EDD is an important part of most mergers/acquisitions - the purpose is to evaluate potential liabilities associated with land quality, environmental and Health & Safety issues. The presence of soil and/or groundwater contamination, hazardous materials, the nature of chemical storage or the management of stormwater, wastewater or cooling towers can impact upon the value of commercial and industrial properties. Therefore, the assessment of these environmental issues and risks comprises a key element of the due diligence process in commercial and industrial property transactions.
The EDD process normally includes the following elements:
- Environmental Management Services of facilities and operations as per ISO:14001 (which include Planning, Design Implementation & training, Environmental Auditing & Management & Review)
- Review of environmental information
- Phase 1 and Phase 2 site investigations
- Environmental risk assessment
- Identification and monetization of environmental liabilities
- Strategic advice on risk and liability management
- Remediation services including verification and validation