Case study: US-based integrated energy company: Pre-alliance EHSR due diligence

The issue

The client, a leading US-based integrated energy company, was interested in broadening its business base through a strategic alliance with a Russian-based petroleum firm. PricewaterhouseCoopers was engaged to undertake environmental and reputation due diligence in order to gauge potential liability and compliance risks stemming from the alliance and determine how these risks could be managed. The effort had to be completed rapidly and take into consideration Western and local Russian regulatory standards.

Our approach

PricewaterhouseCoopers quickly mobilised a team of environmental health and safety professionals from the US, UK, Russia, Ukraine, Romania and Bulgaria. Over the following weeks, the team:

• Conducted corporate-level document reviews and site visits at multiple facilities located in Russia, Romania and Bulgaria
• Performed media research into potential reputational issues and reviewed this research with the client and the strategic alliance partner
• Presented our findings and recommendations to the client’s board of directors

Mobilization, fieldwork, and board presentation were all completed within five weeks of project kickoff.

The outcome

The client was provided with insight regarding the liabilities and potential operational and compliance risks associated with the proposed alliance. This served as an important basis by which to evaluate the merits of the alliance.