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Enterprises
Professional
Services
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Manufacturer
Branded Consumer
Products
Biotechnology
Distributor
ESG Value Creation Framework
Click on each tab below to see select insights for each enterprise.
BRAND STRENGTH
RELIANCE ON
HUMAN CAPITAL
LACK OF PROPRIETARY
TECHNOLOGY
CUSTOMER
RELATIONSHIPS
PREMIUM TO
BOOK VALUE
INTANGIBLE ASSET INTENSITY
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B2C customer relationships are critical to driving demand.
While firms do develop IP, significant intellectual capital often resides in employees.
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Professional services firms rely heavily on their people and their brand to achieve high returns.
They employ few tangible assets and drive valuations with a very high premium to book value.
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B2B customer relationships are typically based on price and performance, but certain customers may require certain ESG thresholds for suppliers.
While manufacturers may employ some processes, revenue is not protected by significant IP.
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Contract manufacturers do not rely on a highly skilled workforce nor their brand, and as such achieve commoditized returns.
They employ large amounts of tangible assets and have valuations with a modest premium to book value.
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B2C customer relationships are critical to driving demand and brand loyalty.
Consumer product companies employ technology to varying degrees, but substitute products limit the significance of IP protections as it relates to ESG related risks.
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Branded consumer product companies rely very heavily on their brand, and may employ a highly skilled workforce, to achieve high returns.
They employ low to moderate tangible assets, depending on whether manufacturing is outsourced, and drive valuations with significant premiums to book value.
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Customer relationships may be B2B or B2C.
Life sciences companies employ technology, often patented technology, to secure demand.
Such protections can reduce the importance of brand and reputation.
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Life sciences companies employ a highly skilled workforce to achieve high returns.
They employ low amounts of tangible assets, depending on whether manufacturing is outsourced, and drive valuations with significant premiums to book value.
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B2B customer relationships are typically based on price and performance, but certain customers may require certain ESG thresholds for suppliers (especially related to the distribution function).
While distributors may employ some processes, revenue is not protected by significant IP.
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Distributors do not rely on a highly skilled workforce nor their brand, and as such achieve commoditized returns.
They employ large amounts of tangible assets and have valuations with a modest premium to book value.
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