Environmental Due Diligence: What It Is and Why It Matters for Property Transactions
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When it comes to buying, selling, or investing in property, the risks you can’t see are often the ones that cost the most.
While structural surveys and legal checks are routine, environmental due diligence ensures hidden liabilities such as contaminated land, flood risk, or regulatory constraints are identified to reduce risk. These can delay development, reduce land value, or saddle investors with unexpected remediation costs so ensuring they are not present on your site is a prudent first step.
At Clear Environmental, we help clients get ahead of these risks with clear, commercially focused assessments that support confident decision-making.
What Is Environmental Due Diligence?
Environmental Due Diligence (EDD) is the process of identifying environmental risks associated with a site — whether for acquisition, development, investment, or financing.
It typically covers:
- Historical contamination from former land uses
- Ground conditions that may affect construction or planning
- Flood risk and climate-related constraints
- Hazardous materials, invasive species, or ground gas
- Regulatory exposure under legislation such as Part 2A of the Environmental Protection Act
In short, it tells you what risks exist, what they mean for your transaction, and how best to manage them.
Why It Matters
Environmental risks are rarely visible at the surface — but can have major commercial implications:
- Direct Costs: Remediation after acquisition can add significant unexpected costs.
- Planning Delays: Environmental conditions can stall or even halt development.
- Reputation and Resale: Poor due diligence can limit refinancing or exit strategies, especially where ESG or compliance scrutiny is growing.
By identifying and quantifying risks early, you retain control — with the option to renegotiate, investigate further, or walk away.
Our Approach: From Risk Identification to Practical Implementation
At Clear Environmental, our service doesn’t stop at the report. We combine technical insight with commercial strategy — supporting you from initial screening through to resolution.
1. Desk-Based Assessment & Site Walkover
We start with a Phase 1 Environmental Risk Assessment — reviewing historical use, environmental records, and regulatory data, followed by a targeted site inspection. This flags any likely risks associated with the historic or current use of the site and determines whether further action is needed.
2. Clear, Actionable Reporting
We deliver concise, plain-English reports that:
- Outline potential liabilities
- Prioritise next steps (further consultation / searches, questions for the vendor or purchaser, obtaining insurance, or planning input)
- Provide commercial context — not just technical detail
3. Post-Report Support
We don’t just leave you with a list of issues. We guide you through your options:
- Abnormal Costing for price negotiation or feasibility planning
- Environmental Insurance to transfer residual liability
- Phase 2 Intrusive Investigation where risk needs quantifying
- Strategic Advice on whether risks are present, their consequences and whether they justify withdrawal, renegotiation or further checks
We also offer direct liaison with local authorities, legal teams, or vendors to clarify findings and support due diligence negotiations.
Typical Scenarios Where EDD Applies
- Purchasing former industrial or brownfield land
- Redeveloping or financing sites with known historical uses
- Investing in commercial or mixed-use assets
- Scoping a proposed development / planning applications on sensitive or constrained sites
Whether you’re acquiring land for strategic development or investing in an income-generating asset, robust due diligence ensures you understand the risks — and the solutions.
Final Thoughts
Environmental due diligence isn’t just about risk avoidance — it’s about strategic clarity. It helps you identify hidden issues, build trust with stakeholders, protect your investment, and position your project for long-term success.
At Clear Environmental, we focus on giving you clarity, options, and commercial outcomes — not just reports.
When a Phase 1 Desk Study identifies potential environmental risks, the next step is a Phase 2 Site Investigation — also called an intrusive investigation. This critical stage gathers real-world data to confirm or rule out contamination, protecting your project from unforeseen costs, planning delays, or environmental liabilities.
In this guide, we break down:
- How Phase 2 builds on Phase 1.
- The different investigation techniques (and when to use each).
- Typical timescales.
- How laboratory testing refines the site’s risk profile.
- What to expect at the end of a Phase 2 investigation.
How Phase 2 Builds on Phase 1
While a Phase 1 is based on desk research and a site walkover, a Phase 2 collects physical evidence through soil, groundwater, and ground gas sampling.
In short:
Phase 1 = Identify Potential Risks.
Phase 2 = Confirm or Dismiss Risks with Hard Data.
The findings from Phase 2 enable:
- Quantitative Risk Assessments (QRA) based on actual contamination levels.
- Decisions about whether remediation is necessary.
- Planning condition discharge if no unacceptable risks are found.
Phase 2 Site Investigation Methods
Different methods are used depending on the site, the anticipated risks, and the required depth of investigation:
- Best For: Shallow contamination, made ground assessment, visual soil profiling, locating foundations.
- Typical Depths: Up to 4 metres.
- Equipment: Mechanical excavator or hand-dug.
- Best For: Shallow contamination, installation of ground gas and groundwater wells, restricted access sites, cost-effective sampling.
- Typical Depths: Generally 5–6 metres, but can extend up to 10 metres depending on ground conditions.
- Equipment: Window sampling rig (tracked or towed).
- Best For: Deeper soils, groundwater sampling, ground gas monitoring, and collecting geotechnical data.
- Typical Depths: Up to 30 metres or more.
- Equipment: Cable percussion drilling rig.
- Best For: Hard ground, bedrock investigations, and installation of deep groundwater wells.
- Typical Depths: Up to 100 metres or more.
- Equipment: Rotary drilling rig (open hole, cored, or augered).
Tip: On smaller development sites, a combination of trial pits and window sampling often provides excellent coverage at a cost-effective price.
Types of Laboratory Testing During Phase 2
After sampling, the materials collected are sent for laboratory analysis to determine contamination levels:
- Soil Testing:
- Heavy metals (e.g., lead, arsenic)
- Hydrocarbons (TPH, PAHs)
- Asbestos in soil
- Emerging contaminants (e.g., PFAS)
- Groundwater Testing:
- Soluble contaminants (e.g., hydrocarbons, BTEX, solvents)
- Metals in solution
- PFAS detection
- Ground Gas Monitoring:
- Methane, carbon dioxide, oxygen concentrations
- Flow rates (for CS classification)
The results are then compared against appropriate assessment criteria (e.g., GACs/SACs) to determine whether remediation is needed.
What Happens After Phase 2 Sampling?
1. Data Analysis and Quantitative Risk Assessment (QRA):
Risk to human health, controlled waters, or property assessed.
2. Conceptual Site Model Update:
Confirmed pollutant linkages mapped and risk-ranked.
3. Decision Point:
No significant risks: Reporting and planning condition discharge.
Significant risks: Recommend remediation (Phase 3).
Phase 1 vs Phase 2 - Quick Comparison Table
FAQs About Phase 2 Site Investigations
What happens if contamination is found in a Phase 2?
If contaminants exceed safe levels, a Remediation Strategy (Phase 3) will be needed to outline how risks will be managed.
Can a Phase 2 rule out the need for remediation?
Yes — many sites require no further action after a properly scoped Phase 2 investigation.
Is ground gas monitoring always required?
Not always. It depends on the site's history, geology, and desk study findings.
Conclusion: Why a Clear Phase 2 Strategy Matters
A well-designed Phase 2 Site Investigation provides confidence, clarity, and control.
It ensures you're fully informed about site risks, avoids unnecessary remediation, and moves your project efficiently through planning.
At Clear Environmental, we tailor Phase 2 investigations to your site — no over-scoping, no hidden costs, just clear advice.
What is a Phase 1 Desk Study (Preliminary Risk Assessment)?
Whether you're planning to develop land, submit a planning application, or purchase a brownfield site, understanding environmental risks early is essential.
A Phase 1 Desk Study — also called a Preliminary Risk Assessment — is the first critical step in managing those risks efficiently, helping avoid costly surprises later in your project.
This guide explains exactly what a Phase 1 involves, why it’s required, and what you can expect from the process.
What is a Phase 1 Desk Study?
A Phase 1 Desk Study is a preliminary environmental assessment that evaluates the potential for land contamination based on historical and current land uses.
It is called a “desk study” because it mainly relies on reviewing existing records and data sources, alongside a site visit.
It does not involve any intrusive ground investigation — that's reserved for Phase 2 if risks are identified.
In simple terms:
A Phase 1 identifies if there’s a potential problem — before you commit to site purchase, design, or construction.
Why is a Phase 1 Desk Study Needed?
A Phase 1 is often required to:
- Support planning applications (especially brownfield or previously developed sites).
- Satisfy lender due diligence for property transactions.
- Manage liability and avoid unexpected abnormal costs.
- Confirm if further investigations (Phase 2) are needed.
Without a Phase 1, local authorities, insurers, and funders may refuse to progress development or financing.
Key Components of a Phase 1 Desk Study
A thorough Phase 1 typically includes:
What Does a Phase 1 Report Contain?
A typical Phase 1 Desk Study Report will include:
- Executive Summary (key findings and recommendations).
- Site location and description.
- Historical land use review (maps and aerial photography).
- Environmental setting (geology, hydrology, groundwater).
- Regulatory database review (permits, enforcement notices, pollution incidents).
- Walkover survey findings (including annotated site photos).
- Preliminary Conceptual Site Model (CSM).
- Risk assessment and clear conclusions.
- Next steps, if further investigation is needed.
At Clear Environmental, our Phase 1 reports are concise, commercially-focused, and designed to satisfy planning authorities and lenders without unnecessary complexity.
How Long Does a Phase 1 Desk Study Take?
Most Phase 1 assessments can be completed within 10 Days.
We also offer fast-track services if you’re working to tight planning or transaction deadlines.
Phase 1 Desk Study vs. Environmental Search: What's the Difference?
Key point: An Environmental Search is not a substitute for a Phase 1 — it’s simply a basic desktop screening.
FAQs About Phase 1 Desk Studies
Q1: When should I commission a Phase 1?
Ideally before site acquisition or at the earliest planning stage, so risks and costs are identified early.
Q2: Will a Phase 1 always recommend a Phase 2?
No — many sites with clean histories and no risk linkages can be signed off at Phase 1.
Q3: Who needs a Phase 1 Desk Study?
Developers, property investors, planners, architects, solicitors, and lenders commonly require Phase 1 studies.
Q4: Will the council accept my Phase 1 report for planning?
Yes — provided it follows UK guidance (such as EA Land Contamination Risk Management (LCRM)) and is prepared by qualified specialists.
Q5: What happens if my Phase 1 shows contamination risks?
We’ll outline the recommended Phase 2 site investigation scope and cost early, so you remain in control.
Why Clear Environmental for Your Phase 1?
A Phase 1 Desk Study isn’t just a box-ticking exercise — it’s your first opportunity to manage risks, reduce abnormal development costs, and protect your investment.
At Clear Environmental, we combine technical expertise with commercial insight to deliver Phase 1 Reports that meet planning, legal, and financial requirements — quickly and clearly.
