ESG/Sustainability Survey 2025-26

As a global valuation standard setter, the International Valuation Standards Council (IVSC) considers opinions from valuation stakeholders around the world. The debate on ESG and Sustainability issues continues to grow in prominence, raising questions such as whether, and how, these factors should influence asset pricing and investment decisions.

Where ESG factors and Sustainability considerations have a material impact on value, it is critical to understand how they are being reflected in valuation practice. Through this annual survey, the IVSC aims to assess current market practice and the relevance of ESG factors and Sustainability considerations across geographies, asset classes, and valuation specialisms.

The current version of IVS (effective 31 January 2025) incorporates both a definition of ESG and an IVS 104 Data and Inputs Appendix, which deal with ESG considerations, stating that “the valuer should be aware of relevant legislation and frameworks in relation to the environmental, social and governance factors impacting a valuation.”

ESG factors, once considered peripheral, have moved more to the forefront of discussions among investors, regulators, and valuation professionals in some markets. However, perspectives are divergent, with jurisdictions and asset classes moving at different speeds and in different directions. Political viewpoints in some areas of the world have also led some stakeholders to avoid the use of the term ‘ESG’, focusing instead on ‘sustainability’ to encapsulate similar factors.

Since the publication of the current version of IVS, the Standards Review Board, its Asset Boards, and its working groups have been working on the IVS (effective 31 January 2028) Exposure Draft, which was issued for consultation on 30 January 2026, running until 30 April 2026.

As part of this process, the IVSC SRB ESG and Sustainability Working Group has been considering revisions to the IVS 104 Data and Inputs Appendix to incorporate both sustainability considerations and environmental, social, and governance factors impacting a valuation.

Further to its discussions, the working group notes the following differences between ESG and Sustainability:

ESG provides the measurement tools, whereas sustainability is the outcome being pursued. ESG is how we assess progress—sustainability is what we are aiming to achieve.

As a result of these working group discussions, the IVS (effective 31 January 2028) will incorporate the following proposed definitions for ESG and Sustainability:

Environmental, Social and Governance (ESG): The criteria that together establish the framework for assessing the resiliency of operations of a company, asset or liability. ESG comprises three pillars: Environmental, Social and Governance, all of which may collectively impact performance, the wider markets and society.

Sustainability: A concept that encompasses the extent to which environmental, social, and governance (ESG), resilience and other significant considerations may impact the ability of an entity, asset, liability or investment to generate, maintain, or enhance economic value.

However, even though the IVSC is aiming to separately define these terms, the IVSC SRB has noted that in many markets these terms are still conflated. Therefore, for the purpose of this survey and for simplification reasons, these terms have also been used interchangeably, and the survey questions refer to “ESG/Sustainability.”

Your feedback will provide valuable insight into how ESG and Sustainability are being integrated into valuation processes, the challenges you face, and the guidance you consider necessary. We appreciate your contribution to this global consultation.