Business Chief US and Canada November 2022 | Page 41

PROFIT | M & A STRATEGY
increase ,” says Kleindienst . “ Transforming your own company towards being more sustainable is not easily done . Acquiring the knowledge and processes from a company with an advanced ESG and managing system or a more sustainable product service offering can strongly accelerate the transformation compared to developing everything in-house .
“ Having a superior sustainable offering and fulfilling further ESG criteria is increasingly valued by the acquiring strategic or financial investors .”
The APAC picture includes a “ wide range of attitudes ” according to Will Symons , Climate & Sustainability Leader , Deloitte Asia Pacific , who says the ‘ E ’ in ESG can be a risk exercise to appease global investors and pension funds .
“ This is partly rooted in the context that APAC differs from the EU and US in that ESG has not been driven by extensive country regulation ,” says Symons . “ Instead , there is a growing appreciation across APAC that ESG risk can materially impact business value , serve as a source of value creation and provide access to international markets and competitive green capital within and outside APAC .”
ESG should be embedded into core business Understanding the value creation opportunities that exist in relation to ESG across different sectors is also driving the integration of ESG into M & A decisionmaking . ESG is increasingly being used as a lens to identify new sources of growth and competitive differentiation , with M & A being an accelerator for delivering on such strategic priorities .
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