With increasing climate-related events, tightening environmental regulations, and growing public awareness, environmental claims are no longer a concern reserved for large corporations or heavy polluters. Increasingly, industries across the board are facing environmental liability, often requiring the expertise of environmental consulting services. Claims can result from pollution, improper waste disposal, contamination, resource depletion, or non-compliance with environmental laws. There are severe financial and reputational impacts on the business if companies do not take a proactive stance regarding their environmental relationships.

Identifying the industries most at risk for environmental claims is a crucial first step in preventing and managing environmental risks.

Industries Most at Risk for Environmental Claims

Construction and Real Estate Development

One of the most vulnerable to environmental claims, the construction and real estate development industry is engaged in projects that involve land clearing, excavation, demolition, and material disposal. These activities can disturb hazardous substances like asbestos, lead, fuel, or contaminated soil.

Soil erosion, water runoff pollution, improper waste disposal, and accidental damage to protected ecosystems are the usual claims that they face. Even when contamination is discovered years after the project’s completion, companies can still be liable. Even when pollution predates ownership, current owners or developers may still be found liable.

Manufacturing and Industrial Operations

The use of chemicals, fuels, and raw materials by manufacturing facilities can expose them to significant environmental risks. Regulatory violations and third-party claims can result from spills, leaks, air emissions, and wastewater discharge.
Industries engaged in chemical production, metal processing, textiles, and plastics are also highly exposed. The claims may include groundwater contamination, toxic exposure, or long-term environmental damage. Even just a single incident can make companies liable for cleanup costs and regulatory fines. To add, legal defense expenses can quickly escalate.

Energy and Utilities

The energy sector faces some of the highest environmental exposures. This sector includes oil and gas, power generation, and utilities. Gas leaks, oil spills, pipeline failures, and emissions-related claims are common risks.
Even if a company engages in renewable energy, such as wind farms, solar installations, or hydroelectric projects, it can still face claims related to land use, wildlife destruction, water management, or community impact. Energy companies are under intense scrutiny, and minor non-compliance can cost a lot.

Agriculture and Food Production

The problem with agriculture and food production is the use of pesticides and fertilizers. The improper handling of chemicals can contaminate soil and nearby water sources. This can affect nearby properties and neighboring communities.

Livestock manure management and methane emissions are also big concerns. Claims faced by agriculture and food processing facilities include wastewater discharge, odor pollution, and improper disposal of byproducts.

Transportation and Logistics

Trucking, shipping, rail, and aviation are exposed to environmental risks such as fuel spills, hazardous-material transport, emissions, and accidents. Soil and water contamination can result from a single vehicular accident involving hazardous cargo. This scenario can cause cleanup obligations and third-party lawsuits.

Even ports, warehouses, and storage hubs may be liable for environmental claims due to improper fuel storage or waste handling.

Hospitality and Tourism

Hotels, resorts, and other tourism-related businesses may not appear at risk at first, but the truth is, environmental claims in this sector have become increasingly common. Wastewater discharge, excessive water use, and damage to natural habitats can all cause legal problems.
Beaches, islands, and protected areas are especially vulnerable. Legal action and fines may result from minor environmental impacts.

Managing Environmental Risks

The businesses most at risk should be proactive in their environmental risk management. Environmental audits, employee training, compliance monitoring, proper waste handling, and emergency response planning are all part of proactive risk management. It would also be wise to invest in pollution liability insurance to protect companies from unexpected claims and cleanup costs.

Protect Your Business from Environmental Claims

If you belong to any of the industries in the list, level up your environmental risk management initiatives by seeking professional help from an environmental consulting services company. Call us today to know how we can help protect your business from costly environmental claims.