ESG due diligence
Questions that reveal risks
As investors, acquirers, and procurement teams increasingly seek responsible partners, ESG due diligence has become a critical tool for identifying hidden risks and future value. It offers a lens beyond financials, capturing environmental liabilities, governance weaknesses, and social red flags that can affect long-term performance and reputation. At SAGE, we conduct sector-sensitive, context-specific ESG due diligence that goes beyond surface checklists. Whether you’re evaluating an investee, merger target, or strategic supplier, our process delivers practical insights that support informed, ethical, and forward-looking decisions.
FAQ's
Why does ESG matter in due diligence?
Because environmental and social risks, as well as governance lapses, can become material financial and reputational liabilities.
What areas are covered in your ESG DD?
We assess environmental management, labour practices, governance structures, ethics, legal compliance, on ESG and alignment with global frameworks, when required.
How is this different from financial or legal due diligence?
ESG DD highlights non-financial risks and opportunities that are not always visible through legal or financial lenses.
Can ESG due diligence be tailored by sector or transaction type?
Yes. We customise depth, focus areas, and assessment tools based on deal type, sector exposure, and transaction stage.
Do you provide post-DD recommendations?
Absolutely. We offer clear, actionable recommendations.
What we offer
Pre-investment and pre-merger ESG risk screening
Assessment of environment, social, and governance performance
Contextual risk scoring and red flag analysis
Alignment with frameworks such as IFC, OECD, IRIS
Post-DD mitigation guidance and ESG integration planning
Our collaborative process:
Scoping and risk prioritisation
Define deal context, ESG focus areas, and materiality thresholds.
Document and data review
Analyse ESG-related disclosures, policies, permits, and past audit reports.
Stakeholder and site assessment
Conduct management interviews, virtual site walkthroughs, and grievance channel reviews.
Gap identification and scoring
Map findings to risk themes, score maturity levels, and identify critical red flags.
Risk reporting and recommendations
Deliver a clear report with risk ratings, supporting evidence, and recommended next steps.
Outcomes you can expect:
ESG risk profile
A clear summary of material ESG risks and opportunities tailored to the sector and transaction.
Governance and policy gaps
Identification of gaps in ethics, compliance, oversight, or board structure that require redress.
Environmental and social exposures
Insight into legacy issues, supply chain vulnerabilities, or labour-related risks.
Red flag analysis
Highlight of critical issues that could stall deals, harm reputation, or require regulatory action.
Post-DD roadmap
Targeted, practical actions to manage identified risks and strengthen ESG maturity post-acquisition.
Where are you on your ESG due diligence journey?
Whether you are evaluating your first ESG-sensitive deal or refining an institutional ESG lens across multiple transactions, we tailor our due diligence to your goals. We support funds, corporates, and family offices at various levels of ESG integration.
Our approach
We balance rigour with relevance. Our team combines ESG expertise with deal-making pragmatism, ensuring our findings are timely, material, and useful for decision-making. Our tools are transparent, our recommendations grounded, and our delivery aligned with your timelines and confidentiality protocols.
Why choose SAGE for your ESG due diligence?
SAGE has conducted ESG diligence across sectors, ownership models, and geographies. Our clients trust us for our judgment, our discretion, and our ability to connect ESG risk to real-world outcomes. We help you see the full picture, so that your investments, partnerships, and acquisitions are built on a solid, responsible foundation.
