With the entry into force of the EU taxonomy and the CSRD (Corporate Sustainability Reporting Directive) in the EU, large capital market companies are obliged to report comprehensively on their transformation to achieve the EU sustainability goals.
It is also necessary to disclose how and to what extent the company’s sales, investment and operating expenses are to be categorised as environmentally sustainable economic activities within the meaning of the taxonomy regulation. These key figures have an increasing impact on financing conditions.
Will there be a need for a separate ESG compliance DD in future? Does ESG compliance influence the valuation of M&S transactions?