Sustainability in Deals

How ESG factors can add value in M&A activity

Sustainable value in deals

Dealmakers, portfolio companies and corporates are realizing the strategic opportunities sustainability presents and are facing increasing stakeholder pressure to prioritize sustainability during M&A activity. Environmental, social and governance factors shouldn’t be about checking a box during a deal, but rather a way to create long-term value.

ESG factors can be a key consideration in deal value — or even if a deal gets done.

New global regulations and reporting frameworks – such as SEC, CSRD, ISSB and others - mean companies will need to disclose more sustainability data than ever before. Dealmakers can use that newly disclosed data to gain a greater understanding of potential targets – identifying both challenges and opportunities to build long-term, sustainable value.

Sustainability in deals stats

How to navigate sustainability considerations in M&A

Sustainability factors should be integrated into your overall investment framework. Our human-led and tech-powered team is ready to help you move forward with a differentiated and integrated point of view on both your specific and industry wide sustainability challenges.

We’ll help you by focusing on the changes that make the biggest difference — from how you operate and innovate to re-energizing for the future.

How due diligence can drive value

Supporting your responsible investment program

Our due diligence work reflects the material sustainability issues inherent to the acquisition target, stakeholders and effects on society. We provide practical recommendations with a value creation perspective, including:

  • ESG red flag diligence: Provide a high-level ESG red flag analysis, suitable for limited access to information and management or a condensed timeline
  • Comprehensive ESG due diligence: Provide more robust insights into sustainability-related value creation pathways

Exit readiness

Articulating sustainability with the equity story

Our divestiture services help sellers derive value from buyers that increasingly consider ESG factors in investment decisions. Support activities may include:

  • Sell-side diligence – Assist the company with aggregating data and using it to tell the company’s sustainability story during sell-side road shows. Identify value creation opportunities to be considered by potential acquirers
  • IPO readiness – Assess the company’s IPO readiness and prepare its equity story for the increased scrutiny of public markets

Sustainability strategy

Incorporating sustainability considerations into your overall business strategy

We support private equity firms and portfolio companies by defining a sustainability strategy, monitoring performance and communicating results to stakeholders. Our support activities may include:

  • Business growth and strategy – Analyze sustainability current state, establish related strategy and framework, and define value creation pathways
  • Climate and resilience – Develop initiatives to mitigate climate change impacts on the company’s operations, strengthen data collection processes, and allocate resources to develop a decarbonization roadmap (including net zero initiatives)
  • Data and technology – Select data for collection to reflect sustainability goals, establish data architecture, and design a concrete roadmap for integration and reporting
  • Tax and the energy transition Identify tax credits and incentives in the Inflation Reduction Act that can be used to help fund sustainability initiatives
  • Reporting and trust – Establish an ESG data reporting strategy that is tech-enabled so your are meeting expanded regulatory disclosure requirements. Validate and verify progress toward commitments

ESG regulation support

Supporting your compliance with ESG regulations with transparency

We help you understand the applicability of current and future ESG regulations on your business to build a holistic, high-quality ESG reporting strategy. Examples of ESG regulation we support include, but are not limited to, Securities and Exchange Commission (SEC), Corporate Sustainability Reporting Directive (CSRD), and Sustainable Finance Disclosure Regulation (SFDR).

We also support your initiatives on voluntarily disclosures around the most standard frameworks such as Task Force on Climate-Related Financial Disclosures (TCFD), Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), World Economic Forum International Business Council (WEF IBC), as well as your corporate and funds sustainability reporting activities.



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Nicolas Bourdier

Principal, Deals Sustainability Leader, PwC US


Neema Vaheb

Partner, PE Sector Sustainability Leader, PwC US


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