Valuation finance firm Valutico has launched ValutECO, an advanced tool that assesses the value of companies based on their environmental impact.
Valutico’s newly launched tool – which is currently in its alpha phase – allows accountants, M&A consultants, investment managers, private equity professionals, and those in corporate finance to consider the impact of ESG factors on a company’s value.
Through ValutECO, financial professionals use a streamlined ESG assessment, specifically designed with SMEs in mind and simplified to facilitate easier reporting. Analysts can identify priority areas for improvement, such as reducing greenhouse gas emissions, managing water usage, and increasing recycling rates.
Valutico’s new tool integrates ESG scores into the ‘Cost of Capital’ component of a DCF valuation. This revolutionary feature allows companies with positive ESG scores to be valued higher, making them more attractive to potential buyers and investors seeking sustainability and long-term growth.
ValutECO was developed following a grant by Wirtschaftsagentur Wien, and follows research into the impacts of ESG criteria on the valuations of businesses across multiple industries, alongside validation that the condensed ESG assessment reflects more exhaustive assessments on the market.
Valutico said, “The widespread adoption of a tool like ValutECO has the potential to be a game-changer for sustainability in industries all around the world. It would financially incentivize companies to prioritize sustainability and embed environmental factors as a key component of their everyday operations. This would result in one way in which companies’ impact on the planet becomes a crucial aspect of buying, selling, and investing decisions.”
The company’s CEO Paul Resch added, “Leading the way in integrating sustainability into financial practices is a significant accomplishment for Valutico. We recognize the importance of ValutECO as an initial step towards achieving this goal, and we’re grateful for the grant provided by Wirtschaftsagentur Wien that made this possible.
“We’re looking forward to receiving feedback from financial professionals on how this innovative tool can enable sustainable growth and we’re excited for what lies ahead.”
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