Integration of ESG pricniples in business valuation on the example of Iberdrola S.A
Annotation
the article discusses the issue of integration of ESG factors into business valuation practices, with a focus on the ESG premium exemplified by Iberdrola S.A. Through discounted cash flow analysis incorporating WACC adjustments, it demonstrates how superior ESG performance generates a negative premium, reflecting reduced systemic risk due to leadership in renewable energy and consistently top-tier sustainability ratings. This study highlights methodological considerations, such as the need for economic constraints and scenario validation, to address model sensitivities. Findings underscore ESG...
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