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ESG due diligence in M&A

Understanding and mitigating environmental, social, and governance (ESG) risks is crucial in today's business landscape. Our tailored strategies help you address ESG risks and position you to capitalise on emerging opportunities.
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As the global business landscape continues to evolve, it is becoming increasingly important for organisations to understand and address the risks and opportunities associated with their ESG objectives.

At Marsh McLennan, we recognise the importance of clients addressing their ESG issues in shaping the future of their businesses. Our aim is to provide you with a comprehensive assessment of the target company's exposure to ESG risks and opportunities, enabling you to make informed decisions and navigate the complexities of the transaction landscape.

In this section, we concentrate on three essential areas: ESG maturity assessment, ESG risk and opportunity review, and ESG regulatory exposure scan. These elements offer valuable insights into the target company's ESG strategy, risk management practices, and compliance with current and future regulatory requirements.

ESG maturity assessment:

  • Review the target's ESG maturity based on available public and private information.
  • Assess and benchmark the sophistication of the target's ESG strategy and its integration into the broader business strategy.
  • Evaluate the governance structure in place around ESG and the quality and extent of ESG reporting and data.

ESG risk and opportunity review:

  • Assess the target's exposure to specific and sectoral ESG-related risks and opportunities.
  • Evaluate the target's management of ESG risk.

ESG regulatory exposure scan:

  • Review the target's compliance with current regulatory requirements related to ESG.
  • Conduct a horizon scan of future regulations that may apply to the target.
  • Provide an opinion on the target's current alignment with incoming regulations and recommend actions required to ensure future compliance.

By evaluating the target company's ESG strategy, risk management practices, and compliance with regulatory requirements, we can help you identify potential risks and opportunities.

Our team of specialists at Marsh McLennan is ready to assist you in interpreting the results and developing tailored strategies to mitigate ESG-related risks and capitalise on emerging opportunities. We can provide guidance on integrating ESG risk considerations into due diligence, valuation, and post-transaction integration processes. If you have any further questions or require additional information, please do not hesitate to reach out to us.