During the due diligence process, an analysis is carried out by Antin’s ESG team to identify the ESG issues which are likely to have a material impact on the financial and operational performance of the target company. This analysis is based on our internal ESG materiality assessment framework, as well as various international standards such as the Sustainability Accounting Standards Board (SASB)’s Materiality Map – an interactive tool that identifies and compares ESG issues across different industries and sectors.
Due diligence is then performed by our ESG team, along with external consultants and lawyers where required, to identify specific business risks and opportunities, outstanding liabilities and compliance obligations associated with those issues. Results of that review are documented, shared with the Deal team and presented at Investment Committee meetings.
When relevant, operating and capital expenditures relating to ESG issues are included in the target company’s business plan (e.g. asset maintenance or upgrade to improve a company’s environmental or safety performance). Contingency planning is also performed and documented for potential future ESG risks.