Cyber Due Diligence Is Experiencing Its “ESG Moment”
What It Means for Operational Risk Management
Ten years ago, ESG due diligence was just beginning its rise into mainstream corporate governance. It was important, but not yet fully embedded in valuation, regulatory frameworks, or PE and M&A processes. Today, cyber security due diligence is undergoing an almost identical transformation—rapid, structural, and almost impossible to ignore.
The similarities are striking.
A Shift From Nice to Have to Deal‑Critical
A decade ago, ESG concerns were often treated as secondary in transactions. Only after sustained regulatory pressure and rising legal risk did ESG become mission‑critical.
Cyber Security has followed the same path.
By 2025, rising cyber threats, increasing data‑privacy regulation has pushed cyber risk from a peripheral concern to a deal‑breaker, reshaping M&A evaluations and board‑level governance.
Just as ESG once evolved from “extra” to “essential,” cyber has now entered that same strategic tier.
Regulation was the Starting Point
ESG’s rise was driven by regulation. Frameworks like the Corporate Sustainability Due Diligence Directive mandated traceability, accountability, and structured oversight, forcing companies to adopt rigorous sustainability processes.
Cyber is now meeting its own regulatory moment.
According to Gartner’s 2026 trends, global regulatory volatility is driving boards to treat cyber security as a core governance responsibility, with potential penalties, business repercussions, and reputational damage for failures.
Where ESG had its regulatory awakening in the 2015–2020 window, cyber’s version is happening right now!
Due Diligence Expands From Numbers to Values and Vulnerabilities
ESG due diligence broadened the entire scope of risk evaluation. Instead of focusing purely on financials, due diligence expanded to include supply‑chain ethics, human rights practices, and environmental footprints.
Cyber DD is bringing the same expansion—but into the digital domain.
Modern cyber diligence includes:
Network architecture reviews
Past cyber breach history
Cyber Incident response maturity
Penetration test results
Third‑party cyber risk and supplier security
Board‑level cyber governance frameworks
Just as ESG required multidisciplinary input, cyber DD demands technical, legal, and operational expertise.
Investor Expectations Are Driving Change
ESG only really became mainstream once investors began to link sustainability performance to enterprise resilience and valuation. Poor levels of ESG now correlates with legal exposure, regulatory fines, and brand damage.
Cyber is now experiencing this same investor‑driven shift.
Just as investors once demanded robust ESG disclosure, they now expect transparent, comprehensive cyber governance.
Cyber and AI Are Converging Into a Single Risk Profile
In the last decade, ESG matured from a siloed reporting requirement into a core component of enterprise risk and strategy.
Today, risk convergence is taking the next step.
The modern diligence stack—Cyber, and I would also suggest AI governance—reflects a holistic view of organisational accountability. Regulators and investors now expect companies not only to perform ethically and sustainably but to operate securely and digitally responsibly.
Of course, cyber isn’t replacing ESG; it is joining it as a fundamental pillar of modern corporate integrity and formal due diligence.
The TPCS Takeaway
Cyber Due Diligence today is exactly where ESG was a decade ago:
evolving fast, reshaping governance, and becoming non‑negotiable for enterprise value.
At TPCS, this matters: Clients that build cyber due diligence into their core decision‑making today will be tomorrow’s leaders in resilience, trust, and digital accountability. Cyber isn’t just a technical issue—it’s a strategic one. And just like ESG before it, it’s becoming a defining marker of modern corporate maturity.