Environmental due diligence
We help investors and land or business owners understand environmental liabilities and the cost implication on land and other business transactions.
By combining technical expertise and a commercially focused approach, we can find solutions to manage and reduce liabilities so that you can successfully complete the transaction while achieving maximum value.
When buying, leasing, investing, selling or managing a business or property, the investor and vendor are exposed to several risks and liabilities which are assessed through the due diligence process.
Environmental risks are one of the more complex (and sometimes overlooked) liabilities, most of which can’t be seen by the naked eye and are often unreported.
Understanding these risks clearly, and the solutions to reduce them quickly before completion of any deal, is critical to know the full implications of the investment.
This allows the investor to make allowances, take measures to reduce environmental risk, and achieve a maximum return on investment.
We are a trusted partner for investment funds, real estate investment trusts (REITs), commercial property owners/occupiers, industrial operators, lawyers, building surveyors, property agents, asset managers, and developers.
Features and outputs
- Achieve maximum return on investment for your property transaction.
- We have the dedication, skills and tools required to deliver the advice you need to balance and minimise your environmental risks.
- Surveys carried out for both single and multiple site transactions.
- Able to work to very short timescales.
Environmental due diligence is an essential part of any land transaction as it highlights potential liability costs associated with environmental risks.
We carry out specialist environmental due diligence surveys on sites as part of acquisition or divestment to provide estimates for potential environmental liabilities associated with land contamination and areas of regulatory non-compliance. The service can include information review and processing (e.g. data room inspection, phase I surveys), environmental investigation (phase II investigations) and remediation.
We also carry out environmental due diligence services during lease transactions; either pre-lease (e.g. baseline surveys), lease renewal or on lease completion where we can assist in developing a site exit strategy.
Environmental due diligence is required to:
- Limit environmental liabilities and associated costs.
- Provide a competitive advantage by fully understanding and reducing risk, cost, and timescales.
- Protect corporate brand and reputation.
- Provide opportunities to enhance value and maximise the return on capital.
- Provide details to reduce future environmental liabilities.
Our rapid response due diligence services include:
- Phase 1 and phase II environmental assessments.
- Provision of initial advice and environmental reviews.
- Data room assessments.
- An assessment of risks and provision of financial budgets to cover liabilities.
- Risk ranking of property portfolios to highlight aspects that could materially impact the transaction.
- Completion of baseline and lease closure assessments.
- Provision of practical remediation advice, where necessary.
- Regulatory discussions and agreements where necessary
- Project management and cost control of third-party environmental works.
- Peer reviews of third-party reports.
Post transaction advice
When buying, investing, selling, or managing a business or property, the investor and vendor are exposed to several risks and liabilities which are assessed through the due diligence process. To maximise the return on investment and minimise environmental risks, we offer advice and services throughout the ownership, management or operation of a property.
These include: pollution risk reduction advice, preventative maintenance, emissions, and environmental impact monitoring, long term remediation services, Net-Zero planning, and carbon emissions reduction advice, and sustainable infrastructure support and installation.
As part of a property transaction, investors want to understand the energy performance of a building. They want to invest in energy positive buildings and not want to end up with bad energy properties in their portfolio (known as stranded assets).
What is a stranded asset?
A stranded asset can be a building, a piece of land, or a piece of related infrastructure that once had value, but no longer does because external societal factors change.
Measurement and valuation of carbon emissions within the commercial real estate sector can result in a write down in asset value, early obsolescence, and the devaluation of portfolios.
Historically, many within the real estate sector perceive climate-related risk as being a negative thing. We need to evolve and move forward. Increasing numbers of companies and investors are realising that this change is an opportunity to add value and to extend the lifecycle of their assets, for them to become more compliant with their ESG targets and to improve their ESG credentials.
De-risking property transactions
As part of wider due diligence services, we offer carbon due diligence to confirm the accuracy of supplied data, survey energy bills and perform desk research to give investors confidence in the energy performance of a building so that they can meet their Net-Zero and ESG targets.
Keep your business compliant and protect the environment while reducing the risk of operational downtime
Find out how Adler and Allan reduce your risk and support you on your journey to Net-Zero through the management and maintenance of assets.Contact our experts