Corporations recognise that tackling environmental, social and governance (ESG) issues can give them a competitive edge and unlock opportunities for growth. With greater scrutiny of ESG targets by consumers, employees, investors and regulators, ESG considerations have become a vital and integral focus in M&A deals. Buyers are critically assessing sellers’ commitments to environmental liabilities, governance issues and social responsibility as part of the acquisition process, to ensure ESG statements are credible and corporate cultures will align post-merger. Misalignment in ESG values or performance metrics may pose significant integration challenges and may lead to claims and reputational damage if not properly managed. The rise of ESG scoring - which applies quantitative methodologies to independently assess ESG factors - reflects a growing demand for transparency and accountability. This approach is rapidly gaining traction and is expected to become a standard feature of the M&A due diligence process.