Environmental Due Diligence

In a world of ever-increasing environmental regulation, the impact of environmental issues has fast become a proactively managed boardroom issue. Today, Environmental Due Diligence (EDD) is an increasingly important part of the mergers and acquisition process.  While there is a clear downside in neglecting to consider environmental risks, there is also the possibility that, on occasion, environmental liabilities may have been overstated by previously conducted studies. This may result in valuable investment opportunities being missed. A careful examination of the assumptions underlying existing environmental liability estimates can therefore yield beneficial results.

ADP has a multi-disciplinary, highly qualified team to ease project management, saving crucial time and resources.  ADP has a unique but pragmatic approach to the presentation of Environmental Due Diligence assessments, to conform to client requirements and budget considerations. To obtain information for quick decision-making, a basic assessment of the present circumstances and a rough estimate of potential risks will be prepared. The detailed environmental due diligence includes surveys, preparation of expert opinions and suggestions of corrective measures.

Phase I Site Assessment

Environmental site assessment (Phase I Site Assessment) is a report prepared for a real estate holding that identifies potential or existing environmental contamination liabilities. The analysis, often called an ESA, typically addresses both the underlying land as well as physical improvements to the property.

The primary intent of our Phase 1 Environmental Site Assessment or ESA is to identify Recognized Environmental Conditions (RECs) associated with each property, as well as Business Environmental Risks (BERs) as defined within ASTM.  This site visit includes an inspection for issues identified as within the scope of ASTM 1527 including:

  • Hazardous Materials Storage & Handling
  • Waste Generation, Storage, Disposal & Emissions
  • Underground Storage Tanks
  • Aboveground Storage Tanks
  • Polychlorinated Biphenyls (PCBs)
  • Stained Soil
  • Drums or Unidentified Containers
  • Drains or Sumps
  • Pits, Ponds, or Lagoons
  • Wells
  • Septic Systems
Phase II Site Assessment

Phase II Environmental Site Assessment is an “intrusive” investigation, which collects original samples of soil, groundwater or building materials to analyze for quantitative values of various contaminants. This investigation is normally undertaken when a Phase I ESA determines a likelihood of site contamination.

ADP’s Phase II ESAs are typically conducted in accordance with the ASTM E1903 Standard, the scope of which typically includes a review of previous reports for the subject site and surrounding areas to identify actual or potential sources of environmental contamination; underground utility clearances and borehole layout of the subject site; the mobilizing, drilling, and logging of boreholes; the installation of groundwater monitoring wells (where required); the screening of soil sample headspace; carrying-out chemical analyses on representative soil and groundwater samples at an accredited environmental laboratory; and the preparation of an ESA report of pertinent findings, conclusions, and our recommendations(if any).