Attention to ESG performance has been growing even as the risks and opportunities evolve and expand. Today’s in-house counsel, boards, audit committees and their advisers must respond to demands from various stakeholders, regulatory bodies, and investors; navigate cultural nuances and organizational processes; and anticipate the consequences of internal and external investigations and potential ensuing litigation.
ESG Due Diligence
In an ever-shifting regulatory landscape, StoneTurn’s global reach and deep understanding of our clients business enables us to identify the right ESG strategy necessary to mitigate risks, seize opportunities and create long-term value. StoneTurn’s ESG experts can provide a comprehensive assessment of risks and opportunities in order to identify investment targets whose focus aligns with our clients strategy and in the wider context of the relevant business industry and broader macro-business environment. StoneTurn’s broad bench of experts and experience also assists clients in the development and implementation of a comprehensive ESG strategy.
Investors need to integrate ESG due diligence into their investment process to better meet the market for responsible investments and the value they create. StoneTurn’s ESG due diligence team provides insight into the ESG risks and opportunities of an investment target, offering private investors a unique view of an asset and greater confidence in moving forward with a transaction.
StoneTurn’s ESG assessment provides a holistic view of risk associated with an investment by combining ESG data analytics with on the ground human intelligence.
Some of the factors we consider include:
- Geographic location
- Existing ESG policy
- Reputational factors
- Governance commitments
- Regulatory developments
- Data Privacy and Security
- Ethics and Compliance
- Social and Labor Conditions
- Diversity and Equal Employment Opportunity
- Supply chain risk
Greenwashing Investigations
The last several years has seen a marked increase in greenwashing claims. Government enforcement actions and civil suits alleging greenwashing are on the rise through a labyrinth of different laws, including securities regulations, fraud and misrepresentation statutes, and consumer protection laws. Given the increasing focus on ESG policy and performance, and the increasing focus of governments and investors on detecting greenwashing, this increase in government enforcement efforts and lawsuits is likely to continue.
StoneTurn has the sophisticated investigative skills and resources required to provide clients the intelligence needed to investigate claims of greenwashing and help prevent possible reputational fallout.
How We Help
Due Diligence
- Perform a risk assessment specific to a target’s region and industry as well as the PE firm’s risk appetite
- Develop a tailored ESG questionnaire for the target company to assess significant ESG risks and opportunities
- Verify the target company’s responses through on-the-ground investigation of the target and other relevant parties
- Confirm compliance with regulatory standards
Portfolio Optimization
- Identify relevant key priorities and stakeholder expectations
- Incorporate responses to those into portfolio strategy
Greenwashing
- Assess claims being made through on-the-ground investigation