Case Study: Investment-Grade EHS Due Diligence for a Leading Heavy Engineering Company

Project Overview: Investment-Grade EHS DD (Due Diligence audit)

Consultivo conducted an Investment-Grade EHS DD or EHS Due Diligence audit for a major heavy engineering company in India, aimed at supporting a Merger & Acquisition (M&A) decision. 

The company had multiple manufacturing units spread across the country with a people strength of over 3000 persons. The client required a thorough evaluation of their Environmental, Health, and Safety (EHS) practices to identify risks, gaps, and potential liabilities before finalising the merger/acquisition (M&A) process.

Supporting Investment – Merger – Acquisition

Scope of Work for the EHS DD

Our comprehensive EHS due diligence process included:

Data Collection & Review

Gathering and assessing project data, documents, and relevant EHS records from multiple manufacturing units.

EHS DD – Site Visit & Assessment

Conducting on-site inspections to evaluate real-time conditions and safety practices.

Secondary Research

Performing in-depth research, including reviews of media reports and industry trends.

As-Is Situation Assessment – EHS DD

Analysing current EHS practices and identifying critical gaps and material issues.

Data Collection & Analysis

Compiling, analysing, and interpreting key data to understand the company’s EHS performance.

Read more on Consultivo M&A Due Diligence Services

Key Standards and Protocols Used for the EHS DD

The audit was conducted in accordance with leading international standards, protocols, and industry best practices, including:

  • ISO 14001 (Environmental Management)
  • ISO 45001 (Occupational Health & Safety)
  • IFC Performance Standards (IFC PS)
  • ISO 14015 (Environmental Due Diligence)
  • World Bank EHS Guidelines
  • Legal requirements in India and industry-specific good practices.
  • Consultivo Internal Guidelines for ESG Due Diligence

Post EHS DD Priority Action Plan

Based on our findings, Consultivo developed a Post EHS DD (due Diligence) priority action plan for the client, addressing critical gaps in their EHS practices.

This plan included corrective actions to bring their operations into alignment with international best practices and Indian legal requirements, minimising potential liabilities and enhancing operational sustainability post merger/acquisition.

Read more on Consultivo EHS Due Diligence

Impact

Consultivo’s EHS due diligence or EHS DD provided the client with critical insights into the environmental and safety risks associated with their acquisition, allowing for an informed and strategic investment decision. 

Our in-depth assessment not only identified key compliance gaps and potential liabilities but also highlighted opportunities for improvement across the company’s multiple manufacturing units. 

By pinpointing material issues and analysing current EHS practices, we helped the client understand the risks and complexities involved in the acquisition, minimising uncertainty and ensuring a responsible approach to risk management.

In addition, our tailored post-acquisition action plan enabled the client to proactively address these identified EHS issues. The plan outlined specific corrective actions to ensure smoother integration of the new operations while fostering long-term sustainability. 

This approach not only mitigated immediate risks but also set the stage for improved safety, environmental performance, and compliance. By helping the client embed industry best practices and enhance operational efficiency, Consultivo played a key role in facilitating a successful and sustainable acquisition.

About Consultivo Due Diligence Audit Services

Consultivo specialises in ESG and Sustainability-focused due diligence, designed to support pre-investment for Greenfield and Brownfield projects and M&A decisions. 

With expertise in key areas such as ESG Due Diligence, ESDD, EHS Due Diligence, OHS Due Diligence, Environmental Due Diligence, HR Due Diligence, and Business & Human Rights Diligence

As an ESG Due Diligence Consulting company or due diligence audit service provider, we help investors and companies identify risks and liabilities, assess compliance, and unlock opportunities for sustainable growth. We support informed, responsible, and strategic decision-making.

Empanelled sustainability consultant for International Finance Corporation (IFC), World Bank Group, KfW IPEX Bank, Germany and many more financial Institutions.

Consultivo is one of the leading ESG, Business Excellence and Risk Management Consultants.

An Advisory, Research, Audit & Training organisation helping global businesses in the areas of Sustainability, Business Excellence & Risk Management both at the strategic and operational levels.

Major service verticals include Safety, Sustainability, Environment & Energy, CSR, Management Systems, Organisational Development and Human Capital Development. 

Consultivo works with 150+ National and International Sustainability related codes, standards and guidelines.

Consultivo Academy provides training and capacity-building services through both in-person sessions and e-learning platforms.

Slate of Swan is purpose driven ESG focused reporting, design, and impact communication agency.

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Category:  Impact Stories

Tags: Environment & Energy | Due Diligence Services | EHS | Industry Sector – Heavy Engineering Manufacturing

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