Jeffrey L. Kingsley, a partner in Goldberg Segalla’s Global Insurance Services and Environmental Practice Groups, was interviewed by Business Insurance in an article exploring the role of risk managers in assessing and mitigating exposures in mergers and acquisitions where environmental risks are concerned.
Jeff noted that the nature of the business being acquired or divested should largely determine the scope of an environmental inquiry. When assessing a company for environmental risk, he told Business Insurance, knowing whether it discharges any materials regulated by federal or state governments is a paramount concern, as is whether it generates any industrial, nonhazardous waste.
Risk managers also need to understand the selling company’s environmental protocols, he noted. “Take a look at their audit books,” he said. “How do they dispose of waste? How do they document their relationships with third parties? It’s one thing to be good in terms of doing things properly, but you also need a documented chain of events that is succinct and consistent.”