Environmental stewardship, social impact and climate change are among the most significant issues of our time. Environmental, social and governance (ESG) evaluations will support lenders and investors — helping them understand these complex issues — while increasing transparency and accountability in projects and transactions.

Investors and lenders are required to make informed investment decisions, and can be accountable for responsible investment. An experienced ESG due diligence and transactions advisor can provide an understanding of:

1. The environmental impact (including effluents and waste, greenhouse gas emissions, air pollution, resilience, climate change, water impacts, deforestation, land use, biodiversity, energy efficiency and responsibly sourced material).
2. The social impact (responsible employment, occupational health and safety, health and wellbeing, inclusion and diversity, accessibility, community development and customer satisfaction).
3. Governance (how well the company that runs an asset is managed, from labour practices, procurement practices, corruption, governance, transparency, and accounting practices.

All companies are susceptible to the costs and liabilities of environmental and social risk when undertaking mergers and acquisitions (M&A). Lenders and investors are factoring ESG risk into their decision-making process, increasing confidence by improving risk management and market transparency. By identifying and quantifying ESG risk, and the process by which it is being managed, lenders and investors can gain an enhanced view of corporate risk and strengthen their investment appraisals and due diligence process.

What 1898 & Co. Does

1898 & Co. ESG Consulting takes a risk-based approach in analysing ESG factors during transactions across many sectors. With in-depth global experience, we have assisted many lender and investor clients with successful business transactions in a sustainable and informed way.

Our consultants provide depth of experience across many sectors and regulatory regions. Many also have operational experience, leveraging specialist knowledge, opinions and innovative solutions for the clients’ benefit. Environmental and social transaction advisory capabilities include:

• Project finance (developer and lender technical and environmental adviser).
• Environmental and social due diligence.
• Environmental and social risk appraisal and compliance reviews against safeguard policies of major lending institutions including the Equator Principles and International Finance Corporation (IFC) Performance Standards.
• Environmental and social regulatory compliance.
• Environmental liability assessment.
• Construction and operations oversight, environmental and social monitoring, and audit.