M&A as an accelerator to achieve ESG targets in the Energy industry

In the past years, the notion of “sustainability” increasingly gained traction in the public and put pressure on companies to adjust their business to be more sustainable – across all industries and geographic regions. However, while a common interpretation of the term has typically been heavily weighted towards environmental protection efforts (e.g. CO2 or waste reduction), sustainability has a much broader meaning, covering also social and economic objectives such as poverty reduction, welfare and diversity. From a corporate perspective, various sustainability criteria are often summarized under the umbrella term ESG (Environmental, Social, and Governance), which also addresses the governance aspect of implementing compliance, proper processes and incentives within firms.