Environmental Due Diligence

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Environmental Due Diligence

Our consultants have vast experience in Environmental Due Diligence (EDD), and are able to offer this service varying upon the type of transaction, and environmental risk of the property/facility.

Types of Environmental Due Diligence

Types of due diligence include Phase I Environment Site Assessment (ESA) and Phase II ESA.

  • Phase I ESA conducted in accordance with the ASTM Standard assesses the property for the presence or potential presence of environmental contamination. It involves evaluating the current and historical uses of the property in an effort to identify recognized environmental conditions.
  • A Phase II ESA often involves the collection and analysis of soil and/or groundwater samples from the highest risk areas of the property to determine if contamination is present and if it is, is it present at concentrations that present environmental or health risks.

Environmental Due Diligence (EDD) is a comprehensive investigation historical use of the property to prevent future liability for existing environment contamination.

Environmental Site Assessment

Prior to the purchase or occupancy of a property, the purchaser or future tenant has the option to complete a Phase I ESA to investigate the current and historical use of that property, intended to reduce, but not eliminate, uncertainty regarding the potential contamination in connection with the subject property. It is a good idea to complete environmental due diligence to prevent future liability for existing contamination on the property by conducting a Phase II ESA. If a Phase II ESA determines that contaminants are not present or does not exceed regulatory criteria, a report is issued, and the purchaser’s environmental due diligence is complete. If the contamination is above this criteria, we can offer solutions on remediation of the asset.

Environmental Site Assessment helps determine the future cost of remediation of the property/facility in case contamination is present. The purchaser can pay for the remediation of the property or negotiate these costs with the seller. The purchaser can then purchase the property and assume liability for the existing contamination or decide not to purchase the property, if the above options are not financially viable for the transaction.

Environmental Site Assessment in Malaysia is currently regulated under the Contaminated Land Guidelines 2009. This regulation is expected to become law very soon. The Contaminated Land Act then puts the responsibility of remediation of a contaminated property on the owner of the property when a property is sold or in the case of an industrial facility, when it is divested.