At the IVAS-IVSC Business Valuation Conference 2024, SGFIN Director Prof Johan Sulaeman spoke on the theme “Intangible Impact: Unlocking Business Value in the New Economy” and discussed the critical role of corporate sustainability as an intangible asset in driving business value. While other speakers emphasized intangible assets like R&D and branding, Prof Johan focused on sustainability, particularly the inconsistencies arising from the lack of a universal reporting standard. He highlighted that although environmental metrics such as GHG emissions are frequently reported, social data’s impact on enterprise value remains difficult to quantify. He introduced SGFIN’s AI-driven equity valuation model, which links corporate valuation to environmental metrics, demonstrating that higher GHG emissions negatively impact stock market valuations, pricing each ton of CO2e emissions at around US$60-80.
