Environmental, social and governance principles refer to a set of criteria that assess the strength of a company’s governance mechanisms and its capacity to effectively manage both its environmental and social impacts.

An ESG framework can help stakeholders understand how companies manage opportunities and risk around sustainability, social and governance issues.

Environmental factors include how much a company considers the environment around them such as climate change, energy performance, waste management and carbon footprint.

Social factors are determined by how a company treats people, including human rights, employee diversity and impact on the local community. Expectations in respect of social impact extends outside companies, looking at supply chain partners, labour standards and environmental considerations.

Governance focuses on how a company is led and managed. It examines a company’s ability to manage and maintain practices in order to harness organisational culture, compliance, transparency and growth initiatives.

Consumer behaviour is changing with a conscious shift towards sustainability, these behaviours have extended to influence decisions around finances and investment choices. The result of this has forced companies to establish a robust approach towards their commitment to taking impactful action as part their ESG strategy. Failure to do so can lead to financial and reputational damage, while effective governance strengthens a company adding to its long term success.

Investors, stock exchanges and boards increasingly use social responsibility and sustainability disclosure information to look at the relationship between a company’s approach to ESG risks and its business performance.

Taking action

We support our clients in ensuring that they have something meaningful to report on. We apply our cross-sectoral expertise and help our clients deploy capital into socially and environmentally impactful companies and projects. From retrofitting of buildings and offices to investment into renewable energy and carbon removals, we are well positioned to support your sustainability and decarbonisation-focused M&A and financing activity.

Communication

We can ensure our clients maintain transparent reporting in end of year financial statements which provides confidence amongst shareholders preserving consistent standards in a constantly evolving climate.

Board of directors

We have experience advising on responsibilities of directors, board composition and succession planning with a tailored approach ensuring up to date compliance with the latest market standards. Our expertise in this area have ensured companies are leaders in areas of diversity and inclusion within their business and the surrounding community.

Risk management

Failure to ensure proper governance exists within a company can lead to challenges and sometimes even litigation against a business. We help companies develop a framework that ensures effective management and development of ESG criteria at all levels safeguarding companies against the many risks and challenges related to ESG.

M&A

When carrying out a due diligence exercise in an M&A transaction, we can identify the many risk areas, providing guidance and mitigation against challenges that may arise.