Discount basis and ESG transition: Difference between pages

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imported>Kmacharla
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imported>Doug Williamson
(Created page with "''Sustainability.'' The process of change toward greater ESG (Environmental, Social and Governance) integration. == See also == * B Corporation * Corporate governance...")
 
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This term can refer either to the cash flows of an instrument (Discount instruments) or to its basis of market quotation (Discount rate).
''Sustainability.''


For example when an instrument is quoted - on a <u>discount basis</u>, one period before its maturity - at a discount of 10% per period, this means that it is currently trading at a price of 100% LESS 10% = 90% of its terminal value.
The process of change toward greater ESG (Environmental, Social and Governance) integration.


(The periodic ''yield'' on this instrument is 10%/90% = 11.11%.  So if the same instrument had been quoted on a <u>yield basis</u>, then the quoted yield per period = 11.11%.)


The relationship between the periodic discount rate (d) and the periodic yield (r) is:
== See also ==
r = d/[1-d]
* [[B Corporation]]
* [[Corporate governance]]
* [[Corporate social responsibility]]
* [[Environmental concerns]]
* [[ESG]]
* [[ESG Credit Impact Scores]]
* [[ESG investment]]
* [[ESG Issuer Profile Scores]]
* [[ESG ratings]]
*[[ESG Relevance Score]]
* [[ESG Vulnerability Score]]
* [[ESG stock]]
* [[EU Taxonomy]]
* [[Governance]]
* [[Green]]
* [[Green Finance Initiative]]
* [[IFC ESG Standards]]
* [[International Sustainability Standards Board]]  (ISSB)
* [[Just transition]]
* [[Social concerns]]
* [[Sustainability]]
* [[Task Force on Climate-related Financial Disclosures]]  (TCFD)
* [[Transition]]


So in this case:
[[Category:Accounting,_tax_and_regulation]]
r = 0.10/[1 - 0.10 = 0.90] = 11.11%
[[Category:The_business_context]]
 
[[Category:Compliance_and_audit]]
== See also ==
[[Category:Ethics]]
* [[Discount instruments]]
[[Category:Identify_and_assess_risks]]
* [[Discount rate]]
[[Category:Manage_risks]]
* [[Sterling commercial paper]]
[[Category:Risk_frameworks]]
* [[US commercial paper]]
[[Category:Risk_reporting]]
* [[Yield basis]]

Revision as of 14:40, 7 September 2022

Sustainability.

The process of change toward greater ESG (Environmental, Social and Governance) integration.


See also

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