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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...