Over 70% of Companies Have Abandoned Acquisitions Over ESG Concerns: Deloitte Survey

Sustainability considerations are becoming increasingly central in the mergers and acquisitions (M&A) dealmaking process, according to a new survey by Deloitte. Over 70% of M&A leaders reported abandoning potential acquisitions due to ESG concerns, up significantly from less than 50% in a prior survey. Additionally, a vast majority said they would be willing to pay a premium of at least 3% for targets with strong ESG attributes, compared to only 62% in the previous survey. The survey of 500 M&A leaders across North America, Europe, the Middle East, and Asia Pacific found that ESG factors are being more deeply embedded in the M&A process, with a greater recognition that it is a lever for measuring, protecting, and creating value. This is driven by the increased availability of better-defined, captured, and measured ESG data, allowing for more precise and better-understood metrics than in recent years. As companies evolve their understanding of ESG issues, 57% of respondents now report using clearly defined ESG metrics in their M&A process, up from only 39% previously. Resources: https://www.esgtoday.com/over-70-of-companies-have-abandoned-acquisitions-over-esg-concerns-deloitte-survey/