Investor sentiment and public attention has shifted towards ESG across all sectors. ESG Due Diligence can help you fulfil investors' requirements by bringing together observations and obligations regarding ESG risks and opportunities.
Why you should care about ESG Due Diligence
It is important to understand the status quo of a target’s ESG practices, and need to identify & mitigate potential down-side risks and upside opportunities from ESG issues, in transactional situations on both the buy and sell-side, in refinancing rounds and in the case of an IPO. Further, ESG Due Diligence, will allow you to gain ESG risk and opportunity awareness, and benchmarking insights. You will benefit from the holistic approach, that is integrated into the deal process, as well as realise cost savings by identifying potential showstoppers.
Lastly, ESG Due Diligence is the starting point for the implementation of ESG value creation to explore how to leverage ESG by improving profitability or valuation.
What we can offer your business in ESG Due Diligence
ESG Due Diligence is a comprehensive assessment of material ESG risks, liabilities, and opportunities for a target asset, which may be a portfolio company or transactional target. In relation, we can deliver a red flag report or a full bankable report.
Our ESG Due Diligence reports takes a standardized approach, that is both adapted to your business, target, and the sector characteristics. Overall we adhere to five ESG due diligence values:
Focused priorities
Transparent analysis of relevant ESG topics for the organisation helps to focus on material topics.
Cost savings
Prioritised list of topics saves time and money in the due diligence process.
Benchmarking
Early evaluation of the status quo with regards to potential high risk and/or material ESG issues and opportunities.
Holistic evaluation
Assessment of ESG issues integrated into the deal process.
Implementation support
Support on addressing ESG issues in subsequent phases via process and management systems.
How do we deliver our ESG Due Diligence report?
At the start of the Due Diligence report is a materiality assessment to identify a focused priority list of ESG factors of particular interest to the client. These further identify material ESG risks, liabilities, and opportunities by applying a five-step approach:
- Identify topics to determine the scope of work
- Collect information and data
- Evaluate information and data
- Analyse ESG risks and opportunities
- Prepare report
Contact our experts and read more insights here
If you or your company are interested in hearing more about our ESG Due Diligence, you are welcome to reach out to our ESG Due Diligence experts below.
Niclas Buch Mahler
Associate Director, Deal Advisory
KPMG in Denmark