We are living through a time of tremendous external disruption, technological innovation, and increased political, social, and climate risk. As a result of this ongoing disruption, we are seeing increased mergers and acquisitions (M&A) activity as companies seek to buy into the latest innovation, to disrupt the competition—or to prevent being disrupted by the competition.
Mergers and acquisitions can have a huge impact on the state of environmental, social, and governance (ESG) affairs for the companies involved. At a time when employees and customers are calling for companies to take stands on social issues and investors, like BlackRock’s Larry Fink, are stressing the value of “purpose,” a company’s ESG performance is more important than ever. Companies can and should strive to integrate ESG considerations throughout the M&A process from initial due diligence through implementation after the merger.
BSR has developed this primer to help Chief Sustainability Officers (CSOs), their teams, and internal allies navigate the M&A process to leverage and enhance ESG-related programs and priorities.