ESMS and Due Diligence

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ESMS and Due Diligence

Through our ESMS and Due Diligence services we provide stakeholders with a clear view of the potential consequences associated with environmental, social and health and safety risks.

Among the services that Futuris Consulting offers, the following stand out:

ESMS: Environmental and Social Management Systems

We develop management systems focused on the identification and evaluation of environmental and social risks for credit processes of financial entities, commonly known as SEMS or ESMS. These environmental and social management systems help financial institutions integrate environmental and social objectives with their business operations, through a set of repeatable and clearly defined processes.

The environmental and social management systems for financial entities developed by Futuris include the following characteristics:

  • Environmental and social policy
  • Tools for classification and evaluation of environmental and social risks
  • Training and competency matrices
  • Reporting tools
  • Monitoring and follow-up tools


With an ESMS, financial institutions can obtain benefits such as:

  • Processes that generate a reduction in investment risk in projects with environmental liabilities or social conflicts that may compromise the client’s ability to pay
  • Processes that generate a reduction in reputational risk from investments in projects with environmental and social conflicts
  • Awareness of financial institutions about the environmental and social risks of their clients

Futuris Consulting develops ESMS for financial entities based on current methodologies and validated international standards, such as:

  • Carrying out diagnoses that lead to the design of an ESMS tailored to the characteristics and portfolio of each financial institution
  • Use of standards from international financial entities such as IFC and FMO
  • Inclusion of local regulations to ensure legal compliance of credit operations in matters of environment, health and safety
  • Training of personnel in charge of the implementation of the ESMS
  • Technical support in the implementation process of the ESMS

    Environmental and Social Due Diligence

    Our environmental and social Due Diligence service entails a full business assessment prior to a merger or acquisition, which provides each stakeholder with an understanding of the environmental, social, health and safety risks involved, by using tools that help them reach a successful negotiation.

    Environmental and social due diligence audits include the following:

    • Background check related to environmental and social issues to rule out environmental liabilities such as former spills and contaminated groundwater
    • Legal compliance assessments focused on legal documents and permits (Phase I)
    • Evaluations focused on the company’s operations and management (Phase I)
    • Development of work plans and listings of the shares associated to settle the identified environmental and social liabilities
    • Implementation of remediation plans for identified environmental liabilities (Phase III)
    • Reports focused on the needs of each client


    Through environmental and social due diligence audits, clients can get benefits like:

    • Awareness among investors about EHS risks, costs, and mitigation strategies
    • Studies that provide leverage for a solid negotiating position
    • A firm base for providers and investors to approach issues and increase the value of their portfolio
    • Elimination of surprises, which contributes to a successful transaction
    • Reporting, according to investors’ needs, to: corporate, investors, banks and sellers

    Futuris Consulting prepares environmental and social due diligence audits using current methodologies and validated international standards, such as:

      Key Projects Related to ESMS and Due Diligence

      ESMS for Financial Institutions

      Category: Banking & Finance

      External support to supervise the implementation of an environmental and social management system (ESMS) of 10 financial institutions, based on IFC and EDFI Harmonized Standards. Assessment of the level of ESMS implementation; due diligence evaluations of potential FI’s to be included in the portfolio; and provision of technical assistance to key FI’s in which Norfund has vested interest.

      Audit of legal compliance and management systems

      Category: Manufacturing

      Audit of legal compliance and management systems in Environment, Health and Safety issues for 10 facilities in four countries, for a company that manufactures agrochemical products.

      Phase I Environmental and Key H&S Due Diligence

      Category: Power & Utilities

      Phase I environmental and key health and safety due diligence for the privatization of San Juan airport, in Puerto Rico, on behalf of Waterman UK, for a banking consortium.

      ESMS for a Leasing Company

      Category: Banking & Finance

      Development and support on implementation of a social and environmental management system (SEMS) for a leasing company. Training for all personnel in the E&S processes and field training on specifically developed protocols to support risk analysts on due diligence evaluations of medium risk potential investments. Training of internal personnel substantially reduced the dependence on external experts.

      ESMS for Bank

      Category: Banking & Finance

      Development and implementation of a social and environmental management system (SEMS) for a bank. Focus on riskier sectors (agriculture and construction). Training to all personnel in the E&S processes and to management in the importance and relevance of ESMS in current business. Field training on specifically developed protocols to risk analysts.

      Phase I, II and III due diligence for acquisition

      Category: Metallurgy

      The project included an initial assessment stage with passive gas sampling, which allowed the team to focus on areas of interest for a subsequent stage, which consisted in the perforation of monitoring wells and soil perforations for soil and groundwater sampling. The risk assessment proved that no remediation was required. A monitoring plan was submitted and approved by the Costa Rica Ministry of Health.

      ESMS for Financial Institution

      Category: Banking & Finance

      Development and support in the implementation of the Environment and Social Management System (ESMS) for Banco Nacional (on-going project). To date, a gap analysis has been performed to develop a tailor-made implementation process for the Bank. As well, a draft policy, responsibilities, objectives and performance indicators were developed. The due-diligence level was defined which is proportional to the intrinsic level of E&S risk of the activity to be financed and the financial exposure with the particular client. The definition of the due-diligence level, specific protocols were also developed to help the credit analysts perform the evaluations. Soon, the management team, sales representatives and credit analysts will be trained. Finally, training and monitoring plans will be developed and an internal audit will be performed.

      Phase I Post-acquisition Due Diligence

      Category: Pharmaceutical & Health Care

      Phase I post-acquisition due diligence and environment, health and safety compliance assessment of a medical devices manufacturing facility.

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