ESG factors are now a critical consideration throughout the deal process, making ESG due diligence essential for any successful merger or acquisition (M&A). In today's investment landscape, stakeholders—investors, customers, and the public—are increasingly focused on a company's social and environmental licence to operate, holding businesses accountable for managing ESG risks and capitalising on ESG opportunities. At &BLOOM, we offer expert ESG due diligence support using a comprehensive four-step framework to help investors navigate the complexities of ESG in the M&A process. Our Four-Step ESG Due Diligence Framework: • Industry Exposure: We assess the target’s industry exposure to ESG risks and opportunities. By understanding the broader ESG landscape within the target’s industry, we help you identify specific challenges and opportunities that may impact the business’s performance, value, and long-term sustainability. • Materiality Assessment: Our materiality assessment identifies and prioritises the ESG issues most relevant to the target business. We ensure these align with both the target’s sector and your investment goals, helping to establish which ESG factors are most likely to affect financial performance and strategic positioning. • Performance on Material ESG Topics: We evaluate the target’s performance on key material ESG topics, reviewing existing ESG governance structures, policies, and performance. This includes comparing the target’s ESG practices to industry standards and best practices, enabling you to assess their ESG maturity and uncover any potential gaps or risks. • Strategic Priority Projects & 100-Day Action Plan: Based on the insights gathered, we help develop strategic priority projects to address key ESG issues. This includes creating a 100-day action plan post-acquisition, outlining the immediate steps to integrate ESG considerations into operations, governance, and strategy, ensuring that ESG is effectively managed from day one. Post-transaction Support: We continue to support companies after the deal is finalised by helping them leverage synergies, implement a robust ESG strategy, and capitalise on ESG opportunities. By establishing systems to track and measure both financial and non-financial impacts, we ensure that your investment is fully aligned with sustainability goals and protected against the risk of “greenwashing,” maximising its overall value. With our four-step ESG due diligence framework, you can identify key ESG risks, uncover value-driven opportunities, and make more informed investment decisions—ensuring the long-term sustainability and success of your M&A transaction.