Explainer: Enterprise value in a sustainability context

How would two identical companies perform if the sole differentiator is sustainability strategy?

A quick visual guide to the importance of robust sustainability practices in building corporate value.

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Over time, of two near-identical companies, the one with a robust sustainability strategy will perform significantly better in terms of enterprise value, market share and longevity.

See the link to a PDF of these slides below.

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In a given market with stable internal and external forces, two identical companies would be viewed equally by investors.

WBCSD describes two additional factors that affect a company's intrinsic valuation: 1. Sustainable context and exposure, 2. Management strategy and response

In the same market, Company A will gain an increasing competitive edge and longevity if it invests into resilience and sustainable business practices.

In a growth industry, this market share increase is even more enhanced.

Author

Nick Eaglesfield

As both a Chartered Environmentalist and a Chartered Marketer, Nick is adept at telling the sustainability story for brands through impactful reports and campaigns. Nick works at the strategic level to drive financial and sustainability performance.

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