When buying companies, many institutional investors check that there are no environmental show stoppers (e.g. contaminated land), no social red flags (e.g. human rights issues) and no governance problems (e.g. bribery and corruption). No investor wants to be caught out and face bad press, heavy fines or see the value of an acquisition drop.
We provide a tailored approach to each ESG due diligence assessment depending on the risks identified in your screening assessment, the depth of detail required for the overall due diligence, the time and budget available, and the access to management.
We apply our strong capabilities and deep knowledge of ESG DD to help you develop an effective approach to the management of ESG factors on new ‘control’ deals, where you plan to hold a majority stake. The scope of our ESG due diligence work will be tailored to reflect the material ESG issues inherent to the specific target company, but will likely focus on many of the ESG risks illustrated here (and elsewhere, as required).
Never before have institutional investors been more concerned about the sustainability of their investments and portfolios. Environmental, Social and Governance (ESG) matters are now a key component of the process of investment decision-making and portfolio management.
Better environmental, social and governance (ESG) management provides an opportunity for institutional investors to generate greater value for their portfolio companies, their investors, and society at large. We believe that not only are there clear benefits of better ESG management, but that it is possible for this value to be quantified and communicated to investors, acquiring parties, and other stakeholders.