ESG Due Diligence

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.

Typical tasks we undertake in ESG Due Diligence projects include:

  • Participation in stakeholder meetings
  • Conducting workshops with ESG experts
  • Creating question lists during Q&A sessions and monitoring the data room
  • Comprehensive interviews with relevant stakeholders
  • Coordinating external service providers, such as sustainability consultants and ESG rating agencies
  • Desk research/secondary research
  • Close coordination with other Due Diligence providers (e.g., Financial, Legal)
  • Preparation of interim and final reports in German and English
  • Presentation and discussion of results
Typische Aufgaben, welche wir im Rahmen von Commercial Due Diligence Projekten übernehmen sind:

– Teilnahme an Management Meetings

– Veranstaltung von Workshops mit Industrieexperten

– Erstellung von Fragenlisten im Rahmen von Q&A Sessions und Monitoring des Datenraums

– Durchführung von umfangreichen Interviewprogrammen (v.a. Telefoninterviews)

Koordination von externen Dienstleistern, z.B. Marktforschungsunternehmen und Online-Panels (soweit notwendig)

Desk Research / Sekundärrecherche Enge Abstimmung und Koordination mit anderen Due Diligence Anbietern (z.B. Financial, Legal, Operational, Tax)

– Erstellung von Zwischen- und Endberichten in deutscher und englischer Sprache

Präsentation und Diskussion der Ergebnisse

Our ESG experts have extensive experience in the field of sustainable investments and specialize in assisting companies in identifying and addressing ESG challenges. CA Strategy provides ESG Due Diligence for companies across various industries and markets, contributing to ensuring that investors seeking sustainable returns make informed decisions.

Literature Recommendations:

“ESG for Private Equity: A Guide to Responsible Investment” by Abigail Herron

“Sustainable Investing: The Art of Long-Term Performance” by Cary Krosinsky and Sophie Purdom

“The Rise of Responsible Investment: Reimagining the Role of Capital in a Sustainable Society” by Robert G. Eccles, George Serafeim, and Sakis Kotsantonis

“ESG Investment: An Introduction to Environmental, Social, and Governance Investments” by William B. Burckart, Denielle Sachs, and Meg Voorhes

“The ESG Handbook: A Comprehensive Guide for Responsible Investors” by Wolfgang Pinner, Chris Pinney, and Kurt Buehler

Further information: Global Reporting Initiative (GRI) and Principles for Responsible Investment (PRI)

For any inquiries, we are available at your disposal at all times.

Point of Contact: Markus Knarr

CA Strategy Consultants GmbH

Markus Knarr

Schleißheimer Straße 2
80333 München

Phone: + 49 89 51514812