Management of environmental and social issues means to set up a policy but also to identify risks and opportunities for the upcoming Due Diligence. With the help of management programmes, internal capacity and accountability mechanisms are developed as well as emergency preparedness and response.
A stakeholder engagement programme (SEP) and grievance mechanism are further steps for a successful monitoring and review.
In a great investment, also the labour and working conditions have to be without any red flags. The investigation of human resource (HR) and internal labour is as much important as the investigation of the organization (ILA) core labour standards. Moreover, the freedom of association, collective bargaining, the occupational health, safety (OHS), the worker productivity and skills development are factors we examine in detail.
Any changes in the past due to retrenchment-reducing and restructuring exercise has to be reconstructed and also contractors, third parties, supply chains and temporary workers have to be included in labour and working condition issue.
A main part of Environmental Due Diligence is the pollution prevention and resource use efficiency. An investment is checked by their effort of waste reduction and pollution prevention as well as the efficiency of energy and water. Regarding climate change, the greenhouse gas (GHG) emission are under investigation. Depending on the business, pesticides and other agrochemicals as well as contaminated land or land with liabilities is part of the issue.
The health, safety and security of the community is an important part for every business since it covers the social aspect and ensures a sustainable balance. This part's fulfillment is proven by a deeper look into the stakeholder engagement and consultation as well as the security personnel.
The investigation of the acquisition of land which has or will result in the involuntary resettlement or economic displacement of people.
The protection of the rights of indigenous people needs to be ensured, especially if the investment is making business in foreign countries. The issue describes whether company's operations or indirectly affect indigenous people and determines the number of indigenous people that could be affected.
The value of biodiversity and the risk to biodiversity is going to be ensured in this part of the Due Diligence as well as the management of ecosystem services.
The last issue of an Environmental and Social Due Diligence is checking if the investment affects cultural heritage directly or indirectly and if there is an approval for its operations.
Deep-dive evaluation: Social aspects