ESG is no longer a peripheral concern in M&A. It’s a core driver of value, risk, and strategic alignment.
Today’s deals aren’t just evaluated on financial performance or strategic fit. Increasingly, stakeholders, investors, regulators, and consumers alike are demanding alignment with sustainability goals and robust ESG compliance.
From the acquisition of clean energy companies by traditional oil majors to the rise of ESG-specific provisions in sale and purchase agreements, the dealmaking process is undergoing a fundamental shift. ESG now shapes everything from asset selection to due diligence, and its financial implications are tangible, impacting valuations, investor appetite, and long-term growth strategies.
As ESG risks continue to influence deal dynamics, warranties and indemnities (W&I) insurance is emerging as a key tool in managing these complexities. But what does this mean for future transactions? And how are regulatory trends from the European Union’s Corporate Sustainability Reporting Directive (CSRD), the most comprehensive ESG reporting mandate to date, to Nigeria’s Climate Change Act redefining what’s required?
We explore these questions and more in our latest article on ESG and its growing role in M&A including the evolving use of W&I insurance to mitigate ESG liabilities and the practical ways dealmakers are adapting to a new era of sustainable value creation.
