Environmental Due Diligence & LECR

Environmental Due Diligence & LECR

Portfolio of Metal Cladding Manufacturing Facilities, SE Asia

SLP Environmental was appointed to perform environmental due diligence (EDD) on a multi-country portfolio of metal cladding manufacturing facilities located in Indonesia, Malaysia and Vietnam as part of a business transaction due diligence process. Our client was considering the acquisition of the Properties and Facilities thereon, and commissioned the EDD assessments to determine i) if there were any potential soil and groundwater contamination liabilities associated with the Subject Properties (Phase 1 ESA as per ASTM 1527-21), and ii) the compliance status of each Facility with respect to key Indonesian, Malaysian and Vietnamese environmental regulatory requirements (Limited Environmental Compliance Review (LECR)).

The Phase 1 Environmental Site Assessments (ESA) comprised of a review of readily available documentation, a site reconnaissance and interviews with the Property Owner’s Representatives. The Limited Environmental Compliance Reviews comprised of a review of documentation made available by the EDD Target in advance of, and during, the site reconnaissance, observations made onsite and interviews with key personnel with responsibility for environmental performance.

Particular attention was paid to practices pertaining to general environmental permitting, chemicals management, waste management, water supply, wastewater management, air emissions, nuisance noise, odour management, environmental spills/incidents, asbestos, PCBs and ODSs.

Our auditors conducted a detailed review of the physical site setting including studies on geology, hydrology, hydrogeology, and landuse history. The EDD assessments were undertaken on a rapid turnaround basis and culminated in the production of a commercially focused report for each Subject Property that clearly identified the material and other relevant environmental issues and their respective likely mitigation costs.

The reports also included a checklist detailing the key environmental regulatory requirements applicable to the operation and activities at the target facility and the current compliance status of each facility with respect to key regulatory requirements. Where non-compliances (NC) were identified, a corrective action was recommended along with a timeline for implementation based on the risk associated with each Non-compliance.