Sustainability Transaction Assessment Report (STAR) for ESG Due Diligence
The Rise of Responsible Investing
ESG – or Environmental, Social, and Corporate Governance – refers to three areas increasingly being used to measure the sustainability and societal impact of an investment. Driven by a growing market demand for corporate sustainability – and backed by research – more and more investors are applying ESG factors as part of their due diligence process to identify risk and better determine the future financial performance of a business. This is particularly true in the mergers and acquisitions space.
We understand the stakes are high during an acquisition. To help clients manage risk associated with a transaction, we've developed a systematic approach to assessing ESG risks that cuts through the confusion and zeros in on the issues that are most likely to have a material impact on the investment.
Our Sustainability Transaction Assessment Report – or STAR for short – is a research-driven report that delivers clear data to help you understand corporate ESG risk. Our qualified ESG analysts quickly screen dozens of industry-specific ESG topics against the acquisition target and raise potential red-flag issues related to five critical ESG categories:
- Leadership and Governance
- Business Model and Innovation
- Human Capital
- Social Capital
To ensure a consistent, systematic approach, we use recognized industry tools, like SASB , the Sustainability Accounting Standards Board's materiality framework and standard, and RepRisk , the global leader and pioneer in data science, specializing in premium ESG and business conduct risk research and quantitative solutions.
A Critical Part of the Due Diligence Process
In conjunction with our traditional EHS due diligence services , we can deliver a Sustainability Transaction Assessment Report in a matter of days that clearly outlines ESG risks and opportunities and provides actionable insights. With findings organized into a concise scorecard, the report equips you with critical information to make better go/no-go determinations, influences business valuation, and advises your management team on ESG factors that could impact their investment thesis .