Environmental due diligence

Connect the legal entity, site and asset history

We compare the proposed transaction perimeter with permissions, operating conditions, inspection correspondence and waste records. The review identifies documents that may not transfer automatically and questions requiring authority or specialist clarification.

Deliverables can include a red-flag register, document request list, completion dependencies and post-transaction action schedule. Findings distinguish missing evidence from confirmed non-compliance.

Agree which entities, sites and assets fall inside the review before requesting documents. Map each permission to the named operator and location, and identify activities that sit outside the proposed transaction but share facilities or services. This helps the deal team understand dependencies that may remain after completion, including records or arrangements controlled by another party.

What to prepare

• Transaction perimeter, property and operating history
• Permissions, renewal records and conditions
• Notices, litigation summaries and inspection correspondence
• Environmental studies and waste or monitoring records

Use a dated document index and retain the version on which each finding relies. Record documents requested but not supplied, management explanations and conflicting records separately. Where a renewal or corrective action is said to be in progress, request the supporting submission and latest correspondence rather than treating the statement as evidence of an issued decision.

A practical example

Buying machinery together with a leased facility does not establish that the buyer can operate under the seller’s permissions. Review the operator, capacity and transfer conditions before fixing completion obligations.

For the leased-facility example, compare the assets being acquired with the premises and operating arrangements described in the permissions. Identify shared treatment facilities or other dependencies requiring clarification. The resulting questions can inform the transaction worklist, while any conclusion about transfer or continued operation must follow the relevant documents and applicable procedure.

Scope, fees and responsibilities

The base review is documentary. Contamination surveys, intrusive sampling, remediation estimates and legal opinions require separately appointed specialists. Absence of a notice is not proof that a site has no environmental liability.

The proposal identifies the deliverables, client data responsibilities and follow-up included. Government charges and external technical work are quoted separately where applicable.

The report records the evidence behind each finding, its practical implication and the next action or specialist investigation proposed. Assign responsibility for resolving transaction conditions and carrying forward post-completion actions. A closed document request is not necessarily a resolved risk; the handover should explain what evidence or decision supports closing the finding itself.