Search
 

Why It Pays to Add An Environmental Compliance Audit

Environmental compliance audits are detailed audits of an operation or manufacturer to determine if the operator is in compliance with local, state, and federal regulations. Compliance audits differ from Phase I and II environmental site assessments (ESAs) in a fundamental way: Phase I and II ESAs focus on releases of hazardous substances to real estate, whereas compliance audits focus on whether or not operations comply with environmental laws with the objective of reducing regulatory risk,…

By John Insall, LEP | Updated on August 26, 2015

Environmental compliance audits are detailed audits of an operation or manufacturer to determine if the operator is in compliance with local, state, and federal regulations. Compliance audits differ from Phase I and II environmental site assessments (ESAs) in a fundamental way: Phase I and II ESAs focus on releases of hazardous substances to real estate, whereas compliance audits focus on whether or not operations comply with environmental laws with the objective of reducing regulatory risk, avoiding violations, enforcement, and fines.  Environmental Site Assessments are a standard component of the transactional due diligence process, but conducting a compliance audit during due diligence is the exception, not the rule.

This is because non-compliance may not obviously de-value an asset, and the cost therefore may not seem justified. This is unfortunate because environmental compliance audits offer much more than simply an opportunity to avoid fines and violations. Compliance audits directly benefit each party involved in a large or small real estate or corporate transaction, whether it’s the buyer, seller, operator, lender, or investor.  

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.