Environment, health, and safety due diligence for a top multinational petrochemical company

Chemical Transportation and Storage Facility Compliance Assessment

When our client set out to acquire a company with several chemical transportation and storage facilities along the Yangtze River and its estuary area, we were commissioned to evaluate the environment, health, and safety (EHS) compliance status of these facilities before the formal acquisition.

As the target facilities were located in different provinces with their own special EHS requirements, our team developed site-specific EHS due diligence (DD) work plans that combined national regulations, applicable local requirements, and our client’s EHS policies. The fieldwork team conducted the field assessment for all target facilities within 15 days to meet the client’s tight timeline. More than 80 key EHS findings were identified during the EHS DD.

Our team actively communicated with the client’s representatives, the target company’s representatives, and other DD teams (including financial team, legal team, and engineering team) to make sure all identified EHS findings and related corrective action plans and cost estimations were feasible and acceptable to all parties.

The potential EHS risks and obligations identified during the EHS DD are recognized by both the client and the target company, and they were satisfied with the EHS DD results.