In both the public and private sectors, there is a growing interest in environmental, social and governance (ESG). A robust and clear ESG strategy has become a necessity that may hold the key to attracting external investment.
The sustainability sector itself is comparatively young, but the topic is high on the agenda of most entrepreneurs for reputational and financial reasons.
A take-over in the sustainability sector is a useful mechanism for meeting ESG strategic goals, expanding a skillset or service offering, and future-proofing revenues.
High growth ESG sub-sectors, and those with potential growth, are highly attractive to private equity players and demand can outweigh supply. These areas include sustainable food, waste recycling, renewable energy, and electric vehicle infrastructure.
The dynamic in this diverse sector supports an active mergers and acquisitions market.