| Due Diligence can be understood as an investigation of different factors of a company or project to analyze potential negative risks that its activities may bring to various interested parties (buyers, investors, suppliers, business partners, and other stakeholders), as well as opportunities for value generation. |
| It is a kind of “audit” that examines financial, legal, labor, accounting, tax, environmental, human rights, stakeholder relations, and technological aspects associated with a specific investment opportunity. |
| However, beyond identifying negative risks and existing opportunities in an operation, the data and information provided by a Due Diligence can help companies better understand relevant aspects of their market positioning, competition, and key business risks. |
| This information has the potential to contribute to investment projections and business planning. |
| FERREIRA ROCHA HAS ACCUMULATED EXPERIENCE FROM DOZENS OF DUE DILIGENCES. |
| Ferreira Rocha has conducted over 50 socio-environmental due diligences for power generation and mining projects of various sizes, serving both national and multinational clients. |
| Our team’s expertise is bolstered by the completion of over 430 studies and projects in the energy, mining, and real estate sectors. |
| Through the knowledge gained from this extensive experience, we have continuously improved our approach to delivering these services. Additionally, our partnership with RPM Global, an Australian multinational with over 50 years of experience in the mining industry, has provided us with valuable methodological insights and international perspectives. |
| This collaboration has elevated our expertise, granting us access to methodologies, guidelines, and international experiences that enhance the quality of our services. |
| Our team, exclusively composed of senior professionals, possesses extensive experience in: |
| · Conducting studies and projects for environmental licensing of projects in various sectors and sizes. |
| · Planning, implementing, and critically analyzing stakeholder engagement processes. |
| · Developing and complying with action plans established by independent consultants working with financing institutions that adhere to international socio-environmental performance standards. |
| Our Due Diligence work encompasses: |
| · Collaborating with specialized teams in environmental legal analysis for Due Diligence processes. |
| · Interacting with international technical teams from multinational clients. |
| · Utilizing criteria for identifying and evaluating negative risks and development opportunities based on compilation and analysis of international socio-environmental performance benchmarks, including standards set by the International Finance Corporation (IFC), AccountAbility, International Council on Mining & Metals (ICMM), and the Equator Principles. |
| · Applying conceptual and methodological frameworks associated with Social License to Operate (LSO), Social Participation, Ecosystem Services, and Sustainable Development Goals (SDGs), among others. |
| · Employing techniques and geospatial analysis software integrated with georeferenced databases provided by national and international entities. |
| · Developing executive summaries resulting from the Due Diligence process, along with detailed technical appendices, enabling evaluation of the findings by both corporate decision-making levels and our clients’ technical teams. |
| It is the technical and strategic quality of the services developed by Ferreira Rocha that has resulted in the loyalty of our clients who contract our socio-environmental Due Diligence works. |
| OBJECTIVES OF A DUE DILIGENCE |
| The evaluation of new investments from a socio-environmental perspective in Due Diligences generally involves the following objectives: |
| • Identify and assess negative risks and opportunities related to the environmental regularization process of the project; |
| • In the case of a greenfield project, verify, when applicable, if the planned schedules for implementation and/or operation are feasible; |
| • Assess the realism of costs for conducting studies and implementing programs and projects; |
| • Detect and analyze explicit or latent socio-environmental risks and conflicts, and define ways to prevent and mitigate them; |
| • Identify opportunities to optimize costs; |
| • Evaluate potential networks and local and regional partnerships for implementing actions; |
| • Identify alternatives for Environmental, Social, and Governance (ESG) investments as part of Corporate Social Responsibility (CSR) beyond licensing obligations, to bring real social effectiveness and enhance the company’s image with the surrounding communities, the market, and society as a whole. |
| In short, an “intelligent” socio-environmental Due Diligence allows for the evaluation of how variables that influence levels of social legitimacy and environmental sustainability of a project behave in the region where the investment opportunity is located. |
| This enables the development of strategies for the investor’s integration into that territory, aiming to prevent and minimize negative risks, preserve their socio-environmental schedule and budget goals, and not only shield but enhance their corporate image. |
| It is not just a risk assessment procedure, but an efficient mechanism for identifying investment opportunities. |
| Best regards, |
| Delfim Rocha |
| Chief Executive Officer Ferreira Rocha Assessoria e Serviços Socioambientais |