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Environmental Due Diligence: What it actually means?
Environmental due diligence evaluates environmental risks and liabilities associated with an asset or business being acquired, financed or developed. Consultants review historical land use, contamination records, waste practices, permits, emissions, nearby sensitive receptors and compliance with environmental laws. Where issues are found, they estimate remediation costs and regulatory exposure and factor them into the deal or project economics. Lenders and investors increasingly require this to meet ESG commitments. Early diligence prevents surprises after acquisition and informs negotiation.
