Radha Curpen comments in Mergermarket's look at how environmental, social and governance (ESG) principles are playing a growing role in M&A in North America.
Mergermarket says that strategics and financial sponsors are increasingly taking into account ESG concerns when pursuing M&A as part of a broader shift in the market. Companies’ investors, lenders, regulators, employees, interest groups and members of the general public are now scrutinizing corporate decisions through the lens of ESG.
“We are at a tipping point in terms of accountability,” said Radha Curpen, co-head of Environmental and Aboriginal Law at Bennett Jones in Vancouver. Stakeholders’ heightened interest in the issue like climate change and diversity comes at the same time as more information on ESG is publicly available, she noted.
Mergermarket says that in response, executives and boards need to examine how a transaction will impact stakeholders beyond just shareholders and be prepared to explain their decision making internally and externally.