ESG now a key factor in M&A

Author: Jimmie Franklin | Published: 18 Sep 2019

This has been a lukewarm year for M&A the world over, with Brexit uncertainty and the trade war between China and the US seen as key drivers.

There is a silver lining: M&A deals are leading to heightened environmental standards for companies across the board, according to new research from Cass Business School. However, a lack of concrete guidelines – except for voluntary schemes – is leaving companies unsure about where they stand.

"What we have noticed on the buyside is that ESG [environmental, social and governance] is increasingly being considered as part of marketing," said Eleanor Reeves, counsel at Ashurst, who added that this is intended to attract investors and purchasers in the anticipation that they will be looking at and assessing ESG performance.

KEY TAKEAWAYS

Financial players are increasingly investing in company ESG standards in anticipation of regulation, for their reputation, and also to recruit...