Integrated ESG
For years, due diligence in solar and battery energy storage systems (BESS) focused on a familiar set of technical and commercial risks: resources, the grid, permitting, contracts, equipment reliability, and financial assumptions. Environmental, social and governance (ESG) factors, despite their obvious influence on asset behavior and value, were often treated as a separate workstream. But that distinction no longer reflects how projects actually perform, argues Ragna Schmidt-Haupt, partner at Everoze.
Across solar and storage markets, investors increasingly recognize that ESG factors shape project value in profound ways. Environmental and social issues affect the design, construction and operation of a project as well as its resilience to external shocks. Governance determines whether commitments are credible and enforceable. Like it or not, ESG is now a major …
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