Environmental concerns are constantly the subject of significant attention. Many laws impose serious penalties for environmental non-compliance, even upon people who were not involved in the circumstances that gave rise to the original breach. In addition, numerous offences are on-going and could have a devastating impact if you were not aware of a potential issue.

This means that conducting environmental due diligence (EDD) is essential for mergers and acquisitions, real estate transactions, project developments and ongoing operational regulatory compliance.


What is Environmental Due Diligence?


Environmental due diligence is the process of evaluating the environmental risks, liabilities, and compliance obligations associated with a business or property. 

In the case of a property transaction, a formal assessment offers a way for both the buyer and the seller to ascertain the true costs of the prospective agreement, especially in relation to issues like the removal of contamination and land rehabilitation.


Benefits of Environmental Due Diligence


Risk Mitigation

By identifying and assessing potential environmental liabilities early in the process, businesses can take proactive measures to minimise risks. By doing so, businesses can avoid legal penalties, reputational damage, and costly cleanup expenses.


Legal Compliance

Environmental due diligence ensures that businesses comply with local, state and national environmental regulations as well as with any licence or other approval conditions. Compliance not only aids businesses in avoiding legal repercussions, but also demonstrates their commitment to ethical business practices. 


Reputation and Stakeholder Confidence

Environmental due diligence allows companies to evaluate their eco-friendly footprint and improve their environmental impact. Depending on the nature of the operations, there may be legal requirements for environmental due diligence to be carried out.

By conducting thorough assessments, engaging environmental experts, and taking proactive measures, companies can demonstrate their commitment to sustainability while avoiding potential liabilities. 


Guidelines for Effective Environmental Due Diligence


Engage Environmental Assessment Experts

To ensure comprehensive assessments and accurate evaluations, it is crucial to involve environmental experts in the due diligence process. Our environmental specialists at Hones Lawyers possess the knowledge and expertise to identify potential risks and advise on appropriate remediation measures. Engaging lawyers with a proven track record early in the process allows for better risk evaluation and mitigation strategies.


Thorough Site Investigations

A robust environmental due diligence assessment includes thorough site investigations. This involves analysing historical land uses, identifying potential contamination sources, evaluating soil and water quality, and examining the proximity to sensitive ecosystems. 


Comprehensive site investigations provide valuable insights into the environmental risks associated with a property or business operation, regardless of interest from other parties.


Compliance with Environmental Standards 


Compliance with environmental legislation is key to a business’s effective exercise of due diligence. Businesses should assess compliance with applicable environmental laws, permits, and licences.

Depending upon the type of operations, this could include evaluating waste management practices, air and water emissions, and hazardous material handling. Identifying and rectifying any non-compliance issues is needed to avoid penalties and maintain good standing with regulatory authorities.

Embracing environmental due diligence and engaging with a specialist for an assessment is a smart investment for the long-term success and resilience of businesses, especially in today’s eco-conscious society, where stakeholders are placing a higher value than ever before on businesses that are able to provide evidence of commitment to environmental protection and sustainability.

By thoroughly assessing the environmental risks and impacts associated with business operations, companies can make informed decisions, mitigate potential liabilities, and contribute to a greener future.

For more information on environmental assessments and avoiding penalties, get in touch with us today at (02) 8318 0788 or contact us here to book a consultation.

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    Our Land and Environment Court Lawyers

    managing partner jason hones

    Jason Hones

    partner gavin shapiro

    Gavin Shapiro

    special counsel susan hill

    Susan Hill

    special counsel lesley finn

    Lesley Finn