"A big impetus for increased scrutiny is the European Union’s Corporate Sustainability Reporting Directive, which requires large companies that do business in Europe to disclose social and environmental risks starting with the 2024 reporting year. This new requirement will complicate disclosure for any company seeking to acquire an affected firm."

Link: https://www.greenbiz.com/article/esg-can-make-or-break-merger-heres-what-dealmakers-are-looking