Abstract
This study investigates the role of Environmental, Social, and Governance (ESG) standards in mergers and acquisitions (M&A), focusing on their influence across different stages of the M&A process, stakeholder engagement, and the realization of synergies. Data were collected from 211 publicly traded companies listed on the Warsaw Stock Exchange, which have engaged in M&A transactions over the past 5 years. Results reveal that larger firms place greater emphasis on ESG factors during key stages such as target selection, due diligence, and integration planning. While ESG’s impact on innovation and financing was less pronounced, it played a critical role in attracting talent, improving governance, and achieving synergies. Interestingly, the ownership structure (domestic vs foreign) showed little impact on the perceived importance of ESG, except in relation to talent management. These findings indicate that ESG is becoming increasingly integral to M&A strategies, particularly for larger firms, while smaller companies may need to enhance their ESG practices. The study concludes with implications for future research, calling for more exploration into how ESG affects innovation and long-term synergies in M&A transactions.