Environmental and Social Due Diligence (ESDD) in the Business
In an increasingly conscientious world, businesses are under immense pressure to adopt sustainable practices. Whether you are embarking on a new business venture or managing an already well-established one, incorporating Environmental and Social Due Diligence into your decision-making process has become crucial before you even invest a penny into your business or project. Our ESDD services have been curated to help organisations navigate through this complex landscape and enhance their sustainability performance.
But what is Environmental and Social Due Diligence? Environmental and Social Due Diligence, commonly referred to as ESDD, is a process by which you evaluate the environmental & and social risks associated with your business or project. It may include estimating the potential cost of waste management, calculating risks associated with the project, finalising safe practices for hazardous waste generated, ensuring safe labour working conditions, identifying & resolving occupational hazards, etc.
Why hiring Environmental and Social Due Diligence Services is necessary nowadays?
Environmental and Social Due Diligence (ESDD) is becoming a pressing concern for commercial enterprises globally. Profit-making businesses are expected to comply with the ESDD in order to ensure the deliverance of their regulatory requirements and, at the same time, contribute to their responsibilities toward the sustainable development goals of the nation.
Apart from the legal and environmental mandate, if we take a brief look at some data, then according to a survey conducted by the Confederation of India Industry (CII), 70% of Indian Businesses are planning to enhance their investment and venture in ESDD in the coming three years. Furthermore, according to the latest report published by IFC in 2022, the market for ESDD services in India itself is expected to reach $400 million by 2025. This suggests that investing in the compliance of ESDD will not only take care of your legal, social, and environmental concerns but also your financial concerns, as the data clearly supports that the market for ESDD Services is going to be huge, which will eventually give a big push to your profitability.
However, ESDD is a complex and multifaceted task that requires a great deal of expertise as it involves several steps and procedures like identifying the risks, collection of data, development of strategies, etc.
Merely fulfilling all your legal obligations will not suffice anymore. Organisations need to hire Environmental and Social Due Diligence Consultant Services to ensure ESDD compliance, as it has the potential to make or break a deal.
What are the challenges faced by businesses while complying with Environmental and Social Due Diligence (ESDD)?
Businesses tend to face certain challenges while complying with Environmental and Social Due Diligence norms on their own, such as
- Lack of resources: Conducting a comprehensive ESDD requires human resources, financial inputs, technological tools, and a lot of time on your hands. If you fall short anywhere, it may lead to phony or ineffective assessments.
- Lack of Knowledge: There are so many laws, rules, and regulations to comply with, and with constant or relentless amendments and changes, businesses often find themselves grappling with these and thus struggle to keep up. We understand that staying abreast of these ever-changing and multiple regulations can be a daunting task. That’s where we step in.
- Inadequacy in specialised proficiency: Performing ESDD requires a profound understanding of complex environmental and social regulations, which tend to vary widely by region and industry. Lack of expert guidance in this area can pose a difficult challenge while navigating through these intricate ESDD requirements.
- Data Collection and Analysis: A critical aspect of conducting ESDD is the collection and analysis of data, which requires specialised tools which may not be readily available at your organisation. and on top of that, the process of scrutinising multifaceted data can be complex and time-intensive.
It is in light of these and many more challenges that various businesses and enterprises choose to outsource Environmental and Social Due Diligence to experts who have the experience and the resources to conduct thorough ESDD and help them maintain sustainability and growth. This allows the businesses to do what they do best, i.e. focus on their core operations and make a profit and, at the same time, ensure compliance with environmental and social responsibilities.
Hiring our consultants, who have the relevant expertise and knowledge in this field, can help you navigate through these complex laws, ensuring timely compliance. We provide customised solutions to your individual problems so that you don’t have to worry about them.
What do our Environmental and Social Due Diligence (ESDD) Services entail?
Our ESDD Package offers a wide assortment of services for your businesses and projects, such as:
- Preliminary Assessment: We can provide a Preliminary Assessment of your Business or project, which will help you identify the existing or potential environmental and social risks involved that need to be addressed before undertaking any activity. Our team of professionals can evaluate and identify these risks for you at a low cost and provide for their resolution.
- Improved Risk Management: Our ESDD services are mainly offered to help clients identify the potential or hidden environmental and social risks and liabilities associated with a particular undertaking or project and thereafter have a risk management system in place to address and mitigate these concerns.
- Vetting Existing ESDD Plans & Gap Analysis: If you already have an ESDD plan in place, we can assist you in analysing and vetting those plans. We further delve into the heart of your ESDD requirements by identifying the gaps in your existing ESDD Plans that demand immediate attention, which help us fathom your current state and the efficacy of your existing strategies and further help you build a more resilient ESDD framework.
- Customised ESDD Action Plan: ESDD requirements differ as per your business type and industry, and we understand that very well, as our ESDD Action Plans are not one-size-fits-all. We design exclusive ESDD that will perfectly align with your business, considering your specific needs and goals.
- Compliance with Laws & Regulations: There is a myriad of arduous legal and regulatory requirements that have been mandated to be complied with by the concerned authorities. Be it the regulatory frameworks such as SEBI Regulations, the mandatory CSR requirements prescribed under the Companies Act of 2013, or the submission of an EIA (Environment Impact Assessment) Report before undertaking any project or any other national or international regulations, we help organisations in these and every other compliance and thereby enhance their brand value and reputation qua sustainable practices.
- Market Advantage: Businesses or Brands that prioritise their environmental and social compliances have experienced an added competitive advantage in the market. This allows them an opportunity to leverage big investors, customer support, and loyalty from those who uphold the values of environmentally friendly, cruelty-free, and more sustainable practices in high regard, and that too for something they have been anyways legally mandated to do. We can help you strike these two birds with one stone.
Enterclimate has been at the forefront of providing Environmental and Social Due Diligence services to its esteemed clients and has helped them in formalising and achieving their ESDD targets successfully. Allow us to help you to have an Environmental and Social Management System (ESMS) in place for all times to come.
We at Enterclimate provide ESDD Services pertaining to various industries such as Food, Agriculture, Pharmaceuticals, Chemicals, Dairy, Plastic, Batteries, Other Manufacturing, Packaging, Recycling, Health Care, Renewable energy, etc. We have a profound engagement in environmental services and have a well-established presence globally.
We help businesses and commercial entities not only kick-start their business but also design growth strategies while ensuring their environmental and social compliances are met, which are often overlooked by them in their struggles to stay afloat in the market.
Other Key Benefits:
We at Enterclimate will further assist you in Environmental and Social Due Diligence by providing the following:
Our experts can help you navigate through the arduous and complex procedures and help you understand the intricate requirements and eligibilities for ESDD as per your needs.
Discharging your ESDD Obligations requires the generation and drafting of various documents including, but not limited to, an EIA Report, SIA Report, HR Policy and Management Plan, Health and Safety Plan, Security Requirement Plan, etc. We understand it can all seem overwhelming, so allow us to handle this all for you.
Let us become your One-stop Solution platform to manage all your ESDD needs; from decoding the eligibilities to documentation and to filing timely reports and plans, we will take care of everything for you.
Our team will keep you updated throughout the process. You can also easily keep track of everything through our platform and interface and stay abreast of everything.
If you would like to discuss more about Environmental and Social Due Diligence Services, please get in touch.
Don’t just take our word for it! Read what our clients have to say about our services and decide accordingly.
- Mr. Raj Kumar, Director: I hired the services of Enterclimate to help us assist with our Environmental and Social Due Diligence compliance, and I must say their team demonstrated unparalleled expertise and professionalism. They did a thorough assessment of our operations, helped us identify the gaps and the risks involved, and guided us through the process of mitigating those risks.
- Mrs. Aprajita Mukherjee, MD: It is a pleasure to work with the team at Enterclimate. The team was available throughout the process and guided us through various licensing and regulatory compliances and in preparing a comprehensive ESDD Action Plan. Their prompt support and unwavering patience with our last-minute requirements were something I highly appreciate.
- Mr. A. V. Reddy, MD: We found the team extremely hardworking and knowledgeable. We would have suffered huge losses had our new initiative been rejected. But thanks to Enterclilmate, our company saved millions of unnecessary expenses, and we were able to secure last-minute approvals for our project and conduct thorough ESDD assessments. You have earned a client for life. Much Thanks.
Start your ESDD journey with us with a single stride by reaching us at 7838390340, and we will assign a dedicated manager to understand and discuss your needs.
We are eager to help you tread on this opportunistic path that will help you flourish in your industry. Join us today, and let’s build a profitable and sustainable future together.
Frequently Asked Questions
Environmental and Social Due Diligence, commonly referred to as ESDD, is a process by which you evaluate the environmental & and social risks associated with your business or project.
Environmental Due Diligence varies as per the type of the business and depends on a number of factors, but a few examples of environmental due diligence are Procuring required Licenses and Permits, Mitigating actual and potential risks involved, Ensuring appropriate response mechanisms in place, etc.
Environmental and Social (E&S) risks are the potential adverse consequences that may occur while undertaking an activity or a project and the expected impact on the environment, such as on air, water, or land, and on our social community, such as on employees, clients, nearby residents, etc.
ESG due diligence is helpful for businesses as it helps them identify the potential risks associated with their projects or investments. By completing their ESDD obligations, businesses can enhance their brand value and reputation and, at the same time, ensure their compliance with relevant laws and regulations.
Due Diligence essentially refers to the exercise of due and reasonable care and a careful investigation of the legal, fiscal, economic, social, etc., risks involved in undertaking any business activity. This enables businesses and organisations to perform risk and compliance checks and, therefore, protect themselves in the long run against the liabilities and risks so identified, which may create huge problems for them in the future.