We want our work to be accessible and impactful to numerous stakeholders.
Please look below to find the group with which you identify and see how Integrated Value and Futureproofing Ratios are applicable to your interests.
Students & Academics
Understanding the econometrics that underpin long-term value.
Corporate Professionals
Helping the C-suite make informed decisions for futureproofing their companies.
Investors
Driving change through impact investing for a better tomorrow.
Students & Academics
Use our book to better understand long-term value—and what it takes to make change.
Transitions pose major challenges, and finance theory is not well equipped to deal with them or to produce integrated value. Therefore, finance needs to adapt, and this book sets out how to do that. The good news is that you don’t need new corporate finance methods or models to steer companies for integrated value. You only need to incorporate social and environmental value alongside financial value in the existing methods and models.
This book takes an evolutionary approach that helps students, teachers and practitioners transition from current corporate finance based on financial value, to modern corporate finance based on integrated value.
The first three chapters set the scene for modern corporate finance, and the subsequent chapters serve to explain the different value dimensions:
Explain the standard corporate finance methods: financial value
Calculate the effects of environmental, social, and governance (ESG) factors on financial value: ESG integrated
Calculate environmental and social value: impact
Integrate the three values in the standard corporate finance methods: integrated value.
Resources
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Chapter 01 The Company within Social and Planetary Boundaries
Chapter 02 Integrated Value Creation
Chapter 03 Corporate governance
Chapter 04 Discount rates and the scarcity of capital
Chapter 05 Calculating social and environmental value
Chapter 06 Investment decision rules
Chapter 07 Capital budgeting
Chapter 08 Valuing bonds
Chapter 09 Valuing public equity
Chapter 10 Valuing private equity
Chapter 11 Case-study integrated valuation: Inditex
Chapter 12 Risk-return analysis
Chapter 13 Cost of capital
Chapter 14 Capital market adaptability, investor behaviour and impact
Chapter 15 Capital structure
Chapter 16 Issues and pay-outs – changes in capital structure
Chapter 17 Reporting and investor relations
Chapter 18 Mergers and acquisitions
Chapter 19 Options
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Chapter 01 The Company within Social and Planetary Boundaries
Chapter 02 Integrated Value Creation
Chapter 03 Corporate governance
Chapter 04 Discount rates and the scarcity of capital
Chapter 05 Calculating social and environmental value
Chapter 06 Investment decision rules
Chapter 07 Capital budgeting
Chapter 08 Valuing bonds
Chapter 09 Valuing public equity
Chapter 10 Valuing private equity
Chapter 11 Case-study integrated valuation: Inditex
Chapter 12 Risk-return analysis
Chapter 13 Cost of capital
Chapter 14 Capital market adaptability, investor behaviour and impact
Chapter 15 Capital structure
Chapter 16 Issues and pay-outs – changes in capital structure
Chapter 17 Reporting and investor relations
Chapter 18 Mergers and acquisitions
Chapter 19 Options
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Integrated Value case studies:
Value Driver Adjustment case studies:
Corporate Professionals
Long-term value offers a way to make better decisions and build that into your strategy. Explore our reports to see how this methodology can help further.
Corporate professionals, particularly CFOs, face significant challenges in steering towards integrated value—combining financial, social, and environmental metrics. Contrary to popular belief, the main obstacle isn't data availability; it's decision-making. The key challenge lies in balancing short-term financial goals with long-term sustainability objectives. While data are important, many organizations already have the necessary information if they know where to look. The real issue is how to make structured decisions that account for multiple goals and values.
Traditional financial metrics like NPV are no longer sufficient for comparing projects. Companies need to incorporate social and environmental factors into their decision-making. This raises complex questions: how do you weigh profit against emission reductions or social impact? How do you handle conflicting goals, especially when benefits may only materialize in the long term? The challenge for CFOs is to navigate these trade-offs and build decision-making frameworks that reflect their company's broader sustainability ambitions.
Investors
Take a look at our reports to better see how a long-term value perspective can reshape investing for good.
Investors, particularly pension funds, have the potential to drive systemic change by adopting integrated value strategies that account for financial, social, and ecological impacts. However, challenges persist due to the prevailing investment paradigm, which prioritizes maximizing financial returns based on Modern Portfolio Theory (MPT) and the Efficient Market Hypothesis (EMH), often at the expense of broader societal and environmental considerations. Many investors, including pension funds, tend to be passive, investing in numerous companies with limited involvement, missing opportunities to foster positive change.
To address societal challenges, investors could use active ownership and stewardship by integrating environmental and social risks into their strategies. Yet, obstacles like weak governance frameworks and a short-term focus hinder this shift. The future lies in adopting governance models that harmonize financial goals with the need to tackle climate change and social inequality, requiring new tools to measure and report social and ecological impacts.
By embracing integrated value, investors can align their investments with long-term societal and planetary needs, playing a critical role in creating a sustainable future where financial, social, and ecological objectives are balanced. This shift demands evolving investment criteria and a new sense of accountability from investors.
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