Authors

The Motivational Role of the ESG Factor in Transactions of Economic Concentration

The article is devoted to the consideration of the influence of the ESG factor (environment, social, governance) on M&A transactions (merger and acquisitions). The article substantiates the trend of economic transformations, reflecting the fact that environmental, social and corporate responsibility are becoming one of the most important areas of company development. Climate and environmental risks pose a threat to the financial stability of the business, its corporate image and social consumer loyalty. The article examines the degree of business involvement in the ESG agenda and provides a qualitative assessment of companies’ resource needs to achieve sustainable development goals. Using the opportunities provided by the green agenda, the company strengthens its ESG positions. The purpose of the study is to consider the role of the ESG factor in mergers and acquisitions. Based on the available research on the importance of mergers and acquisitions being an effective tool for business restructuring, the authors emphasize that the ESG factor is likely to be included in the overall motivational contour of concentration transactions. At the junction of two global strategic processes – the process of economic concentration and the process of sustainable development of companies in the field of ESG, the importance of studying the ESG factor, which has a motivating influence on mergers and acquisitions, is considered. The authors draw attention to the fact that the role and place of the little-studied ESG factor in the process of mergers and acquisitions, as well as the influence of the ESG agenda in the process of business concentration will increase at all stages of mergers and acquisitions. It is noted about the advantages of buying companies specializing in green technologies, which allows you to restructure the need for investment in the creation of modern and environmentally friendly technologies. The concept of sustainability is based on the efficiency of using limited resources, which is why the results of the study are of interest to companies focused on rapid growth using M&A transactions. Read more...

Business Concentration Processes in the Light of the ESG Concept and the Evolution of the Sustainable Development Goals

Considering the involvement of businesses in the ESG agenda, the authors proposed a structured matrix of 6 areas of the Sustainable Development Goals and examined their impact on the development of an ESG compliance system in order to form the most organic business model, as well as flexible business reformatting models, including through M&A (Merger and Acquisition) transactions. The business is moving towards the implementation of the ESG agenda in various business models, including expanding the scope of operation towards effective concentration and creation of ecosystems based on digital solutions and artificial intelligence tools. At the intersection of two global strategic processes (the process of economic concentration of companies and the process of sustainable development), a new factor has been identified – mergers and acquisitions, modeled within the framework of ESG programs, which become the most valuable in the development strategy of the combined companies. In the context of the importance of environmental, social and corporate business transformation, the article presents the author's view on the place and role of ESG groups of factors in initiating M&A transactions. Accordingly, the proposed article is of interest to companies envisaging the creation and development of ESG compliance and considering potential participation in concentration processes. In the near future, the demands of environmental, social and corporate business transformation will actively drive companies to create the most effective alliances that ensure the sustainable development of society. This article is a logical continuation of the previously published article "The motivational role of the ESG factor in economic concentration transactions" (issue of the journal no. 5 for 2023). Read more...