The Role of Corporate Mergers and Acquisitions in Enhancing Environmental Sustainability

Dear Colleagues,

Business and other human activities, particularly, the consumption of energy from fossil fuels, are among the main factors contributing to climate change (IPCC, 2007). The industrial sector alone consumed more than 50% of the total global energy consumption in 2018 (BP, 2019). To minimize the detrimental effects of energy consumption on the environment, scholars advocate for an increase in capital investments in clean energy, in addition to other measures (Lash and Wellington, 2007; Kolk and Pinkse, 2005). It is estimated that about US$600 billion is needed to finance climate-resilient infrastructure across the globe.

Against the backdrop of huge gaps in capital investments, scholars argue that mergers and acquisitions (M&A) may provide important means to bring together resources – capital investments, technology, knowledge, and complementary skills, to reduce the deleterious effects of climate change (UNCTAD, 2000; Boateng, Wang and Yang, 2008; Chen et al., 2017). Indeed, popular press, academics, and policymakers emphasise the importance of capital investments and collaborative efforts among governments, financial institutions, firms and other economic agents in fulfilling the commitments under Sustainable Development Goals (SDGs).

Despite the tremendous interests and major initiatives by multilateral and non-governmental institutions, such as the United Nations, Intergovernmental Panel on Climate Change (IPCC), WWF and Greenpeace, there are still gaps in our knowledge as to the best ways to reduce global warming. Thus, advancing our understanding of the mobilization of financial and non-financial resources, through collaborative ventures such as joint ventures, mergers and acquisitions, is of critical importance to achieving a sustainable environment. This Special Issue will improve our understanding of the use of strategic alliances, and mergers and acquisitions to generate the required capital investment and resources to reduce climate change.

We welcome both theoretical and empirical contributions that advance the state of knowledge on the role of collaborative ventures, such as joint ventures; mergers and acquisitions, in green/climate finance, in both developed and developing countries.

Topics include but not limited to the following:

• The benefits and disadvantages of joint ventures, mergers and acquisitions in green investments
• Research and development and corporate acquisitions
• Corporate governance and green finance by mergers and acquisitions
• Female board representation and green finance by mergers and acquisitions
• Motivation and challenges of technology acquisitions
• Green investments and profitability of mergers and acquisition
• Exploration of the role of government in promoting green finance through mergers and acquisitions and joint ventures
• Ownership type, mergers and acquisitions and green finance

References:

Boateng, A. Wang, Q & Yang, T. (2008). Cross-border M&As by Chinese firms: An analysis of strategic motives and performance, Thunderbird International Business Review, 50, 4, 250–270.

BP (2019). BP Energy Outlook 2019 Edition. Available online: https://www.bp.com/content/dam/bp/business-sites/en/global/corporate/pdfs/energy-economics/energy-outlook/bp-energy-outlook-2019.pdf

Chen, Y., Hua, X. & Boateng, A. (2017). Effects of Foreign Acquisitions on Financial constraints, Productivity and Investment in R&D of Target Firms in China, International Business Review, 26: 640–651.

Edenhofer, O., Pichs-Madruga, R., Sokona, Y., Seyboth, K., Matschoss, P., Kadner, S., & von Stechow, C. (2011). IPCC special report on renewable energy sources and climate change mitigation. Prepared by Working Group III of the Intergovernmental Panel on Climate Change, Cambridge University Press, Cambridge, UK.

Lash and Wellington ( 2007). Competitive advantage on a warming planet, Harvard Business Review, March, 1–11.

Kolk, A. and Pinkse, J. (2005) Business Responses to Climate Change: Identifying Emergent Strategies. California Management Review, 47, 6–20.

United Nations Conference on Trade and Development (UNCTAD) (2000). World Investment Report 2000: Cross border mergers and acquisitions and development, New York and Geneva, United Nations.

Prof. Agyenim Boateng
Dr. Min (Anna) Du
Dr. Frank Kwabi
Guest Editors

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• Climate finance & investments
• Mergers and Acquisitions
• Boardroom Gender and M&A Performance
• Strategic alliances and green investments
• National governments and green finance
• R &D investments and M&As