Enhanced Due Diligence

BSI was awarded the EBJ Business Achievement Award for developing Enhanced Due Diligence, a new practice that takes a comprehensive look at actual or potential risks related to business transactions and environmental reserves development. The BSI approach goes above and beyond traditional ASTM requirements and also evaluates key areas of potential risks to operations, revenue generation and brand reputation by assessing safety culture; sufficiency of planning and investment to meet sustainability goals; mitigation of supply chain and security risks; traditional hazardous materials management and cleanup risks; staff training; and, regulatory compliance.

Performing due diligence on the physical property is no longer sufficient. As data availability has improved and social media has brought other environmental issues to the forefront (e.g., worker safety, regulatory compliance, sustainability/greenhouse gas emissions, climate change, supply chain, and hazardous materials security), the risks associated with property contamination may represent only a small fraction of the entire environmental risk portfolio.

Transactions extend beyond mergers and acquisitions (M&A) to include divestitures and corporate restructuring. Today the non-property environmental risks can be financially greater than the property risk. These risks can damage a company’s brand or result in lost revenue and decreased profitability.

By completing Enhanced Due Diligence that looks “beyond the Phase I,” these risks can be identified, monetized, and mitigated to facilitate successful transactions and optimize environmental reserves.