Climate Change Considerations in M&A Transactions

Summary

Climate change is arguably the most high-profile and rapidly evolving environmental issue facing the global business community today. Governments of nearly every nation have acknowledged the risks posed by a warming climate and taken some action either to combat those risks, to mitigate the physical effects of climate change, or both. In addition, many corporations have publicly announced efforts to reduce emissions of greenhouse gasses (GHGs) associated with their operations and otherwise to take steps to combat climate change. Companies involved in certain mergers and acquisitions need to be aware of the risks related to climate change that may arise in the transactional context. Not every deal will involve climate change-related diligence, but more and more industries are becoming subject to regulations and legal actions aimed at combating climate change. Others have found that a changing climate may present direct risks to property and supply chains. Conversely, many companies have...