Environmental due diligence (EDD) is an increasingly important part of the corporate due diligence process. Environmental liabilities can be large and hidden, and there are many examples of purchasers and funders being hit with unforeseen costs. Unrecognised liabilities relating to land or water contamination, or impending permitting requirements, can cost purchasers and lenders dear and, in a worst-case scenario, they can result in criminal penalties for directors.
While there is a clear downside in neglecting to consider environmental risks, there is also the possibility that, on occasion, environmental liabilities may have been over-stated by previously conducted studies. This may result in valuable investment opportunities being missed, especially in relation to contaminated land, where recent changes in legislation have made many redevelopment projects viable. A careful examination of the assumptions underlying existing environmental liability estimates can therefore yield beneficial results.
Our environmental due diligence services offer the following benefits to our clients:
- Environmental knowledge is turned to commercial advantage in land transactions
- Environmental liabilities are identified and quantified so that they can be managed
- Land value is maximised
Services: – Environmental Due Diligence
As a firm which focuses exclusively on assessing and managing environmental risks, ESI is well placed to advise on how to manage liabilities associated with specific sites or property portfolios. We support buyers, sellers, investors and lenders with easy to understand and relevant advice on their transactions. Our activities in support of environmental due diligence include:
- Environmental audit of facilities and operations
- Review of environmental information
- Phase 1 and Phase 2 site investigations
- Environmental risk assessment
- Identification and monetisation of environmental liabilities
- Strategic advice on risk and liability management
- Remediation services including verification and validation
Please contact ESI for more information on environmental due diligence service.