Assessing the ESG (Environmental, Social & Governance) performance of a “target” company and identifying current and potential risks, and opportunities, is a now necessary step in making well-informed strategic and investment decisions.
Fund investors, as well as possible financing banks, are very attentive to ESG issues and make the making of the investment or the granting of the financing conditional on the conduct of full ESG due diligence.
Greenwich supports Private Equity funds and Private Companies in conducting ESG due diligence with the following objectives:
- Understanding the risk profile and exposure of the target company, as well as the associated ESG risks;
- Identification of any critical issues related to ESG issues, that could impact the investment;
- Identification and analysis of possible risk mitigation and improvement measures.
ESG Due Diligence analyses the organization’s organizational, management systems and stated performance inherent in ESG issues. It allows a circumstantial assessment to be made about the actual consistency of an organization’s ESG approach.
A company’s ESG performance is increasingly evaluated and analysed and communicated through Sustainability Reports.
They are a key topic of evaluation by investors and analysts and lending institutions to assess reputation, or the degree to which a company is “trustworthy and credible” from a sustainability perspective.
ESG Due Diligence generates:
- An ESG risk and opportunity assessment report;
- A clear identification of material ESG issues for Target;
- Specific indications of areas for improvement in the ESG area;
- Specific indications of improvement actions in the ESG area.