ESG Due Diligence for a Private Equity Fund

Background and Objectives

The need

The Private Equity Fund identified a target company operatingin the poultry and rabbit equipment industry; following its ESG Policy, the Fund needed to perform a ESG due diligence.

The Goal

Identify ESG risks/opportunities able to impact the future target company cash flows

The Project

  • Market and consumer behavior trend assessment, current and expected regulation and legal constrains, ESG benchmarking of major competitors.
  • Assessment of the degree of awareness and competence shown by the management team considering the different ESG issues. The assessment is based on interviews, company documentation, web sites and external sources.
  • Identification of ESG risk/opportunity areas and a preliminary Action Plan.

Approach

01.

Company ESG scenario:

  • Industry experts and Key opinion leaders interviews

  • Desk research to identify the most relevant ESG trends and impacts

02.

Company ESG positioning:

  • ESG check list development

  • Desk analysis of relevant ESG documentation provided by the company

  • Management interviews and deep dive analysis

03.

Risk/opportunity matrix and Action Plan:

  • Set up of a low/medium/high ESG risk and opportunity matrix to support Fund investment decisions

  • Identification of an ESG Action plan to mitigate potential ESG risks raised during the project

Key Outcomes