“In today’s economic and regulatory environment, companies that have strong corporate responsibility and sustainability programs in place will likely be rewarded for their ability to manage the risks and opportunities associated with corporate responsibility and sustainability,” said Rod Millott, partner, M&A Transaction Services, Deloitte & Touche LLP. “Those that do not have such programs in place can expect to face increasing regulatory and marketplace demands for change. It is clear that greater consideration of sustainability-related issues when evaluating potential M&A transactions will help improve the likelihood of the success of the deal.”
Kathryn Pavlovsky, a principal with Deloitte Financial Advisory Services LLP and a leader of Deloitte’s Enterprise Sustainability group, noted that acquiring companies will want to know if they are taking on sustainability risks or opportunities. “Divesting organizations will want to know whether their sustainability profile will contribute to a premium or discount price,” said Pavlovsky.