Environmental due diligence is aimed at assessing potential liabilities that may transfer from one party to another as a result of a commercial transaction. The increased risk of inheriting environmental liabilities has led to purchasers, vendors, lenders, and insurers, to evaluate the environmental operations of a given site. There are three recognised phases involved in this process of evaluation :

• Phase 1 - Documentary desk studies - information gathering - site appraisals.
• Phase 2 - Intrusive studies - soil sampling (analysis carried out at independent laboratories).
• Phase 3 - Remedial action - problem solving - physical and contractual.

A rigorous and comprehensive site investigation should result in the early identification of environmental pollutants, thereby highlighting potential liabilities to a business. Legislation, as applied by local authorities, to this important area of land contamination, where migration of pollution may affect other properties, can seriously harm your company’s finances and reputation.