Royal Philips: A Sustainable Finance Case Study

Abstract

This case study offers a list of questions that allow analysts to integrate sustainability into investment analysis by connecting sustainability to business models, competitive position, strategy and value drivers. For illustrative purposes, the questions are answered for Royal Philips, an advanced company in terms of sustainability reporting and thinking. The case highlights the need for fundamental analysis (that is, going well beyond ESG ratings) to properly assess a company’s transition preparedness, which we deem the essence of corporate sustainability.

Keywords: Sustainable Finance, ESG Factors, Case Study

JEL Classification: G24, G32, G34