There are many environmental factors that can pose a risk to your business; however, one of the largest environmental risks is climate change. This is simply man-made gases build-up in the atmosphere which goes on to trap the heat from the sun, and results in global weather pattern changes. It has economic, social and environmental impacts.
Climate Change Risks
Extreme weather frequency – you may experience property damage, increased insurance costs, and disruption of water and power. Suppliers might not be able to deliver your goods, and customers might not be able to contact or visit your business.
Demand decrease – If your goods are not environmentally friendly, it can result in less demand for them, or worse, they might go to your competitors who are offering energy efficient products. If your business is not sustainable, it can be challenging to retain staff.
Global Impact – You might not be able to receive goods from overseas suppliers because of climate change incidents in their country.
Increased Expenses – You might end up paying more for water, energy and other resources. Your business might also be affected by water restrictions.
Understanding New Industrial Property Risks
Understanding the environmental risk associated with the historical use of the property can be accomplished through environmental data services, that identify tenant historical operations and offers a regulatory agency records review for assessing former operation problems.
Underground storage tanks or USTs are a common reason for industrial property concerns, particularly current or former distribution facilities. Many times, underground storage tanks are used for fueling fleet vehicles that ship goods. Whether it is current or historical USTs, an environmental site assessment will show if the USTs were removed as well as if there was sufficient groundwater or soil sampling done to define the probability for a release adequately. When existing USTs are concerned, it is determined whether the construction, age or leak detection methods are sufficient to lessen the risk of bulk petroleum storage.
Many times, there is an environmental encumbrance (institutional controls or engineering controls) placed on industrial properties that may limit property usage as well as continued obligations for the owner of the property. For instance, there might be groundwater or residual soil impacts on industrial property that remains even though a regulatory case closure was issued by the oversight agency. Because of these impacts, there might be a limit on the future property to specific industrial uses and it is essential for the owner of the property to understand these limitations, particularly if there is a plan to redevelop the property for another use.
Other concerns involve the historical or current presence of septic systems, vehicle repair and maintenance operations, manufacturing operations that use hazardous substances, and improper hazardous disposal and waste storage practices.
To learn more about Environmental Data Services, visit EDR.