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.
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 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 | Due Diligence Services | EHS | Industry Sector – Heavy Engineering Manufacturing
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