New ESG guide for business valuation released
It expands ESG guidance using international valuation standards.
The American Society of Appraisers (ASA), Chartered Business Valuators Institute (CBV Institute), Institute of Valuers and Appraisers, Singapore (IVAS), and Royal Institution of Chartered Surveyors (RICS) have jointly released a publication to provide guidance to business valuation professionals in gathering Environmental, Social, and Governance (ESG) information during the valuation process.
The guidance aims to respond to the growing demand for business valuation professionals to consider ESG-related risks and opportunities that can significantly impact a company’s value.
The guidance would help businesses preparing to comply with the new sustainability reporting standards and requirements, such as the IFRS1 Sustainability Disclosure Standards (IFRS S1 and S2), European Sustainability Reporting Standards (EU ESRS), and US SEC2 climate-related disclosure requirements.
Developed with the support of the International Valuation Standards Council (IVSC), the guidance references and builds upon the ESG-related considerations included in the International Valuation Standards (IVS).
The IVS are principles-based standards; and their latest version became effective on 31 January 2025.
The publication is available to members of the participating organisations and can be
accessed through their respective websites.