ESG on the Rise: Making an Impact in M&A
The buzz surrounding environmental, social and governance (ESG) factors in investment and M&A decisions is stronger than ever. Issues ranging from climate change to human rights and labor standards have come to the forefront of investors' concerns. But how M&A dealmakers and fund managers are taking these factors into account when considering potential investments is still an evolving process.
To better understand the extent to which ESG impacts M&A and investment in today's market environment, IHS Markit commissioned Mergermarket to survey private equity, asset management, and corporate executives for their insights.
Key findings include:
• After identifying a promising target, nearly all respondents (90%) said they conduct ESG due diligence.
• Respondents predict that ESG issues will become significantly (53%) or somewhat (30%) more important in M&A decision-making over the next 12 to 24 months.
• Climate change and greenhouse gas emissions emerged as the top ESG priority for over a third of respondents (37%), followed by human rights and labor standards for over a quarter (27%).
IHS Markit provides industry-leading data, software and technology platforms and managed services to tackle some of the most difficult challenges in financial markets. We help our customers better understand complicated markets, reduce risk, operate more efficiently and comply with financial regulation.
This article was published by S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.