Environment and Social Due Diligence

consultivo services

The ESDD can be carried in all the phases of a life cycle of a project viz construction, operation & decommissioning. The focus & objective of the ESDD project due diligence is different in each phase of the project & the risks too vary in each phase depending on the nature of phase.

How Consultivo can help you

consultivo services

Consultivo’s multidisciplinary team comprising of Environmental, Social & Community experts can forsee the risks before the initiation of any project. The experts are management professionals who have an in depth understanding of local & national legislation along with international best practices & guidelines like International Financial Corporation Performance Standard ( IFC PS),  World Bank Guidelines , Asian Development Bank ( ADB), European Bank for Reconstruction & Development guideline ( EBRD) & Equator Principles.  We undertake independent reviews and audits. offer the technical support needed to complete the comprehensive and timely review of a project. The detail due diligence assessment report  submitted at the end of the study highlights & summarizes the project performance relative to a range of assessment criteria viz environmental, safety and social aspects of the project. The reports are organized to provide necessary information in a user-friendly format – with findings prioritized and tabulated according to risk. The technical content is based on the nature, scale and scope of the project that is being assessed.


consultivo services

Environment & Social Due Diligence can be carried out on the basis on any sustainability guidelines or standards like the International Financial Performance Standards ( IFC PS) or the Equator Principles. The environmental & social risks can be identified through application of any of these standards & putting them in an Environmental & Social Management System (ESMS) Framework.An ESDD will involve the following steps :

Steps involved in conducting environment, social and health &safety due diligence study:

  1. Screening of the Project
  2. Study of the project objectives
  3. Research on the industry sector
  4. Review of the typical or common risks pertaining to the industry
  5. Mapping of baselines in terms of environment, social and health &safety issues through primary & secondary data
  6. Identification and description of risks in comparison with legal compliances, international standards and requirements
  7. Estimation and evaluation of risk
  8. Decision on selection of the projects
  9. Setting up risk control strategies, action plans & mitigation measures ie Environmental & Social Action Plan ( ESAP)


consultivo services
  • Environment & Social due diligence benefits both the borrower & the investor. Borrower can identify the E & S risks of the project long before can thus take appropriate action to mitigate the same. It is thus a preventive action which saves cost & prevents possible losses & damage.
  • Takes care of the compliance issues in the system
  • Ensures better performance to both the parties
  • Helps in decision making to the investors
  • Investors can be assured of the sustainability issues of the borrowers
  • Increases the trust & confidence of stakeholders of both the borrowers & the stakeholders


consultivo services
  • Equator principles
  • International Finance Corporation (IFC) Performance standards (1-8)
  • European Bank for Reconstruction and Development (EBRD) Performance Requirements (1-10)
  • Organization for Economic Cooperation and Development (OECD) guidelines for Multinational Enterprises

consultivo environmental and social due diligence


Environment & Social Due Diligence involves foreseeing the environmental & social risks that might may present in the project life cycle & which could ultimately pose a potential threat to the investor or the financial institution. The process involves identification, assessment, impact & quantification of the E & S Risks.  Most of these risks are directly or indirectly linked with environmental aspects viz land, water, soil, air, energy, wastes, noise, biodiversity, pollution, contamination etc & social issues viz health & safety hazards, loss of land, resettlement & rehabilitation,  impact on community & cultural heritage, labour issues, working conditions, indigenous people etc. Above all the due diligence also considers compliance to local & national laws.