ESG due diligence

The Global Private Equity Responsible Investment Survey by PwC in 2021 found that more and more private equity houses are using ESG criteria not just to assess risks and identify value creation opportunities, but to also manage their portfolio and ultimately deliver a better investment at exit. Some are successfully using ESG integration to protect and in a few cases enhance the value of portfolio companies. Climate risk, Net Zero and diversity and inclusion are examples of the ESG issues that have significant traction today.

At PwC, we incorporate ESG information in our due diligence processes and provide ESG screening assessments to help our clients identify industry- and target-specific ESG issues. We provide a tailored approach to material ESG issues depending on the risk identified in the ESG screening assessment. Based on the screening assessment and in-depth due diligence findings, we support our clients to assess the ESG impact on cash flow, determine risk-adjusted returns, and enhance the long-term financial and non-financial outcomes of the acquisition through value creation.

ESG assessment framework (ESG Dimensions)

Environmental

Environmental aspects of ESG themes

  • GHG emissions
  • Energy consumption
  • Water pollution
  • Waste management

Social

Social aspects of ESG themes

Community Relations

  • Social acceptability
  • Stakeholder pressure

Human Resources

  • Employee retention
  • Talent attraction
  • Training
  • Diversity

Health and Safety

  • Work-related accidents
  • Working conditions
  • Psychological issues
  • Work-related stress

Governance

Governance aspects of ESG themes

Supply Chain

  • Outsourcing conditions
  • Environmental impact of the procurement process

Corporate Governance

  • Responsibility and governance roles
  • Diversity in the Board's management
  • Transparency

Business Ethics

  • Bribery and corruption
  • Money laundering
  • Data privacy
  • Human rights

Contact us

Winnie Wang

Winnie Wang

Managing Director, PwC Taiwan

Tel: +886 2 27296666, x25815

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