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Sustainability in M&A: ESG practices in the Nordic region

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School of Business | Bachelor's thesis
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en

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50+1

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This thesis explores how sustainability can be better integrated into mergers and acquisitions, with a focus on the Nordic region. As ESG issues have become more prominent in business, M&A processes are under pressure to reflect these priorities. The aim of this study is to understand how companies can use M&A to support both growth and long-term sustainability goals. The research is based on four semi-structured interviews with five professionals working in M&A and/or sustainability. The interviews were analyzed thematically to find shared experiences, practical challenges, and strategies. The results show that even in the Nordics, where ESG standards are relatively strong, sustainability is not always successfully integrated into M&A. Key challenges include inconsistent ESG criteria, a lack of clear measurement tools, and difficulties during post-merger integration. However, companies that effectively integrate ESG tend to see benefits, such as stronger stakeholder trust and better long-term outcomes. The thesis presents an updated framework for understanding how sustainability can be embedded throughout the M&A process.

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Rannikko, Heikki

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