ESG advisory

An analysis of the potential alignment and divergence in US and EU circular economy policy

Overview 

A global investment company wanted to better understand how Europe’s forward-looking plastics and circular economy policies may influence US environmental regulations under the Biden administration and affect pricing on a proposed transaction.

Work 

We provided a detailed analysis of EU’s extended producer responsibility regimes, circular economy package and EU and Member State-level plastics regulations along with a read through of US federal and state-level legislation. Our process was driven by desk research, primary materials analysis and over three dozen interviews with EU and US policy makers and stakeholders.

Impact

Our client used our analysis to build new factors into their pricing models, which allowed them to better calibrate their strategy and pricing for the transaction.

If you would like to hear more about this project or our investor services offer, contact Joe Palombo, Senior Practice Lead, Global investor services, Americas, [email protected]

An analysis of the EU Green Deal's impact on portfolio companies

Overview 

Our client wanted ongoing advice to their various deal teams regarding opportunities and risks arising from the EU’s Green Deal policy agenda. 

Work 

Our teams in London and Brussels provide the client with detailed analysis of policy change, ongoing on-call advice to deal teams and direct support in the early stages of incubating potential transactions. 

We built both biweekly reports and a monthly look-ahead calendar, covering major deal and policy-related developments.  We also delivered teach-ins for investment managers on EU ETS, hydrogen, EU taxonomy and sustainable finance disclosures. 
  

Impact

Our work helped the client better understand policy and government funding-driven opportunities across the EU and has served as the basis for a number of recent political due diligence projects in the UK, EU and US.  

If you would like to hear more about this project or our investor services offer, contact Joe Palombo, Senior Practice Lead, Global investor services, Americas, [email protected]

An analysis of ESG risk and opportunities across target markets

Overview 

A UK mid-market PE firm sought to better understand ESG risks across the complete value chain of a target company. The target company provides wearable GPS location tracking technology and serves primarily government clients – including prison services - in numerous emerging markets.

Work 

We produced a detailed analysis of ESG risks and opportunities across the target firm’s 14 largest markets. We analysed government sentiment toward alternatives to imprisonment and funding streams across all these markets. We examined ESG risks within the supply chain, to include environmental and human rights policies in the target’s contracted manufacturing site and the full range of ESG risks facing the target from their interactions with 14 emerging market sovereigns, covering everything from anti-corruption and bribery to social justice policies related to prison overcrowding.

Impact

Our client used our findings in two main ways. First, to inform the investment committee and M&A strategy to mitigate the ESG risks we identified. Second, to provide target company management with a multi-year growth plan that would improve ESG conditions throughout the target company’s value chain.

If you would like to hear more about this project or our investor services offer, contact Tom King, Practice Lead, Political due diligence, [email protected]