While sustainable bonds and loans are on what appears to be a consolidated and steep upward trend, sustainable mergers and acquisitions (M&As) have been experiencing only a gentle rise. Their growth should not be overlooked, however. While labelling yet another banking product as sustainable may result in fresh eye-rolls, a closer look at what and where deals took place makes for interesting reading.
First off, the figures: in the first half of the year, there were 466 M&A deals worth $84.3bn involving at least one company active in activities considered sustainable. This is an all-time high, according to data provider Refinitiv. Those sustainable deals include electric automaking, renewable energy and waste management, but also the mining of battery metals. China was the most active market, with a Chinese company as the target in more than a quarter of all transactions.
Doubts may remain about the impact and significance of sustainable finance, as well as M&A deals, and a fair deal of scepticism is always advisable when looking at any kind of categorisation. However, business decisions on which companies to take over and which sectors to expand into are a useful indication of the real growth of green.
