Companies with environmental, social and governance (ESG) credentials have been high on the list of merger targets for U.S. special purpose acquisition companies (SPACs) so far in 2021, data from Nomura Greentech showed.
By transaction, 32 SPAC mergers with ESG firms have been announced so far in 2021, against 31 for all of 2020, Nomura's data showed said.
Driving the ESG growth were three converging forces: lower costs, driven by technology and innovation; customer demand for sustainable products and services, and strong policy support, Jeff McDermott, Head of Nomura Greentech, said.
"With over 50 active ESG SPACs currently seeking targets, and more still to price this year, we believe... investors will continue to fund high growth ESG companies," he added.
read moreA Reuters analysis showed top 10 ESG SPACs have delivered a return of 4% this year, compared with a decline of 0.2% for non-ESG SPACs on average.
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