Ambitious sustainability targets of international organizations, countries and corporations means that a fundamental shift in capital allocation by large and small investors towards green economy is already here. In addition, a growing number of investors are looking to bring about meaningful social and environmental change trough impact investments.
How do stakeholders make sure that the contemplated transaction ticks all the necessary boxes in terms of sustainability criteria and is ‘future-proof’? How to avoid the risk that considering the implementation of new regulations around green financing, the investor is not left with stranded assets with deteriorating value?
Many investors consider ESG (environmental, social, governance) framework as a reliable standard how to screen investments and make socially and environmentally conscious investment decisions.
Grant Thornton Baltic has notable experience in performing due diligence services. We can assist various stakeholders in undertaking ESG Due Diligence procedures with respect to the target organization. Although ESG Due Diligence has been historically heavily focused on compliance and possible risk aspects, in recent years investors are increasingly including value creation opportunity within the assessments.
In order to gain further insight into integrating environmental, social and governance aspects within Nordic Private Equity (PE), please see the “ESG in Nordic Private Equity – the State of Play [ 4601 kb ]” survey by Grant Thornton Sweden.
If you have similar challenges and questions, please contact our specialists.