Just under half (42%), of experts believe environmental, social and governance factors currently play an important role in their organization’s M&A activity but this is expected to increase to 68% over the next two years according to a survey from Coleman Research. Only 11% of respondents believe that ESG will not play a role in M&A decisions in the next two years.
The same trend applies to overall corporate strategy. Just over half, 56%, of experts feel ESG currently plays a significant role in their organization’s corporate strategy and that increases to three quarters, 77%, in the next two years.
Coleman Research surveyed 500 experts across sectors of the economy in the Americas; Europe, Middle East and Africa; and Asia Pacific from Coleman’s expert network in June 2022. All respondents are involved in both M&A activities and ESG within their organizations.
The study also examined the importance of specific environmental, social and governance factors on M&A decisions by sector, as well as the most important ESG motivations overall.
Environmental issues were ranked as the most important in driving M&A decisions, with 43% of respondents ranking it top, followed by governance and social.
The survey found that ESG plays the most significant role in corporate strategy for energy, 76%, and industrials, 64%, compared to less than 60% for every other sector.
“Looking ahead, ESG is expected to play an even more important role in M&A over the next two years, across all sectors,” added Coleman. “Both early stage and more established companies will give more consideration to ESG in their future deal-making.”
©Markets Media Europe 2022
