Skip to main content
  • login
  • contact
  • language
    • English
    • Español
    • Português
    • Deutsch
    • 简体中文
  • search
X
GEP HOME GEP HOME
  • Company
    • Leadership
    • Customers
    • Partners
    • Sustainability at GEP
    • News
    • Events
    • Culture
    • Mission & Vision
    • Awards & Recognition
  • Solutions
    • Strategy
      • Procurement Consulting  
        • Procurement Transformation
        • Digital Procurement Transformation
        • Opportunity Assessment
        • M & A Services
        • Strategic Cost Management
        • Supply Risk Management
      • Supply Chain Consulting  
        • Environmental, Social and Governance
        • Supply Chain Strategy
        • Supply Chain Diagnostics
        • Inventory Optimization
        • Network Optimization
      Software
      • GEP SMART  
        • Procurement Software
        • Direct Procurement Software
        • Indirect Procurement Software
        • Digital Procurement Transformation
        • Master Data Management
        • AP Automation
        • Spend Management
        • SMART S2P Technology
      • GEP NEXXE  
        • Supply Chain Visibility and Execution
        • Supply Chain Planning
        • Supply Chain Collaboration
        • Supply Chain Control Tower
        • Should-Cost Modeling
        • Inventory and Warehouse Management
      • GEP CLICK  
      • GEP MINERVA  
      Managed Services
      • Procurement Outsourcing  
        • Source-to-Contract
          • Spend Analysis
          • Strategic Sourcing
          • Category Management
          • Supply Market Intelligence
          • Tail-Spend Management
          • Procurement Support Services
        • Procure-to-Pay
          • Cost Recovery & Invoice Auditing
          • Accounts Payable
      • Supply Chain Outsourcing  
        • Planning & Forecasting
        • Inventory Management
        • Logistics Management
        • Supply Chain Data Management
        • Supply Chain Risk Management
  • Industries
    • Automotive
    • Chemicals
    • Consumer Packaged Goods
    • Energy & Utilities
    • Financial Services
    • Government & Nonprofit
    • High-Tech
    • Industrial Manufacturing
    • Life Sciences
    • Media & Entertainment
    • Oil & Gas
    • Retail
    • Software, Social & Platforms
    • Travel & Hospitality
    • Telecom
  • Knowledge Bank
    • Digital Transformation
    • Software & Technology
    • Strategy & Planning
    • Operations
    • Procurement
    • Sustainability
    • Insights From the Top
    • COVID-19 Resource Center
    • Inflation Strategies
  • Careers
    • Join Us
    • United States
    • Europe
    • Latin America
    • Asia Pacific
    • India
    • Campus Connect
  • Partners
   
  • GEP Strategy ›
    • GEP Strategy
    • ‹ Back
      • Procurement Consulting ›
        • Procurement Consulting
        • ‹ Back
          • Procurement Transformation ›
            • Procurement Transformation
            • ‹ Back
              • Procurement Strategy
              • Org. Design & Implementation
              • Capability Building
              • Change Management
              • Governance & Performance
              • Processes & Policies
              • S2P Operations
              • Sourcing & Category Management
              • Technology
          • Digital Procurement Transformation
          • Opportunity Assessment
          • M&A Services ›
            • M&A Services
            • ‹ Back
              • M&A Clean Room
          • Strategic Cost Management ›
            • Strategic Cost Management
            • ‹ Back
              • Zero-Based Budgeting
          • Supply Chain Risk Management
      • Supply Chain Consulting ›
        • Supply Chain Consulting
        • ‹ Back
          • Environmental, Social and Governance
          • Supply Chain Strategy
          • Supply Chain Diagnostics
          • Inventory Optimization
          • Network Optimization
  • GEP Software ›
    • GEP Software
    • ‹ Back
      • GEP SMART ›
        • GEP SMART
        • ‹ Back
          • Procurement Software
          • Direct Procurement Software ›
            • Direct Procurement Software
            • ‹ Back
              • Bill of Materials Management
              • Data Analytics & Reporting
              • Inventory Management
              • Master Data Management
              • Quality Management
              • Supplier Collaboration Portal
              • Supply Chain Operations
          • Indirect Procurement Software ›
            • Indirect Procurement Software
            • ‹ Back
              • Source-to-Contract
              • Spend Analysis
              • Savings Project Management
              • Category Management
              • Contract Management
              • Savings Tracking
              • Sourcing
              • Supplier Management
              • Procure-to-Pay
              • Guided Buying
              • Procurement Portal
              • Catalog Management
              • Order Processing
              • Invoice Management
          • Digital Procurement Transformation
          • Master Data Management
          • Product Accessibility
          • AP Automation
          • Spend Management
          • SMART S2P Technology
      • GEP NEXXE ›
        • GEP NEXXE
        • ‹ Back
          • Supply Chain Visibility and Execution ›
            • Supply Chain Visibility and Execution
            • ‹ Back
              • Inventory and Warehouse Management
              • Logistics Visibility
              • Control Tower
          • Supply Chain Planning ›
            • Supply Chain Planning
            • ‹ Back
              • Supply Chain Control Tower
              • Should-Cost Modeling
              • Demand Planning
              • Supply Chain Bill of Materials
              • Supply Chain Direct Sourcing
              • Supply Planning
          • Supply Chain Collaboration ›
            • Supply Chain Collaboration
            • ‹ Back
              • Forecast Collaboration
              • Purchase Order Collaboration
              • Quality Collaboration
              • Capacity Collaboration
              • Quality Management Software
          • Supply Chain Control Tower
          • Should-Cost Modeling
          • Inventory and Warehouse Management
      • GEP CLICK
      • GEP MINERVA
      • Innovation ›
        • Innovation
        • ‹ Back
          • Emerging Technologies
          • Native to Cloud
          • Native to Mobile
          • One Unified Platform
          • Security
          • User-Centric Design
  • GEP Managed Services ›
    • GEP Managed Services
    • ‹ Back
      • Procurement Outsourcing ›
        • Procurement Outsourcing
        • ‹ Back
          • Source-to-Contract
          • Spend Analysis
          • Strategic Sourcing ›
            • Strategic Sourcing
            • ‹ Back
              • MRO
              • CAPEX
              • Logistics
              • Packaging
              • IT & Telecom
              • Energy
              • Direct Materials
          • Category Management ›
            • Category Management
            • ‹ Back
              • Contract Management
              • Supplier Performance Management
              • Savings & Compliance Tracking
          • Supply Market Intelligence
          • Tail-Spend Management
          • Procurement Support Services ›
            • Procurement Support Services
            • ‹ Back
              • eSourcing
              • Supplier Performance Management
              • Savings & Compliance Tracking
              • Sourcing Support
          • Procure-to-Pay
          • Cost Recovery & Invoice Auditing
          • Accounts Payable
      • Supply Chain Outsourcing ›
        • Supply Chain Outsourcing
        • ‹ Back
          • Planning & Forecasting
          • Inventory Management
          • Logistics Management
          • Supply Chain Data Management
          • Supply Risk Management
  • Industries ›
    • Industries
    • ‹ Back
      • Automotive
      • Chemicals
      • Consumer Packaged Goods
      • Energy & Utilities
      • Financial Services
      • Government & Nonprofit
      • High-Tech
      • Industrial Manufacturing
      • Life Sciences
      • Media & Entertainment
      • Oil & Gas
      • Retail
      • Software, Social & Platforms
      • Telecom
      • Travel & Hospitality
  • Knowledge Bank ›
    • Knowledge Bank
    • ‹ Back
      • Digital Transformation
      • Operations
      • Procurement
      • Software & Technology
      • Strategy & Planning
      • Sustainability
      • Insights from the top
      • COVID-19 Resource Center
      • Inflation Strategies
  • Company ›
    • Company
    • ‹ Back
      • Leadership
      • Customers
      • Partners
      • Sustainability at GEP
      • News
      • Events
      • Culture ›
        • Culture
        • ‹ Back
          • GEP Core Values
          • Women@GEP
          • Diversity
          • GEP Cares
      • Mission & Vision
      • Awards & Recognition
      • Contact Us
  • Global Presence ›
    • Global Presence
    • ‹ Back
      • Americas ›
        • Americas
        • ‹ Back
          • English
          • Español
          • Portugués
      • Europe ›
        • Europe
        • ‹ Back
          • English
          • Deutsch
      • Asia-Pacific ›
        • Asia-Pacific
        • ‹ Back
          • English
          • 中文
  • Contact Us
  • Careers ›
    • Careers
    • ‹ Back
      • The GEP Way ›
        • The GEP Way
        • ‹ Back
          • All That Defines Us
          • Badges of Honor
          • Ideas That Drive Us
          • The GEP Difference
      • The GEP Life ›
        • The GEP Life
        • ‹ Back
          • Buddies and Mentors
          • Campus Connect
          • Fun
          • GEPSI
          • Women @GEP
      • Join Us ›
        • Join Us
        • ‹ Back
          • Global
          • United States
          • Europe
          • Latin America
          • Asia Pacific
          • India
  • Language ›
    • Language
    • ‹ Back
      • Deutsch
      • English
      • Español
      • Português
      • 简体中文
  • Rapid Response from GEP
  • BLOGS
  • Strategy
  • Technology
  • MIND
Contact Us
  •  
  •  
  •  
  •  
  •  
  •  
  •  

Breadcrumb

  1. HOME
  2. BLOG
  3. STRATEGY
  4. STEPS TO MAXIMIZE ESG ADOPTION
Blog Image

Going For M&A? Here Are 3 Steps to Maximize ESG Adoption

  • ESG and sustainability goals have become key in determining a company’s value.
  • M&A offer multiple opportunities to up an organization's ESG credentials and capabilities.
  • Creating right strategies, optimizing costs and value delivery and robust change management can help maximize the ESG opportunities during organizational restructuring.

August 04, 2022 | M&A Blogs

ESG and sustainability goals are fast becoming part of all facets of a business as companies and investors realize the multiple benefits of a socially conscious organization.

Along with traditional profits, now ESG criteria are also being considered in valuing companies.

Global asset manager BlackRock, for instance, has made factoring in climate risk into the value of securities a standard practice.

In a recent survey by banking and wealth management company Investec, 62% of respondents said ethical factors had been significant contributors for them to not invest in one or more companies.

Unsurprisingly, many large companies in G20 feel “extreme” pressure to improve their ESG endeavors and conduct M&As with the sole purpose of boosting their ESG creds and capabilities.

The ESG Equation During Mergers and Acquisitions

M&A restructuring allows businesses to optimize and boost their ESG and sustainability endeavors in ways more than one. Here are three broad steps on how to maximize this opportunity:

Step 1: Identifying Strategies and Opportunities

The first step is to identify opportunities and build strategies around them for creating ESG wins. Here are some pointers to keep in mind:

i. Finding and acquiring the right resources:

The topmost M&A objective includes identifying the gap in network efficiencies and thereby investing in tools, technology, R&D and create synergies.

ii. Creating teams for decision-making:

For the establishment of strong governance creating a supply chain integration team with ESG and sustainability experts is imperative. This ensures that sustainability and climate consciousness are always instilled in a company’s short and long-term plans.

iii. Optimizing organizational footprints for minimal carbon emission:

Restructuring lays multiple opportunities to optimize the locations of manufacturing plants, distribution centers, R&D centers, administrative spaces, support offices and other facilities to minimize carbon emissions.

Step 2: Optimizing Costs and Value-Delivery for Short and Long Term

Now, it’s time to optimize the ongoing operations in terms of cost and efficiency. Note that cost optimization efforts need not contradict ESG goals. These can even be complementary pursuits. Focus on plans that help deliver immediate results and lay the foundation for future programs.

These optimization endeavors can be classified into:

i. Quick wins:

Endeavors that promise to deliver rewards within a year. Examples can be strategic sourcing, optimizing logistics, and more.

ii. Future enablers:

Endeavors that set up an organization for sustained value delivery without increasing cost. Examples can be technology, system integration and more.

Step 3: Change Management

To sustain and manage the newly introduced changes to meet the ESG goals, the following points are important:

i. Tracking the right metrics:

Measuring the right KPIs will serve as a standardized way of benchmarking and comparing suppliers and help identify previously unobserved emissions reduction/improvement opportunities. These KPIs must be a part of a comprehensive procurement policy. Some examples would be Science-Based Targets Initiative (SBTi) and Climate Disclosure Project (CDP).

ii. ESG best practices training:

It isn’t necessary that pre-merger teams bring with them the same attitude towards ESG as you desire – there might be a difference in the skills and knowledge related to ESG. Therefore, target training programs on DEI, ESG and sustainability should be conducted to empower the staff.

To learn more on how M&A restructuring can help meet ESG and sustainability goals and access case studies on how industry leaders are doing so, consider giving this GEP’s whitepaper a read: M&A Restructuring - The Perfect Opportunity To Accelerate Your ESG Journey.

Tags: sustainability , M&A

Add Comment +

Leave a Comment

Your email address will not be published. Required fields are marked *

FEATURED POST

...
CAPEX Blogs

How to Optimize Oil & Gas Capex Planning Amid Russia-Ukraine War?

...
Supply Chain Software Blogs

Manage the Inflation Problem with a Digital Supply Chain

    BLOG CATEGORIES

  • Supply Chain Strategy Blogs
  • Procurement Strategy Blogs
  • Sourcing Strategy Blogs
  • Miscellaneous Blogs
  • Supplier Management Strategy Blogs
  • Risk Management Blogs
  • M&A Blogs
  • Supply Chain Risk Management Blogs
  • Cost Management Blogs
  • Digital Supply Chain Transformation Blogs
  • Inventory Management Blogs
  • Inventory Management

TAGS

Category Sourcing
Direct Procurement Software
Direct Spend Management
Consulting
MRO

By checking the box below, you consent to GEP using your personal information to send you thought leadership content – such as white papers, research reports, case studies – and other communications. GEP representatives may contact you to provide additional information or answer questions.

If at any point in time you decide to withdraw your consent, you may unsubscribe by emailing your request to us at privacy@gep.com.

Please refer to the GEP Privacy Statement to understand how we manage and protect your personal information.

Terms of Use | Privacy Statement

Contact Us

Ask Us

Send us your question(s)

RFP

Request for a business proposal

Feedback

Share your thoughts, comments and suggestions

Demo

Schedule a live demo of our software

Discover
STRATEGY
Strategy
  •   Procurement Consulting
  •   Digital Procurement Transformation
  •   Strategic Cost Management
  •   Opportunity Assessment
  •   Supply Chain Risk Management
  •   Supply Chain Consulting
  •   Supply Chain Strategy
  •   Supply Chain Diagnostics
  •   Inventory Optimization
SOFTWARE
Software
  •   Procurement Software
  •   Supply Chain Software
  •   Source-to-Contract
  •   Procure-to-Pay
  •   Supply Chain Planning
  •   Supply Chain Collaboration
  •   Supply Chain Visibility & Execution
  •   Supply Chain Control Tower
  •   Should-Cost Modeling
MANAGED SERVICES
Managed Services
  •   Procurement Outsourcing
  •   Strategic Sourcing
  •   Tail-Spend Management
  •   Category Management
  •   Procurement Support Services
  •   Supply Chain Outsourcing
  •   Supply Chain Planning & Forecasting
  •   Inventory Management
  •   Logistics Management
COMPANY
Company
  •   About Us
  •   Leadership
  •   Customers
  •   Sustainability at GEP
  •   Careers
  •   News
  •   Awards
  •   Partners
  •   Contact Us

Fresh Insights, Now on Your Phone

  • Dowmload On The App Store Button
Stay Connected
  •  
  •  
  •  
  •  

Latest Tweets

  • As companies increasingly invest in hybrid and multi-cloud solutions to support #RemoteWork, what are the new trend… https://t.co/FH8FSzilQJ

  • #GEP's Mike Jette discusses the implications to the #semiconductor global #SupplyChain following passage of the US… https://t.co/AnJLBhtEiZ

  • Registration for #GEPINNOVATE2022 is now live! Don't miss out on this opportunity to connect with the leading voice… https://t.co/yUMWz5W2lu

  • We are excited to welcome our new hires who’ve joined us through the #GEP #Launchpad program. They’re a part of the… https://t.co/hMkWe4d1OI

  • According to a survey from @TheEconomist, there is a #SupplyChain paradigm shift taking place. Are you ready? Get t… https://t.co/vr6ssKl9cV

  • Effective #ChangeManagement is imperative for #sustainability and #resilience. There are five pillars in an effecti… https://t.co/YUPyovprHu

  • At #GEP, we believe in giving voice to the diverse perspectives of our people. GEP YOUnited is a platform that welc… https://t.co/QDXzrxYbXq

  • Financial Times's @CPGspecialist (gated) discusses Kraft Heinz's partnership plans with #retailers' private labels… https://t.co/sUzePFUGde

  • Our #GEP Social Initiatives (GEPSI) team recently collaborated with @rha_india to distribute food at an impoverishe… https://t.co/RFPyhKNC7i

  • It’s much easier to set net-zero emissions goals than to meet them. How do #SupplyChain leaders get there? This… https://t.co/JRMmZCte8L

  • With the workforce returning to offices, how should #FacilitiesManagement teams prepare? What should they prioritiz… https://t.co/lc5tFzxEur

  • Poor #SupplyChain planning can bring your enterprise to a halt. Is your plan ready for today’s challenges? #GEP’s S… https://t.co/utyOxGvJ6Q

  • To beat volatility businesses have adapted to #AutonomousProcurement to reduce manual efforts and streamline proces… https://t.co/3lHqGqFyp8

  • #SupplyChain planning is not without challenges, but the rewards are immense. Download this #GEP paper on overcomin… https://t.co/5P45pV9cnj

  • #GEP VP Pramod Gupta outlines three priorities for #SupplyChain leaders to build flexibility and resiliency. For mo… https://t.co/3Q0uiopiJZ

  • The Russia-Ukraine war is creating supply constraints in #energy and #minerals. This #GEP blog details where compan… https://t.co/HAmCHEh72u

  • Facing hurdles meeting #ESG targets? This #GEP-sponsored @SM_Insider_ outlines the role of #data:… https://t.co/6oFHvZOmf3

  • Should #chemicals & plastics #procurement teams expect high prices and supply shortages to continue in Q3 and Q4? I… https://t.co/tTyM4MqT04

  • Is your digital operating model in need of a tune-up? Are mismanaged #disruptions costly? Get this #GEP guide to le… https://t.co/VN0KOJij94

© Copyright GEP 2022. All rights reserved. Terms of Use | Privacy Statement | Cookie Policy | Modern Slavery Act Statement | GEP Logo