EHS Due-Diligence Services in India. Ensuring Responsible Investment Decisions
Project: EHS Due Diligence Study of Electronic Components Manufacturing Units in India (Gujarat & Goa)
Consultivo was engaged to conduct an Environmental, Health, and Safety (EHS) Due Diligence audit across four electronic component manufacturing units in Gujarat and Goa. The primary objective was to ensure compliance with environmental and safety standards, as well as to assess operational risks and potential liabilities.
This audit was a critical step for the client, aimed at minimising environmental impact, enhancing workplace safety, and ensuring regulatory compliance.
Scope of Work
1. Environmental Assessment as part of EHS Due-Diligence
- Compliance Check: Assessed compliance of site operations against existing applicable and reasonably foreseeable environmental regulations to ensure adherence to current and future standards.
- Operational Upgrades: Evaluated the necessity for potential upgrades across operational sites to align with internationally accepted good management practices.
- Environmental Impact Analysis: Analysed historical and current activities at operational sites with a focus on their potential to impact the environment.
- Site Environmental Setting: Characterised the environmental setting of operational sites to identify key migration pathways and likely vulnerable receptors for contamination (e.g., air, water, soil, and biodiversity).
- Surrounding Land Use: Assessed the historical and current land use surrounding operational sites to identify potential off-site contamination that could impact the sites.
- Hazardous Materials Management: Evaluated the storage and use of hazardous materials, solid and liquid waste management, air emissions, wastewater, stormwater management, and other special substances to determine their potential impact on the environment and communities.
- Biodiversity Conservation: Assessed the impact on biodiversity to ensure that operational activities did not harm local ecosystems and that any damaged habitats were restored as per legal requirements.
2. Health & Safety Assessment as part of the EHS Due-Diligence
- Regulatory Compliance: Assessed site operations in relation to existing and foreseeable labour conditions, employee regulations, and health and safety standards.
- Safety Infrastructure Check: Verified the availability of Fire No Objection Certificates (NOC) from local authorities and stability certificates from structural engineers, ensuring that safety measures were in place and regularly inspected.
- Energy Management and Electrical Safety: Conducted assessments on the installation of energy management systems and performed regular thermal scanning for voltage leaks, ensuring electrical maintenance and safety compliance.
Methodology
- Hybrid Approach: The EHS Due-Diligence audit was carried out using a hybrid method, combining physical site visits with remote assessments via virtual platforms, considering local conditions and constraints.
- Desktop Study: Initial EHS DD assessments were conducted through a desktop study and the preparation of an EHS due-diligence questionnaire.
- Onsite Visits & Remote Verification: Site visits and remote assessments were conducted to:
- Verify processes and systems.
- Engage with onsite personnel.
- Review operational documents and records.
- Documentation Review: All findings were compiled into a detailed report, supported by visual evidence, including photographs and documents.
Read more on Consultivo M&A Due Diligence Services
Key Standards and Protocols Used
The EHS Due Diligence process adhered to several international and local standards, including:
- ASTM E1527: Phase 1 Environmental Site Assessment (Phase 1 ESA).
- ISO 14001: Environmental Management Systems.
- ISO 45001: Occupational Health & Safety Management Systems.
- Consultivo ESG Due Diligence Guidelines
Local Legal Compliance: Adherence to legal compliance standards in India, with focus on environment, safety, and occupational health regulations.
Deliverables
Draft EHS Due-Diligence Report
A preliminary draft was submitted to the client for review and accuracy checks, ensuring all potential risks and liabilities were accurately recorded.
Final EHS Due-Diligence Report
Following feedback, the final report was delivered within one week, supported by visual documentation, including site images and photographs.
Read more on Consultivo Environmental Health and Safety Audit
Impact
Consultivo’s EHS Due-Diligence or EHS DD for the electronic components manufacturing units provided the client with critical insights into their environmental and safety performance. The findings helped identify key compliance gaps, including areas where improvements were needed to align with international best practices.
Our comprehensive analysis highlighted potential environmental liabilities, safety risks, and operational deficiencies. The proactive steps taken, including the recommendation for infrastructure upgrades and corrective actions, ensured that the client could mitigate these risks effectively.
The final report and action plan enabled the client to prioritise necessary upgrades in energy management, hazardous materials handling, and environmental management systems, while maintaining compliance with local and international standards.
Consultivo’s support not only minimises potential liabilities but also fostered operational sustainability, contributing to the client’s long-term strategic goals.
A Case Study : Investment-Grade EHS Due Diligence
About Consultivo Due Diligence Services
Consultivo specialises in ESG and Sustainability-focused due diligence, designed to support pre-investment and M&A decisions.
With expertise in key areas such as ESG Due Diligence, EHS Due Diligence, OHS Due Diligence, Environmental Due Diligence, HR Due Diligence, and Business & Human Rights Diligence.
As a due diligence company or due diligence vendor, we help investors and companies identify risks, assess compliance, and unlock opportunities for sustainable growth, ensuring 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.
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Category: Impact Stories
Tags: Environment & Energy
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