ESG Due Diligence (STAR)

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:

• Environment
• 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.

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 .

Make STAR part of the acquisition due diligence process in your next M&A deal. Contact us today.