Company overview and analysis

1, Introduction of the Company (Client) (3 mark)

 History of the company (1 mark)
 Markets it is operating in (1 mark) (might include: geographical, industry)
 Mission and vision of the client (1 mark)

2, More detailed information about the company (7 marks) => ensure critical ap-
proach (strength and weakness)
 PERFORMANCE OF THE ENTITY: analysis of the company performance, com-
parison with industrial data, comparison with competitors’ data (3 marks)
o Analysis financial performance (Profitability, liquidity, financial risk), used
graph and highlight strength and weakness (1 marks for each key point)
 ENVIRONMENT OF THE ENTITY: analysis of the environment for understanding
future risks (you can use a Pestle, Porter 5 forces) etc. [4 marks]
o Using appropriate model evaluate future risk of the entity (1 mark for
each risk identified = 4 risks/ illustrate by graph)
 PESTEL => risk related to macro environment
Company overview and analysis
 Purpose: knowledge of the Company
 Source of information:
- A lot of academic research shows how these characteristics are important for the
strategy and disclosure of the company
- Annual reports,
- company websites
- financial news
 Key point focus:
- The history of the company,
- which market(s) it is operating in,
- business model and strategy
- focus your attention on the climate change strategy and actions.
- outline its mission and vision,
- governance and internal control system,
- specific risks
- recent performance.
You must analyse this info with a critical approach.
- How the board, audit committee and internal audit have addressed risks (climate
change risks), their features, such as gender, ethnicity, educations.
 How long: Suggested word count:450
 Marking scheme for executive summary
1, Introduction of the Company (Client) (3 mark)
 History of the company (1 mark)
 Markets it is operating in (1 mark) (might include: geographical, industry)
 Mission and vision of the client (1 mark)

2, More detailed information about the company (7 marks) => ensure critical ap-
proach (strength and weakness)
 PERFORMANCE OF THE ENTITY: analysis of the company performance, com-
parison with industrial data, comparison with competitors’ data (3 marks)
o Analysis financial performance (Profitability, liquidity, financial risk), used
graph and highlight strength and weakness (1 marks for each key point)
 ENVIRONMENT OF THE ENTITY: analysis of the environment for understanding
future risks (you can use a Pestle, Porter 5 forces) etc. [4 marks]
o Using appropriate model evaluate future risk of the entity (1 mark for
each risk identified = 4 risks/ illustrate by graph)
 PESTEL => risk related to macro environment
 Porter 5 forces => risk related to competitive
3, Corporate governance => focus on climate change aspect, strength and weak-
ness (8 marks)
 Board diversity (gender, ethnicity, education and ect), (1.5 marks => 0.5 per
specific element)
 Board climate change approach (1 - 2 mark)
 Audit committee composition and diversity (1 mark)
 Audit committee work and recommendation on climate change strategy, actions
and risks (1-2 mark)
 Internal control system on climate change actions and risks (focus on climate
change risk) (1-2 mark)
 Internal audit details on climate change actions and risks.(climate change risk)
(1 marks)
4, Focus of the company in environmental issues, climate change strategy and
actions (measure used and KPIs). (8 marks)
 Environmental and climate change strategy (4 marks) => policy, commitment
 Environmental and climate change action (how to measure, KPI, frequent of rel-
evant report, quality of report) (4 marks)