With environmental legislation in Brazil becoming increasingly comprehensive, with new laws and decrees enacted every month, in addition to greater control and inspection by environmental agencies, it is increasingly necessary for industries, real estate markets, services, and governments to act responsibly and in compliance with the legal requirements applicable to their business.
SGW Services has an experienced team in this type of audit that has conducted over 200 projects in Brazil and Latin America, mainly advising corporate audits of major multinationals.
In Brazil, ABNT – Brazilian Association of Technical Standards, on 12/10/2007 published standard NBR 15515-1 "Environmental Liability in Soil and Groundwater Part 1: Preliminary Assessment". The standard was drafted based on the American ASTM 1527 standard and establishes minimum procedures for identifying environmental liabilities.
In the state of São Paulo, CETESB, in its Contaminated Areas Management Manual, establishes that the investigation and management stages of contaminated or potentially contaminated areas must begin with a Preliminary Environmental Assessment focused on identifying Suspected Contamination Areas (AS) and Potentially Contaminated Areas (AP), which will support the planning of the next stage, the Confirmatory Investigation of Soil and Groundwater.
Preliminary Environmental Assessment (Phase I)
The Preliminary Environmental Assessment is preferably carried out to identify the potential presence of environmental liabilities and other environmental limitations of an area or business in cases of acquisitions, changes in use and activities, or business expansions. In São Paulo state, CETESB often requires companies to conduct a Preliminary Assessment as part of the Environmental License renewal. The procedure evaluates and reports the environmental condition of an area based on historical facts and records, interviews with people or professionals familiar with the site, and detailed inspection of the area and surroundings.
Environmental Due Diligence
Environmental Due Diligence began in the USA in private mergers and acquisitions transactions. Due Diligence is conducted based on the American standard ASTM E1527-05 – Phase I Environmental Site Assessment Process adapted to the Brazilian reality. It is a systematic document and information analysis procedure of a company, aimed at measuring actual and potential risks associated with environmental liabilities and environmental legal compliance.
Who Should Do It?
All companies involved in acquisitions or mergers of industrial areas, real estate investors, or companies that will expand their business or change the type of activity on site (e.g., former industrial areas now used for commercial or residential purposes).
SGW Services Expertise
SGW Services has a team of senior consultants with extensive experience in conducting Environmental Assessments that, in addition to technical work, provides support to clients in negotiations through financial calculation of existing or potential environmental liabilities.