models for assessing companies, but many seem to be
gravitating to certain types of disclosures and key performance indicators (KPIs), which are set out in this
summary.
Approaches to valuation and monetization are getting more sophisticated. Investors can assess financial
outcomes of various ESG factors in terms of changes to cash flows and earnings impact, cost of capital,
and asset values. They will, therefore, focus on material ESG factors and metrics related to the drivers
of competitive advantage and sustainable value creation of a sector or individual organization that will
ultimately drive financial performance.