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.