Natasha completes a review of a large UK based oil company and assigns it an improving ESG score because she is impressed by the steps it is taking to meet the Paris Agreement. Nevertheless, she is concerned about the industry's long-term outlook and potential for stranded assets and increased cost of capital. What action should Natasha reflect in her valuation of the company?
A. Adjust her discounted cash flow (DCF) model to reflect a higher cost of capital.
B. Adjust her discounted cash flow (DCF) model in later years to reflect write offs for stranded assets.
C. None, the oil price is the only real variable that matters.
D. Adjust her discounted cash flow (DCF) model to reflect a higher cost of capital and write offs for stranded assets in later years.