You have the following information on two fast fashion companies. You are doing an ESG Integration in your relative valuation process. Please answer the following question: 1) Relative Valuation: should co A ratios be trading at a discount or premium vs Co B according to its relative ESG data? (reference for the answer 2-3 lines) 2) which of the two options will you choose from an ESG integration perspective? Justify your answer with a wrap-up statement. (reference for the answer 2 lines) Please give details and justify your answer to each question for full points.

CO A (PIC FASHION) CO B (MODERN CLOTHING) OVERALL ESG RISK (Sustainalytics) 23,5 28 ESG Risk Ranking in the sector 12/97 26/97 Refinitiv ESG Score A B+ ENVIRONMENTAL Environmental Risk Score 7,3 8,2 GHG/Revenue 28,3 227,6 Energy/Revenue 109,8 843 Water/Revenue 405,7 5156,2 Waste/Revenue 6,5 59,1 SOCIAL Women Employees % 40,1 35,4 Employee Turnover % 11,4 18 Employees Unionized % 49 20 Lost Time Incident Rate 0,05 0,1 GOVERNANCE Governance Risk Score 7,2 7,6 Independent Directors % 77,5 81,8 Percent of Board Members that are Women 25 33,3 Director Avg Age 60 61 Director Meeting Attd % 95 75 Board Size 11 12 CONTROVERSY Controversy (1-5) 1 3 MARKET RATIOS COMPANY A COMPANY B PER 19x 24x EV/EBITDA 14x 18x