ESG Due Diligence
Danesmead can provide expert assistance to GPs prior to investment, analysing financially material ESG risks and enabling them to make informed investment decisions, mitigate risks, and enhance portfolio performance.
This can augment an existing sustainability team, or as an entirely outsourced function.
Financial returns are intrinsically linked to risk management. Environmental, Social, and Governance (ESG) factors are critical when fully assessing investment opportunities and long-term value creation.
Danesmead provides comprehensive ESG due diligence that enables private equity firms make informed investment decisions, mitigate risks, and enhance portfolio performance.
Our Due Diligence Process
Assess
We analyse sector-specific ESG risks, supply chain vulnerabilities, governance structures, and climate resilience.
Check
Our checks align with global ESG frameworks (e.g., GRI, TCFD, PRI) and regulatory standards.
Benchmark
We compare targets to best practices, helping GPs identify strengths and gaps.
Insights
Our reports provide clear recommendations to address ESG risks and capitalise on sustainability-driven value creation
Our Methodology
Our ESG Due Diligence methodology is based on the most important industry frameworks, plus sector-specific guidance.
Why ESG Due Diligence Matters
Risk Mitigation – ESG issues such as climate risk, labor practices, and corporate governance failures can significantly impact asset value. Due diligence ensures hidden risks are identified and managed proactively.
Regulatory Compliance – With evolving ESG disclosure regulations (e.g., SFDR, CSRD, SEC climate rules), firms must ensure investments align with legal and reporting obligations.
Investor & LP Expectations – Limited Partners (LPs) increasingly require transparency on ESG risks and opportunities within their portfolios. Strong ESG due diligence demonstrates responsible investment practices.
Value Creation & Exit Strategy – Companies with strong ESG performance often achieve higher valuations and more attractive exit opportunities. Integrating ESG considerations from the start enhances long-term growth potential.
Recent Updates
