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 responds to the growing demand for business valuation professionals to consider ESG-related risks and opportunities that can significantly impact a company’s value.
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. The latest version, adopted in many countries, became effective on January 31, 2025.
The joint publication aims to assist business valuation professionals in their assessments of risks and opportunities, and in gathering relevant ESG information from companies to enhance the robustness and quality of valuations.
This collaborative guidance marks the first joint publication between these Valuation Professional Organizations (VPOs), which collectively oversee over 142,000 members.