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ARTICLE · 12 DECEMBER 2024

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ESG Due Diligence: Mitigating Risks And Unlocking Value In Transactions

FTI Consulting
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ESG due diligence is an essential addition to traditional financial and operational due diligence and an important tool for risk management and value creation in investment decisions.

AustraliaCorporate/Commercial Law
Tim de Sousa
Tim de Sousa
Carla Liedtke
Carla Liedtke
Shane Murphy
Shane Murphy
Izabela Szewczul
Izabela Szewczul
Wouter Veugelen
Wouter Veugelen

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ESG due diligence is an essential addition to traditional financial and operational due diligence and an important tool for risk management and value creation in investment decisions.

Environmental, social and governance ('ESG') risks and opportunities are increasingly factored into mergers and acquisitions as investors recognise the need to assess the value of intangible assets, such as stakeholder relations, workforce management and social licence to operate.

For Investors

Effective ESG due diligence adds an important dimension to investment decision-making and portfolio management, as sustainability factors can influence the pricing of transactions and valuations of companies. A robust review process allows investors to identify shortcomings, long-term liabilities and any emerging risks or opportunities associated with a company in environmental, social and governance areas that aren't traditionally reviewed as

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