THE IMPACT OF ESG FACTORS IN DETERMINING THE FAIR VALUE OF COMPANIES

Stefani Andreeva

Abstract


The report examines the challenges of integrating ESG (environmental, social and governance) factors in determining the fair value of companies. Despite growing recognition of their influence, standardization of these indicators remains a significant obstacle. The report explores issues related to the reliability of data, the lack of unified reporting standards and the different methodologies that hinder the validity of the valuation. It also discusses potential opportunities to overcome these challenges, which is critical not only for investors seeking to invest ethically, but also to ensure the reliability and effectiveness of integrating ESG factors in determining companies' fair value.


Keywords


ESG, ethical investments, fair value, valuation

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References


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