- Program 2012-13
Corporate Equity Valuation and Corporate ESG Disclosure
Host:Baruch College Robert Zicklin Center for Corporate Integrity
Baruch College's Newman Conference Center, 151 E 25th Street (between Lex and 3rd), Room 750
Despite the increasing interest regarding corporate environmental, social and governance (ESG) behaviors, the investment community continues to struggle with how best to incorporate ESG factors into corporate valuation models. At the same time, companies find it difficult to define materiality as it relates to their business practices and associated risks, let alone quantify and report on the effects of these behaviors.
Case-after-business case demonstrates that lower risk and greater rewards stem from better environmental and social performance. Recent corporate sustainability initiatives include Berkshire Hathaway’s switch to gas from oil to power rail train engines, and the continuing success of GE’s broad based, branded "Ecomagination" products and services offerings. Still, the impact on financial markets is miniscule compared to the totality of considerations and methodologies that determine valuations.
What are the ESG performance metrics, societal issues and cultural trends that investors need to consider to more astutely quantify corporate valuation? What do investors really need to know about a company’s ESG record to accurately value the enterprise? What ESG factors must a corporation disclose today and what will be expected of corporations in the future?
Moderator:Hank Boerner, President, Governance and Accountability Institute
Erika Karp,UBS; Mariela Vargova, Rockefeller & Company; Bruce Kahn, Columbia University / Earth Institute; Mark Tulay, GISR (Ceres); Rina Levy, Bloomberg LP