Learn how Ksapa guided an energy company through a risk mapping: identification, analysis and ranking of potential risks process in accordance with their obligations under the Duty of Vigilance due diligence for a hydroelectric acquisition. Discover actionable ESG insights, compliance with human rights laws, and strategies to mitigate risks. Contact us for tailored support!
Objective
A Global Energy and Renewable provider sought an in-depth Duty of Vigilance Due Diligence Report to evaluate and mitigate potential risks associated with acquiring renewable plants. The analysis required:
- Examination of public records, media, and documents provided by the Target company.
- Comprehensive evaluation across corporate responsibility, ethics, human rights, labor, and environmental laws.
- Identification of red flags, associated risks, and actionable mitigation strategies.
Our approach
Ksapa executed a multi-faceted due diligence process addressing key areas of concern:
Documentary Analysis
- Reviewed policies, external adviser reports, and questionnaires provided by the client and the Target assets.
- Mapped risks in alignment with national and international human rights standards.
Key Risk Areas Covered
- Workforce Impact:
- Investigated health and safety concerns, including accident rates and employee exposure to poor working conditions.
- Assessed labor practices, including work hours and protest risks.
- Community Impact:
- Evaluated potential disruptions to local communities, including changes in essential services and exposure to natural disasters.
- Considered cultural and health safety risks from renewable operations.
- Security Contractor Compliance:
- Verified the alignment of security providers with legal standards and analyzed potential excessive use of force.
- Land Ownership Issues:
- Reviewed risks of forced displacement, lack of fair compensation, and damage to cultural heritage sites.
- Supply Chain Transparency:
- Investigated major suppliers for compliance with ethical and legal standards.
- Actionable Recommendations:
- Provided a comprehensive report summarizing red flags, risks, and mitigation strategies to ensure compliance and minimize potential liability.
results
- Enhanced Risk Visibility: A Global Energy and Renewable provider gained a thorough understanding of risks across human rights, labor, and environmental aspects.
- Regulatory Compliance: The diligence process ensured alignment with Duty of Vigilance laws and global human rights standards.
- Actionable Insights: Delivered clear strategies to mitigate risks, facilitating a more informed and secure transaction.
- Strengthened Stakeholder Confidence: The comprehensive report reinforced client’s commitment to responsible business practices building internal alignment on where to focus transactional discussion with target company.
Why Ksapa?
- Expertise in ESG risk assessment and compliance.
- Tailored methodologies addressing global and local regulatory requirements.
- Proven track record in energy sector due diligence.
- Access to a global network of experts for in-depth analysis.
Take Action Now
Ensure Compliance with Duty of Vigilance Laws Today
Partner with Ksapa to navigate complex transactions with confidence.
📩 Contact us: contact@ksapa.org
🌍 Learn more: Explore our Due Diligence Services
📅 Schedule a consultation now!
