Chapter 15: ESG Considerations in Financial Statement Analysis

In this section

• Incorporating Environmental, Social, and Governance Data
  Learn how to integrate ESG data effectively into financial statement analysis, exploring data sources, reliability checks, KPI alignment, and best practices for investment decisions.
• Materiality of ESG Issues in Financial Reporting
  Explore how ESG issues are reshaping traditional views of financial materiality, from numerical thresholds to broader stakeholder impacts.
• ESG Disclosure Frameworks and Standards
  An in-depth look at the major ESG reporting frameworks—GRI, SASB, TCFD, and ISSB—and how they shape sustainability disclosures in financial analysis.
• Integrating ESG into Ratio and Trend Analysis
  Explore advanced methods for incorporating environmental, social, and governance (ESG) factors into ratio and trend analysis, uncovering how ESG can reshape traditional financial metrics and reveal deeper insights for long-term decision-making.
• Corporate Reporting Practices and ESG Metrics
  Examination of how companies present ESG data, key KPIs across environmental, social, and governance dimensions, and assurance considerations for ESG disclosures.
• Carbon Emissions Reporting and Assurance
  Learn how companies measure, disclose, and assure their carbon emissions, including Scope 1, 2, and 3, using frameworks like the GHG Protocol. Explore financial impacts from carbon pricing, offsets, and how consistent reporting methodology is crucial for comparability.
• Green Bond Reporting and Sustainability-Linked Finance
  A comprehensive look at green bond structures, sustainability-linked financing, and the frameworks guiding their reporting and analysis in modern financial markets.
• Social Impact Metrics in ESG Disclosure
  Explore essential social impact metrics in ESG disclosures, including labor practices, community engagement, and DEI, and learn how these factors influence risk analysis, financial health, and corporate reputation.
• Climate-Related Contingencies and Provisions
  Explore how climate risks, such as extreme weather events or emerging regulations, lead to financial contingencies and provisions, and learn how to identify, account for, and disclose these liabilities in corporate reports.
• Potential ESG Liabilities and Intangible Assets (e.g., Carbon Credits)
  Explore how ESG-related items, such as carbon credits and brand reputation, create intangible assets or liabilities on the financial statements, including valuation approaches, risks, and reporting challenges.