ESG in M&A, corporate transactions and restructuring

ESG in corporate M&A

Across the business spectrum, ESG is profoundly changing M&A strategies. From supply chain management to human resources, energy transition and mitigation of climate risk each opportunity is increasingly assessed through an ESG lens.

Businesses are seeking to divest divisions that do not align with sustainability strategies, while using acquisitions to accelerate their sustainability agenda - and each comes with risk and opportunity. Every corporate transaction can carry hidden ESG risk and this should be a key consideration in the due diligence process.   

Having worked with many of the world’s most cutting-edge businesses on M&A and ESG, Norton Rose Fulbright has a strong bench of specialist experts in areas ranging from carbon markets to native title, environment, supply chain management and human rights. We have the experience to help develop a sustainable acquisition and divestment strategy, guide the due diligence process, remediate risk and grasp opportunity. Our work includes developing global principles for ESG appropriate lending and helping multinational financial institutions develop a global responsible investment strategy to manage ESG risk and embed reporting. 

Norton Rose Fulbright has the network to bring in the right people at the right time, and with offices in markets across the world, we understand the global, regional and local implications of ESG and can help you navigate this critical area.   

ESG in restructuring

As ESG-related regulation has become more prominent around the world, new challenges have been created for many businesses which may require them to explore ways to restructure, refinance or recapitalise their business and assets.

This not only includes the attitudes of many financial institutions and other lenders which are themselves subject to more stringent ESG disclosures, but also a growing array of ESG financial and investment products, ever-changing governance, social requirements and the impact of energy transition on future cash flows and capital.

This ever-changing regime is affecting the way businesses need to assess supply chains, new environmental and sustainability restraints on future cash flows and a focus on sustainability when dealing with turnaround management and distressed assets.

Norton Rose Fulbright has deep experience working with boards, executive leadership teams and external controllers in restructuring, financing and assessing distressed assets. This includes an understanding of the risks and opportunities created by ESG in which it brings its experience across the globe with many of the world’s most successful organisations to understand and implement best practice.

Our lawyers offer clients the experience and guidance in restructuring and financing that applies the rigour of legal thinking while providing practical solutions in navigating a complex and rapidly changing area.