ESG and the energy transition: Global M&A trends and risks

This is one of the most frequently mentioned themes. For a significant proportion of our respondents, ESG is about making positive choices to satisfy the changing demands of shareholders, limited partners, lenders and other stakeholders. “There is shareholder pressure to invest in ESG-ready companies,” confirms the managing director of a Denmark based investment bank. “These groups are becoming very environmentally and socially conscious.”

ESG is increasingly viewed as an opportunity to be embraced, rather than as a regulatory bullet to be dodged. “Investor preferences will continue to evolve in the coming year,” predicts the managing director of an Indian investment bank. “ESG performance will remain one of the deciding factors during fund selection and what proportion of funds is allocated.”