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You are here: Home » Resources » Articles » Why It Pays to Add An Environmental Compliance Audit

August 26, 2015

Why It Pays to Add An Environmental Compliance Audit

By Partner ESI

COMPLIANCE AUDITS DIFFER FROM PHASE I AND II ESAS IN A FUNDAMENTAL WAY

Environmental compliance audits are detailed audits of an operation or manufacturer to determine if the operator is in compliance with local, state, and federal regulations. Compliance audits differ from Phase I and II Environmental Site Assessments (ESAs) in a fundamental way: Phase I and II ESAs focus on releases of hazardous substances to real estate, whereas compliance audits focus on whether or not operations comply with environmental laws with the objective of reducing regulatory risk, avoiding violations, enforcement, and fines. Environmental Site Assessments are a standard component of the transactional due diligence process, but conducting a compliance audit during due diligence is the exception, not the rule.

Continue reading the GlobeSt blog here.

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