US ESG Due Diligence Study

43%

of US investors plan to conduct ESG due diligences in the majority of their future deals, up from 33% in the past two years. ​

63%

of investors are willing to pay a premium for companies that align with their ESG priorities​.

53%

of investors have had deals canceled and 42% of investors have opted for a purchase price reduction due to material findings on an ESG due diligence​.

23%

of US investors are conducting ESG due diligences without an adequate understanding of ESG in their area of investment.​

82%

of Europe, Middle East, and Africa (EMA) investors integrate ESG in their M&A agenda, compared to only 74% of US investors.​

90%

of US investors with a top-notch ESG due diligence approach leverage their ESG due diligence findings to drive a clear post-close action plan.

Top reasons investors are conducting ESG M&A due diligence include risk identification, increased investor focus, and regulatory requirements.

Top challenges in ESG M&A due diligence lack of robust data, inadequate understanding of ESG, and difficulty in scope selection.