ESG practices have gained significant momentum in corporate strategy conversations—but for privately-held businesses, the question remains: will ESG increase or decrease my company’s value? As valuation professionals, we’ve modeled both outcomes.

At the heart of the ESG conversation are two competing philosophies—stakeholder capitalism and free market theory. These perspectives don't just shape opinions on ESG; they shape how companies operate, how investors allocate capital, and how value is defined.

How did ESG rise from a fringe philosophy to a concept that today influences trillions in global investment decisions? Let’s take a step back and explore the origins of ESG and its integration into the business world.

For years, a company’s cost of capital has been determined by familiar variables—market risk, size, industry, and firm-specific factors. But in today’s evolving business environment, ESG factors are beginning to reshape the equation.

As ESG gains traction in boardrooms and funding circles, many privately-held business owners are asking a practical question: will it help—or hurt—revenue?

When business owners think about ESG, they often picture environmental audits, employee programs, and compliance paperwork. But there’s one area ESG affects that’s flying under the radar: your interest rate.

Environmental, Social, and Governance (ESG) principles are often framed as opportunities—for growth, for branding, for alignment with investor values. But beneath the optimism lies an underexamined reality: for privately-held businesses, ESG introduces real and measurable risks.

For valuation professionals working with privately-held companies, the rise of ESG brings a new layer of complexity: how to reflect...

When privately-held businesses begin to integrate Environmental, Social, and Governance (ESG) principles into their operations, one...

As ESG continues to reshape business standards, a new risk has emerged—one that threatens the very credibility of the movement:...

As financial institutions accelerate their adoption of Environmental, Social, and Governance (ESG) frameworks, a new underwriting...

Valuation professionals are increasingly being asked to quantify the impact of ESG on privately-held businesses. While the goal is clear,...

In theory, ESG ratings should help businesses understand how they’re performing on Environmental, Social, and Governance metrics. In...

While ESG is often discussed in theoretical or policy terms, its impact on valuation can be modeled with surprising clarity. Using the...