DLA Piper to integrate ESG into legal due diligence

Global law firm DLA Piper has partnered with Environment, Social, and Governance (ESG) risk management and data platform Datamaran to integrate ESG due diligence into legal due diligence

Datamaran, powered by patented technology, is a cloud-based Software-as-a-Service (SaaS) platform that provides a data-driven process for identifying and monitoring external ESG risks and opportunities. It also enables evidence-based insights and a near real-time assessment of material ESG risks that can be tailored to a client's sector, geography, or stakeholder context.

“Integrating ESG due diligence into corporate, financing, and transactional activities enables a fuller understanding of value, risk, and opportunity. As regulatory and investor demands continue to increase, applying a ‘third lens’ to legal due diligence that enables integration of ESG considerations into business as usual will be critical to remaining competitive,” said Natasha Luther-Jones, the international co-head for sustainability and ESG at DLA Piper.

The partnership between DLA Piper and Datamaran allows customers to embed ESG due diligence and risk management across corporate, financing, and transactional activities. The tech's features include the following: 

• Fully integrated legal and ESG due diligence: leverages legal due diligence processes to integrate ESG considerations and provide a holistic view of value, risk and opportunity;
• Data-driven and client tailored: evidence-based and near real-time identification of material ESG issues, tailored to sector and geography;
• Enhanced ESG valuation and risk attribution: enhanced ability to respond to ESG risks by adjusting deal parameters, not only in terms of valuation but also by contractual allocation, mitigants, and post-completion follow-up; and
• Cost-effective and streamlined deal processes: minimises double-handling and deal-integrated from day, cutting down on request for information, overlap, and timeframes.

Datamaran chief executive officer Marjella Lecourt-Alma commented: “As the focus on ESG continues to intensify, and we see a growing concern over how it is governed and regulated, it is critical that companies in all sectors adopt the technology necessary to fully understand how these trends impact their customers and bottom line.

“Our technology empowers clients to turn risks into opportunities, and DLA Piper is well-suited to full leverage this new solution for their clients and we are proud to partner with them on this endeavour.”

DLA Piper and Datamaran will also launch a shared thought leadership platform with a dedicated microsite on the evolving external risk landscape, focusing on regulation and policy making.