The incorporation of environmental, social and governance (ESG) practices in guiding corporate decision-making in Latin America is following a growing global trend of focus on sustainability, ESG and impact investing by shareholders, customers and employees. Attorneys practising in the region should be prepared to address ESG matters in transactional preparation, due diligence investigations, acquisition documentation and post-closing operations as ESG practices are adopted by financial institutions, strategic investors and regulatory authorities throughout Latin America. However, even ahead of regulation, in most cases ESG is considered both a driver of value in M&A and a means of reducing risks associated with operations post-acquisition.
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