Environmental due diligence is the assessment of environmental risks and liabilities linked to a site, facility or business before a transaction such as an acquisition, investment, lease or land transfer. It combines a review of site history and records, a site inspection, contamination risk screening and a review of permit and compliance status, and reports findings in terms relevant to value and deal terms.
When a business, facility or plot of land changes hands, its environmental issues often travel with it. Past industrial use, fuel and chemical storage, buried waste, unpermitted discharges or outstanding regulatory findings can translate into remediation costs, operational restrictions or delays after closing. In Saudi Arabia, where industrial, logistics and real estate transactions are active across industrial cities and new development areas, buyers, investors, lenders and tenants increasingly expect environmental questions to be answered before commitments are made.
Our due diligence follows a phased approach. We start with a desktop review of available records: site history, previous uses, permits, environmental studies, monitoring data and any regulatory correspondence. We then inspect the site to observe current activities, storage areas, drainage, signs of contamination and neighbouring land uses, and interview site personnel. From this we screen contamination risk, identify areas of potential concern, and assess compliance status against permits and the Environmental Law and its Implementing Regulations.
Findings are reported as a structured environmental risk assessment: each issue is described, rated for likelihood and consequence, and linked to its potential business implication, such as cost, delay or a condition to negotiate. Where screening indicates possible contamination, we recommend whether intrusive investigation, such as soil or groundwater sampling, is warranted before closing. The result is a clear basis for pricing, warranties, indemnities, conditions precedent or a decision to walk away.