What is ESG Due Diligence
ESG Due Diligence provides private market investors with a detailed understanding of potential investments’ sustainability performance. &BLOOM evaluates industry exposure, key material topics, and operational performance, highlighting risks and opportunities that may affect long-term value. We also provide a practical post-investment action plan to ensure continuous improvement.
Why this matters
ESG due diligence is essential for identifying risks and opportunities that could impact investment returns and ESG performance. Thorough ESG analysis protects investors, informs decision-making, and supports the creation of portfolio-wide sustainability value.
What you get
✓ Assessment of key material ESG topics relevant to the target company and industry.
✓ Evaluation of operational ESG performance and strategic sustainability positioning.
✓ Identification of red or orange flags that may be challenging to manage.
✓ Actionable post-investment plan, including 100-day roadmap for improvement.
✓ Recommendations for integrating ESG into company strategy and reporting.
Who is this for
Private equity and venture capital firms conducting pre-investment ESG analysis.
Investment committees needing risk and opportunity insights before deal approval.
Funds looking to create value through ESG post-investment.
Prerequisities
For ESG Due Diligence to be effective, a Responsible Investment Strategy should already be established. This ensures that material ESG topics and assessment criteria are aligned with the fund’s overall investment approach. It is also beneficial if the fund has basic insight into the target company’s operations and existing ESG practices, as this enables a more accurate evaluation of risks, opportunities, and potential red or orange flags.
Frequently Asked Questions
Can ESG Due Diligence be applied to early-stage companies?
Yes, we adapt our approach to the size and maturity of the company.
What is included in a post-investment action plan?
Recommendations, KPIs, and 100-day milestones to address material ESG topics.
Do you identify unmanageable ESG risks?
Yes, we highlight any red or orange flags and advise on potential mitigation.