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ESG due diligenceexplained

Screen investments, deals, and partners confidently.

ESG due diligence tests how a company manages environmental, social, and governance risks before you sign a deal or launch a partnership.

ESG illustration

What does ESG due diligence include?

It is a structured review of environmental, social, and governance policies, data, risks, and improvement plans before an investment, transaction, or partnership proceeds.

3
3 steps: Screen, deep dive, remediate

Start with high-level checks, then test details, then agree on fixes.

Teams
Cross-functional teams

Legal, finance, ESG specialists, and operations each own a portion of the review.

AI
Agentic-ready automation

Structured workflows let agentic services handle reminders, data pulls, and reporting.

Key ESG due diligence components

 

Screening and scoping. Define material issues, regulatory triggers, and the timeline.

 

Data and document review. Collect policies, KPIs, audits, and third-party reports.

 

Interviews and site checks. Validate claims with leadership, employees, and partners.

 

Remediation planning. Agree on actions, owners, and post-close monitoring before signing.

WHY IT MATTERS

Why ESG due diligence protects value

Risk discovery. Early ESG insights prevent surprises in valuation, integration, or reputation.

Regulatory compliance. Jurisdictions increasingly expect ESG issues to be considered in mergers and financing.

Stakeholder confidence. Investors and community partners want evidence that diligence covered ESG topics.

Integration readiness. Due diligence informs post-close plans and quick wins.

PROCESS

A simple ESG due diligence flow

  1. Plan the scope. List material topics, geographies, and standards relevant to the deal.
  2. Assign owners and templates. Give each workstream consistent questionnaires, trackers, and report formats.
  3. Analyse and rate findings. Tag issues as low/medium/high risk and document mitigations.
  4. Decide and monitor. Tie findings to deal terms, covenants, or integration objectives.

AGENTIC SUPPORT

Where agentic ESG due diligence services help

  1. Automated evidence collection. Agentic assistants can request policies, assign tasks, and store responses inside RunSustainably.
  2. Smart reminders. Due dates, approvals, and red flags stay visible without manual chasing.
  3. Scenario reasoning. Structured prompts help analysts assess how ESG issues could affect value drivers.
  4. Post-close monitoring. Agentic workflows keep remediation tasks alive well after the transaction closes.

ESG due diligence actions to try now

 

Create a unified tracker. Store every question, attachment, and finding in one workspace.

 

Prep interview guides. Write simple question sets for leadership, operations, and community voices.

 

Pilot agentic support. Use Drova RunSustainably’s agentic services to triage tasks and summarise findings.

GLOSSARY SNAPSHOT

Due diligence glossary snapshot

Red flag. A material ESG issue that could change valuation or require contractual protections.

Data room. The secure location where sensitive documents are shared with buyers or partners.

Agentic ESG service. An automated assistant that can gather data, assign tasks, and summarise insights under human supervision.

FAQS

ESG due diligence explained FAQs

When do we run ESG due diligence?

During investments, acquisitions, large partnerships, or supplier onboarding when ESG exposure could affect value.

Who leads ESG due diligence?

Legal or corporate development teams often coordinate while ESG specialists dive into the details.

Do agentic services replace advisors?

No—they automate repetitive tasks so attorneys and ESG experts can focus on judgement calls.

What happens after diligence?

Findings turn into integration or remediation plans with clear owners and timelines.

Drova RunSustainably unites objectives, approvals, and reporting so these ESG topics stay actionable.

Ready to keep ESG insight organised?