Overlooking communication about green or social moves in announcements could threaten shareholder valueBurnt stumps, reminders of the former forest, are a signature of Amazon grazing lands. Picture: LARISSA ZAIDAN/BLOOMBERG BUSINESSWEEK
In recent years there has been steadily increasing evidence that a strong ESG proposition can create value for all stakeholders, including investors, which is why there has been such an increase in investor focus on ESG factors when selecting investment opportunities. There is no doubt that ESG is becoming an important driver of deal activity.
Though ESG considerations have emerged as an integral part of identifying M&A targets, focus on this has still been all but absent from the vast majority of deal announcements. This is likely to change as investors expect greater ESG transparency from companies in every aspect of their business.