In Times of Change, Insight Comes First

Forward-looking investors are now incorporating ESG factors during the target screening stage, sending ESG questionnaires, conducting interviews, or engaging third-party firms to perform ESG due diligence. These efforts aim to systematically assess environmental responsibilities, social compliance, and corporate governance risks that may impact long-term investment performance.

According to KPMG’s EMA ESG Due Diligence Study (2022), 82% of global investors already include ESG criteria in their M&A decision-making process. ESG due diligence helps uncover critical non-financial risks before signing, while also quantifying ESG-related value drivers that can influence valuation and negotiation strategies.

Three key drivers are accelerating the mainstream adoption of ESG due diligence:

1. Enhanced risk management: ESG DD uncovers hidden regulatory, reputational, and compliance risks before deal execution;

2. Market alignment: LPs, lenders, and institutional investors are raising the bar for ESG transparency and accountability;

3. China’s ESG convergence: Chinese investors are aligning with global standards, embedding ESG into due diligence workflows.

As a trusted due diligence service provider, we support global investors in conducting holistic ESG assessments—integrating financial, legal, commercial, HR, and compliance perspectives—to ensure informed decisions and strategic risk control in cross-border and domestic investments.

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