environmental Management Strategy, “Who are you doing business with?”

For a Certified environmental Strategist (CeS), the first step in developing and executing an environmental Management Strategy (eMS) is to find out, “Who you are doing business with?”

A business may do nothing wrong at all, but if a vendor/s the business hires causes for there to be an environmental liability, the business can still be held responsible.

A few years ago, Walmart and Home Depot each paid multi-million-dollar fines to the EPA for storm water runoff from their construction sites caused by contractors they hired.  Today, Walmart and Home Depot require contractors doing work for them to evidence environmental financial assurance by having Contractors Pollution liability (CPL) insurance in place in order to perform their services.

Even if you have an “environmental indemnification” in your contracts, without environmental financial assurance in place to back stop potential environmental liabilities, the contract may not be worth the paper it’s written on.

The links below will give you examples of businesses that have experienced environmental liabilities caused by vendors they hired.  These are reminders why step #1 in developing an eMS if to find out, “Who you are doing business with?”

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