[4] www1.nyc.gov/site/buildings/business/projectrequirements asbestos.page Learn how to develop a risk management plan to help your organization manage climate change risks. Management consultants need to be familiar with BERs. In many cases, the Phase I advisor addresses these risks only because they do not reach the level of an REB. However, their impact can significantly affect the nature of the business, increase construction costs, and cause delays and headaches. Don`t ignore the BER! Below is a non-exhaustive list of some common but problematic BERs faced by conservationists and consultants. Business consultants need to be aware that these are environmental issues that should not be ignored – they can be handled with proper management and a team of experienced professionals. The environmental risk of the company is by definition very broad and can include many types of risks that are not limited to the list above. Companies are becoming aware of the risks of a polluted and warming planet. Under increasing pressure from investors, customers and NGOs, CEOs are realizing that they need to pay as much attention to climate change as they do to traditional business risks such as political turmoil or competition.
These are just examples, but should give you an idea of what the type of BERs might be. Another issue that can arise is the inheritance of compliance issues from the seller. Don`t close until you know all of these issues have been resolved. There may be environmental concerns when building or renovating a brownfield site. „Commercial Environmental Risk” means any risk caused by material or environmental factors that may affect the current or intended use of the Site. Climate-related risks to your business may include: Phase I can tell a different story about potential environmental issues that impact business dynamics, cause massive delays in construction, increase costs after completion, and typically ruin an otherwise solid investment if not managed properly. I am referring to the elusive and misunderstood „commercial environmental risk” – BER. In-house lawyers working with clients in the acquisition or sale of commercial real estate should be aware of EBRs and the consequences of poor management of BERs.
Typically, this means there`s a risk that you`ll have to take costly steps or, worse, that you won`t be able to use the site as intended due to contamination or other factors. There may be regulatory reporting obligations for your business, and penalties may be imposed for non-compliance. So what kind of thing counts as BER? There are a variety of things that can be on this list, but here are some of the most common: Assess how climate change is already impacting your business and how it might affect it in the future. Identify the risks that climate change poses to your business and create a risk management plan that addresses climate change. We offer a wide range of environmental risk solutions and can provide expertise, hedging and risk appetite for a wide range of industries. While business consultants strive to resolve property-related issues, they should continue to conduct environmental due diligence before buying (or renting) commercial (or investing) property. To this end, Phase I Environmental Site Assessment – colloquially referred to as „Phase One” or „Phase I” – is an excellent tool for assessing and mitigating environmental risks associated with real property transactions. A Phase I not only helps buyers meet one of the requirements to qualify for the „landowner liability protection” granted under the federal Superfund Act,[1] but it also sniffs out „recognized environmental conditions” or „REBs.” In general, a REB is the presence or probable presence of hazardous substances or petroleum products on or under the property[2]. [1] The Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C.
§ § 9601 et seq. (CERCLA or „Superfund”), provides three landowner protections that limit CERCLA`s liability. These „landowner liability protections” are referred to as CERCL`s limitations of liability by „innocent landowner”, „contiguous landowner” and „bona fide potential purchaser”. CERCLA is an irreconcilable law if you are not sufficiently protected. With its polluter pays policy, CERCL`s liability system is extensive. It imposes strict, joint and several and retroactive liability on owners or operators who do not qualify for any of the three „landowner liability protections.” While these legal shields against CERCLA`s liability all have different regulatory requirements, they all have one thing in common: the prospective buyer (or lessee) must „conduct all appropriate investigations into prior ownership and use of the property in accordance with good trade and customary practice under 42 U.S.C. § 9601(35)(B).” This is called the „AAI rule.” The prospective buyer complies with the AAI rule if they have a Phase I SEA conducted by a qualified environmental professional prior to entering into (or executing the lease). Growing concern over environmental issues has led to an acceleration of the global student protest movement and pressure on government and business leaders. Humanity has wiped out 60 percent of mammals, birds, fish and reptiles since 1970, WWF recently reported. Scientists say we are in the midst of the sixth mass extinction, the first caused by humans.
The United Nations` Intergovernmental Panel on Climate Change warned in October that the rise in global temperature would reach the crucial threshold of 1.5 degrees Celsius as early as 2030, increasing the risk of extreme droughts, wildfires, floods and food shortages for hundreds of millions of people. He called on governments and businesses to act faster to address these threats. We offer a wide range of protections against environmental risks. Understand the products available to protect your customers. Soil vapour penetration (LVA) can occur with „natural” volatile gases (e.g., radon, methane, and hydrogen sulphide) as well as artificial gases released to soil or groundwater. Regardless of the type of contamination, an IVR problem can pose a serious risk to the health of current and future occupants of a building. For this reason, the New York State Department of Health (NYSDOH) and NYSDEC are taking a more conservative approach to SVI`s concerns. Our goal is to prevent these risks from becoming a problem and impacting the transaction or business by protecting our customer and banking interests.