Environmental and Social Due Diligence (ESDD)

Environmental and Social Due Diligence (ESDD) is a management tool used to identify the social and environmental aspects of any business that plays an important role in the decision-making process before making a new investment, as well as in long-term business success. Now, environmental and social compliance became an important part of any business. If not managed properly, they can influence the brand reputation, financials and value of an enterprise.

ESDD identifies the hidden environmental and social risks associated with the business sufficiently and communicates risks or liabilities that are material to the buyer or investor. Also, ESDD helps the business in mitigating risks and identifying opportunities. Mainly, risks can be of the following types: 

• Credit Risk: A company is unable to repay a loan on account of social and environmental issues
• Liabilities risk: Legal complications, fees, and/or fines for rectifying social and environmental damage
• Reputational risk: Negative aspects of a project may harm a financial intermediary’s reputation

Corpseed is proving the services on ESDD to help the business in identifying the potential & existing E&S-related risks or hazards associated with your business. We identify and prioritize the risk linked with your business and provide the management/mitigation measures to resolve the risks. Not only does this Corpseed assist you to be compliant with its other services, and assists you in your journey towards sustainability. 

ur approach will be to use relevant frameworks and standards based on the requirement of the company, viz. Applicable national environmental and social legislation, IFC Performance Standards on Environmental and Social Sustainability, 2012, World Bank EHS Guidelines etc.

• Document Review: Review of relevant national legal framework, companies’ documents and information provided.
• Site survey:  Understand current operations, and operations carried out on adjacent facilities and the surrounding areas.
• Conduct interviews:  Meetings and interviews with relevant personnel and data collection.
• Assessment: E&S practices based on interviews, site visits and document review; evaluation of potential gaps/ weaknesses related to E&S components.
• Reporting: Developing ESDD report with the action plan to be implemented.

• Identification & Guard Against Risk and Impacts: ESDD will help the company to identify and guard the risk and impacts associated with the business/companies associated with the project execution, legal claims, etc. 
• Improve Financial and Operation Performances: Implementation of the standards and management measures as prescribed in ESDD can help to improve the business. 
• Social License to Operate: Maximize Local development benefits and encourage the practice of good corporate citizenship. Enhanced brand value and reputation, which may also be attractive to new investors and financiers. 

Corpseed is proving the services on ESDD to help the business in identifying the potential & existing E&S-related risks or hazards associated with your business. We identify and prioritize the risk linked with your business and provide the management/mitigation measures to resolve the risks. Not only does this Corpseed assist you to be compliant with its other services, and assists you in your journey towards sustainability.