CHAPTER 9

ESG Integration and Best-in-Class

Using ESG information in financial analysis

Opening question

“How does an analyst actually use ESG data to value a company?”

In this chapter

What ESG integration means, and how it differs from exclusion
Identifying the material issues for a company and its sector
Adjusting cash flows, scenarios and discount rates, with a worked valuation
ESG in credit analysis
Best-in-class and positive screening, and why sector neutrality matters
ESG scores as tilts and factors in systematic portfolios, with a worked example
When integration becomes a label without real change
Integration in Asian and Vietnamese markets, where governance often matters most

🔒

This chapter is in the full book

Chapter 1 is free to read online. The full text of chapter 9 — with its tables, figures, worked examples and practice lab — is available in the complete edition of ESG and Sustainable Investing: From Theory to Practice — Vietnam Readiness (Volume 4, NXW Investment Library).

Read Chapter 1 free Get the full book — contact@nxw.vn

Sections of this chapter

9.1 From filter to information

9.2 What integration changes

9.3 Integrating ESG into fundamental analysis

9.4 ESG in valuation: cash flows, scenarios and discount rates

9.5 Integration in credit analysis

9.6 Best-in-class and positive screening

9.7 Quantitative integration: scores as tilts and factors

9.8 Limits: when integration becomes a label

9.9 Integration in Asia and Vietnam

← Chapter 8: Exclusions and Screening Chapter 10: Thematic and Impact Investing →