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Regulatory developments are accelerating across Australia and the world, driven by increasing societal and investor demands for accountability. Investors and C-suite professionals are now aware of Sustainability Reporting requirements, such as the AASB S2 reporting effective as of 1 January 2025, and the need to have a sustainability strategy for key stakeholders. However, this forms just part of a larger shift across industries on increased awareness of key ESG topics and their management. As expectations rise, organisations that embrace responsible governance and environmental stewardship will be better positioned to thrive in a more transparent and sustainable economy.
Environment, Social and Governance (ESG) applies to all businesses, however capturing business externalities on society and the environment have been historically undervalued. A business cannot exist without impacting the air and the water it uses and returns, the experience of its employees and customers, and, through its governance, contribute to the standard of business practices in its regions of operation. Understanding how a company performs on these topics can uncover current issues, potential risks and opportunities for value creation.
As these considerations become increasingly pivotal for dealmakers in Australia, it is important for investors to feel confident in assessing transactions through an ESG lens. Our ESG due diligence process evaluates a company's environmental, social, and governance factors during the pre-investment phase to determine the overall maturity of the entity, manage potential risks, and identify opportunities.
Our specialist ESG due diligence team has expertise across multiple frameworks and can help you identify the topics and aspects of ESG that are material to your decision making and your target business. Our reports may be customised to your needs as an investor, including tailoring to specific sustainability strategy considerations.
Our team starts by evaluating the relevance of ESG to the industry, understanding specific issues pertaining the business and requirements to maintain a social license to grow. Building on our industry analysis, we identify material topics and engage with the business to understand its strategy and performance. Through our review, we outline potential deal implications, prioritising identification of short-term risks and seizable value creation opportunities.
Our approach is informed by leading local and international organisations including the AASB, SASB, GRI, GHG Protocol and others.
Our difference is that we provide you with actionable insights and information to guide you pre- and post-deal. Our report is designed to de-mystify ESG in the context of the company, help you understand how the business is performing, and what steps need to be taken on the company’s sustainability journey.
Covering Environment, Social and Governance, topics are selected based on the company. Common topics may include GHG emissions, employee health and safety, supply chain management, ESG governance, and others, aiming to provide a holistic view of the business in short timeframe. With an eye to sustainability regulation, our standard report also includes high-level commentary on climate risks and opportunities.
Grant Thornton offers three levels of ESG due diligence, intended to suit businesses of within different industries, of different sizes and differing stages of their sustainability journey. For further information and an introductory discussion, please reach out to our team below.
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In the meantime, if you have any questions, please don't hesitate to contact us via communications@au.gt.com.
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