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Incorporating ESG metrics into business valuation is critical

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The translation of ESG factors to cash flow adjustments varies. [iStockphoto]

Environment Social and Governance (ESG) in the investments space has evolved over the past years from "wait and see" approach to ESG becoming an integral part of the way investors analyse how companies create long-term sustainable value and growth.

Currently, investors are adopting different ways to measure the ESG impact on the value of a business, a trend that is likely to continue in the coming years.

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