"The way of heaven is constant. It does not exist for the sake of Yao, nor does it perish for the sake of Jie." This sentence from Xunzi was once used to describe the irreversible fate of natural laws. In today's capital market, ESG (environment, society and corporate governance) seems to have become a part of the "new normal". Some companies have won the applause of international capital for practicing ESG, while others have been ignored by the market for "pretending" on ESG. So the question is: Is ESG a hot topic or a beautifully packaged "false proposition"? Is it the direction of rational evolution, or another bubble created by public opinion?
Since 2020, ESG has rapidly heated up globally. Data shows that by the end of 2024, more than two-thirds of multinational listed companies in the world have issued ESG reports. At the same time, by the end of the third quarter of 2024, the global ESG-related fund management scale is about 3.3 trillion US dollars. At the same time, ESG ratings and investment strategies are gradually penetrating the Chinese capital market. On the surface, this "green storm" is coming with great force, but upon closer inspection, there is no lack of "formalism". At this time, we need more professional "dismantlers" - such as **Goheal**, who are practitioners, starting from the actual path of capital operation, and redefining the true value of ESG in mergers and acquisitions and restructuring.
American Goheal M&A Group
First of all, we must face a reality: ESG is not a top-down moral competition, it is more like a "betting game of investor expectations". Whether it is mergers and acquisitions, asset restructuring, or changes in shareholder control, ESG is often packaged as part of the capital story. But the key to the problem is, is it "decoration" or "core logic"? Goheal has seen two completely different results in a large number of M&A projects: some companies have gained premium space in transaction negotiations with the help of ESG labels; some companies have been quickly "bitten back" by the market due to limited substantive improvements after disclosing high-quality ESG reports.
Why is the difference so big? The core lies in the depth of understanding of "sustainable transformation". Goheal believes that if ESG is only attached to capital operations as a "PR rhetoric", then it is nothing more than a short-lived narrative patch; but if it is truly integrated into corporate strategy, governance structure, and resource allocation system, then it may become a booster for crossing cycles.
This requires talking about a deeper issue: How is ESG used in mergers and acquisitions? It is not enough to put it in a PPT. To give a specific example, when a traditional manufacturing listed company conducts cross-border green energy mergers and acquisitions, if it only starts from financial indicators, it can only be regarded as a "financial merger and acquisition"; but if there is a clear carbon neutrality strategy and a systematic green supply chain integration mechanism behind the project, and it matches the company's long-term development goals, then it has real ESG logic. In this framework, ESG is no longer a "beautiful-looking" label, but a thorough reconstruction of the logic of corporate operations.
In multiple M&A projects led by Goheal, we have observed an interesting trend: high-quality ESG strategies often reduce the integration costs after mergers and acquisitions. Especially in the integration of human resources and cultural synergy, ESG provides a more flexible and inclusive way of governance thinking. For example, when dealing with employee placement, community stakeholder communication and shareholder relationship restructuring, ESG principles can help companies form a more stable "social identity" and reduce transaction resistance. This kind of "soft power" intervention is often the most easily overlooked part of the traditional M&A model.
In addition, more and more counterparties, especially international funds and green industry giants, have begun to include ESG performance in transaction conditions. This means that ESG is no longer just an "elective course" that investors don't like or not, it is gradually becoming a "compulsory course" in the process of financing, trading and even valuation. Goheal has deeply realized from his experience of working with many European and American funds that for them, ESG is not only a risk control standard for whether a company is worth investing in, but also a "value bottom line" for whether the cooperative relationship can continue for a long time.
Of course, many investors also question whether ESG is a "pseudo halo" in the capital winter? Is it a new packaging for companies to hype concepts and tell stories? Such concerns are not unreasonable. Especially in an environment where the market is sluggish and performance is under pressure, some listed companies do use ESG as a "fig leaf" to divert attention, trying to cover up the problem of poor internal governance with seemingly cutting-edge narratives. But these short-term speculators are often eventually exposed by the market.
So we must return to the most essential proposition: How can capital operations achieve sustainable transformation? In Goheal's view, the key lies in three points: First, ESG must have a quantifiable execution path, not just a grand narrative; second, ESG must be embedded in the corporate governance structure, rather than dominated by market public relations; third, ESG must be used as a reference dimension for valuation and transaction judgment, rather than gimmick packaging. Under this "hard logic", ESG truly has the power to promote the upgrading of capital operations.
In the future, we may see more companies complete the transition from traditional industries to new quality productivity with the support of ESG, and we will also see some ESG pseudo-propositions that "sell dog meat under the guise of sheep" gradually cleared. In this process of rational return and value reshaping, who can make good use of this "double-edged sword" will determine how far it can go in the capital market.
At such a transformation node full of variables and opportunities, Goheal is willing to be a bridge to help companies find the real anchor of ESG and business strategy in capital operations, and is willing to work with investors to identify, question and participate in the forces that can truly change the business world.
Goheal Group
ESG, is it a hot topic? Is it a false proposition? Or is it the "new productivity" of the capital world? Welcome to leave a message to share your views, and we look forward to in-depth exchanges with you in the comment area.
[About Goheal] Goheal is a leading investment holding company focusing on global mergers and acquisitions, deeply cultivating the three core business areas of listed company control acquisition, listed company mergers and acquisitions and restructuring, and listed company capital operation. With its deep professional strength and rich experience, it provides companies with full life cycle services from mergers and acquisitions to restructuring and capital operation, aiming to maximize corporate value and achieve long-term benefit growth.
