Service

ESG Due Diligence

Comprehensive ESG risk and opportunity assessment. Identify what matters. Build improvement roadmaps.

What is ESG Due Diligence?

Before you invest in a company or acquire it as a portfolio company, you need to understand its ESG risks and opportunities. ESG due diligence is a comprehensive assessment of a company's environmental, social, and governance profile. We identify material risks, compliance gaps, operational improvement opportunities, and develop realistic improvement roadmaps. Good due diligence prevents post-acquisition surprises and identifies where value creation improvements can happen.

Why You Need This

Hidden ESG risks can derail value creation
Post-acquisition improvements require baseline assessment
Identify low-hanging fruit for value creation
Prevent regulatory surprises
Build 100-day plans grounded in data
Manage ESG across portfolio companies

Our Approach

We conduct thorough, practical ESG assessments that provide clear insights and actionable improvement roadmaps.

1

Materiality Assessment

Identify which ESG factors matter most for this company. Not all ESG issues are equally important. We focus on what matters.

2

Current State Assessment

Evaluate current performance and practices. Management interviews, operational site visits, document review, and data analysis.

3

Risk & Opportunity Identification

Identify material risks (what could go wrong) and improvement opportunities (where value can be created).

4

Benchmarking & Gap Analysis

Compare performance to peer companies and industry standards. Understand competitive position on ESG.

5

Roadmap Development

Develop realistic, prioritized improvement roadmap with timelines, resources, and expected impact.

What's Included

ESG Risk Assessment

Comprehensive evaluation of environmental, social, and governance risks material to the company

Compliance Review

Assessment of regulatory compliance position and upcoming requirements

Benchmarking Analysis

Competitive comparison to peer companies on key ESG metrics

Improvement Roadmap

Prioritized action plan with timelines, resources, and expected value creation impact

Assessment Areas

Environmental

  • • Emissions profile and trends
  • • Energy efficiency and renewable energy
  • • Water usage and management
  • • Waste and circular economy practices
  • • Environmental compliance

Social

  • • Labor practices and safety
  • • Diversity, equity, and inclusion
  • • Supply chain labor standards
  • • Community relationships
  • • Employee engagement and retention

Governance

  • • Board composition and oversight
  • • Management incentives and pay
  • • Ethics and compliance programs
  • • Data security and privacy
  • • Stakeholder governance

When You Need This

Pre-Investment

  • Understanding ESG risks before deploying capital
  • Comparing ESG profiles across deal targets
  • Identifying value creation opportunities

Post-Acquisition

  • Baseline assessment for improvement planning
  • 100-day plan development
  • Integration of ESG into value creation plan

IPO Readiness

  • Preparing for public company ESG disclosure requirements
  • Building investor-grade ESG reporting infrastructure
  • Establishing governance frameworks for public market scrutiny

Related Services

Due diligence typically leads to these follow-on services.

GHG Emissions Assessments

Detailed emissions quantification as part of your roadmap.

Learn more

Regulatory Compliance Support

Build compliance programs as identified in assessment.

Learn more

Portfolio ESG Management

Coordinate ESG improvement across multiple companies.

Learn more

Ready to Understand ESG Risks & Opportunities?

Get in Touch

Let's discuss your investment or portfolio company and develop a comprehensive ESG assessment plan.