Environmental Due Diligence

Efficiency and professionalism are the most important criteria for evaluating our work with clients. An early request to GRATA for professional legal assistance on complying with environmental law will save you money and time in addition to protecting your business’ reputation.

Environmental Due Diligence

Environmental due diligence (EDD) is designed to evaluate potential liability costs associated with environmental issues and is an important part of most merger and acquisition procedures.

Environmental due diligence is a relatively new discipline. Although prior to the 1980s it was virtually unheard of, today it is an integral part of the transaction process undertaken predominantly by purchasers, but increasingly by vendors as well. The process has evolved over the past twenty years and may now include analysis of health and safety (H&S), employees’ exposure to toxic materials, product liability, etc.

Property owners, developers, sellers and buyers understand the need to protect themselves from future liabilities.  Environmental due diligence simply assures that the land being purchased does not pose potential risks or environmental hazards which may affect the area’s development or its future inhabitants.

Corporate business decisions with regards to complying with environmental requirements should be based on reliable information on the actual state of affairs of a company. Environmental due diligence, performed by GRATA's experienced staff, is an instrument for detecting any violations of environmental law in the company's activities, providing recommendations for their solution, and preventing any such violations in the future.

Recent Experience:

The team of lawyers of the Environmental Law Department will be glad to render services on environmental due diligence at a top level. This type of legal service includes the due diligence performed by our lawyers with regard to companies’ activities in connection with observance of environmental requirements, and, as a result of such due diligence, the provision of legal opinions and advice. We would like to bring to your attention just a few examples (the group of similar projects) from the sound experience of the Environmental Law Department of GRATA in the performance of environmental due diligences:

• Performance of environmental due diligence for a group of mining companies in order to identify the risks associated with possible environmental offences.
• Performance of environmental due diligence of a major gold-mining company in order to identify the risks associated with possible environmental offences.
• Performance of environmental due diligence for a group of gold-mining companies in order to identify the risks associated with possible environmental offences.
• Performance of environmental due diligence for international companies rendering services on oil extraction with regard to the fulfilment of legal obligations and identification of business risks.
• Performance of environmental due diligence in favour of a potential buyer (large European bank) under a large transaction on the acquisition of shares of a leading bank of the Republic of Kazakhstan.
• Performance of environmental due diligence of activities of the large energy corporation with regard to the acquisition of the corporation’s shares by one of the European global banks.
• Performance of environmental due diligence of the activities of a large Russian bank with regard to compliance with the legislation on environmental protection.
• Performance of analysis of compliance with the environmental legislation by one of the largest Kazakhstani oil companies.
• Performance of environmental due diligence of the activities of uranium-mining companies in favour of the foreign global investor.  
• Performance of environmental due diligence of an oil company in order to identify the risks associated with possible environmental offences.
• Performance of an audit of the activities of an oil company in order to reveal the absence of required licenses, approvals, permits of governmental bodies in the area of environmental protection;
• Performance of environmental due diligence of a ship-owner companies group in order to identify the risks associated with possible environmental offences;
• Performance of the due diligence of an oil company in order to assess its compliance with the requirements for obtaining subsoil use permits and approvals;
• Performance of environmental due diligence of a metallurgical company in order to identify the risks associated with possible environmental offences;
• Performance of environmental due diligence of the activities of a Kazakhstani oil company with regard to compliance with the legislation on environmental protection;
• Performance of analysis of compliance with the environmental legislation by a group of Kazakhstani copper companies.

In the course of an environmental due diligence lawyers study and analyze all the important documents of a company regarding subsoil use and environmental protection as well as information obtained in the course of negotiations. Based on the due diligence, the lawyers prepare accurate information on the actual state of affairs of any businesses (mainly the companies that are subsoil users) regarding their observance of environmental requirements and norms, and provide practical advice in connection with their findings.

Publications:

• Benefits of Environmental Due Diligence
• Environmental Due Diligence as an Instrument Minimising the Risks Imposed by Environmental Inspections