Environmental Social Governance (ESG) due diligence

What was the project assignment?

During 2019, the Transaction and Responsible Investment Services (TRIS) team of Tauw Group was commissioned to conduct over 40 ESG due diligence assignments for midcap and large cap private equity clients across Europe.

A broad spectrum of industries was involved, including metal processing, plastic production, pharma and med-tech, food and service/consulting industries. Our ESG due diligence was always focused on the ESG aspects relevant for the specific industry and aims to identify ESG risks as well as potential value creation at the individual assessed asset.

How was the cooperation with the client?

For several private equity companies in Europe, Tauw is the preferred consultant and trusted advisor when it comes to conducting ESG due diligence assignments. Projects are always carried out in close corporation with - and to the satisfaction of - the clients.

Our clients appreciate our understanding of the nature of transactions (especially because of the confidentiality rules and information constraints that might apply) as well as the optimal preparation of assessment results needed for their decision making.

We are known for our structured and pragmatic approach to ESG assessments, in particular when it comes to assessing mid-market companies in which not all processes are formalised.

What are the project results?

In all of our ESG due diligence assignments, we identify ESG related risks (if any) and point out potential value creation specific to the asset, taking into account the whole value chain it is embedded in. Recommended actions are suggested for these aspects, which enable the client to make an informed investment decision and to improve the ESG performance of the asset during the holding period.