What is environmental liability?

With the term “environmental liability”, we refer to a loss in the balance sheet, generated by items relating to the Environment area.

In many cases, companies that perform particularly impacting production processes require that a part (even large) of their budget is allocated to actions such as restoration or rehabilitation of areas affected by their activities, the removal of pollution from exixting situations, in surface and ground waters or soil in their properties, the disposal of waste and other hazardous materials generated from past activities.

The costs associated with these activities are generally reported in the annual balance with terms similar to “Environmental Risk Fund” or “Fund for environmental liabilities and charges”.
It is worth to note that at the time of sale and purchase of industrial land, the costs of remediation  required to restore the site within the margins of legality (and, hopefully, in the canons of a clean environment) are intimately linked to the properties in question. They constitutes an environmental liability of the goods, duly verified by a AEL (Assessment of Environmental Liabilities) before the end of the negotiation.



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