With increasing demands from regulators and investors to provide some form of sustainability reporting and climate-related disclosures, companies pursuing mergers and acquisitions need to vet their potential targets more closely.

A recent survey by KPMG found that 59%​ of corporate investors have had deals canceled due to material findings from due diligence related to environmental, social and governance reporting, while 46% of financial investors had a deal canceled or opted for a price reduction after a material ESG due diligence finding, according to the April survey of 200 M&A practitioners, including corporate investors, financial investors and M&A debt providers. In addition, 43% of debt providers refused to finance or underwrite a deal after an ESG due diligence material finding. 

With increasing demands from regulators and investors to provide some form of sustainability reporting and climate-related disclosures, companies pursuing mergers and acquisitions need to vet their potential targets more closely.

A recent survey by KPMG found that 59%​ of corporate investors have had deals canceled due to material findings from due diligence related to environmental, social and governance reporting, while 46% of financial investors had a deal canceled or opted for a price reduction after a material ESG due diligence finding, according to the April survey of 200 M&A practitioners, including corporate investors, financial investors and M&A debt providers. In addition, 43% of debt providers refused to finance or underwrite a deal after an ESG due diligence material finding. 

With increasing demands from regulators and investors to provide some form of sustainability reporting and climate-related disclosures, companies pursuing mergers and acquisitions need to vet their potential targets more closely.

A recent survey by KPMG found that 59%​ of corporate investors have had deals canceled due to material findings from due diligence related to environmental, social and governance reporting, while 46% of financial investors had a deal canceled or opted for a price reduction after a material ESG due diligence finding, according to the April survey of 200 M&A practitioners, including corporate investors, financial investors and M&A debt providers. In addition, 43% of debt providers refused to finance or underwrite a deal after an ESG due diligence material finding.