Maximizing Value

through Tech-Enabled
Virtual Due Diligence
April 2020

© Copyright 2020 by ERM Worldwide Group Limited and/or its affiliates (‘ERM’). All Rights
Reserved. No part of this work may be reproduced or transmitted in any form or by any
means, without prior written permission of ERM

Confidential .

The business of sustainability

The world has changed…
…and new constraints highlights the benefit of applying innovative approaches to M&A to mitigate restrictions on travel and
access and deliver commercially focused ESG due diligence at pace and scale

The M&A world is dynamic and ERM continues to innovate to protect and maximise
Each Deal Has Unique Factors That
value for our clients at every stage of their investment lifecycles. ERM’s Virtual Due
Diligence techniques integrates established desktop strategies with technology- Inform How ERM Assesses ESG Risk
enabled solutions to enable you to effectively identify and understand key ESG risks and Opportunity Target Features
during and beyond transaction. Target type, portfolio
size, sector,
geography, supply
chain, site history…
ERM partners with our clients to design and Our commitment is to
implement effective and bespoke solutions to ensure travel and access
Deal Dynamics
assessing deal and industry specific ESG risks and restrictions have the least
Time sensitivity,
opportunities. Virtual Due Diligence is not intended impact on your ability to access to the target,
to replace conventional site visits, but to be part of an understand and mitigate confidentiality,
disruptions to
overall phased approach in the comprehensive ESG ESG risks and capture value business, scope of
due diligence process. creation opportunities. work, budget…

ERM Phased Approach To ESG Due Diligence External

Constraints
Travel constraints
(e.g., remote
locations, COVID-19
Pre-Due Due Deal Post limitations), weather
Virtual Due Negotiation Merger conditions,
Diligence Diligence
Screening Diligence (Site Visit)
Advisory Integration social/political/
security instability,
Services Support health and safety
concerns…

www.erm.com ERM Virtual Due Diligence 2

 ERM Partners with you to define an ESG scope and due
diligence approach aligned with your deal team priorities.

“Trust but verify” principles remain as strong as ever in the current environment as technology enables
data driven insights and access to information during transactions to support advancement of new or
stalled deals. Our technology driven approach to due diligence contributes to the delivery of reliable,
comprehensive, and defensible findings.
ERM ESG Due Diligence
Standard Desk Based Approaches
Scoping Themes and Aspects

 Management interviews
 Virtual Data Room
 Q&A Process
Tech-Enabled Approaches
 Online survey (multiple
languages)
Tech enabled engagement
maximizes focus on
obtaining management
perspective of ESG issues
and risks associated with
target assets.

Tech-Enabled Approaches

 Remote Sensing Data Analysis

Tech enabled desk based
due diligence enables a more
informed and visual view of
ESG risks associated with
target assets.
 Virtual Site Visit
 Image Assisted Site Assessments
 Online data sources
 Proprietary benchmarking
Standard Desk Based Approaches

 Document Review
 Public Internet Searches
 Public & Commercial Sources
 Regional Unique Sources
www.erm.com  Targeted Topics
 Tech-enabled approaches are current, responsive, cost
effective and global.
“A winner” for clients who are seeking to advance their M&A strategy in today’s disruptive
environment.

As an example of our tech-enabled approaches, ERM partners

with a variety of satellite providers, from single platform systems
to constellations of over 150 micro satellites, to monitor targets
across the globe, allowing cost effective and valuable insight
into, and oversight of, a wide range of activities and assets
anywhere in the world. ERM’s remote sensing technology goes
beyond what Google Earth Imagery can provide:

Remote Sensing Data Analysis

• Google Earth imagery update • Validate asset information with visual evidence from satellite
Google Earth Imagery

rate is 1 to 2 years for large imagery

urban areas (like New York,
• Monitor project assets in near real-time
Paris, and Beijing)
• Collect scientific grade data for spectral analysis to measure
• The remaining 90% of the
potential soil surface site contamination concerns, vegetation
earth is only updated every 5
stress, etc.
to 7 years
• Project status monitoring with daily or semi-regular imagery
• Only designed for
visualization • Measure methane emission leaks from assets
• Evaluate potential undisclosed health and safety concerns
• Screen numerous facilities quickly to target specific locations
for field team investigation
www.erm.com
In today’s increasingly volatile and unsettled environment, having an
informed view of the commercial implications of ESG risks and
opportunities during M&A transactions is critical to protecting and Applicable to Various
capturing value. As technology is accelerating the pace of change Asset Types
across all industrial sectors, our clients are recognising the Manufacturing facilities
commercial value and efficiencies of applying innovative, tech Meet Wide Range of (almost all sectors)
Client Needs
enabled approaches to M&A due diligence.
Offshore & Onshore
Value Driven Corporate/Industrial assets (Power, O&G)
Approach
We partner with you to develop a tailored ESG scope and diligence Robust & focused on Greenfield sites &
Private Equity
approach that responds to your specific needs and deal team priorities at material risks construction sites
every stage of your investment lifecycle.
Tailored to specific Linear assets
Asset Owners
transactional needs (midstream & power)
ERM innovation and our M&A service expertise enables us to partner with
your deal team to deliver technology enabled, commercially focussed due Efficient & phased Direct Foreign
diligence to inform decision making and negotiations. Natural habitats
approach Investors

Talk with us to find out how we can help with your current and future M&A needs For further details, please contact:
through our tech-enabled Virtual Due Diligence service offering
EUROPE MIDDLE EAST & AFRICA
Major Corporate and Financial Sector companies worldwide partner with ERM, drawing on Craig Carson craig.carson@erm.com
our strategic ESG advisory and deep industry expertise. ERM provides 3,500+ transaction Julien Famy julien.famy@erm.com
annually for 200+ financial institutes and 300+ corporate clients globally. In partnering with
NORTH AMERICA
ERM you can leverage our market leading ESG expertise who have a unique blend of
Eric Dietert eric.dietert@erm.com
advisory, technical, digital, GP, LP, and lender perspectives across a range of business Clare Lunn clare.lunn@erm.com
sectors and geographies to understand and respond to your specific and evolving needs and
strategic priorities. ASIA PACIFIC
Trista Chen trista.chen@erm.com
© Copyright 2019-20 by ERM Worldwide Group Limited and/or its affiliates (‘ERM’). All Rights Reserved. No part of this
www.erm.com
work may be reproduced or transmitted in any form or by any means, without prior written permission of ERM.
LATIN AMERICA & CARRIBEAN 5
Federica Salazar federica.salazar@erm.com