[Jihad Saadeh]

With increased climate and sustainability regulations, companies could turn to M&A to meet environmental compliance, e.g., acquiring ESG-aligned firms can be faster and less costly than developing internal sustainability capabilities. The rationale of such deals go beyond market growth or cost savings; they serve as a strategic means to align with regulations, manage compliance risks, and enhance long-term resilience for better capital access.

[Michiel Drijvers]

Hi Jihad,
Thanks for contribution this post. It does open my eyes as we do hire expensive consultants to help us in performing this work.
We could maybe save a lot of costs by acquiring a (small) company that has a good knowledge backbone system.
The consultants are available only limited and project based. To really integrate ESG into the daily business it would be great to have our own ESG advocates in the company that can support sustainability projects and ensure we meet regulations and manage compliance risks properly.

[Nathalie Winke]

Hi, wie gehts dir? Jihad, interesting proposal. Can you elaborate whether you see the M&A as a means-to-an-end by acquiring the internal knowledge as Michiel suggests, or do you see it as a balancing out activity like Philip Morris acquires a ESG-aligned company to decrease their CO2-footprint and or shift their target narrative away from ‘dirtier’ revenue streams?

[Author]

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