Environmental and Social Governance Due Diligence including EU Taxonomy Alignment

The client requested an environmental and social governance due diligence (ESGDD) of an existing biogas plant and its potential expansion in conjunction with the client's acquisition of the facility. The ESGDD ran in parallel with the technical, legal and financial due diligences.

The investment was assessed against the technical screening criteria for the manufacture of biogas with a significant contribution to climate change mitigation. Compliance with the Renewable Energy Directive (RED) is a condition, requiring analysis of current and planned feedstocks. Information such as the environmental impact assessment (EIA), safety document and environmental reporting was screened to determine alignment with the 'do no significant harm' (DNSH) criteria. Furthermore, the facility's HR practices such as codes of conduct for employees and suppliers were reviewed to check for compliance with the minimum safeguards.