Environmental Due Diligence

ENVIRONMENTAL DUE DILIGENCE is a way for financial institutions to incorporate environmental and social considerations into their investment review process. This process is a sequence of site assessments and investigations identifying potential environmental liability. These are:

        Phase I Assessments
        Phase II Assessments
        Brownfield Investigations

Phase I Assessments
evaluate potential environmental issues at a commercial or industrial site. This may include a review of readily available information on the potential presence of contamination; the potential of existing or past contaminant releases; and the possible paths of exposure that would be of concern.  Interviews with community members and others are also conducted to determine past practices associated with a particular site. These efforts are combined with developmental data gathering, particularly in regard to the potential land use for the site. Phase I assessments provide information to developers, municipal planners and the community early in the assessment process on potential environmental concerns that would be helpful in initial planning regarding land use and the viability of the property for redevelopment.

Phase II Assessments
are required if a Phase I assessment indicates a potential for environmental impacts from past uses.  Phase II assessments evaluate the recognized environmental conditions identified in Phase I for the purpose of providing sufficient information regarding the nature and extent of contamination.  This allows more informed business decisions about the property; and where applicable, provides the level of knowledge necessary to satisfy the innocent purchaser defense under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA).

Brownfield Investigations
include several steps to determine the potential for and extent of contamination of a site. These include: coordinating with the pertinent regulatory agencies, retaining the services of a consultant to carry out the site investigations, and conducting the necessary investigations. 

KOT Environmental Consulting, Inc. (KOTECI) is uniquely qualified to guide its clients through the environmental site assessment process and has been conducting Phase I assessments according to the ASTM E 1527 Standard Practice since the company's inception in 2001.  Since 2006, KOTECI  has conducted these assessments as required by the All Appropriate Inquiry Rule (AAI) to meet the liability requirements of CERCLA.