ESG due diligence examines sustainability-related risks and liabilities that could affect an investment, acquisition or financing decision.
Understanding ESG Due Diligence
When to consider this service
Management, sustainability teams and investors working with sustainability data, operational impacts or reporting requirements can use this service to clarify a particular issue. A useful starting question is: “Why examine operational records during ESG due diligence?” Begin with the facts behind that question rather than assuming that a standard package will resolve it.
Scope of work
The engagement can cover the following workstreams. The proposal specifies which apply to your matter and what evidence or specialist input is needed.
- Review target operations and material exposures.
- Assess governance labour and environmental evidence.
- Translate findings into transaction actions.
Documents and information to prepare
Start with the records below where available. They help establish the facts before a more specific checklist is agreed.
- Permits.
- Incident records.
- Policies.
- Site information.
- Transaction documents.
Provide the relevant entity, transaction or reporting period and any existing notice or deadline. Identify missing or inconsistent records so they can be addressed explicitly.
A key issue to resolve
A policy document does not establish actual performance; operational evidence and unresolved incidents also influence findings.
How the engagement works
- Define the question: review target operations and material exposures, using the available permits and the facts you provide.
- Examine the evidence: assess governance labour and environmental evidence. Record unresolved information and the assumptions that affect the analysis.
- Agree the action: translate findings into transaction actions. Set the required deliverables, responsible owners and any follow-up or external dependency.
Deliverables, fees and timing
The proposal for ESG Due Diligence sets out the analysis, documentation or coordination deliverables and the work you retain. The availability of permits, incident records, policies, site information and transaction documents affects readiness and the amount of follow-up needed. Fees and the working schedule are agreed after that initial assessment. Any required independent report, legal representation or authority application is identified as a separate responsibility where relevant.
Discuss your requirement
Share a short summary of your ESG Due Diligence requirement and the records already available. BIATConsultant can assess the proposed scope and explain the next steps.
FAQ
Practical questions about ESG Due Diligence.
Why examine operational records during ESG due diligence?
A policy document does not establish actual performance; operational evidence and unresolved incidents also influence findings.
What records should I prepare for ESG Due Diligence?
What can the scope of ESG Due Diligence include?
How are fees and the schedule agreed?