EHS / ESG support of transactions and investment projects

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Assessing financial, legal, tax and technical risks and liabilities is a standard practice for many companies in mergers, acquisitions, divestitures, IPOs or project finance. At the same time, non-technical risks, such as environmental and social, are not always given due attention

Meanwhile, research shows that:

90% of all financial transactions are accompanied by a whole range of risks and obligations associated with EHS/ESG issues

EHS/ESG factors can increase or decrease the value of an asset by an average of 10-30%

EHS/ESG issues remain underestimated in 75% of transactions

20% of transaction agreements are not concluded due to significant EHS/ESG-related risks and liabilities identified during the due diligence process

ENSOR provides clients with services for the timely assessment of environmental and social risks, liabilities, and opportunities, which contributes to clients’ awareness of potential issues and helps effective decision-making, reduces time required for transaction implementation and subsequent integration, facilitates negotiations, and increases financial attractiveness of the asset by taking timely measures to manage the identified risks, liabilities, and opportunities

ENSOR team experience

ENSOR specialists have many years of experience in supporting transactions on environmental and social issues, know the relevant business terminology and have extensive experience in interacting with other consultants (financial, legal, tax, technical, etc.), as well as with clients’ project teams

International Expertise

Our professional connections with subject-matter experts abroad and perfect command of foreign languages allow us to conduct EHS/ESG Due Diligence in countries near and far abroad

We offer the following types of services in the field of EHS / ESG support of transactions and investment projects:

Assets mergers, acquisition and sale transactions:

Buy-side or sell-side EHS Due Diligence
Extended due diligence on ESG issues (ESG Due Diligence)
Site assessments in accordance with ASTM Environmental Site Assessment Standard Practices for the Phase I Site Assessment (E1527-21) and ASTM E1903 Standard Guide for Phase II Environmental Site Assessments
Qualitative and quantitative (including cost) assessment of EHS/ESG risks and liabilities
Verification that risks and obligations identified by EHS / ESG Due Diligence are considered in the sale purchase agreement (SPA)
Assistance in populating the virtual data room (VDR) with information on EHS / ESG topics

Project Finance

On the Lenders’ side (lenders environmental and social consultant - LESC)

Assessment of “Key” environmental and social risks of the project (“Red Flags”)
Assessment (gap analysis) of the project for compliance with lenders’ environmental and social requirements and standards (IFC, EBRD, Equator Principles, OECD Common Approaches, etc.)
Development of an environmental and social action plan to address identified gaps and inconsistencies
Interaction with the Borrower's consultant on environmental and social issues
Assistance in preparation and discussion of the loan agreement terms regarding environmental and social issues
Environmental and social monitoring after financial close

On the Borrower's side (Borrower's Environmental and Social Consultant)

Preparation of a package of documents for obtaining project financing
Environmental and Social Impact Assessment (ESIA) in accordance with national and international requirements
Developing environmental and social risk and impact management plans
Interaction with the Lenders' consultant on environmental and social issues
Development and implementation of a system for managing environmental and social risks and impacts
Training workshops on environmental and social sustainability standards, including lender requirements
Support / preparation for monitoring / audit by international financial institutions

ESG financing deals

Independent environmental and social risk and opportunities assessment of green / transitional / social / sustainable projects
Assessment of ESG projects compliance with international and Russian taxonomies criteria and standards
Assistance in setting sustainable development goals and KPIs for obtaining ESG loans
Independent monitoring of the goals and sustainable development KPIs achievement under the ESG loan

IPO

EHS / ESG Due Diligence during the preparation for the IPO
Assistance to IPO organizers in the preparation of the securities prospectus (section on environmental protection, labor protection and industrial safety / ESG)