Buy-Side Due Diligence for Financial Services Group
This private equity client was considering acquiring a platform of landfill-based renewable natural gas assets. The portfolio included operational, in-construction and ready-to-build assets across the US and Canada, with revenue forecasted to more than triple over two years.
To inform the client's investment decision, dss+ was asked to identify, investigate and present findings around potential risk, liabilities and opportunities.
Challenge
The subsidiary of a prominent, global financial services group with more than €360B in assets under management, this US-based team was in the early stages of developing a value-maximising ESG programme. They wished to begin educating investment professionals on emerging ESG trends, asset class-specific applications and materiality across industries, as well as offer issue- and industry-specific case studies and workshops.
dss+ were asked to develop and deliver custom content to establish foundational knowledge and applied understanding of best practices and begin implementing and scaling the ESG objectives.
dss+ Approach
An in-depth review of policies and tools informed a guided process for identifying potential improvements. Possibilities were demonstrated in real time, using actual tools and processes to address the real-world challenges of each investment team.
Assignment
Buy-side due diligence around worker health and safety, environmental, and social/DEI risks and opportunities in a renewable natural gas portfolio.
Offering
Safety, culture and ESG consulting.
Impact
Synthesised expert findings and recommendations into “Red and Yellow Flag” and due diligence reports
Surfaced potential asset integrity issues and recommended actions; highlighted emerging social risks; ranked risks associated with DEI, community relations, and contractor management.
Identified multiple environmental compliance warnings and operating experience gaps to inform the client bid.