Today, companies are under extreme pressure to improve environmental, social, and governance (ESG) performance.
Companies are entering into joint ventures at an unprecedented rate. Across a wide range of industries, firms are using JVs and other partnerships as a way to make their businesses more sustainable and to gain access to capabilities, capital, and scale. PepsiCo recently entered into a joint venture with Beyond Meat to develop and market sustainable protein-based snacks and beverages. General Motors has entered into more than 10 JVs in the past two years alone, including one with Plug Power to develop hydrogen fuel cells for light commercial vehicles. Globally, the number of material new JVs has more than doubled in the past two years, outstripping merger and acquisition activity during the same period.
Read the full article originally published in the MIT Sloan Management Review.