Strategic Focus: ESG And Sustainability Due Diligence For Investors
Access this research
Access all Corporate Sustainability Leaders content with a strategic subscription or buy this single report
Need help or have a question about this report? Contact us for assistance
Executive Summary
Investors faced substantial challenges in 2023 – notably, global inflation, political instability and increased regulatory scrutiny – causing investments in many sectors to slow significantly, especially those in privately held entities. However, despite a more sluggish start than anticipated in the mergers and acquisitions (M&A) space in 2024, there is anticipation that the pace of deals will accelerate throughout the year – especially in the healthcare, manufacturing and technology sectors – thanks to declining interest rates, less rapid inflation, and growing corporate confidence in the market. At the same time, investors are placing an increasing emphasis on ESG and sustainability criteria during the investment process, including at the due diligence phase. This report provides investors with information about services and software that can help them incorporate ESG and sustainability due diligence into their existing due diligence processes and workstreams.
Multiple factors drive investors to conduct ESG and sustainability due diligence
ESG and sustainability due diligence is a core component of the investment life cycle
Investors face challenges when conducting ESG and sustainability due diligence
Investors need external guidance on ESG and sustainability due diligence
Services firms are essential throughout the due diligence process
Software can supplement ESG and sustainability due diligence offerings
Figure 2. Overlap between ESG and sustainability due diligence and other diligence streams
About the Authors
Jessica Pransky
Principal Analyst
Jessica is a Principal Analyst at Verdantix, specializing in providing insights to sustainability leaders and analysing ESG and sustainability reporting software. She advises ...
View Profile
Kim Knickle
Research Director
Kim Knickle is a Research Director at Verdantix, bringing more than two decades of analyst experience to the evolving world of sustainability. Her current research spans ESG a...
View ProfileOther related content
The beginning of 2025 saw significant uncertainty surrounding sustainability regulations. Twelve months later, that uncertainty hasn’t disappeared – in fact, the year has highlight...
27 November, 2025
November 18, 2025 was a notable – and unusually eventful – day for California’s climate disclosure laws, SB 253 and SB 261. Two major developments unfolded simultaneously: CARB hel...
27 November, 2025
After the rapid surge of ambitious policies in 2024, and the abrupt reversals, cancellations, and turbulence that followed in 2025, many organizations expected momentum to stall. I...
Upcoming / 21 January, 2026
At COP30 in Belém, Brazil, negotiations focused on how to rein in climate change and protect natural resources. Like previous COPs, the formal agenda was dedicated to finance, emis...
24 November, 2025
On October 20, 2025, a new carbon accounting coalition, Carbon Measures, hit the market. Supported by prominent organizations across industry and finance – including BlackRock, BAS...
11 November, 2025
On October 13, the Royal Swedish Academy of Sciences recognized the work of Joel Mokyr, Philippe Aghion and Peter Howitt “for having explained innovation-driven economic growth” by...
10 November, 2025