In the pre-investment phase, we conduct a preliminary assessment of the project through a proprietary ESG check-list as well as a thorough ESG technical due diligence, whose results are then integrated in the agenda of the investment committee. The ESG due diligence includes site visits, interviews of stakeholders, requests for documentary evidence, and a review of publicly available sources of information. The findings, such as liabilities, remediation costs, post-acquisition action plans, risks of non-compliance, are presented in a 20-30 page long report, which includes an executive summary whereby a criticality scale ranks the findings based on their probability of occurrence and associated consequences. It serves as an important basis for discussion during the investment committee and during commercial negotiations, as well as for the ESG roadmap used to monitor ESG risks and opportunities during the operation phase.
Conquest’s investment committee has the final say to decide whether an investment case is validated. Findings drawn from the ESG check-list and/or the ESG technical due diligence are integrated in the investment memorandum. In some instances, the investment committee may decide to interrupt or stop the acquisition process.
In some cases, due to time limitation, ESG due diligence may be performed ex-post, within six months after the beginning of the ownership phase. In this case, the investment committee’s decision and commercial negotiations would therefore rest upon the findings of the preliminary assessment and ESG check-list.