Corporate Due Diligence and Climate Change
The gravity of the problem of climate change is rapidly coming into focus. Companies should assess the physical, regulatory and financial risks that climate change may pose to their existing assets, operations, work force stability and supply chains. In addition, companies should consider such risks in the due diligence that they perform prior to entering into major transactions. This will assist in climate-related transactional due diligence for a company considering the acquisition of another company or its assets. Some physical effects of climate change may not be so immediately apparent. Certain impacts may emerge gradually as rainfall patterns and hydrological conditions change around the world. There is a potential for such impacts to disrupt a company’s operations or supply chain by reducing agricultural production, the availability of raw materials or access to water. The lack of a common regulatory standard for evaluating climate risk has resulted in private efforts to fill the void.
Here is an blog post from the webinar on Corporate Due Diligence and the Green Deal organised by the Nova Centre on Business, Human Rights and the Environment with the support of the Portuguese Presidency of the Council of the European Union in partnership with the British Institute of International and Comparative Law, the Portuguese Ombudsman (Provedor de Justiça), the Teaching Business and Human Rights Forum, and NOVA 4 The Globe in April, 21
