Environmental Due Diligence Assessment
Are you involved in acquisitions, divestments, portfolio management or development projects? If so, how important is it to you to understand the potential environmental liabilities, costs and opportunities associated with your projects?
A very simple and effective tool that can be used to identify and mitigate your commercial risks is an Environmental Due Diligence (EDD) assessment.
In any acquisition or divestment, be it a single property or portfolio of properties, the optimal scenario is to commence with a fit-for-purpose EDD assessment as early as possible in the process. This will add value by identifying, characterising and quantifying environmental liability (e.g. soil or groundwater contamination) and thereby strengthening your position in any negotiations with the buyer or seller.
Greencap has developed a very simple approach to EDD assessment that allows you to choose the level of assessment required, depending on your needs. In simple terms it is a Decision Tree that asks a series of yes/no questions to quickly determine what level of assessment will best suit your needs.
The Greencap EDD process follows a tiered approach, where you can select either a Tier 1, 2 or 3 EDD assessment.
The work streams associated with the Tier 1, 2 and 3 assessments have been broadly divided into the following categories:
- Desk Studies
- Site Work
- Risk Assessment
- Commercial Liability Assessment
The specific scope items (i.e. tasks) associated with each work stream are either a standard or optional offering in a particular tier.
What happens if you are not certain?
Speak with a Greencap expert for consultation on what options will address your specific needs and add the greatest value. Greencap’s advice is centred around a risk-based approach to due diligence and the experienced team is readily able to find solutions that balance environmental protection and the commercial realities inherent in acquisitions, divestments and portfolio management.
A major benefit of Greencap’s tiered approach to EDD is that you only pay for those scope elements that are directly applicable to your project.