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ESG-Driven M&A – An Inevitable Trend Or A “Green Shirt” To Polish The Media?

In the global context of increasingly promoting sustainable development, the concept of ESG (Environmental – Social – Governance: Environment, Society and Governance) is becoming a key factor in the strategies of many businesses, especially in M&A deals (Mergers and Acquisitions).

The rise of "ESG-labeled" deals creates a new wave of M&A - expected to bring sustainable and long-term value. However, in that wave there are also great risks, especially the phenomenon of "greenwashing" - painting ESG as a communication tool instead of practical value.

1. What is ESG-Driven M&A?

ESG-Driven M&A are deals thatESG factors are integrated as a strategic criterion, on par with financial factors. Instead of just looking at profits, businesses conducting M&A now evaluate target partners through:

  • Environmental impact (E)
  • Social responsibility (S
  • And quality of corporate governance (G)

This trend represents a clear shift from “growth at all costs” to “responsible growth.”

Some typical global ESG deals:

  • Iberdrola (Spain) acquires a renewable energy company in Latin America to expand its wind power portfolio.
  • Nestlé invests in a startup that produces plastic packagingbiology, aiming to be carbon neutral by 2050.
  • Financial institutions such as BlackRock and Goldman Sachs have prioritized investment or M&A with businesses with high ESG indicators to minimize long-term risks.

2. Why Does ESG Become a Main Driver in M&A?

2.1. Pressure from institutional investors.

According to PwC (2024), up to 79% of institutional investors are willing to pay higher prices for businesses with clear ESG strategies. For them, ESG is not only an ethical factor but also an indicator of long-term financial risk management.

2.2. Comply with global standards.

International policies such as EU Green Deal,CBAM, or CSRD forced businesses to participate in the global supply chain to comply with ESG standards. Limiting non-financial risks

Many M&A deals fail due to financial problems, but because of corporate cultural conflicts, lack of information transparency, or social and environmental violations. ESG is a way for businesses to "check non-financial health" of the partner. ESG M&A: Fast growth but quality is also a question mark."> More than 1,200 global M&A deals labeled ESG,

  • total value reached US $ 320 billion, up 46% compared to the previous year. Class = "QL-SIGN-JUSTIFY"> ❗ Warning:

    • A European Petroleum Company captures plastic recycling Startup, but after 2 years retains the proportion of fossil energy use. Buy because of "beautiful" ESG records, but there is no sustainable financial model → leading to heavy holes after M&A.Green fox ”is made for marketing purposes. Class = "QL-SIGN-JUSTIFY"> There are many different sets of ESG standards such as: Gri, SASB, TCFD, ISSB ... making ESG appraisal in M&A become difficult, inconsistent, easy to lead to risk valuation. Enter

      • Many businesses do not have a specific ESG integrated roadmap after M&A. M&A.in>5. The Future of ESG-Driven M&A: Real Fight or Purge?

        ESG deals will actually be highly appreciated if:

        • The target business has a sustainable business model, clean technology or products that support the community.
        • Have a transparent, audited ESG reporting system.
        • Have a plan to integrate ESG into core operations after M&A is completed.

        “Superficial ESG” deals will be eliminated by the market remove:

        • Unable to prove ESG value after M&A.
        • Only "borrowing the name of ESG" to increase media value.
        • Not enough transparency in information disclosure believe.
        The management trend will be increasingly strict: Since 2024, international standards such as ifrs Sustainability Discosure Standards have started to take effect, forcing businesses to be transparent and standardize the ESG report → "Greenwashing" will be increasingly difficult to hide. Class = "QL-ANGN-JUSTify"> 6. Vietnam: Opportunities and pressure in the global ESG M&A game

        opportunities for Vietnamese businesses:

        • Agreements such as EVFTA, CPTPP opens deep integration opportunities into the global supply chain. Class = "QL-SIGN-JUSTIFY"> Enhancing ESG capacity will help businesses:
        • easily attract foreign investment capital. Class = "QL-SIGN-JUSTify"> expanded the marketExport in the context of ESG standard is being tightened globally. Dislay. and international investment.n-justify">Understand the nature and long-term value of ESG.
        • Evaluate genuine ESG, avoid chasing "green formalities".
        • Build a strategy to integrate ESG throughout the value chain, before - during - and after M&A.

        ESG-Driven M&A is not a temporary craze – but a sustainable development roadmap. Only businesses that take real action can lead, not only today, but also in the next decade.


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