ESG due diligence is a crucial process
It helps financial services firms, investors, and other stakeholders understand the potential risks and opportunities associated with a company’s activities. Ultimately, the activity can help identify potential ESG-related issues that could impact a company’s reputation, financial performance, and long-term sustainability.
Whether conducted as part of the risk assessment process for mergers and acquisitions, investments, or other business transactions, an exploration of your ESG readiness will consider issues such as prevailing regulation, reputational issues, the strength of ESG claims, human rights risk and suitability of business processes.
Environmental due diligence might involve reviewing environmental permits and compliance records, conducting site assessments and audits, and assessing the potential liability for environmental damage.
Social due diligence focuses on assessing elements such as labour practices, human rights, health and safety standards, community engagement, and diversity and inclusion policies.
Governance due diligence may involve reviewing a company’s policies and procedures, its code of conduct, and its risk management practices.
How we can help with your ESG due dilligence
Our experienced team can carry out a full ESG due diligence and risk assessment process for your organisation, portfolio of companies and prospective acquisitions and mergers.
Our process can include:
- Evaluating the regulatory environment across the UK and Europe to assess company preparedness to minimise risk and maximise opportunity.
- Evaluating the cost and practical suitability of business processes in the context of existing environmental and social conditions.
- Assessing planning- and development-affected businesses in terms of likelihood of planning permission and any related public concerns.
Investigating sustainability issues related to public expectations and reputation that may affect the foundations for business growth.
Reviewing business relationships and supply chains for modern slavery, human rights and responsible sourcing-related concerns and capability. - Interrogating environmental or social benefit claims made by a business for their substance and credibility.
Get in touch
If you’d like tailored support and solutions to enhance ESG in your business, get in touch to find out how we can help.
