Stakeholder management and reporting

Investors examine how a company is managing ESG risks and opportunities. This is then translated into costs, revenues, profits, capex, etc. which feeds into valuation models informing assumptions about growth, margins or cost of capital.

Adjustments might include a higher discount factor for poor policies related to sector environmental concerns; a charge for an externality like a carbon tax; an impairment to asset that needs to be upgraded which will bring down book value; higher growth assumptions due to human capital strategy. An investor may place a higher multiple valuation on a high ESG-rated firm relative to peers.

Companies and investors need to consider what sustainability factors are material in any given situation. The factors need to be measurable and disclosure should be clear and consistent. Etoile Advisory can advise in how ESG factors are integrated in the investment process to help you craft your communication strategy in an integrated report.

Having advised many management teams on what to include in investor presentations, conducted shareholder targeting exercises and arranged hundreds of roadshows we know how to get you in front of the right investors with a message that resonates. Etoile Advisory services also include conducting perception studies to get stakeholders’ views, producing market intelligence reports on peer activity and providing an outsource investor relations capability.