A Due Diligence Approach to Environmental and Social Business Performance Assessment

The modern resource extraction enterprise is a complex capital intensive business operating in a world of constantly evolving social, environmental and economic scrutiny. Investors, government, media and special interest groups expect to see business environmental and social performance respond and deliver increasing corporate responsibility and sustainability.   Thorough interrogation of business performance using a multi-disciplinary due diligence approach presents a more sophisticated review and benefits beyond the traditional compliance/conformance 'audit' style assessment.   Using a due diligence approach allows assessment through a comprehensive lens which examines potential short- and long-term risks including sometimes less tangible environmental and social liabilities, and informs management, investors and regulators of broader business performance. This approach provides information in a form that business can measure performance in a repeatable and enterprise wide sense.   This paper provides an outline of the due diligence process applied in this way, drawing from lessons learnt and industry based experiences in the due diligence process and the benefits and tools that can  be applied in an environmental and social due diligence business performance assessment