ESG Vendor Due Diligence

Catalyst will collaborate with either the asset manager or the investor to provide a consistent approach to their ESG due diligence.

ESG Due Diligence & Advisory Services

When working on vendor due diligence for an asset manager, Catalyst will focus on collecting, analysing, and summarising all ESG initiatives undertaken at the asset level and the corresponding ESG performance metrics. The goal is to provide a representative and accurate assessment of the asset to potential buyers in a compelling document. In doing so, we will gather all current performance metrics, such as energy ratings (EPC), renewable energy, carbon emissions, waste management, etc. Additionally, we will identify any green building certifications associated with the building and highlight social and biodiversity initiatives that have been implemented. We will also assess the future performance of your asset using the CRREM tool and identify an energy and carbon reduction pathway for the asset, such as on-site renewable generation.

Ideally, for vendor due diligence projects, we prefer to engage with fund managers or asset managers early on so that the sale of the asset can be anticipated. This allows us to perform ESG work to position the asset at its best and improve its performance to optimise the sale. Depending on your asset class (logistics, office, residential, retail, etc.), Catalyst will consider the asset business plan and strategise to position the asset, implementing key features before the sale or signalling ESG potential for the coming months or years. In this context, we may assess the potential EU-taxonomy alignment of the asset or conduct a scoping exercise for achievable green building certifications or EPC optimisation.

When working with investors or lenders, Catalyst will closely collaborate with the client to understand and, if not already defined, define the key ESG metrics required as per the client’s business plan and ESG strategy. We will provide ESG due diligence checklists to bring consistency across the portfolio of investments or projects and address the specificities of national or local regulatory requirements across Europe, leveraging our European and UK presence.

Overall, Catalyst’s role in the vendor due diligence process is to ensure that the ESG performance of the asset and its future potential are clear and can be benchmarked. The objective is to facilitate a better understanding of the potential future-proofing works needed on the asset.