Description
Introduction
• What are you going to talk about in this report?
• What is the purpose of it?
• What will it include?
• 50-150 words (NO more than 150 words for Intro)
Required
Q1) Read the Case of British Petroleum (BP) provided and identify the relevant ESG factors that would affect the bottom line of the BP. You may wish to use the concept of triple bottom line. Please only distinguish material factors. Materiality is not determined as ‘material from accounting point of view’. In this case material means any information that will have an impact on the value of BP. As we cover NPV techniques during this module please assume the value of BP as a sum of NPVs from all projects in BP’s portfolio. Please discuss the impact of the ESG factors you identified on the NPVs of projects the company is pursuing. (5x 3 marks for discussion of each factor (E, S, G) and 15 marks for assessing the impact of those factors). Hint: if you find this question difficult please start from question 3 by reading research first before attempting questions 1-2.
Q2) Please use the factors identified in question 1 and describe how they would affect the NPV valuation. You might wish to think if those factors are quantifiable and if yes, can you adjust the cash flow or other items in the financials to arrive at a more accurate value?
Q3) Please use research published in academic journals as well as the industry (for example PRI, CFA Institute, McKenzie) to confirm that the factors you discussed in question 1 matter even if you struggled to quantify them in question 2. Please try to look at the literature that both confirm and reject the same claims. Draw your own conclusion. Please read the File WHICH I HAVE ATTACHED AND ALL THE INFORMATION ARE CLEAR.
