With more manufacturing in the United States going overseas, multinationals are finding that they cannot make that move without evaluating the environmental implications tied up in the relocation, said a panel of experts.
During a Web seminar yesterday, sponsored by the Chicago-based insurance brokerage firm Aon, a group of experts discussed the concerns and ramifications these companies can face when they relocate production plants.
Jeff Bates, partner of the law firm McDermott Will Emery in Boston, said there are a number of concerns corporations face overseas, ranging from foreign exchange risks to appropriation of property.
Concerning environmental regulations, he noted that even though it may be difficult to obtain a clear understanding of the regulations, violation could produce "draconian" enforcement. He recommended that it is important for corporate managers to engage with local groups and obtain a full understanding of environmental concerns.
Ann Sirois, general counsel for ERM, a global environmental consulting company in Austin, Texas, stressed the importance of working with consultants who understand the diverse and sometimes confusing nature of a foreign nation's regulations.
She noted that residents near new facilities can be "sensitive" to multinationals, holding them responsible for any environmental impacts within the vicinity.
From a risk management point of view, Rodney Taylor, managing director of Aon Environmental Services Group, pointed out that an insurance professional can perform risk assessments to determine what risk transfers are available or needed.
The professional can also look at alternatives to risk transfer and identify unforeseen risk, such as cost overruns on a cleanup project.
For a full re-airing of the seminar, go to: www.aon.com/us/about/events/web_seminar.jsp.
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