IB Business Management Topic 3.8.3 Application of Investment Appraisal Revision Notes (SL/HL)

IB Business Management Topic 3.8.3 Application of Investment Appraisal Revision Notes (SL/HL) | RevisionDojo

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Investment Appraisal in ESG: Evaluating Sustainable Investments

Traditional investment appraisals focus on financial returns, how much profit an investment will generate.
But ESG investing (Environmental, Social, and Governance) requires companies to also evaluate non-financial risks and long-term sustainability.
Companies can’t just look at profitability, they have to consider climate impact, social responsibility, and governance risks.
Ignoring ESG factors can mean regulatory fines, reputational damage, or stranded assets (e.g., fossil fuel investments becoming obsolete).

Note

Many companies underestimate the long-term financial risks of ignoring ESG factors, leading to massive losses when regulations tighten.

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Lorem ipsum dolor sit amet, consectetur adipiscing elit.
Sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris.
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum.

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Investment Appraisal in ESG: Evaluating Sustainable Investments

Traditional investment appraisals focus on financial returns, how much profit an investment will generate.
But ESG investing (Environmental, Social, and Governance) requires companies to also evaluate non-financial risks and long-term sustainability.
Companies can’t just look at profitability, they have to consider climate impact, social responsibility, and governance risks.
Ignoring ESG factors can mean regulatory fines, reputational damage, or stranded assets (e.g., fossil fuel investments becoming obsolete).

Note

Many companies underestimate the long-term financial risks of ignoring ESG factors, leading to massive losses when regulations tighten.

Definition

Paywall

(on a website) an arrangement whereby access is restricted to users who have paid to subscribe to the site.

anim nostrud sit dolore minim proident quis fugiat velit et eiusmod nulla quis nulla mollit dolor sunt culpa aliqua

Duis aute irure dolor in reprehenderit

Note

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam quis nostrud exercitation.

Excepteur sint occaecat cupidatat non proident

Tip

Lorem ipsum dolor sit amet, consectetur adipiscing elit.
Sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris.
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum.

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IB Business Management 3.8.3 Application of Investment Appraisal Notes

IB Business Management 3.8.3 Application of Investment Appraisal Notes

Investment Appraisal in ESG: Evaluating Sustainable Investments

anim nostrud sit dolore minim proident quis fugiat velit et eiusmod nulla quis nulla mollit dolor sunt culpa aliqua

Duis aute irure dolor in reprehenderit

Excepteur sint occaecat cupidatat non proident

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Investment Appraisal in ESG: Evaluating Sustainable Investments

anim nostrud sit dolore minim proident quis fugiat velit et eiusmod nulla quis nulla mollit dolor sunt culpa aliqua

Duis aute irure dolor in reprehenderit

Excepteur sint occaecat cupidatat non proident

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IB Business Management 3.8.3 Application of Investment Appraisal Notes

Unit 1: Introduction to Business Management - Core operational components and business functions6 subtopics

Unit 2: HR Management - Motivation, Structure, Hierarchy7 subtopics

Unit 3: Financial Management - Accounting, Ratio evaluation, Core Financial Documents9 subtopics

Unit 4: Marketing Management - The 7 P's, strategies and forecasting6 subtopics

Unit 5: Operations Management - Production Methods, Production planning and management9 subtopics

BM Toolkit - Core business frameworks and tools15 subtopics

IB Business Management 3.8.3 Application of Investment Appraisal Notes

Unit 1: Introduction to Business Management - Core operational components and business functions6 subtopics

Unit 2: HR Management - Motivation, Structure, Hierarchy7 subtopics

Unit 3: Financial Management - Accounting, Ratio evaluation, Core Financial Documents9 subtopics

Unit 4: Marketing Management - The 7 P's, strategies and forecasting6 subtopics

Unit 5: Operations Management - Production Methods, Production planning and management9 subtopics

BM Toolkit - Core business frameworks and tools15 subtopics

Investment Appraisal in ESG: Evaluating Sustainable Investments

anim nostrud sit dolore minim proident quis fugiat velit et eiusmod nulla quis nulla mollit dolor sunt culpa aliqua

Duis aute irure dolor in reprehenderit

Excepteur sint occaecat cupidatat non proident

Unlock the rest of this chapter with a free account

Investment Appraisal in ESG: Evaluating Sustainable Investments

anim nostrud sit dolore minim proident quis fugiat velit et eiusmod nulla quis nulla mollit dolor sunt culpa aliqua

Duis aute irure dolor in reprehenderit

Excepteur sint occaecat cupidatat non proident

Unlock the rest of this chapter with a free account