What environmental due diligence must be completed before development planning?

Before initiating industrial or commercial development, environmental due diligence is critical to ensure legal compliance, site safety, and investment protection. It helps identify existing liabilities, regulatory requirements, and environmental risks that could delay or halt the project.

Below are the key categories of environmental due diligence that must be completed before development planning begins:

1. Phase I Environmental Site Assessment (ESA)

• Objective: Identify any historical or existing contamination issues on the property.
  
• Scope Includes:
  
  • Review of prior land use (e.g., gas stations, industrial activity, dumping)
    
  • Site inspection for surface staining, storage tanks, or debris
    
  • Regulatory review of nearby contamination listings
    
• Required When: Seeking financing, partnerships, or land conversion approval.

2. Soil and Groundwater Testing (Phase II ESA if needed)

• Objective: Confirm the presence of hazardous materials in soil or groundwater.
  
• Scope Includes:
  
  • Drilling boreholes for soil sampling
    
  • Groundwater testing for heavy metals, hydrocarbons, or solvents
    
  • Laboratory analysis and reporting
    
• Triggers: If Phase I identifies a Recognized Environmental Condition (REC).

3. Environmental Impact Assessment (EIA)

• Objective: Evaluate the effect of the proposed development on the local environment.
  
• Scope Includes:
  
  • Air, water, and noise impact analysis
    
  • Ecological and biodiversity assessment
    
  • Public hearing (for large-scale or Red Category industries)
    
• Mandatory For: Projects exceeding size thresholds (e.g., 20,000+ sq. m built-up area), or in sensitive zones.

4. Consent to Establish (CTE) from the Pollution Control Board

• Objective: Obtain approval to begin construction and industrial setup.
  
• Requirements:
  
  • Submission of detailed process flow, emissions, and waste generation data
    
  • Site layout including location of STP/ETP, chimney stack, green belt
    
• Applies To: All manufacturing and industrial activities under Red, Orange, or Green categories.

5. Assessment of Proximity to Eco-Sensitive Zones or CRZ

• Objective: Determine if the site lies within any:
  
  • Coastal Regulation Zone (CRZ)
    
  • Forest buffer, wetland, or wildlife corridor
    
• Implications:
  
  • May require additional clearances from the Ministry of Environment, Forest and Climate Change (MoEFCC)
    
  • May involve activity restrictions or mandatory setbacks