RE-thinking Due Diligence - ESG impact on M&A

Drivers of this accelerating change are, for example, increasing transparency based on improved data availability around environmental, social and governance (ESG) factors, society’s changing expectations as public awareness of social and environmental challenges increases and growing influence of investors as they integrate ESG factors into the core due diligence process. Hence, ESG has found its way to the Mergers & Acquisitions (M&A) business. The real estate industry has been a particular focus of regulatory bodies, primarily as the sector contributes to 36% of EU CO2 emissions¹. ESG due diligences provide meaningful insights for investors prior to a transaction. This article sheds light on the general concept of ESG due diligences and its specifications and particularities with regards to the real estate sector.

¹ European Commission: New rules for greener and smarter buildings will increase quality of life for all Europeans, April 2019