The term Due Diligence refers to care that a person exercises to avoid harm to other persons or their property. Environmental Due Diligence on the other hand is a process, which is used to assess the real estate for potential risk of contamination of soil and ground water. Environmental Due Diligence (EDD) is very important for mergers and acquisitions. The purpose of EDD is to evaluate the potential liabilities associated with land quality, other environmental and Health & Safety issues. For any project consolidated Environmental Due Diligence Report (EDDR) is prepared. The basic objective is to collect and analyze the views on environmental impacts and environmental management measures that have been integrated in the project document.
The standards for conducting environmental due diligence are fixed by an Environmental Protection Agency (EPA). The environmental professionals determine the extent and type of assessment necessary, which differs from one property to other. Environmental Due Diligence may be legal obligatory or voluntary. It is time consuming, inconvenient, tedious, and often expensive.
The EDDR contains the reviews of available documents and the assessments of the compliances of subprojects in respect to (i) regulatory clearances like environmental clearance, forest clearance, CRZ clearance etc.; (ii) Environmental safeguards as per Environment and Social safeguard framework (ESSF) of IIFCL and applicable operational policies of World Bank (iii) analysis of alternatives; (iv) the process of identifying environmental impacts and integration of environmental management measures; (v) public consultations and information disclosure etc. The approach towards preparation of the draft EDD include the following work plan.
GCRDPL has developed the required expertise to undertake Environmental Due Diligence of a project. It has constituted an expert team, which are capable of undertaking Environmental Due Diligence exercises of various projects.