[Verse 1] In the world of finance where numbers used to reign There's a new way to look at corporate gain Environmental impact, social responsibility Governance matters for sustainability When you're building models, don't just see the cash ESG factors help predict the crash [Chorus] E-S-G in your analysis Environmental, Social, Governance emphasis Risk and return, they're intertwined ESG data helps you read the signs Material factors, quantify the score ESG integration opens up the door [Verse 2] Start with materiality, what matters most For each industry sector, coast to coast Carbon emissions for an energy firm Water usage makes the investors squirm Labor practices in the retail space Board diversity sets the governance pace [Chorus] E-S-G in your analysis Environmental, Social, Governance emphasis Risk and return, they're intertwined ESG data helps you read the signs Material factors, quantify the score ESG integration opens up the door [Verse 3] Adjust your discount rate for ESG risk Higher rates when red flags exist Lower cost of capital for the clean and green Best-in-class companies stay lean Cash flow projections need the ESG lens Future regulations, that's where it begins [Bridge] Qualitative factors become quantitative Ratings and rankings, now they're comparative Third-party data from the ESG firms SASB standards help you learn the terms Integration not elimination ESG enhances valuation [Chorus] E-S-G in your analysis Environmental, Social, Governance emphasis Risk and return, they're intertwined ESG data helps you read the signs Material factors, quantify the score ESG integration opens up the door [Outro] From screening to weighting every metric right ESG integration brings the future to sight Better decisions for the long-term view ESG analysis will see you through
← Shareholder Activism and Proxy Fights | What Are Mergers and Acquisitions? →