Environmental, Social, and Governance (ESG) is a set of aspects considered when investing in/ acquiring of companies, that recommends taking keen examination at environmental, social, and corporate governance issues. India has been a bystander as the ESG revolution that swept through advanced economies and global investment practices. However, Indian regulators along with the stakeholders have developed a framework of compliance and reporting and have been in the process of implementation.
Compliance by Indian companies with the ESG regulations of the U.S., the U.K., the European Union and elsewhere will be critical if India intends to carryout sustainable exports.
Companies with sustainable business practices and adherence to ESG norms do command a ESG premium when it gets acquired. Some of the start-ups that have an advantage of being green-complaint and consciously adopting sustainable practices are good targets for the acquisitions by a larger entity.
This M&A ESG tool helps to quantify and assess the ESG risks from both “sell” and “buy” side.
Pre-Mergers and Acquisitions Risk Assessment, Copyright Certificate SW-16702/2023, Dr. Asha Prasuna, Prof. Dr. SNV Siva Kumar, and Dr. V S Parthasarthy