ESG due diligence

Due diligence beyond the balance sheet

We translate the findings into potential financial and strategic implications, a well-founded investment view and a post-transaction action plan. This makes ESG a practical part of both the investment decision and the value creation plan.
Manage ESG risks
Effective ESG due diligence identifies risks at an early stage that could affect valuation, deal execution or a future sale. These may include new regulations, compliance gaps, reputational risks or weaknesses in policies and governance.

By assessing these risks in advance, you can take them into account in the valuation and deal structure or address them directly after the acquisition.
Identify ESG opportunities
Due diligence is not only about risks. Sustainability can also reveal opportunities for value creation. These may include lower energy and resource consumption, a more resilient value chain or stronger policies around employees and governance.

This can lead to lower costs, fewer operational risks and a stronger position with customers, financiers and future buyers. Instead of a general ESG wish list, you gain practical areas for improvement.
Put the post-deal action plan into practice
The findings from ESG due diligence become most valuable when you act on them after the transaction. We therefore translate the main findings into a prioritised action plan.

This allows improvements to begin during the integration process while progress can be monitored over time. For investors subject to the Sustainable Finance Disclosure Regulation (SFDR), relevant ESG data and analysis can also contribute to the information required for sustainability disclosures.

Our approach

1. ESG performance assessment
We start by identifying the sustainability topics that are relevant to the company. We consider both the company’s impact on people and the environment and the sustainability risks and opportunities that could affect its financial performance.

We then collect available ESG data on areas such as CO₂ emissions, energy and resource consumption, working conditions and governance. We also assess the ESG strategy, targets and measures already in place.

Using our methodology, we assess these areas and, where possible, compare performance with relevant sector benchmarks. This provides a well-founded view of the company’s ESG performance and maturity.
2. Future-readiness assessment
We then look ahead. We identify developments that could affect the company, such as new regulations, changing expectations from customers and investors, resource scarcity and supply chain risks.

We assess how well the company’s strategy, performance and governance are prepared for these developments. We consider both risks and opportunities, such as cost savings, a stronger market position or access to sustainability-linked financing.

The result is a clear view of the measures and investments that may be needed to prepare the company for these changes.
3. ESG due diligence report
All findings are brought together in the ESG due diligence report. It sets out the company’s ESG performance, the main risks and opportunities, and their potential financial and strategic implications.

We translate these findings into our assessment of the company and a prioritised post-transaction action plan. This gives you a practical starting point for improvements and for monitoring ESG performance throughout the investment period.

Our vision

“ESG due diligence identifies both risks and opportunities for value creation. This makes sustainability a practical part of the investment decision.”

— Ivo van den Bosch