M&A Year in Review 2023 brochure - Flipbook - Page 91
| M&A Outlook | 2024
ESG
Dealmakers will continue to consider ESG principles in M&A transactions
during 2024, even though, in the United States, there are differing views
as to the economic impact of their application, and, in Europe and
elsewhere, the term “ESG” has been displaced by more specific regimes
implementing such policies.
In America, the ESG landscape is varied and unsettled. California has
enacted ESG-related disclosure requirements applicable to public and
private companies with activities in California, whereas other states have
enacted or proposed anti-ESG legislation. Developments in the U.S. courts
further complicate the application of ESG principles, particularly insofar
as the “S” within the ESG moniker is concerned.
In other countries, the trajectory toward implementation of ESG principles
into law and regulation has continued. In the EU, effective from the
beginning of 2024, the European Sustainability Reporting Standards
(ESRS) require companies to report matters that are financially material
or material in terms of “impact” for sustainability-related topics.
Beyond the EU, a number of countries — including Australia, Canada,
Japan, Nigeria, and the United Kingdom — have stated an intention to
adopt into national law the sustainability disclosure standards defined by
the International Sustainability Standards Board (ISSB).
Nature and biodiversity will continue to be a focus, exemplified by the
announcement in early 2024 of 320 organizations (including many global
companies) adopting the Taskforce on Nature-related Financial
Disclosures. Back in the United States, the implementation of these new
international standards will likely intensify the “greenwashing” and other
ESG-related litigation trends of 2023.
See our ESG Global Vision for more insights.
Dealmakers will continue to
consider ESG principles in M&A
transactions during 2024…”
91
