The importance of ESG due diligence
ESG due diligence is essential for managing risks, ensuring regulatory compliance, protecting reputation and brand value, managing supply chains, and making informed investment decisions. However a lack of verification of data in ESG due diligence can compromise data accuracy, impede effective risk assessment, negatively influence investment decisions, and pose challenges for regulatory compliance efforts.
ESG due diligence
How ESG due diligence reduces risk and helps avoid reputational damage
Acquiring the right business
In the context of an acquisition the absence of consistent or comparable ESG data further complicates the evaluation and comparison of current and future portfolios. This is especially true where private equity firms do not possess the internal expertise or resources necessary to conduct comprehensive ESG due diligence. This difficulty is exacerbated by the numerous challenges involved in accurately quantifying the financial implications of ESG risks.
Without independent verification and standardised auditing procedures, it is easy to misjudge or improperly evaluating the ESG performance of an acquisition target. This can in turn hinder the effective identification and assessment of risks.
At Farrelly Mitchell, we are deeply committed to the UN’s Sustainable Development Goals. With our vast experience in food and agribusiness, and our knowledge of global benchmarks and standards we can substantiate the validity of ESG impact claims.
We have a keen understanding of environmental responsibility, social governance, and climate protection and understand the urgency in tackling these issues to ensure a more sustainable future. Our environmental due diligence consultants occupy a crucial position in tackling these concerns and providing reassurance to investors.
Moreover, our sustainability & ESG experts help clients identify and implement effective operational strategies that adhere to ESG criteria, foster business growth, while leaving a lasting and positive impact.
We strive to optimize efficiencies and minimize carbon impact. This approach reflects our commitment to not only addressing immediate concerns but also ensuring long-term sustainability and resilience in the food and agribusiness sectors.
Aligning strategy and ESG due diligence
Farrelly Mitchell assists organisations in establishing a clear ESG strategy aligned with their business plans and objectives. Through materiality assessments, we help companies and their stakeholders identify the most relevant ESG factors. Our approach includes engaging key stakeholders—employees, board members, and C-suite executives—in the ESG due diligence process as we conduct interviews, make on-site visits, and carry out an ESG risk assessment.
We ensure that ESG findings are effectively integrated into broader strategic planning and decision-making processes, with continuous monitoring and reporting to stakeholders.
Additionally, we support organizations in building internal ESG capacity and expertise through training and development programs, by establishing clear governance structures, and by incorporating stakeholder feedback into decision-making processes.
Contact our environmental due diligence consultants
Obtaining accurate and up-to-date ESG data can be difficult especially during the acquisition process. But by collaborating with a reputable third-party consultant with ESG expertise, you can streamline the data collection and analysis process and ensure that you receive comprehensive and reliable ESG information. To explore how our services can enhance your ESG strategy and decision-making, speak to one of our ESG sustainability specialists today.
