Suggestions of Corporate Due Diligence for Environmental Risk Reduction
Set up a personal file entitled "Due Diligence" in which everything is kept and preserved.
Develop a corporate environmental policy statement setting forth the policy of the company concerning environmental diligence. Every employee of the company, even those who are newly hired, should have a copy along with other initial documents.
Random, unannounced inspections should be conducted for the purpose of enforcing company policies. Note in the file the time and place the inspection was performed and what was observed. Conduct a follow-up inspection and note any improvements or changes. It is as important to keep notes of the inspection as it is to conduct the inspection. One will not suffice without the other.
Know your waste stream and where it goes. Know how much you are generating, the taxes you are paying, and the possible liability based on the alternative you have selected. Consider alternatives that can reduce the total amount of waste generated, and that may reduce Superfund liability or liability of subcontractors. Waste minimization equals risk minimization.
Conduct independent annual environmental audits and make corrections wherever appropriate. The auditor should be capable of providing you with detailed correction notices. The auditor should also conduct surprise interviews of employees to evaluate the type of information routinely communicated to an inspector.
Establish a direct hotline telephone to the Chief Executive Officer or Plant Manager from an area accessible by plant personnel. This is a one-way telephone that can be used anonymously by disgruntled employees, allowing them to vent steam and prevent those phone calls from being made to government agency hotlines. (Monthly cost is minimal, but the benefits can be immeasurable.)
Conduct training sessions for employees. These sessions should include (1) OSHA training, (2) how to conduct an inspection, and (3) what to do in the event of the execution of an inspection or search warrant.
Know your agencies. It is often helpful to invite agencies to view a facility so they are aware of the layout prior to an accident or emergency. This can greatly reduce costs and keep agency activity to a minimum because the agencies are familiar with what takes place within the facility. Train designated personnel as a regulatory escort and on how to speak to an inspector from a regulatory agency.
Determine in advance what documents within the company are privileged as attorney-client documents, including documents of consultants that may be privileged.
Remain active in your association. An association can often stand strong on critical issues that are constantly evolving on environmental issues. By maintaining contact, you can encourage the association to take a position that can greatly affect the regulations and perhaps reduce cost.
We are pleased to provide this "Bulletin" as a service to you. While this information was obtained from sources believed to be reliable, its accuracy is not guaranteed. It does not change or alter insurance contracts or coverages.
License # 0655631
Tech Topics