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      ESG in Due Diligence: create value and mitigate risks

      Investor interest and public attention to ESG practices are changing the way companies conduct merger and acquisition processes. Incorporating ESG into due diligence is essential today for managing risks, identifying opportunities and creating sustainable value.

      Regulatory compliance

      Ensure alignment with legal requirements and stakeholder expectations.

      Risk management

      Identify ESG factors that could impact the transaction.

      Maximising value

      Reveal opportunities which strengthen the investment proposition.

      Key Issues in the ESG Assessment

      So as to ensure that each of these pillars is assessed rigorously and in a way aligned with the reality of each transaction, KPMG uses a set of strategic questions which guide the ESG due diligence process.

      These questions enable us to look in detail at the regulatory framework, identify risks and opportunities and ensure that investment decisions are well-founded and sustainable.

      • How can ESG criteria be integrated into a due diligence process, taking into account the specific features of each sector and market?
      • How do the findings of an ESG assessment influence decision making and priority setting?
      • What is the underlying reason for implementing ESG practices in negotiation processes?
      • How adaptable is the ESG strategy, considering differences in regulation and stakeholder expectations in different markets?

      By designing customised climate transition plans, KPMG Portugal helps organisations anticipate and respond to market, regulatory and investor demands, making them more competitive and sustainable in the long term.

      How companies address ESG Due Diligence

      Standardised approach

      • Follows pre-defined ESG standards, providing consistency and comparability.
      • May not reflect all the specific features of the business or market.

      Flexible approach

      • Adapts the analysis to the realities and aims of each merger or acquisition.
      • Enables you to identify unique opportunities for value creation, but may offer less consistency between different processes.
      ESG Due Diligence is not just a check, it’s a compass which sets companies and all their stakeholders on course to a more sustainable future.

      Filipa Barreto

      Advisory Partner

      KPMG Portugal

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      Filipa Barreto photo
      Filipa Barreto

      Advisory Partner

      KPMG in Portugal

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