Environmental and Social Due Diligence (ESDD)
Environment and Social Due Diligence (ESDD) is a management tool used to identify the social and environmental aspects of any business that plays an important role in decision making process prior.
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Get Support AnytimeWhat is Environmental and Social Due Diligence (ESDD)?
Environmental and Social Due Diligence (ESDD) is a management tool used to identify the social and environmental aspects of any business that plays an important role in the decision-making process before making a new investment, as well as in long-term business success. Now, environmental and social compliance became an important part of any business. If not managed properly, they can influence the brand reputation, financials and value of an enterprise.
ESDD identifies the hidden environmental and social risks associated with the business sufficiently and communicates risks or liabilities that are material to the buyer or investor. Also, ESDD helps the business in mitigating risks and identifying opportunities. Mainly, risks can be of the following types:
- Credit Risk: A company is unable to repay a loan on account of social and environmental issues
- Liabilities risk: Legal complications, fees, and/or fines for rectifying social and environmental damage
- Reputational risk: Negative aspects of a project may harm a financial intermediary’s reputation
Corpseed is proving the services on ESDD to help the business in identifying the potential & existing E&S-related risks or hazards associated with your business. We identify and prioritize the risk linked with your business and provide the management/mitigation measures to resolve the risks. Not only does this Corpseed assist you to be compliant with its other services, and assists you in your journey towards sustainability.
Our Approach
ur approach will be to use relevant frameworks and standards based on the requirement of the company, viz. Applicable national environmental and social legislation, IFC Performance Standards on Environmental and Social Sustainability, 2012, World Bank EHS Guidelines etc.
- Document Review: Review of relevant national legal framework, companies’ documents and information provided.
- Site survey: Understand current operations, and operations carried out on adjacent facilities and the surrounding areas.
- Conduct interviews: Meetings and interviews with relevant personnel and data collection.
- Assessment: E&S practices based on interviews, site visits and document review; evaluation of potential gaps/ weaknesses related to E&S components.
- Reporting: Developing ESDD report with the action plan to be implemented.
Benefits of ESDD
- Identification & Guard Against Risk and Impacts: ESDD will help the company to identify and guard the risk and impacts associated with the business/companies associated with the project execution, legal claims, etc.
- Improve Financial and Operation Performances: Implementation of the standards and management measures as prescribed in ESDD can help to improve the business.
- Social License to Operate: Maximize Local development benefits and encourage the practice of good corporate citizenship. Enhanced brand value and reputation, which may also be attractive to new investors and financiers.
Why Corpseed
Corpseed is proving the services on ESDD to help the business in identifying the potential & existing E&S-related risks or hazards associated with your business. We identify and prioritize the risk linked with your business and provide the management/mitigation measures to resolve the risks. Not only does this Corpseed assist you to be compliant with its other services, and assists you in your journey towards sustainability.
Connect With Corpseed
Connect with the Corpseed team to discuss your requirements at IVR: 7558640644 or hello@corpseed.com. It takes 20–25 minutes to discuss the requirement.
Dedicated Manager
Once you discuss the requirement, we will align a dedicated Account Manager to understand your business needs and assist throughout the process.
Real Time Update
Track the progress of your application and always know what’s in progress and what’s done.
Job Completed
Once the job is completed, you will receive registrations & certifications directly to your email ID and at your doorstep.
Frequently Asked Questions
Quick answers to common questions about this service.
What is ESDD?
Environmental and Social Due Diligence (ESDD) involves the systematic identification, quantification and assessment/evaluation of environmental and social risks associated with a proposed transaction. The review of potential environmental and social risks associated with the business activities of a potential client/investee ensures environmental and social risks of the business. It also helps to identify the management measures, necessary to reduce any identified environmental and social risks.
What are the 3 P's of Due Diligence?
The three P's of due diligence are people, process, and performance.
Why due Diligence Report is Required?
- To identify potential environmental and social risk in investment opportunities.
- To make sure that the investment opportunity complies with the investment criteria
- To obtain information that would be useful in valuing the deal.
- To identify possible measures to reduce potential risks.
What is due Diligence in Simple Words?
Due diligence is an investigation, audit, or review performed to confirm facts or details of a matter under consideration.
What Is ESG Due Diligence?
ESG stands for environmental, social, and governance. ESG due diligence is the process of analysis company’s ESG policies and risk factors. There are several key steps used to perform ESG due diligence: - Collecting Key Performance Indicators and Documents, Interviewing Company Stakeholders, Performing Background Checks on Decision-makers, Reviewing All Accounts, Executing Inspection Initiatives, Conducting and Compiling an ESG Risk Assessment
What is Difference Between due Diligence and Audit?
Major difference between an audit and a due diligence review is that, an audit reports only on the truth and fairness of the financial results, whereas due diligence will investigate reasons for the trends observed in the company over a relevant time period and report in terms of relevancy for the proposed transaction.
How ESDD is Conducted?
ESDD is conducted based on the standards such as Applicable national environmental and social legislation, IFC Performance Standards on Environmental and Social Sustainability, 2012, World Bank EHS Guidelines etc.
Who can Perform Due Diligence?
In general, due diligence is performed by fund managers, individual investors, research analysts and companies that are acquiring other companies.
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