netfiles Deal Room: Clearly structured access to ESG documentation for due diligence audits
Environmental, social and governance (ESG) considerations are today an integral component of every due diligence audit. That is true of mergers and acquisitions, but also of capital procurement measures. Companies therefore need to document their ESG initiatives meticulously – and to make this documentation readily accessible to all stakeholders in a clearly structured form. In most cases, that happens in a virtual data room such as the one provided by netfiles.
ESG in due diligence audits
How a company positions itself with regard to environmental protection, social responsibility and responsible governance plays a crucial part in determining its value. Future business opportunities depend on ESG considerations, as do the outcomes of risk assessments by investors and potential buyers. Even more important than companies' positioning, however, is their ability to prove what specific measures they have initiated and/or implemented.
In ESG due diligence audits, companies must provide evidence that they systematically monitor the ESG compliance of both their own internal activities and those of their supply chain. Potential risks must be identified and appropriate measures adopted. Crucially, this information is of relevance to all stakeholders: investors and financial institutions, but also auditors, suppliers and customers.
Secure in the virtual data room
Standard procedure is to make this documentation available in a virtual data room such as netfiles Deal Room. Why? Because virtual data rooms have become established as a secure and effective solution for the exchange of confidential information. Cutting-edge security and encryption technologies protect files against loss and unauthorized access. Moreover, granular access rights ensure that only authorized users have access to sensitive information.
Default ESG structure makes handling easier
netfiles Deal Room now provides even more efficient support for due diligence audits by modeling environmental, social and governance criteria in the data room index. The default netfiles folder structure makes it easier to put materials in the right places in the data room, but also makes sure that important aspects cannot be overlooked. The index can, of course, be flexibly adapted to the specific needs of individual companies.
More about due diligence and virtual data rooms
Virtual data rooms are an indispensable tool for every due diligence audit. Go here to find out how netfiles Deal Room can support your due diligence activities. Alternatively, try out netfiles Deal Room for yourself – for 14 days, free of charge.