11 July 2023
R&I Update - July 2023 – 2 of 3 Insights
Companies are under increasing pressure to examine their ESG policies, particularly after the recent COP26 conference. The UK's commitment to achieving net-zero emissions by 2050 has intensified the ESG focus.
ESG, or Environmental, Social and Corporate Governance, is a term used to describe a set of standards that measure a business' environmental and social impact.
Why is ESG important in a distressed restructuring?
Even in a distressed situation, lenders, buyers and investors will feel pressure to scrutinise a company's ESG policy before deciding whether to lend or invest into a business.
ESG is important to stakeholders for the following reasons:
ESG issues cannot be ignored even in a distressed context but a restructuring also presents an opportunity to address these issues, improving the business' resilience overall.
11 July 2023
11 July 2023
by multiple authors