Expedite the Sale of Industrial Property with a Limited Site Investigation
Cornerstone has recently seen an increase in client requests to prepare a limited site investigation report for commercial or industrial properties they are preparing to sell. Although it is the responsibility of the prospective purchaser to conduct a Phase I Environmental Site Assessment (ESA) compliant with ASTM E1527-21, when the seller has a limited site investigation in-hand, the process can be accelerated.
Why should a property owner conduct a Limited Site Investigation before selling property?
Companies selling a property often find that making the report available to potential buyers helps to address any obvious concerns an ESA would characterize as a Recognized Environmental Condition (REC), such as an open disclosure of subsurface conditions. When the prospective purchaser is made aware in advance of any potential cleanup requirements, they can estimate the associated costs and evaluate their risk, making the purchasing decision more transparent and faster.
What if the property is clean?
If the report indicates there is no soil, groundwater, or vapor sampling exceeding a regulatory threshold, the seller has an advantage over other potentially contaminated sites the purchaser may be considering. It is still the responsibility of the purchaser to complete a Phase I ESA in order to get the protection of the Comprehensive Environmental Response, Compensation and Liability Act’s (CERCLA) innocent land owner defense under All Appropriate Inquiries (AAI).
What if the report indicates areas of concern?
When the results indicate there may be a need for further site investigation into the nature and extent of an environmental condition, the buyer and seller can negotiate how to proceed and contact a qualified environmental professional for further examination.
Seller companies should note though, if the investigators finds certain levels of contamination in the subsurface, the investigator, the current owner, or the buyer may be required to report the findings to a state or federal agency. If this occurs, the company can consult with their attorney for specific legal guidance or to protect their interests.
Contact Cornerstone
If your company has decided to sell your commercial real estate, you may want to consider conducting a limited site investigation to help expedite the sale process. Contact Kevin Mallin at kmallin@corner-enviro.com or (317) 489-3249 with any questions concerning this topic or other Environmental Remediation concerns.
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Where the S in ESG Intersects with the HS in EHS
By John Scifres Environmental, Social, and Governance (ESG) rating is all about the long game. Industry has learned if they are to stay in business and thrive in today’s world, they must be sustainable in all facets of their culture. For our Health and Safety Division, the “social” portion means offering our client’s the best tools to take care of their workers. Today, compliance with Environmental, Health and Safety (EHS) regulations is a given and employers are expected to go beyond compliance in their worker safety efforts. The links between employee health and safety, morale, loyalty, and retention are undeniable. Healthy, happy, loyal, and experienced workers make for a sustainable business. Today’s investors know this and demand it from the companies they want to back. Cornerstone helps to improve ESG metrics by maximizing worker health and safety with a stepwise approach from assessment to training.
Assessment
The first step in our Health and Safety Management System services is a baseline assessment of Compliance to get the feel for where a company is in the spectrum from Compliance to Sustainability. It is a Gap Analysis of sorts, but it gives our experienced evaluators a feel for what they have to work with. We present our clients with a detailed report of regulatory applicability including a finding of compliance or non-compliance for each element. For those areas that need work, a Findings and Corrective Actions Summary becomes a compliance punch list that can be attacked quickly and systematically to bring the site into compliance. We can couple a Compliance Assessment with a Culture Assessment to dive even further into needed actions to improve the “S” in ESG. Either along with or as a result of the assessment, Cornerstone then begins the task of evaluating worker health and safety hazards and their risks with a Risk-Based Workplace Hazard Assessment. The goal of this is to assess each job and its component tasks to determine the hazards present. Our evaluators determine the risk of negative outcomes from each task by judging the Severity and Probability of the negative outcome. They assign a numerical score to each and the product of those gives us a Risk Level for each hazard. Of special note is our Ergonomic focus. A critical part of workers’ health and safety is how they feel and move while accomplishing their jobs. Using the risk assessment data our ergonomics team monitors employees in each workstation to ensure a practical solution to complex ergonomic issues.
Control
Generally, we determine an acceptable risk level with the client and anything exceeding that level requires action. Our staff then determines required or recommended controls for each hazard. We use the U.S. OSHA Hierarchy of Controls to guide this part of the assessment. In the end, Cornerstone Health and Safety Evaluators produce a prioritized list of necessary controls. Those hazards with a higher risk level demand more urgent action. Controls often include the development of administrative policies, procedures, and programs. Cornerstone works hard to develop these along with stakeholders at every level of the company. The information gathered during previous steps guides this process. It can range from something as simple as protective gloves to Injury and Illness Prevention Plans and the establishment and facilitation of Health and Safety Committees. Worker Health and Safety training and coaching are integral to making these Administrative Controls come to life.
ESG Reporting
While the methods to arrive at an ESG rating differ, they all have the same end goal in mind; to identify those companies that consider their human resources as a long-term investment in their success. Data from government reports of compliance, worker injury audits, and worker experience of every sort regarding compliance and culture all play into ratings. Everything we do helps our clients prove to the world through ESG score that they are a sustainable business. This is never more evident than in our approach to worker health and safety. We carefully determine compliance gaps, rate the risk of everything done at a client’s operation, and then work closely with all levels of employees at the facility to ensure that compliance obligations are met, hazards are controlled, and workers go home at the end of their workday in the same condition that they arrived. And, we do this over time with the overall goal to continually improve all factors that play into an ESG rating.
Further Information
As ESG reporting becomes more vital and more publicly transparent, Cornerstone’s industrial health and safety experts can help ensure that your programs and data are ready for the spotlight. Contact us at info@corner-enviro.com or through our website.