Many companies are unaware of how the European Environmental Liability Directive (ELD) will affect them in the countries where they operate, a small survey by FERMA indicates.
It found that of 68 responses, only 56 percent said that they knew how the ELD had been transposed into national law. Ninety-five percent of the responses came from companies with a turnover of more than €50mn.
“There are still many differences among member states regarding the transposition of the directive”
Asked what measures they had taken to reduce the potential impact of the ELD, 47 percent of the total sample said that they had undertaken risk analysis of their exposures, 28 percent said they had collected baseline data and 15 percent had organised internal training. Only six respondents said their company was discussing the implementation of the ELD in a trade or industry group.
Three respondents said their company had been forced to take immediate action to prevent environmental damage or remediate damage in response to the local law transposing the directive. Eight said they were aware of other companies which had been in this situation, for example through the infringements section of the website of the UK’s Department for Environment, Food and Rural Affairs (Defra).
FERMA’s General Secretary, Pierre Sonigo, who has followed the progress of the ELD for some time, commented: “There are still many differences among member states regarding the transposition of the directive and the related financial guarantee scheme. It is important for each risk manager to become aware of his national specificities and to sit down with the environmental manager to evaluate together the potential risks. Only then can appropriate insurance coverages be put in place.”