1、2022 EMA ESG Due Diligence StudyHow leading M&A teams are managing ESG DDhome.kpmg/esg-dd November 2022 2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.ForewordDear readers,Sustainability has become

2、 one of the defining megatrends affecting businesses worldwide.And the M&A world is no exception to the rule.Across sectors and around the world,more and more deals are starting to be influenced by sustainability criteria.Targets with strong sustainability stories(and the data to back it up)are enjo

3、ying price premiums.And M&A teams are increasingly conducting Environmental,Social and Governance(ESG)due diligence(DD)on targets at an early stage.To find out what this means for dealmakers across Europe,the Middle East and Africa,we surveyed more than 150 active dealmakers across the region.We ask

4、ed them what works,what doesnt work and what challenges they face going forward.We discussed various models for embedding ESG into DD.And we asked them to share their advice and insights based on their experience.What we found was little consensus around what ESG DD actually means.Dealmakers are div

5、ided about how best to incorporate ESG DD into their existing due diligence frameworks.ESG DD work is often underfunded.And ESG DD is not always aligned to the organizations overall ESG strategy.Yet the data also suggests that dealmakers have made this area a key priority.And they are determined to

6、see how ESG DD can not only help identify and manage potential risks,but also identify significant financial upside driven by ESG transformation.The importance of getting ESG DD right has never been clearer.In this report,we explore the findings of our survey and one-on-one interviews with dealmaker