Digging Deeper into ESG
Langan Team Supports Evolving Environmental Due Diligence Sector
As environmental due diligence evolves, so do the needs of firms engaging in mergers and acquisitions (M&A). Enter ESG (or environmental, social, and governance) specialists, who are tasked with conducting a critical vetting process to assess and quantify risk for investors buying and selling businesses.
Langan expanded its due diligence services earlier this year, adding an expert team of ESG M&A consultants to better serve clients. In addition to evaluating environmental impact concerns, the team also assesses environmental compliance, health and safety considerations, emerging regulations that may affect businesses, and legacy liabilities. Once this information is consolidated, clients are given a snapshot of their prospective investment with summaries of the potential issues they face, how much it will cost to address such issues, and how these issues could affect the business.
The rising interest in ESG M&A has increased the amount of factors consultants investigate when analyzing the environmental, social, and governance performance of investment targets. For instance, environmental is no longer limited to contamination issues and operational compliance. It also may include assessment of physical and transitional risks associated with climate change, energy usage, and greenhouse gas emissions, as well as the conflict between investment growth versus decarbonization goals. There is a litany of potential risks and opportunities associated with the social and the governance elements, as well, including business performance in relation to:
- Sustainability, ESG, and Corporate Social Responsibility Reporting
- Product Stewardship and Compliance
- Stakeholder Engagement
- Labor Policies
- Employee Wellness
- Diversity, Equity, and Inclusion
- Corporate Ethics
- Supply Chain ESG
This list continues to expand and evolve as ESG becomes more standardized, regulated, and tied to capital. And the needs of each client can vary significantly. Langan understands that ESG is not a one-size-fits-all proposition. On the contrary, every client and every investment is unique, which is why the ESG M&A Consulting team provides a collaborative approach tailored to each client’s needs and the context of each deal.