Total shareholder return and Sustainability reporting: Difference between pages

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''Valuation.''
''Corporate reporting - ESG.''


(TSR).  
Sustainability reporting is the disclosure and communication of an organisation's:
*Environmental, social, and governance (ESG) goals, and
*Performance measured against those goals.


Total shareholder returns take account of both the dividend income and the capital gains (or losses) enjoyed (or suffered) by shareholders.


Total shareholder returns are measured as the internal rate of return of all of the shareholders’ cash flows including their initial investment.
== See also ==
 
* [[Accounting for Sustainability]] (A4S)
 
* [[Business & Sustainable Development Commission]]
This measure of the total rate of return to shareholders is based on the following five amounts:
* [[CDP]]
 
* [[Corporate social responsibility]]
#The opening value of the shares
* [[Corporate Sustainability Reporting Directive]] (CSRD)
#Dividends received by the investor
* [[Environmental profit and loss]]
#Any capital returned to the investor
*[[Environmental, social and governance]]  (ESG)
#Any further capital paid in by the investor
* [[ESG investment]]
#The closing value of the shares.
* [[Financial reporting]]
* [[Global Sustainable Investment Alliance]]
* [[Global Reporting Initiative]]
* [[Non-Financial Reporting Directive]] (NFRD)
* [[Sustainable Finance Disclosure Regulation]] (SFDR)
* [[Sustainability]]
* [[Sustainability bond]]
* [[Sustainability-Linked Loan Principles]]  (SLLP)
* [[Taxonomy Regulation]]
* [[UK Sustainable Investment and Finance Association]]




The TSR is calculated as the Internal rate of return (IRR) of all of these five items, taking account of their timing as well as their amounts.
==Other resource==


*[https://www.ifrs.org/sustainability/knowledge-hub/knowledge-hub-search/ IFRS Sustainability Knowledge Hub]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Compliance_and_audit]]
[[Category:Corporate_finance]]
[[Category:Financial_products_and_markets]]
[[Category:Identify_and_assess_risks]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Manage_risks]]
[[Category:Risk_reporting]]
[[Category:Risk_frameworks]]
[[Category:The_business_context]]


<span style="color:#4B0082">'''Example: Dividends and capital growth only'''</span>
[[Category:Accounting,_tax_and_regulation]]
 
[[Category:Compliance_and_audit]]
Taking a simple example with only:
[[Category:Corporate_finance]]
 
[[Category:Financial_products_and_markets]]
Opening value of each share at Time 0 = $100;
[[Category:Identify_and_assess_risks]]
 
[[Category:Investment]]
Dividend per share paid one year later at Time 1 = $4;
[[Category:Long_term_funding]]
 
[[Category:Manage_risks]]
Closing value of each share at Time 1 = $106.
[[Category:Risk_reporting]]
 
[[Category:Risk_frameworks]]
And no other changes.
[[Category:The_business_context]]
 
 
The total relevant cash flows for the investor are:
 
Time 0 outflow = $(100)
 
Time 1 total inflow = $4 + $106 = $110.
 
 
The IRR of these cash flows is 10%:
 
$(100) + $110 x 1.10<sup>-1</sup> = $0.
 
So the Total Shareholder Return for the year under review is 10%.
 
 
== See also ==
* [[Dividend yield]]
* [[Earnings yield]]
* [[Economic value added]]
* [[Internal rate of return]]
* [[Market value added]]
* [[Return on equity]]
* [[Shareholder returns]]
* [[Shareholder value]]
 
[[Category:Corporate_financial_management]]

Latest revision as of 03:41, 1 November 2024

Corporate reporting - ESG.

Sustainability reporting is the disclosure and communication of an organisation's:

  • Environmental, social, and governance (ESG) goals, and
  • Performance measured against those goals.


See also


Other resource

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