Why Due Diligence?

In vibrant Indian economy, consolidation through merger and acquisition (M&A) has become order of the day. Corporate find brownfield acquisition, an easier way of rapid growth rather than going by traditional expansion or business optimization. Before any such amalgam, companies ensure the viability of project in terms of its legal, financial, technical and geopolitical aspects. Due diligence is one such tool, that surfaces potential liabilities and risks involved in perspective property and helps buyer to take informed decision. Environmental Due Diligence (EDD) is the process that takes care of environmental liabilities.

How it is done?

Environmental liabilities are often associated with historical contamination of ground water or soil that may have long lasting repercussions unlike air or surface water. These liabilities could result in adverse impact on business continuity due to the regulatory fines; social in-acceptance; loss of production, customer satisfaction and the reputation. EDD is divided into three stages i.e. Phase I: Primary Site Assessment, Phase II: Contamination Profiling and Phase III: Site Remediation.

Phase I comprises of doing reconnaissance survey, comparing past records with practices, finding evidences for historical contamination and identifying the need of additional monitoring/measurement, to be done under next phase.  Phase II accordingly, if required, deals with sampling and analysis of soil and groundwater, ascertain extent of contamination and remediation required with cost. Phase III involves the actual site remediation to meet applicable standards/protocols.

Corporate undertake EDD not only to ward off unwarranted liabilities but also to take safeguard against any future change in legislation or to meet with their international protocols. If environmentally acceptable, cost of risk mitigation is determined for leveraging negotiations or apportioning liabilities between buyer and the seller. Scope of EDD can be widened to take into account the social and OH&S (occupational health & safety) issues as well.

Why Chilworth?

Though EDD process largely depends on project’s requirements, it is most effectively done using ISO 14015, ASTM E-1527, E1903-97(2002) and the guidelines given by IFC. Chilworth with the strong backup of GLP certified laboratory and thousand of projects & clientele worldwide, offers its customers a tailor-made EDD that suits best to their requirements. In India, Chilworth has served elite customers in public and private sector. For further information, please contact: info@chilworth.co.in