ESG In M&A Transactions

Environmental, social and governance (ESG) factors are increasingly making their way into M&A decision-making worldwide, and that is the case also in the Nordics. Growing ecological alertness and demand for climate action as well as social awareness boosted by the inequalities exposed by the COVID-19 pandemic are making ESG factors even more critical and something no player in the market can afford to disregard. Stakeholders on a broader spectrum are demanding accountability and transparency from companies. Not only changing attitudes but also increasing regulatory pressure have shifted the way risks are perceived - what once was a potential reputational risk might now also be or soon become a compliance risk and destroy value. More companies are also adopting sustainability as a core business strategy, not least because of the financial potential of sustainable opportunities.