Authors : Sashya Siddhartha

Volume/Issue : Volume 9 - 2024, Issue 7 - July

Google Scholar : https://tinyurl.com/5fb86dvt

Scribd : https://tinyurl.com/2wrd3u5v

DOI : https://doi.org/10.38124/ijisrt/IJISRT24JUL1398

Abstract : The integration of Environmental, Social, and Governance (ESG) considerations in corporate mergers and acquisitions (M&A) has gained significant traction as companies recognize the strategic value of sustainability in dealmaking. This paper explores how ESG factors can be incorporated into M&A strategies to drive value creation, meet regulatory requirements, and enhance corporate reputation. Leveraging improved data and tracking methods, the study highlights the increasing importance of ESG in M&A, presenting a comprehensive analysis of environmental, social, and governance factors and their impact on M&A processes. Through case studies and an analytical framework, the research provides insights into the benefits and challenges of ESG integration, offering recommendations for companies aiming to achieve successful and sustainable M&A outcomes.

Keywords : ESG, Mergers and Acquisitions, Value Creation, case Studies, Sustainability.

References :

1. Sullivan, K. (2018) ESG, Sustainability & Climate, Delloitte. Available at: https://www2.deloitte.com/ ba/en/pages/risk/articles/ESG-sustainability-and-climate.html (Accessed: 22 July 2024).
2. 2024 M&A trends survey: Mind the gap (2024) Delloitte. Available at: https://www2.deloitte.com/ content/dam/Deloitte/us/Documents/mergers-acqisitions/us-2024-matrends-report.pdf (Accessed: 22 July 2024).
3. Weber, Y. (2013) ‘A Comprehensive Guide to Mergers & Acquisitions’, Pearson Education [Preprint].
4. Labroo, A. (2014) Successful M&A deals - an inside story, LinkedIn. Available at: https://www.linkedin.com/pulse/20140806090944-14274444-successful-m-a-deals-an-inside-story/ (Accessed: 22 July 2024).
5.  Environmental, Social, and Governance (ESG) Factors in M&A Due Diligence: Legal Obligations, Risk Assessment, and Integration Strategies. Posted: 18 Jun 2024. Yugank David
6. Communications Materials - United Nations Sustainable Development (no date) United Nations. Available at: https://www.un.org/ sustainabledevelopment/news/communications-material/ (Accessed: 22 July 2024).
7. Transforming our world: The 2030 agenda for sustainable development | department of economic and social affairs (no date) United Nations. Available at: https://sdgs.un.org/2030agenda (Accessed: 22 July 2024).
8. Rise of the ESG regulations (2023) Times of India Blog. Available at: https://timesofindia.indiatimes.com/blogs/voices/rise-of-the-esg-regulations/ (Accessed: 22 July 2024).
9. Team, E.R. (2024) The impact of ESG on Brand Reputation and Loyalty: Navigating the New Business Imperative, ESG Research Pro. Available at: https://esgresearch.pro/the-impact-of-esg-on-brand-reputation-and-loyalty/ (Accessed: 22 July 2024).
10. Zumente, I. and Bistrova, J. (2022) ESG importance for long-term shareholder value creation: Literature vs. practice, Journal of Open Innovation: Technology, Market, and Complexity. Available at: https://www.sciencedirect.com/science/article/pii/S2199853122008964 (Accessed: 22 July 2024).
11. Effective strategies to use opportunities and mitigate risks (no date) KPMG. Available at: https://assets.kpmg.com/content/dam/kpmg/kw/pdf/insights/2021/05/ESG-risks-in-banks-kw.pdf (Accessed: 22 July 2024).
12. Chevron-Texaco and the environmental disaster in the Amazon (2023) European Greens. Available at: https://europeangreens.eu/resolutions/chevrontexaco-and-environmental-disaster-amazon/ (Accessed: 22 July 2024).
13. Gatehouse, M. (2020) Chevron, Ecuador and the Extractor’s curse - 1, Latin America Bureau. Available at: https://lab.org.uk/chevron-ecuador-and-the-extractors-curse-1/ (Accessed: 22 July 2024).
14. M&A: The intersection of due diligence and governance: Deloitte Us (2019) Deloitte United States. Available at: https://www2.deloitte.com/ us/en/pages/center-for-board-effectiveness/articles/mergers-and-acquisitions-due-diligence-and-governance.html (Accessed: 22 July 2024).
15. Barrett, C. et al. (2024) Keep ESG top of mind during post-merger integration, BCG Global. Available at: https://www.bcg.com/publications/2023/keeping-esg-top-of-mind-during-post-merger-integration (Accessed: 22 July 2024).
16. Henisz, W., Koller, T. and Nuttall, R. (2019) Five ways that ESG creates value, McKinsey & Company. Available at: https://www.mckinsey.com/capabilities/ strategy-and-corporate-finance/our-insights/five-ways-that-esg-creates-value (Accessed: 22 July 2024).
17. (No date) Four ways ESG is reshaping M&A. Available at: https://www2.deloitte.com/content/ dam/Deloitte/us/Documents/mergers-acqisitions/us-four-ways-esg-is-reshaping-m-a.pdf (Accessed: 22 July 2024).
18. M&A in 2023 and trends for 2024 (no date) Morrison Foerster. Available at: https://www.mofo.com/ resources/insights/240104-m-a-in-2023-and-trends-for-2024 (Accessed: 22 July 2024).
19. 2023 GC and ESG (2023) Morrison Foerster. Available at: https://assets.contentstack.io/v3/assets/ blt5775cc69c999c255/blt56a69f5a8dbd9c7c/6273147eb5ad5f2863c5950c/mofo-proud.pdf (Accessed: 22 July 2024).

20 https://www.ey.com/en_in/climate-change-sustainability-services/why-integrating-esg-into-your-business-could-be-the-key-to-its-resilience