If you engage in commercial real estate transactions, you will eventually need to use environmental risk assessment and remediation services to protect your ownership interests.
It is critical that you are familiar with these services, what remediation technologies are used to improve site usability, and how remediation impacts site value. Use Environmental Risk Assessment & Remediation Strategies as a practical thread that connects pollution sources, potential contamination, and feasible mitigation to real management decisions that protect the environment, health, and site value. Clear evaluation and analysis translate field information, data, and regulatory context into actions that improve sustainability, strengthen compliance, and reduce operational risks for owners and lenders.
What Is an Environmental Risk Assessment?
The term “environmental risk assessment” is often used interchangeably with the phrase “environmental site assessment” (ESA). There are three different phases of ESA: Phase I, Phase II, and Phase III. Typically, when the phrase “environmental risk assessment” is used, this is a reference to a Phase 1 ESA.
– During a Phase 1 ESA, assessors will examine the use history and ownership records of a given property. They will also determine whether any industrial or commercial entities are located within a one-mile radius of the subject property. While a Phase 1 ESA typically includes a site visit, one is not required.
Assessors will document any hazards or concerns that they discover in the environmental risk assessment report. These hazards and concerns are known as recognized environmental conditions (RECs). A few common examples of RECs include underground storage tanks, chemical drums, and above-ground storage tanks.
Risk assessment integrates hazard identification with exposure pathways to estimate impact on humans, including children, and on the local ecosystem, followed by transparent risk characterization that explains uncertainty and key factors driving potential effects. This approach is recognized in EPA guidance for human health and ecological assessments and helps readers understand why certain types of follow up work are recommended.
Are Environmental Risk Assessments Standardized?
Yes, environmental risk assessments are standardized. When performing a Phase I ESA, assessors must adhere to ASTM E1527-13. The updated standard, ASTM E1527-21, was recently approved but is not yet in force. However, it should become the new standard by the end of 2022.
EPA’s Risk Assessment Guidance for Superfund outlines consistent planning, baseline assessment, and reporting expectations so reports use comparable methods and can be reviewed against the same standards. Referencing this framework keeps the page’s content aligned with accepted practice and supports agency and third-party reviews.
When Is Remediation Necessary?
Whether remediation is necessary cannot be determined by a Phase I ESA. Rather, this initial assessment only determines if RECs are present. If they are, then a Phase II ESA should be performed.
During the more in-depth Phase II analysis, groundwater and soil samples will be collected. The samples will then be analyzed to determine what contaminants are present and in what quantities.
If contaminants fall below the established thresholds, no remediation is needed. However, if any contaminants do exceed these limits, remediation will be required to make the property safe for use. Whether remediation proceeds depends on validated data, exposure assumptions, and risk benchmarks that connect lab results to actual site use, which is why risk-based cleanup goals and monitoring plans are set only after the Phase II evaluation is complete. Linking results to protective end-uses keeps prevention, safety, and long-term management in view for the project team.
What Land Owners/Buyers Need to Know About Remediation
Remediation efforts should be guided by the findings of a Phase II ESA. Landowners or buyers should not start remediation after a Phase 1 ESA because this preliminary assessment cannot identify the severity of hazards on the property.
Additionally, buyers should be aware that remediation efforts can be time-consuming and costly. An environmental risk assessment will help buyers better understand the scope of these costs so that they can make informed purchasing decisions. They can also leverage the findings of a risk assessment to drive down the price of a property.
Effective management pairs selected remedies with prevention measures, monitoring, and clear roles so regulation and compliance needs are met through the lifecycle of the property. Risk managers use this structure to document progress, answer stakeholder questions, and adapt to new information without disrupting operations.
Does Remediation “Fix” Contaminated Land?
Ideally, environmental risk assessment and remediation services will eliminate the majority of contaminants found on a piece of commercial property. Once these contaminants are removed, the property can be cleared for commercial uses without restriction.
However, this is not always possible. At times, state or municipal authorities will place limitations on property use. This restriction occurs when contaminants cannot be brought below certain thresholds.
For instance, let’s say that soil contaminants are brought below the established limitations, but groundwater contaminants are not. In this scenario, the groundwater cannot be used for drinking water, but the parcel could be cleared for commercial or industrial applications.
Some properties achieve unrestricted use, while others require activity limits, engineering controls, or long-term monitoring that support recovery and restoration planning when complete removal is impracticable. These outcomes are common in Superfund-style programs that balance protection with practical redevelopment and conservation of resources.
Learn More About Environmental Risk Assessment
As you can see, environmental risk assessment and remediation services can be quite complex. However, they address only a few facets of due diligence as it pertains to commercial real estate transactions. If you need help interpreting reports or choosing among remedy types, prepare a short list of questions for your technical lead so the team can convert findings into mitigation steps that match the nature of the site and the expectations of regulators and lenders.
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Frequently Asked Questions
What is Environmental Risk Assessment & Remediation Strategies in due diligence?
It links evaluation, analysis, and decision making so potential pollution and contamination are quantified and matched with practical mitigation steps that protect the environment and project goals.
When do you move from assessment to remediation?
When validated data show a hazard with credible exposure pathways and impact on humans, children, or the ecosystem, risk managers outline targeted remedies and start planning implementation.
How are hazards and exposure evaluated?
Teams combine site history, pathway modeling, and laboratory results to characterize risks, key factors, and likely effects on receptors, then document assumptions and uncertainty in the reports.
What contaminants and pathways are typically considered?
Work screens for releases that could move through soil, groundwater, soil gas, surface water, or air so nature, nearby resources, and built systems are protected during investigation.
What does the field and lab process produce for decision makers?
A defensible record of monitoring, sampling, and analysis that turns raw information into clear report content your team and agencies can review.
How do results translate into mitigation and prevention?
Findings drive management choices that combine source control, pathway interruption, and prevention measures designed for long term sustainability.
