ESG set to take larger role in M&A in 2020

Author: Jimmie Franklin | Published: 21 Jan 2020

Following a record-breaking year in 2019 when it took centre stage in capital markets and banking, ESG [environmental, social, governance] now looks set to rise up the agenda in M&A over the next 12 months.

In-house sources have suggested that it is rising up the agenda for dealmakers in 2020.

A corporate finance head at a large European bank said that despite the headlines, up until now, ESG hasn’t actually been a major factor in M&A. "it is important though and 12 months from now, it could be more so. It is a growing trend and there is investor focus on this side."

With brown investments continuing to spur negative publicity, it is unsurprising that this issue is having a growing influence.

"It is taking a more and more important role in due diligence," said one in-house counsel at a multinational company based in Europe.