Environmental, social, and governance (ESG) factors are playing a “more significant role” when it comes to mergers and acquisitions (M&A) disputes, according to a recent study by Berkeley Research Group (BKG) which surveyed a group of M&A lawyers and corporate finance professionals.
From the perspective of M&A lawyers, 6 percent believed that a lack of shared values related to ESG actions was what commonly led to disputes, according to BKG’s third annual M&A Disputes Report. From the corporate finance perspective, this was at 16 percent.
When asked whether the current lack of established requirements and metrics around ESG together with regulators’ focus on ESG will raise the likelihood of M&A disputes over the next 12 months, 35 percent agreed while 43 percent “strongly” agreed. Only 3 percent disagreed and an additional 3 percent “strongly” disagreed….