Among the noteworthy findings from a survey of 115 dealmakers in Europe, North America (including the US), South America, and Asia, conducted by BCG and Gibson Dunn, aimed at better understanding ESG due diligence practices, are those relating to industry-specific priorities across "E," "S," and "G" factors.
While governance factors are ranked relatively high on the priority list across sectors, they are perhaps not surprisingly surpassed by environmental factors in the Manufacturing, Consumer, Real Estate, and Infrastructure (marginally) industries. Interestingly, governance factors were ranked slightly higher in importance than environmental factors in the Energy industry. Social factors were consistently ranked the least important regardless of industry.
The report also addresses the most common ESG due diligence objectives overall, highest priority risk mitigation objectives, and ESG opportunities commonly manifested via due diligence activities.
See this Baker Botts Environmental, Social, and Governance (ESG) Due Diligence Checklist (M&A Transaction) (LexisNexis) and additional resources on our Sustainability page.