Environmental Liability and Due Diligence
Environmental Liability Assessments and Due Diligence studies are increasingly required as part of commercial property transactions, investor risk management procedures, as well as for licence and waste permit compliance. Legally, environmental liability provision requires that every company is responsible for the prevention of environmental damage and where damage occurs due to their activities, they are liable to remediate and/ or compensate the damage caused.
Environmental Due Diligence (EDD)
Environmental Due Diligence audits are commonly sought during commercial property transactions by either vendor, purchaser or financier parties. EDD assessments are the first step in identifying the likely presence of underlying contamination issues or environmental conditions which may have a bearing on the future value or liability of a property or land holding. Phase 1 Due Diligence assessments include desktop review of available documents and non intrusive site visits. If potential contamination or risk is indicated, a more detailed Phase 2 Due Diligence Assessment, including soil and water sampling, may be required by the purchasers or investors, in order to quantify the potential remediation extent and costs.
Companies that operate with an Local Authority Waste Permit or an EPA licence (Industrial Emissions, Industrial Pollution Control, or Waste) are required to submit Environmental Liability, Closure Risk and Financial Provisions Assessments (ELRA, CRAMP & FP) to the permitting authority . These assessments must be carried out in accordance with the EPA Guidance on Assessing and Costing Environmental Liabilities (2014).
FNE can provide assistance and expertise on all aspects of property transaction Due Diligence and Environmental Liability and Closure/ Financial Risk Assessments. We carry out quick turn-around Phase 1 Due Diligence studies suitable for Conveyance Requisitions, or work with operators to identify complex site specific risks and suggest appropriate mitigation methods, both for environmental damage remediation, and as part of ELRA, CRAMP and FP assessments.
We have completed over 50 Due Diligence assessments for property transactions since 2012 and have delivered ELRA/ CRAMP and FP reports for clients holding Waste Permits.
- Due Diligence Phase 1 Assessment and full reporting
- Management of Phase 2 Due Diligence investigations
- Development of conceptual site models (CSM)
- Quantification of effects of environmental damage
- Environmental Liability Risk Assessment (ELRA)
- Closure and Residual Management Plan (CRAMP) and Site Closure Audits
- Quantification of Financial Provision requirements (FP) and advice on suitable Financial Mechanisms
Contact: Elisabeth Nagel 086 3536505