Understanding Environmental Business Risks in PFAS Site Assessments

September 22, 2025

due diligence
Former historical agricultural property, where the current state is natural wetlands with dense vegetation.

 

Per- and polyfluoroalkyl substances (PFAS), also referred to as “forever chemicals”, pose serious health and environmental risks due to their long-lasting nature, harmful effects, and widespread application across diverse industrial and commercial sectors. Exposure to PFAS has been linked with several forms of cancer and immune suppression, as well as thyroid gland dysfunction and developmental delays (EPA, 2023). These risks have prompted heightened scrutiny from regulators and have become a source of  concern for stakeholders, including communities, developers, and businesses

Risks – PFAS Site Assessment

For stakeholders involved in real estate acquisitions, manufacturing, or land development, the potential presence of PFAS contamination represents a significant environmental business risk, particularly during site assessments. One of the key risks lies in regulatory liability. As environmental regulations tighten globally, businesses may be held responsible for investigating and remediating PFAS contamination even if the pollution predates their ownership. Failure to conduct thorough PFAS assessments during property transactions can lead to unforeseen cleanup costs, legal disputes, and reputational damage. Financial implications are also substantial. PFAS site assessments are complex and costly, requiring advanced sampling methods and laboratory analysis.

If contamination is found, long-term remediation efforts can span decades and impact property values, project timelines, and investment returns. Insurance coverage for PFAS-related issues is often limited, increasing the financial burden on businesses. Engaging a qualified environmental consultant before property acquisition activities is essential to managing these risks effectively. Early involvement is critical to conducting PFAS due diligence, including preliminary site assessments, data gap evaluations, and sampling programs, to characterize potential liabilities and provide the technical basis for informed investment decisions.

Also consider operational risks. Discovering PFAS contamination can delay permitting processes or halt development altogether. For manufacturers, it may lead to stricter discharge permits or operational constraints, affecting productivity and profitability. Industries such as chemical manufacturing, textiles, automotive, aerospace, firefighting, and wastewater treatment have been linked to PFAS use and discharge over the last years (ATSDR, 2022). In these sectors, proactive assessments help avoid regulatory surprises and support risk mitigation strategies.

Groundwater – PFAS Site Assessment

Some states have developed groundwater standards that differ from federal drinking water limits. Technically, when PFAS levels exceed drinking water thresholds but remain under state groundwater standards, delaying immediate cleanup is possible and safe. However, such findings signal potential liability, particularly as regulations evolve or litigation arises (ITRC, 2021).

Businesses are encouraged to incorporate PFAS evaluations into their environmental due diligence protocols to address PFAS-related risks proactively. Diligence includes engaging experienced environmental consultants, staying informed about evolving regulations, and transparently communicating findings with stakeholders. As legal and regulatory requirements tighten, proactive site assessment has become critical to responsible environmental management and risk reduction. These practices support compliance and contribute to long-term sustainability and organizational resilience.

PFAS Site Assessment Sources:

Meet the Authors: 

Leslie P. Smith, Ph.D., PE has over 10 years of experience, and is responsible for project management and design in the environmental engineering and remediation field, which of environmental site assessments, soil and groundwater remediation design and implementation, drainage assessment plans, soil management plans, construction dewatering permitting, technical writing, includes client relations, contract management, project strategy development, regulatory interaction, e client relations, contract management, project strategy development, regulatory interaction and quality assurance. Reach out to Leslie on LinkedIn.

Natalia Marquez is responsible for project support in liquids management and environmental services. She works on diverse projects both performing field activities and soil and liquids management, remediation, environmental assessments, data management, and technical writing. Natalia has also acted as Assistant Project Manager on complex projects managing field activities, scheduling, and reporting. Reach out to Natalia on LinkedIn.

 

 

Posted by Diane Samuels at 6:00 am
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