ENVIRONMENTAL DESKTOP REPORTS
ENVIRONMENTAL TRANSACTION SCREENS
Environmental Desktop Reports
Many acquisitions due not have significant environmental risk and therefore do not require a Phase I assessment or in-depth environmental due diligence. BABS is always looking at ways for our clients to streamline their environmental due diligence efforts from a scheduling and cost perspective. A Desktop Environmental Report is a cost-effective due diligence tool for evaluating environmental risk. Desktop reports are often used by lenders, brokers and investors as part of a tiered approach to environmental risk management – along with other reports such as the Phase I Environmental Site Assessment.
BABS can save our clients both time and money in these cases to conduct a desktop evaluation to document the level of environmental, health, and safety risk associated with the target portfolio or facility. Environmental desktop evaluations can also quickly identify if there may be potential environmental, health, or safety issues that may be material to the transaction and require further evaluation. A desktop evaluation provides a high-level environmental and health and safety summary of the target’s properties and facilities based on evaluation of existing company information, publicly available information, vendor databases, and interviews with property representatives.
A few examples of where an environmental desktop review can save time and money during a diligence effort are:
• Evaluating a service-based or asset-light business where properties and facilities are involved in the transaction
• Supplementing or updating the information found in historical Phase I reports
• Documenting the environmental risk and exposure of a company in preparation for divestiture (ensuring any deficiencies are addressed before a buyer completes their diligence)
• Determining the probable risk across a large portfolio of sites and preparing a detailed timetable for additional due diligence across accelerated schedules.
If the environmental desktop evaluation identifies potential risks and exposures, this information can be quantified and used to make fast and accurate business decisions during acquisitions and divestitures.
Environmental Transaction Screens
Environmental Transaction Screens (ETS) are considered screening tools for clients who wish to conduct limited environmental due diligence. An ETS is a cost-effective environmental due diligence report. ETS are voluntary procedure intended to identify Potential Environmental Concerns (PECs) for commercial real estate. The scope of work for an ETS includes a site visit, regulatory records review, key personnel interviews and limited historical research. The ETS is governed by an ASTM Standard for the Transaction Screen 1528-06 Standard Practice for Limited Environmental Due Diligence: Transaction Screen Process. The Transaction Screen does not meet the requirements of the EPA’s All Appropriate Inquiry and will not offer the user protection from CERCAL Liability. An ETS requires a limited scope of work, which includes a site visit, review of environmental databases. Completion of an environmental questionnaire by the owner or occupant and consultant doing the transaction screen and review of limited historical sources. Users who complete the transaction screens do not qualify for Landowner Liability Protection (LLPs) under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA. Anyone seeking these protections are required to complete a Phase I ESA. Lenders, brokers and investors often use ETS to determine potential environmental risk management at a cost less than the Phase I ESA. Please contact our Environmental Services Department to inquire more regarding our ETS or request a quote online.
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