About the Project
ESC provided support for the buyer due diligence program for the acquisition of consumer goods manufacturing sites in Indonesia and support for the Health & Safety Audit Program Development for the client’s manufacturing sites in Thailand.
The buyer due diligence support comprised of site assessment visits, desktop reviews and reporting. The assessment included Environmental Liability review including site reconnaissance, EHS Compliance/Conformance Review and Social Compliance/Conformance Review. The reviews were conducted in general accordance with the recognized methodology detailed in the American Society for Testing and Materials (ASTM) E 1527-13, modified to suit the local conditions in Indonesia.
Desktop studies comprised of an assessment of property details, historical (if any), current and proposed uses; surrounding land use and environmental setting information; and local geology and hydrology (if applicable).
The site reconnaissance assessed the current operations and identify potential areas of concern such as; evidence of below-ground contamination (e.g., dead or distressed vegetation, disturbed, coloured or stained soil etc.); the presence of underground storage tanks (UST’s); presence of hazardous substances used/stored on-site and/or other storage areas; vehicle filling/discharge areas/interceptor pits, drainage sumps, etc.; waste storage/disposal areas; evidence of spills, leaks or waste disposal on-site; and/or the presence/absence of any special materials (i.e., polychlorinated biphenyls, asbestos, lead based paint).
The EHS compliance and conformance evaluation included a review of site operations to identify material gaps in compliance with local legal requirements or company Performance Standards. This effort also included a detailed review of EHS Permits, licenses and approvals; correspondence from relevant ministries, including the Ministry of Environment regarding past/ongoing violations, notices or observations (if any).
Similar to the EHS compliance and conformance evaluation, this scope included a review of operations on-site to identify material gaps in compliance with relevant local legal requirements (related to community health considerations, outstanding stakeholder/community grievances, relevant labor and working conditions, etc.) and/or the company Performance Standard related to Social Compliance.
Material findings resulting from these efforts were reported (including citations if a compliance and/or conformance gap) along with budgetary order of magnitude costs ranges to remedy.
For the clients’ manufacturing sites in Thailand ESC supported the client by providing H&S audit support in order to drive the client’s H&S governance program at their sites. The support included a baseline audit and training for the on-site personnel on various H&S topics.
The team utilized their local knowledge and experience along with the client’s own checklists to guide the review. The team achieved to detail essential material findings to the buyer to support their contract negotiations. Ultimately the acquisition was announced in the last quarter of 2020.