Integrity due diligence in South America
CRW was retained by a global company operating in the energy sector, to conduct integrity due diligence on a South American engineering company, a potential partner for the development of wind farms in the country.
Research has established that the target company had been involved in tax evasion and ESG violations including labour law violations which have led to a wave of protests and strikes of its employees, demanding better salaries and working conditions. In addition, the company had been sanctioned by the local regulatory authorities in connection with a series of other irregularities, which resulted in restrictions to participate in tenders and to sign contracts with the public administration.
Although none of the managers or the shareholders had faced any criminal charges in the South American country, the client decided not to engage with the company because of the evidence of ESG violations.