Explore how lowering pollution costs could raise equity valuations and reduce credit costs for almost 2600 firms worldwide
How much a firm pollutes influences both its equity valuation and cost of debt. Our Maximiser assesses how much cutting pollution could boost a firm’s equity valuation and lower its cost of debt.
One way to measure pollution is to assess the financial cost (“externality”) pollution inflicts on society, as measured by the Harvard Business School (HBS) impact-weighted accounts. This initiative assesses not only a firm’s financial results, but also the financial cost of its pollution.
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Typical results are pictured below.
Disclaimer: The Pollution-Focused Engagement Maximiser only uses quantitative data, and thus may show a limited view of a company’s environmental performance. It may not capture all financially material environmental issues, especially for certain sectors. A different approach may lead to contrasting results. The data represent a snapshot in time and may be inaccurate. The use of the Pollution-Focused Engagement Maximiser should therefore always be supplemented by in-depth company research.