The extent of Environmental, Health & Safety due diligence is all dependant on the industry of the target company. Some industry has more exposure to hazards than others. Accordingly, stricter regulations and guidelines have to be met by the target companies. For instance, O&G, Chemicals, mining, coal, etc have more stringent guidelines and reporting requirements as compared to the IT & software industry. More & more governments are bringing laws and reporting requirements related to EHS and companies may face serious consequences in case of any hazardous incident. Environment DD is something that should not be taken for granted. Acquirer company may face potential liability, lawsuits, and compensation claims if the target company does not have good HSE / ESG conduct in place.
