From asset to liability: When net-zero promises fall apart in due diligence

Net-zero isn’t just about ethics or optics anymore. When investment firms or acquisition teams do their due diligence, it’s become a line item – one that can directly impact whether a deal goes through. From a financial lens, net-zero isn’t about being green – it’s about being future-proof.

Buyers and investors don’t want a liability. If a company claims it’s on a net-zero path but hasn’t backed that up with a funded, coherent plan, it sets off alarms. All those vague commitments and PR statements can backfire if there’s nothing solid underneath. Why? Because achieving those promises could fall to the new owner, and that means extra cost, extra complexity, and unnecessary risk.

Greenwashing risks derailing deals

This isn’t hypothetical. Environmental claims are increasingly scrutinised during due diligence, especially in asset-heavy industries. If the business being acquired positions sustainability as part of its brand or growth strategy, yet lacks the infrastructure or data to support it, the acquirer is left holding the bag.

A fragmented net-zero strategy – spread across disconnected projects, each with its own budget, owners, and timelines only makes things worse. It’s harder to quantify the actual risk, harder to know what’s funded or achievable, and nearly impossible to course-correct without tearing the whole thing apart. Investors don’t want to gamble on best guesses or well-meaning intentions.

One joined-up plan makes net-zero a financial asset

The financial value of net-zero comes down to clarity. A single, integrated strategy where all emissions-reduction projects sit in one plan makes due diligence easier, not harder. It shows what’s funded, what’s working, what’s at risk, and what can be dropped or redirected.

It’s not about perfection, it’s about transparency and insight. A joined-up net-zero roadmap lets investors see what they’re buying. It turns sustainability into an asset, not a red flag.

A credible, integrated, and funded net-zero plan could be the difference between closing the deal and being left behind.