Managing upside and downside risks in investment decisions
A radical transformation of the energy sector is underway with multiple inflection points over the coming decades. How do you navigate the risks and opportunities across this complex and turbulent energy landscape?
The energy sector will require trillions of annual investments globally over the next decades to transition sustainably to low carbon economies. This transformation of the energy sector will be characterized by major technological innovations, by commercial complexity and by an evolving policy/regulatory landscape while ensuring that investments address the climate-nature-social challenges. These factors will expose investors and corporates to policy, technical, operational, safety, environmental, climate and financial risks.
Our due diligence team is well versed in supporting investors and corporates in assessing and evaluating those risks in the context of acquisition/divestments of assets as well as in project financing of new and expansion projects. Globally, we advise on around 200 deals annually across the whole spectrum of the energy sector, from traditional forms of energy and utilities to renewable energy, hydrogen, carbon capture and storage and the circular economy.
DNV’s due diligence services
We work on both the sell and buy sides, project financing and act as lenders technical advisors (LTAs). Our services include:
- Technical and environmental due diligence
- Environmental, social and governance (ESG) due diligence
- Climate risk due diligence
- Biodiversity due diligence
- Supply chain due diligence
- Market/commercial due diligence (for specific sectors)
Due diligence studies and expertise
With a presence in over 100 countries, and a proven track record in complex due diligence studies, our business and technical experts provide a multi-disciplinary service that leverages resources from across DNV, tailored to the specific asset type and scope of work. This typically includes:
- Site assessments to evaluate day-to-day operational, asset integrity and safety risks, and the ability to deliver reliable and safe operations.
- Overall evaluation and review of governance and operating procedures including risk management systems and processes, cyber risks, subcontractor management, procurement procedures, and KPIs for reporting/disclosure requirements.
- Asset integrity reviews including benchmarking performance, operations and maintenance, and confirming compliance with industry standards.
- Environmental review including planning, permitting, soil and groundwater contamination.
- Climate risk analysis assessing transition/decarbonisation plans and adaptation/resilience plans.
- ESG reviews with a focus on material risks for the business.
- Advising on the business and project implications of technical risks.
- A complete review of CAPEX programmes, project systems, planning and forecasts.
- Assessment and benchmarking of CAPEX and OPEX projections.
- Assessing future decommissioning obligations, costs and risks.
Providing assurance and insight to our customers with:
- Comprehensive industry knowledge and expertise.
- Access to industry benchmark data across multiple jurisdictions.
- Large pool of specialists including operations, asset integrity, safety, environmental, climate and commercial teams.
- Capacity to deploy resources globally and work on multi-asset type deals.
- Extensive experience across teams in delivering bankable reports.
