ESG compliance is viewed as a proxy for good financial performance but the lack of accepted definitions makes data gathering difficult. Companies urged to align M&A considerations to core ESG strategy.

A KPMG survey released at the end of last year has found that there is little consensus in the business world about how ESG can be applied to due diligence supporting M&A transactions. Conducted by KPMG Finland, the survey involved 150 ‘dealmakers’ in the Europe, Middle East and Africa region, including fund managers, board members and advisers.

The report stated: "M&A teams are increasingly conducting ESG due diligence on targets at an early stage. Dealmakers are actively integrating ESG considerations into their deal activities. And premiums are being paid for targets that meet ESG priorities." 

Read more on KPMG here.