Business Chief US and Canada November 2022 | Page 33

PROFIT | M & A STRATEGY s should & A strategy

WRITTEN BY : KATE BIRCH

Consultants from Deloitte , KPMG and Roland Berger provide insights on how to handle environmental , social and governance ( ESG ) issues during M & A activity

In good times and in bad , mergers and acquisitions ( M & A ) play a vitally important role in the health of your business . M & A can make your organisation more resilient , accelerate transformation , and drive growth .

However , there is a new factor in play in these deals that is proving make or break for all stakeholders – environmental , social and governance ( ESG ).
It ’ s becoming abundantly clear that climate change will be a defining issue for both governments and businesses for the foreseeable future . The global transition to a low carbon economy is already well underway . Governments are mandating compliance with emissions-reduction targets , and investors are holding organisations accountable for their performance on ESG .
Add to that changing consumer demands ( with 90 % of Millennials and Gen Zs looking to reduce their impact ), not to mention B2B pressures across the value chain , and it ’ s clear to see that the time to act on ESG is now .
Tackling climate change and making your business not only compliant but also competitive and attractive to both customers and investors is crucial . So how to go about it ?
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