As part of our EnviroRisk property due diligence product line Waterman can offer different levels of assessment from simple screening to a detailed review of potential environmental and sustainability liability.
The desk-based assessment comprises a review of the following data sources for the site:
An assessment of the environmental sensitivity of the site, with reference to the geology, hydrology, hydrogeology and nature conservation value of the general area, which will enable an assessment of the potential impacts of site activities.
A review of historic maps available for the site to assess the likelihood of ground contamination originating from past activities on-site or in the vicinity of the property.
Review of the previous reports undertaken on the site. Note: The EnviroRisk Plus does not include for a review of additional reports within the quoted price and any reviews will be subject to additional costs.
A review of publicly available regulatory and non-regulatory data information (as provided in an Environmental Data Report) to assess the environmental sensitivity of the site and surrounding area.
A review of publicly available information from the Environment Agency to confirm whether the property is at risk from marine or fluvial flooding. This will not cover the risk of pluvial flooding (i.e. from intense rainfall events)
The EnviroRisk+ Report provides a succinct report utilising the EnviroRisk+ Report template. The report does not include regulatory consultations or a site inspection. Note: given the limited scope of the EnviroRisk+ Report there is the potential that further work may be required to fully understand the risk at a given site.
EnviroRisk 360 Report
The objective of the assessment is to identify the risks associated with soil and groundwater contamination at the site, and associated liabilities under Part IIA of the Environmental Protection Act 1990. In addition, the report aims to identify key risks for a property investor in relation to flooding and regulatory requirements associated with the energy performance of buildings, as well as covering certain other sustainability elements
The scope of works will comprise:
A desk-based Phase 1 Contaminated Land Due Diligence assessment (including regulatory consultation):
A site inspection and review of design documents to help understand likely sustainability performance and the potential for contamination;
A review of sustainability performance to assess the sustainability requirements ;
A high-level review of flood risk information by our specialist flood team
A short, tabulated report highlighting any key environmental risks and sustainability indicators associated with the site.
ESGRisk Report
Property ESG due diligence helps investors and stakeholders make informed decisions that not only consider financial returns but also the broader impact of the property on the environment, society, and governance practices. It contributes to responsible and sustainable real estate investment practices
Although ESG factors in real estate investment can be defined in terms of both value creation and risk management, from an investment critical perspective, initial due diligence efforts necessarily focus on risk management.
ESG Property due diligence is therefore not just about looking at the historical liability of things like contaminated land but also about protecting the medium to long term value of real estate portfolios from factors such as occupier demand, investor requirements, regulatory exposure, the physical and transition risks of climate change and energy security.
Waterman has developed ESGRisk, a property due diligence product that meets the needs of today’s real estate investment market by:
Incorporating Phase I environmental and site-specific flood risk due diligence assessments.
Integrating climate risk data in our site data collection efforts.
Assessing whether the property meets energy efficiency standards.
Assessing whether the property meets the definition of a sustainable investment under EU Taxonomy or SFDR or exhibits any principle adverse indicators.
Assessing whether a property presents a risk in terms of energy performance to the buyer's Net Zero targets.
In this way Waterman can help to provide the right investment critical information at the right time in the property transaction process.
