PwC Canada, one of the leading professional services firms in the country, has recently announced that it will be placing a greater emphasis on non-financial environmental, social, and governance (ESG) factors during its merger and acquisition (M&A) activities. This move comes as part of the firm’s commitment to sustainability and responsible business practices.
Traditionally, M&A activities have focused primarily on financial metrics such as revenue, profitability, and market share. However, in recent years, there has been a growing recognition of the importance of non-financial factors in assessing the long-term viability and success of a business. ESG factors, in particular, have become increasingly important as investors and stakeholders seek to understand a company’s impact on the environment, society, and governance.
PwC Canada’s decision to place a greater emphasis on ESG factors during M&A activities is a reflection of this changing landscape. The firm recognizes that these factors can have a significant impact on a company’s reputation, brand value, and overall performance. By taking a more holistic approach to M&A due diligence, PwC Canada aims to help its clients identify potential risks and opportunities related to ESG factors that may not be immediately apparent from financial metrics alone.
Some of the specific ESG factors that PwC Canada will be focusing on during M&A activities include:
Environmental factors: This includes assessing a company’s impact on the environment, such as its carbon footprint, water usage, waste management practices, and compliance with environmental regulations. PwC Canada will also look at a company’s approach to sustainability and its efforts to reduce its environmental impact.
Social factors: This includes assessing a company’s impact on society, such as its relationships with employees, customers, suppliers, and local communities. PwC Canada will also look at a company’s approach to diversity and inclusion, human rights, labor practices, and community engagement.
Governance factors: This includes assessing a company’s governance structure, such as its board composition, executive compensation, and risk management practices. PwC Canada will also look at a company’s approach to ethics and compliance, including its policies and procedures related to anti-corruption, data privacy, and cybersecurity.
By taking a more comprehensive approach to M&A due diligence, PwC Canada aims to help its clients make more informed decisions about potential acquisitions. This can help to mitigate risks related to ESG factors and identify opportunities for value creation through improved sustainability practices.
Overall, PwC Canada’s decision to place a greater emphasis on non-financial ESG factors during M&A activities is a positive step towards promoting responsible business practices and sustainability in the Canadian business community. As investors and stakeholders continue to prioritize ESG factors, it is likely that other firms will follow suit and adopt similar approaches to M&A due diligence.
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- Source: Plato Data Intelligence: PlatoData