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:

• Environmental and Social Management Systems (ESMS or SEMS)
• Environmental and Social Due Diligence protocols
• Training in auditing and environmental and social risks
• Phase I ESA auditing
• Due Diligence Phase II and II
• Environmental and Social Due Diligence

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

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:

• Phase I Environmental, Health and Safety Assessments and Legal Compliance Assessments
• Review of key health and safety risks and responsibilities
• Application of leading international standards, such as US ASTM or risk-based, such as the European Union’s
• Background and registries research in public databases about the installation or entity
• Technical follow-up, including full Phase II and the capability of offering remediation measures