Sehrish Siddiqui
Sehrish Siddiqui is a member with law firm Bass, Berry & Sims and focuses on ESG.
Davis Mello
Davis Mello is a member with law firm Bass, Berry & Sims.

Mergers & Acquisitions recently announced the inaugural PE Innovators in ESG list, and this week, the publication is bringing the industry together for the PE Innovators in ESG Speak virtual event.

Private equity sponsors are coming under increased pressure from limited partners to develop more robust practices around environmental, social and governance (ESG) matters. They are being pressed to expand the scope of their traditional due diligence efforts to consider in a structured way ESG factors that might have previously been thought to be outside the scope of typical diligence for private middle market companies. Private Equity International’s LP Perspectives 2021 study indicated that ESG factors are gaining greater weight in due diligence, with 88 percent of investors taking a manager’s consideration of ESG factors into account while conducting due diligence.

As attorneys at Bass Berry & Sims, we share our insights on ESG due diligence, below.