Pre-acquisition ESG audits: Verify ESG claims before they become liabilities
ESG due diligence audits: Independent verification of target company claims, performance and hidden liabilities
Supply chain ESG risks can translate into significant post-acquisition liabilities, particularly as mandatory human rights due diligence laws such as the EU CSDDD extend to acquired supply chains. At the same time, modern-day slavery legislation in the UK, Australia and other jurisdictions creates disclosure obligations, while US-listed acquirers face conflict minerals compliance risks. Beyond regulatory exposure, key suppliers may be subject to sanctions or ESG-related debarment, and any abuses uncovered after closing can cause operational disruption and reputational damage to the acquirer’s brand.
For these reasons, desk-based due diligence is not enough – on-the-ground audit verification is required before closing.
Know what you're actually buying before you sign
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ESG Data & Disclosure Accuracy Verification
Scope of due diligence
Speeki conducts independent verification of the target company’s ESG data and sustainability disclosures, including:
GHG emissions across Scope 1, 2 and 3
energy, water and waste metrics
diversity and workforce statistics
injury rates and safety performance
ethics violations and governance disclosures
supplier sustainability performance.
Key risk areas
Our due diligence assesses whether disclosed ESG performance is accurate and substantiated, including:
recalculation of key metrics from source data
testing of data collection and aggregation processes
alignment with recognised methodologies and standards
appropriateness of boundaries and scope definitions
identification of gaps or inconsistencies
robustness of evidence supporting ESG performance claims.
Transaction impact
Inaccurate or overstated ESG disclosures can distort valuation and create post-acquisition exposure, and independent verification provides:
material misstatement identification
support for price and warranty adjustments
financing baseline verification
validation of ESG value drivers
protection of ESG-linked strategic value.
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Climate Risk, Carbon Footprint & Energy Liability Verification
Scope of due diligence
Speeki conducts independent verification of target company climate exposure and carbon performance, including:
reported GHG emissions across Scope 1, 2 and 3
emission calculation methodologies and boundary definitions
carbon offset portfolios
renewable energy contracts and commitments
climate targets and decarbonisation roadmaps
physical climate risks to facilities and operations
transition risks from carbon pricing and regulation.
Key risk areas
Our climate due diligence identifies exposures that may be understated or undisclosed, including:
inaccurate or incomplete carbon footprint reporting
unreported emissions or optimistic boundary setting
ineffective or low-quality carbon offsets
above-market or restrictive renewable energy contracts
stranded asset risks from fossil fuel dependence
climate targets requiring significant unfunded capital expenditure.
Transaction impact
Climate-related liabilities can materially affect acquisition value, and independent verification provides:
identification of hidden carbon and energy liabilities
support for valuation adjustments
clarity on climate commitment costs
confidence for lenders requiring verified baselines
credible assessment of climate exposure.
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Governance, Ethics & Compliance System Audits
Scope of due diligence
Speeki conducts independent audits of target governance and compliance systems, including:
board composition and oversight
ethics and compliance programmes
anti-bribery and corruption controls
sanctions and export controls
data privacy and cybersecurity governance
whistleblower and investigation systems
conflict of interest management
regulatory compliance tracking.
Key risk areas
Our due diligence identifies governance and compliance exposures, including:
ineffective or poorly enforced compliance programmes
deficiencies in anti-bribery controls
historical violations creating successor liability
sanctions or export control breaches
material weaknesses in ethics systems
governance structures incompatible with acquirer standards.
Transaction impact
Weak governance systems can create material post-acquisition exposure, and independent verification provides:
identification of compliance liabilities
support for warranties and indemnities
clarity on remediation scope and cost
informed integration planning
protection against regulatory scrutiny
risk-adjusted deal terms.
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AI Governance & Algorithmic Risk Verification Audits
Scope of due diligence
Speeki conducts independent audits of target AI systems and governance frameworks, including:
inventory of deployed and in-development AI systems
compliance with ISO 42001 and emerging AI regulations
AI impact assessments and risk documentation
data governance for training and operational datasets
algorithmic fairness testing and bias mitigation
system documentation, explainability and auditability
AI incident response and monitoring
third-party AI vendor relationships.
Key risk areas
Our due diligence identifies AI-related exposures, including:
regulatory non-compliance under emerging AI laws
algorithmic bias and discrimination liability
deficient data governance or consent controls
inadequate human oversight mechanisms
undocumented or opaque AI decision-making
remediation costs for non-compliant AI systems.
Transaction impact
AI governance deficiencies can create significant post-acquisition exposure, and independent verification provides:
identification of AI-related liabilities
clarity on remediation timelines and costs
support for warranties and risk allocation
protection against regulatory enforcement
mitigation of litigation and reputational risk
informed valuation of AI-dependent business models.
Acquirers face significant risk if ESG claims that influenced deal terms prove inaccurate after closing, especially where valuations or sustainability-linked financing depend on verified performance.
Speeki provides independent audit-level verification of environmental compliance status and liability exposure, enabling informed investment decisions before environmental risks become post-acquisition financial burdens.
“Environmental liabilities can dramatically impact deal economics through unexpected remediation costs ranging from thousands to millions of dollars, ongoing compliance expenditures, regulatory fines and penalties, operational restrictions or facility shutdowns, third-party claims from neighboring properties or communities and transaction delays or collapse if lenders or insurers identify unacceptable environmental risks.”
Andrew Henderson, Lead Auditor, Speeki
Pre-buy target assurance by Speeki
Labour practice violations can create significant post-acquisition risk, including regulatory fines and enforcement actions, class action litigation for wage theft or discrimination, modern slavery reporting obligations for acquirers, supply chain disruption arising from labour disputes or strikes and reputational damage if poor working conditions at newly acquired operations are exposed by media or advocacy groups.
We know that M&A deals can be urgent. Our audit team is ready.
Let us help.
