Pre-Acquisition ESG Audits: Verify ESG Claims Before They Become Your Liabilities
ESG Due Diligence Audits: Independent Verification of Target Company Claims, Performance, and Hidden Liabilities
Supply chain ESG risks represent significant post-acquisition liabilities including mandatory human rights due diligence compliance obligations that extend to acquired supply chains under EU CSDDD and similar legislation.
Modern slavery risks require disclosure under UK, Australian, and other modern slavery acts. In addition, conflict minerals compliance obligations for US-listed acquirers, supply chain disruption if major suppliers face sanctions or ESG-related debarment, and reputational damage if supply chain abuses at the target are exposed post-acquisition affecting the acquirer's brand are all good reasons to do robust audits pre-close.
Due Diligence is not enough. It is an on-the-ground audit.
Know What You're Actually Buying Before You Sign
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ESG Data & Disclosure Accuracy Verification
Speeki provides independent verification of the target company's ESG data, sustainability disclosures, and reported performance metrics to confirm accuracy, completeness, and reliability of information influencing valuation and investment decisions.
Our verification examines sustainability reports, regulatory filings, and investor communications to validate disclosed metrics including GHG emissions (Scope 1, 2, and 3), energy consumption, water use, waste generation, diversity statistics, injury rates, ethics violations, board composition, and supplier sustainability performance.
We recalculate key metrics from source data, test data collection and aggregation processes, identify gaps or inconsistencies between disclosed performance and underlying evidence, assess whether methodologies align with recognized standards, verify that boundaries and scope are appropriately defined, and determine whether ESG performance claims can withstand post-acquisition scrutiny.
Our verification reveals whether the target's ESG credentials—which may have influenced valuation multiples, investor interest, or strategic rationale—are substantiated by actual performance or represent optimistic disclosure unsupported by robust data.
Acquirers face significant risks when ESG performance claims influencing deal terms prove inaccurate post-acquisition, particularly as investors increasingly factor ESG considerations into valuations and as sustainability-linked financing may depend on verified ESG performance.
Speeki's pre-acquisition verification identifies material misstatements or data quality issues before deal closure, enables informed negotiation of purchase price adjustments or warranties, and prevents post-acquisition surprises when integration reveals that disclosed ESG performance was overstated.
This verification is essential when ESG factors represent key value drivers (renewable energy contracts, green certifications, strong safety records) that justify premium valuations, when sustainability-linked acquisition financing requires verified ESG baselines, or when the target's ESG reputation represents strategic value that could evaporate if performance claims prove unfounded.
Unlike financial due diligence focusing on economic performance, Speeki's ESG data verification examines the non-financial disclosures increasingly influencing deal terms, investment decisions, and post-acquisition value realization.
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Climate Risk, Carbon Footprint & Energy Liability Verification
Speeki provides independent verification of target company climate risks, carbon footprint accuracy, energy contracts and commitments, and transition risks that could affect post-acquisition value or create unexpected financial obligations.
Our climate-focused audits verify the accuracy of reported GHG emissions across Scope 1, 2, and 3, validating calculation methodologies, emission factors, and boundary definitions; assess physical climate risks including facility exposure to flooding, sea level rise, extreme weather, water stress, or temperature increases affecting operations; evaluate transition risks including carbon pricing exposure, stranded asset risks from fossil fuel dependence, regulatory compliance costs from emerging climate regulations, and reputational risks from high-carbon business models; verify renewable energy contracts and commitments including power purchase agreements, renewable energy certificates, and green tariffs; assess carbon offset portfolios for quality, additionality, and retirement status; and examine climate commitments and targets including net zero pledges, science-based targets, and decarbonization roadmaps for achievability and associated costs.
We identify whether disclosed carbon performance is accurate or whether unreported emissions, ineffective offsets, or optimistic boundary setting conceals the target's true climate impact.
Climate-related liabilities increasingly affect acquisition value through carbon pricing costs in jurisdictions with emissions trading schemes or carbon taxes, stranded asset write-downs if high-carbon operations face regulatory phase-out or market rejection, renewable energy contract obligations that may be above-market or difficult to exit, and capital expenditure requirements to achieve climate targets that the target has publicly committed to but not adequately funded.
Speeki's climate verification prevents post-acquisition surprises when carbon footprint proves larger than disclosed, renewable energy commitments prove more costly than anticipated, or climate targets prove unachievable without major investment.
This verification is essential when acquiring energy-intensive operations, carbon-heavy business models facing transition pressure, or targets whose climate credentials influenced valuation or investor support but may not withstand independent scrutiny. As investors increasingly use climate considerations in valuation models and as sustainability-linked financing requires verified carbon baselines,
Speeki's independent climate audits provide the credible assessment that acquirers, lenders, and investors require before committing capital to transactions with material climate considerations.
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Governance, Ethics & Compliance System Audits
Speeki conducts independent audits of target company governance structures, ethics programs, compliance management systems, and anti-corruption controls to assess effectiveness and identify deficiencies that could create post-acquisition liability or integration challenges.
Our governance audits examine board composition, independence, and oversight effectiveness; assess ethics and compliance program design including policies, training, monitoring, and enforcement; verify anti-bribery and corruption controls including third-party due diligence, gifts and hospitality management, procurement controls, and FCPA/UK Bribery Act compliance; evaluate sanctions and export control compliance programs; assess data privacy and cybersecurity governance; review whistleblower systems and investigation practices; examine conflict of interest management; and verify regulatory compliance tracking and management.
We test control effectiveness through transaction sampling, interview compliance personnel and business leaders, review investigation records and disciplinary actions, and assess whether governance and compliance systems meet the standards the acquirer will require post-acquisition or whether significant remediation will be necessary to bring the target up to acceptable governance maturity.
Weak governance and compliance systems create significant acquisition risks including regulatory enforcement actions for historical violations discovered post-acquisition, ongoing compliance failures requiring expensive remediation, successor liability under anti-bribery laws for pre-acquisition conduct, mandatory disclosure obligations if material weaknesses exist in ethics or compliance programs, integration difficulties if governance approaches prove incompatible, and reputational damage if compliance failures at the target affect the acquirer's standing with regulators or stakeholders.
Speeki's governance audits identify these risks before acquisition, enable informed decisions about integration timelines and costs, support warranties and indemnifications protecting against compliance liabilities, and prevent acquisitions from importing governance deficiencies that could trigger regulatory scrutiny of the entire combined organization.
This verification is particularly critical when acquiring targets operating in high-corruption-risk jurisdictions, targets with significant government sales or third-party intermediary relationships, or targets in heavily regulated industries where compliance program deficiencies create material liability exposure.
Unlike compliance consultants who design improvement programs, Speeki provides independent verification of current governance and compliance system effectiveness, enabling risk-adjusted deal terms and realistic post-acquisition integration planning.
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AI Governance & Algorithmic Risk Verification Audits
Speeki conducts independent audits of target company AI systems, AI governance frameworks, and algorithmic risk management to identify regulatory compliance gaps, algorithmic bias risks, data governance deficiencies, and AI-related liabilities that could create significant post-acquisition exposure.
Our AI governance audits inventory all AI systems deployed or under development including customer-facing applications, internal decision-making tools, and automated processing systems; verify compliance with emerging AI regulations including theISO 42001, EU AI Act risk classifications and requirements, proposed US frameworks, and sector-specific AI rules; examine AI impact assessments and risk management documentation; assess data governance for AI training datasets and operational data including data quality, consent, privacy compliance, and potential bias in training data; evaluate algorithmic fairness testing, bias detection, and mitigation measures; verify AI system documentation, explainability capabilities, and auditability; review AI incident response procedures and historical AI-related incidents; assess human oversight mechanisms and AI system monitoring; and examine third-party AI vendor relationships and associated liabilities.
We identify whether the target has implemented AI governance meeting regulatory requirements or whether AI systems represent undisclosed compliance risks, discrimination liabilities, or operational vulnerabilities that will require expensive remediation post-acquisition.
Speeki's AI governance audits identify these risks before deal closure, enable assessment of AI remediation costs and regulatory compliance timelines, support negotiation of warranties protecting against AI-related liabilities, and prevent acquirers from inheriting AI systems that could trigger regulatory enforcement, litigation, or operational failures under the acquirer's watch.
This verification is essential when acquiring technology companies with AI products, companies using AI extensively in operations or decision-making, or any target whose AI capabilities represent strategic value but may conceal governance deficiencies, algorithmic risks, or regulatory non-compliance that could destroy value post-acquisition.
As AI regulations proliferate globally and AI-related litigation accelerates, Speeki's independent AI governance verification provides the risk assessment that acquirers, boards, and investors require before committing to transactions involving material AI exposures.
Acquirers face significant risks when ESG performance claims influencing deal terms prove inaccurate post-acquisition, particularly as investors increasingly factor ESG considerations into valuations and as sustainability-linked financing may depend on verified ESG 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
Labor practice violations represent significant post-acquisition risks including regulatory fines and enforcement actions, class action litigation for wage theft or discrimination, modern slavery reporting requirements creating disclosure obligations for acquirers, supply chain disruption from labor disputes or strikes, and reputational damage if media or advocacy groups expose poor working conditions at newly acquired operations.
We know that M&A deals can be urgent. Our audit team is ready.
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