Case StudiesDue Diligence Auditing, Phase I ESA (0018a) Phase I & Phase II ESAs (0037a) Site Acquisition Support, Due Diligence (0071a)
Phase I Environmental Site Assessments (Phase 1 ESA), or environmental due diligence audits, are commonly required by financial institutions for property acquisition or divestiture, and property leases. They are also of benefit to organisations wishing to understand the potential environmental risks associated with their landholdings and operations.
A typical project is likely to involve a desk study (review of historical data and environmental databases) and site visit, to establish the site’s environmental setting, identify existing conditions and determine current and historic practices. A legal compliance assessment, potentially including consultations with regulators, can also be added into the package, depending on the individual project and client requirements.
What is the benefit?
The Phase I ESA informs the client of any material environmental impairments and regulatory compliance issues at a site or portfolio of properties. Conducting due diligence and compliance audits is a useful tool in reducing or managing the risks associated with a property, including:
- Potential costs for plant improvement;
- Reduction in site value due to contamination and related land remediation costs; and
- Legal compliance costs and potential operating constraints.
Environmental site assessments allow organisations to benchmark their performance in managing risk. This provides stakeholders with confidence in a company’s financial strength and reputation, in addition to facilitating a smooth sale in the future as any environmental issues would have been flagged, managed and resolved.
CRA has conducted environmental due diligence as part of acquisitions, divestitures and assets management throughout the UK and Europe for a wide variety of clients. CRA staff are familiar with a range of industrial processes which enables us to properly identify and assess environmental issues, based on our understanding of environmental regulations and legislation.
Depending on your requirements, CRA can conduct the assessment in accordance with ASTM Standard E1527-05 for conducting environmental assessments, tailoring the assessment to client specifications and/or base it on specific compliance requirements, such as health and safety, and regulatory compliance standards. CRA can also develop assessment/compliance checklists for your sites. The Phase I ESA/due diligence report can include recommendations for a Phase II ESA and abnormal costs assessments (improvement items and remedial costs).
CRA has a long-standing group of partners throughout Europe and is establishing relationships with a wider network of associates, to provide global coverage for our environmental site assessment services.
For additional information on how CRA could assist you, please contact Jo Steele on email@example.com or 0115 965 6700.