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