Intangible Value Assessment (IVA) links long-term corporate outperformance to superior management of environmental and social risks and opportunities. Through an in-depth comparison against peers, the IVA model determines which companies have hidden value or deficiencies that may not yet be reflected in financial results and share prices. IVA looks to environmental, social and governance (ESG) criteria as leading indicators for management quality and long-term financial performance, not as a values-based judgment on companies. Overall, IVA research seeks to answer three key questions:
What are the key ESG risks and opportunities applicable to each sector?
Do companies have risk management strategies commensurate with the risks they face?
Do companies have strategies to capture potential opportunities in the ESG space? IVA research focuses on those factors that contribute most heavily to financial performance, structured under four pillars: strategic governance, human capital, stakeholder capital, and the environment.