Managing Environmental Risk In Real Estate

Organizations in the real estate industry can face a wide range of environmental risks. Modern developments may sit on top of historic pollution from previous industrial use; landlords can find themselves liable for issues caused by their tenants. Managing such risks effectively is therefore crucial.

First, it is important to recognize the different types of pollution that could pose problems in the real estate sector. These include:

• Soil pollution – this may be gradual, occurring because of buried waste, poor storage of raw materials or leaking pipelines or storage tanks; there could also be a sudden incident.
• Groundwater pollution – this is often caused by long-term soil pollution that leaches into groundwater aquifers; problems with drainage systems can also lead to pollution.