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Authors: Knyazeva I., Boyko A.     Published in № 5(95) 31 october 2023 year
Rubric: The practice of entrepreneurship in a competitive environment

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.

Key words

environmental, social and corporate responsibility, mergers and acquisitions, motives of M&A transactions, economic concentration, sustainable development, ESG factor

The author:

Knyazeva I.

Degree:

Dr. Sci. (Econ.), Professor, Head of the Center for Competition Policy and Economics, Siberian Institute of Management – branch of RANEPA

Location:

Novosibirsk, Russia

The author:

Boyko A.

Degree:

Postgraduate, Management Department, Siberian Institute of Management – Branch of the Russian Presidential Academy of National Economy and Public Administration

Location:

Novosibirsk, Russia