Integrating ESG issues into the due diligence process is important for a number of reasons, including identifying threats to business transactions, making comparisons with peer groups and industry standards, highlighting deficient practices and identifying key ESG opportunities for improvement after acquisition.

BDO’s Transaction Services practices are well-placed to assist investors and vendors in developing and executing their deal strategy, including ESG matters.

Our general services in relation to ESG include:

• Identification and analysis of the key ESG criteria that are relevant for the target company and derivation of the liabilities/risks or opportunities;
• Comparison of ESG guidelines, including instructions for actions related to peer group and sector-specific best practice approach;
• Analysis of risks related to the impact on intangible assets, such as goodwill. Considerations are given to risks related to reputation, brand, market confidence and customer and business relationships;
• Analysis of the financial impact of the identified risks on the financial position and performance (cash flow, refinancing and transaction).

ESG related services can be performed either as a stand-alone due diligence workstream or fully integrated into existing streams, i.e. financial, commercial, regulatory, tax, legal.

 

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For more information please download our brochures on

Sustainable Finance Risk Management

Please also see our article on Sustainability Snapshots - Sustainable Finance Vol 1 and our dedicated brochure.

Sustainability Snapshots Sustainable Finance Volume 1