Rita O’Neill, Co-Head of S&C’s Global Private Equity Group and June Hu, coordinator of the Firm’s global ESG Practice, co-authored an article for Bloomberg Law discussing the growing importance for financial sponsors to embed ESG-related considerations into their dealmaking processes, even in deals that do not present obvious ESG issues.
According to the authors, the emergence of sweeping ESG regulations in jurisdictions like the EU and California, as well as the growing “anti-ESG” movement in the U.S., have implications for the acquisition and investment activities of financial sponsors. Against this backdrop, “sponsors will need to build ESG-related considerations into the dealmaking process to support overall regulatory compliance and reduce transaction risks.”
Read: “ESG-Related Due Diligence Is Paramount for Financial Investors”