Page 260 - 5.2 i. Manac Finance ITC Summarised Notes

VALUATIONS

Assumptions and facts that underlie the

valuation estimate

Risks related to sustainability

• Sustainability (environmental, social and governance) risks

and opportunities should be integrated into traditional
equity valuation techniques to show how a company’s

revenue, earnings and cash flows could be impacted by
global sustainability issues.

• For example (such as the coal mines to be developed in the
Waterberg area), there could be an additional risk for a

mining company if it has operations in areas of water
scarcity. This additional risk could cause a decrease in the

value of the company. On the other hand, sustainability

opportunities could cause an increase in the value of the
company. For example, if a utilities company has exposure
to an expanding green energy market or “smart energy”

technology.

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