ESG-related consideration are not typically included in deal closing documentation. Significant ESG enhancement opportunities identified in due diligence are considered in strategy work and business plan discussions and/or documentation that starts right after the deal closing.
As an example, in 2019 CapMan Growth Equity invested in Picosun, a small Finland-based company providing Atomic Layer Deposition (ALD) solutions globally. One of the key findings in due diligence was inadequate HR operations. Immediately after the completion of the transaction, HR Director was hired as a first step to spearhead the establishment of an acceptable HR function.