Source: https://environmentenergyleader.com/, March 5, 2026
By: Marybeth Collins

Environmental liability has always been a factor in mergers and acquisitions. It is now a deal variable of a different order. What was once assessed as a manageable compliance cost — something to be indemnified, escrowed, or insured — is increasingly showing up post-close as a balance sheet event: plummeting valuations, securities litigation, and breach of fiduciary duty suits against directors and officers.

The conditions creating that risk have sharpened in the past 18 months. A federal PFAS designation under CERCLA took effect in mid-2024 and was reaffirmed in September 2025. Insurance markets are tightening coverage terms and raising premiums on environmental exposure. And survey data suggests that deal pricing is now explicitly sensitive to sustainability credentials in ways it was not three years ago. Read more.