ESG due diligence audits for companies

A recent study by KPMG has analysed the potential impact of findings in the ESG due diligence process for M&A deals (mergers or acquisitions). More than half of the respondents stated that warning signals regarding ESG can be a deal-stopper. 53 % of respondents indicated that material ESG due diligence findings have led to deal cancellations, and 42 % indicated that they have led to purchase price reductions.

The study also indicates that the frequency of ESG due diligence is likely to increase in the future. However, there are still major challenges in conducting ESG due diligence, as there is still a major lack of data regarding ESG due diligence.

Entrepreneurs who are thinking of selling their company in a few years' time or who may be facing a merger or takeover must therefore consider in good time how they can integrate ESG criteria into their credible company. This way they can avoid a poor valuation or expect a better price. At M&P Climate, we support companies in fulfilling their ESG due diligence obligations.