This assessment consists in the following exercise:
a)
choose a listed company (e.g. NYSE, S&P..) based on your previous analysis on its interesting sustainability strategy.
b)
Use the below list of questions (Table 1) to analyse the company’s sustainability strategy.
The list can be used as a guide, as not all questions will need to be answered every time or right away. It can help to build an understanding of a company’s transition preparedness and investment attractiveness.
1. Business model & competitive position
1. How would you describe the company’s business model?
2.How strong do you rate the company’s competitive position?
3.What trends affect the company’s business model and competitive position?
Value drivers
1.Sales growth: what seems to be a normal sales growth for the company? And what are the drivers of sales growth?
2.Margins: what seems to be a normal profit margin (EBIT or EBITDA) for the company? And what are the drivers of that margin?
3.Capital: how capital intense is the company?
4.Please sketch how you see the company’s value drivers going forward?
3. Sustainability
1.Purpose: what is the company`s mission / purpose? In what way does the company create value for society?
2.Stakeholders: what are the company`s main stakeholders?
3.Externalities & impact: Does the company generate serious externalities? Are they positive or negative? How do you assess the chances of these externalities to be internalized?
4.SDGs: which of the SDGs (if any) does the company help achieve? Which negative SDG exposures (if any) does the company have?
5.Impact: to what extent can the company’s impact be measured? Does the company report on its impact?
6.Material issues: what are the most material ESG factors? I.e., what issues are most critical to the success of the company`s business model?
