Environmental audits

Environmental audits

Environmental audit is a service for investors which is performed before purchasing a plot in order to estimate the risk associated with its purchase and development. Environmental audits provide essential information that can affect investor's decisions.

An environmental audit is a process of assessing potential ecological threats in a given land. An assessment may reveal significant issues such as the presence of contaminants that require remediation. Most often, such audits are performed for all major investments to ensure their informed planning and successful implementation. The tests performed as part of the audit show whether a given area is contaminated and allow to estimate remediation costs, among other benefits.

Scope of environmental audit

An environmental audit is a comprehensive process that helps investors understand the potential risks associated with a property. At Geotest, we perform a detailed, multi-step analysis to provide our clients with complete and reliable information. The steps we take as part of an environmental audit include the following:

1. Collection of historical and current data

  • We collect detailed information about the history, current condition and purpose of the property.
  • We analyze potential sources of contamination at the location.

2. Field inspection and sampling

  • We carry out a detailed field inspection.
  • We collect soil and water samples for laboratory analysis.

3. Laboratory tests

  • We analyze samples of soil, groundwater, surface water and other materials to determine the level of contamination.
  • Testing includes identification of heavy metals, petroleum-based substances and other hazardous compounds.

4. Land suitability assessment

  • We assess whether the land is suitable for construction purposes.

5. Investment risk analysis

  • We determine the potential risks associated with the planned investment.

6. Preparation of an audit report

  • We create a detailed report containing the methodology, analysis results, risk assessment and recommendations for further actions.

Each stage is tailored to the client's individual needs and provides the precise information needed to make an informed decision. Our approach provides a comprehensive assessment of business risk, which is critical when purchasing land.

Benefits of a professional environmental audit

A professional environmental audit shows how local water and soil conditions will affect a given investment, allowing the design to be adapted to the area and appropriate preventative measures to be taken to minimize expenditures. The benefits of an audit include:

  • Financial risk reduction — Audit helps to avoid unexpected costs related to remediation and site adaptation, providing better control over the budget to invest.
  • Identification of contaminated areas — Accurate identification of areas with contaminated soil allows for earlier planning of necessary remediation steps.
  • Remediation planning (timelines and costs) — Based on the audit results, an effective remediation plan, a schedule of work and an estimate of expected costs can be determined.
  • Indication of areas of soil with low bearing capacity — Audit identifies areas with low soil bearing capacity, which is critical for structural design and avoiding problems during construction.
  • Minimizing negative consequences of poor investment decisions — Audit helps investors avoid legal and financial problems associated with the purchase of problematic land
  • Ensuring compliance with environmental protection regulations during investment implementation — Audit ensures that the planned investment complies with environmental protection regulations, minimizing the risk of legal sanctions.

A professional environmental audit is an investment in the peace of mind and financial stability of a project. Audits help avoid many problems and optimize an investment process, resulting in real savings and increased chances of success.

Audyty środowiskowe

Expertise in environmental audits since 1990

We have specialized in advanced environmental audits for over three decades. Our history dates back to 1990, when we started working in this field. Since then, we have not only gained valuable knowledge and experience, but more importantly, we have built a team of dedicated professionals who are passionate about their work.

Under the leadership of Krzysztof Traczyński and Michał Grela, experts with over 30 years of experience in the geotechnical industry, we have implemented projects for leading construction companies in Poland and cooperated with hundreds of individual clients.

Our experience and expertise allow us to provide top-notch environmental auditing services and to meet the individual needs of each client.

Environmental audit phases

The environmental assessment process consists of several stages that provide important information needed to fully understand the condition of the property being assessed. A detailed description of each phase of the process is provided below.

Phase I

Phase I of the environmental audit is a key stage that provides an initial assessment of the environmental condition of the property. It includes:

  • Review of available materials — Analysis of available documents related to the property, including its history and current use, as well as data on the surrounding area.
  • Site visit — An inspection to assess site conditions, identify potential sources of contamination, wetlands, surface and subsurface structures, and locations where hazardous materials are or have been stored.
  • Environmental assessment — a detailed description of the geological structure, hydrogeological and hydrological conditions, as well as an assessment of potential natural hazards or the presence of protected objects.
  • Phase I Report — Preparation of a report in accordance with ASTM E1527-13 that includes the results of the analysis, a description of potential hazards, and recommendations for further action.

Phase I allows for early identification of factors that may affect project schedule and costs, including the need for remediation or environmental mitigation agreements. As a result, investors can make informed decisions to minimize the risk of delays and unexpected costs in later phases of the project.

Phase II 

Phase I, which identifies potential threats, is followed by Phase II, which is designed to conduct a more thorough analysis and confirm the presence of contaminants in the assessed area. Here are the main objectives of this phase:

It focuses on the hazards identified in the Phase I report. It is primarily aimed at locating or ruling out the presence of contaminants in the assessed area through field testing (sampling for laboratory testing) and analysis of the laboratory test results. At this stage, preliminary assumptions can be made about the extent and magnitude of the contamination. The analysis is performed using assumptions described in ASTM E1903-19 Standard Practice for Environmental Site Assessments: Phase II Environmental Site Assessment Procedure.

The report of the second phase contains information on the current state of the environment on the analyzed land plot, confirmed by accredited tests. It allows for the preliminary design of solutions aimed at rationalization and optimization of costs, as well as the assessment of the profitability of buying (or selling) the land.

Phase III 

It includes activities aimed at developing detailed action strategies, estimating the costs associated with improving the current state or bringing the area to a state where it meets legal requirements in the field of environmental protection. In practice, in Poland, this stage consists of development and approval of a draft remediation plan with the Regional Directorate for Environmental Protection and its implementation.

Thanks to due diligence environmental audits, the client gains hard-to-find knowledge and learns about the real risks associated with the purchase of real estate, or, in the opposite situation, the seller gains irrefutable arguments preventing the lowering of the value of the plot being sold.

Expertise

nearly 10000 completed projects

Experience

30+ years in the industry

Team

30+ consultants

Quality

4000+ environmental samples tested per year

Examples of audits we have performed

Example 1

Our client was planning to buy a conveniently located property in one of the Polish cities. Therefore, he asked us to conduct its environmental audit of the property. The client and the investor were concerned about the surprisingly low price of the property.

One of the findings of the environmental audit was that there had been a chemical manufacturing plant in the assessed area in the past. The report indicated the need for water and soil testing.

In Phase II of the audit, tests showed huge exceedances of substances found in soil and water. Laboratory equipment was damaged by contaminated soil samples during testing. Ultimately, the cost to clean up the area was estimated to be significantly more than the value of the property.

Thanks to our risk analysis, the client decided not to buy the land, which saved him tens of millions of zlotys.

Example 2

Another client came to us to sell a property that had been tested for contamination by another company. The estimated cost of remediation, based on the results obtained, was several million dollars. Upon analysis of the documentation, it was discovered that the tests had been performed in an unaccredited manner, using a portable instrument that, at the time of testing, may have had a measurement error of several hundred percent.

Wanting to reduce the number of tests and the time required to perform them, the client relied on an unreliable service provider. In the end, the tests were repeated, followed by several stages of analysis and advanced laboratory verification. As a result of a thorough analysis, it was determined that the cost of remediation was so low that it was insignificant to the decision to purchase the property.

Audyty środowiskowe

Methods of carrying out an environmental audit

We perform an environmental audit by reviewing available materials related to the property and analyzing results of the field visit. For a precise assessment of the examined area, we are the only company in Poland that performs photogrammetric surveys. We test soil and water samples collected in the field in accredited laboratories. We also provide accredited sampling.

Then, a report with the audit results is prepared, which includes an assessment of the environmental condition, identification of problems and risks, as well as recommendations for corrective and preventive actions.

Reducing risk through environmental audit

Performing an environmental audit is a key element of the due diligence process before purchasing a property. Here are the main benefits of this service:

  • Risk minimization — An audit helps identify and assess potential environmental risks associated with a property, which helps avoid costly surprises and legal problems in the future.
  • Full property assessment — The audit reveals both the strengths and potential weaknesses of the property, providing a comprehensive analysis of its condition.
  • Detailed information — The audit provides valuable data regarding the history of the area, underground infrastructure, the presence of potentially dangerous objects and the assessment of the possibility of gas emissions.
  • Identification of "Red Flags" — If any alarming signals, known as "Red Flags", are detected, the audit team provides a set of recommendations to guide further action.
  • Decision-making support — The audit reveals any issues that may influence the decision to purchase a property, allowing the investor to make a conscious choice with a full understanding of the potential risks and benefits.

Thanks to an environmental audit, investors can make conscious decisions, minimizing risk and maximizing the value of their investments.

Order an environmental audit

To order an environmental audit, contact us by phone or e-mail.

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