Compared to other forms of Due Diligence (e.g., Financial Due Diligence, Operational Due Diligence, Legal Due Diligence), ESG Due Diligence concentrates on the sustainability component within transactions, thoroughly examining the environmental, social, and governance aspects of the target company’s business model. This focus is crucial for identifying potential ESG risks and recognizing opportunities for sustainable growth.

In a ‘full-scope’ ESG Due Diligence, the following areas are typically analyzed in detail:

• Environmental: Evaluation of the environmental impact of the business model, environmental management and certifications, energy efficiency, and resource consumption.
• Social: Analysis of working conditions, employee engagement, diversity and inclusion, supply chain management, social responsibility, and stakeholder relationships.
• Governance: Examination of the corporate governance structure, ethics and integrity, risk management, compliance, and transparency.

CA Strategy places a strong emphasis on the future viability and sustainability of the business model, considering ESG criteria. Our analysis aims to ensure the long-term resilience of the company and identify opportunities for sustainable growth. We employ a holistic approach, including interviews with relevant stakeholders, extensive desk research, and close collaboration with ESG experts.