ERIS Insider summarizes key news items and current trends shaping the work of environmental assessment and due diligence practitioners.
PRESIDENT'S MESSAGE
We couldn’t let the fall season pass without expressing our gratitude to all our clients and partners across North America for their tremendous support of ERIS’ 25 years in business. Yes, ERIS has served the due diligence market with environmental and property risk data and products in Canada since October 1999, and last year, we celebrated 10 years serving the U.S. market!
Much has changed since we rolled data reports, aerials, and other materials into tubes and mailed them out! Technology has transformed all businesses in ways we only read about at the time. Still, ERIS has kept its focus, grown steadily, evolved products, created and innovated other new products, and adopted state-of-the-art software solutions – taking a digital approach supporting our primary mission – to make our clients’ work lives easier. None of this was possible without the trust, loyalty, advice, and support of you, our clients.
As we look forward, we will continue to provide leading-edge products and imaginative software solutions to serve our clients for their North American due diligence work.
From start to finish you can take advantage of ERIS applications and platforms to assess the tried and trusted data and historical products for which we are renowned.
We are grateful. Here’s to the next 25 years!
IN FOCUS
New Federal Compilation of Governmental Approaches to PFAS “Forever Chemicals”
What are Canadian agencies doing to evaluate and control the hazards of perfluoroalkyl and polyfluoroalkyl substances (PFAS) – often referred to as “forever chemicals”? The short answer is: more all the time, directed at more types of PFAS. Environment and Climate Change Canada (ECCC) and Health Canada recently issued an “Updated Draft State of Per- and Polyfluoroalkyl Substances (PFAS) Report,” a 253-page status and plan report on research, information, and regulatory efforts directed at PFAS hazards.
What are Canadian agencies doing?
Much of the report describes PFAS’ uses since their introduction in the 1940s, including nonstick pans, fire-resistant clothing and materials, and fire suppression foams; inevitable releases into wastes, waterways, and humans and other living beings; and research to understand the impacts of these persistent materials on human and environmental health. The report also summarizes a variety of Canadian (federal and provincial) and international regulatory initiatives designed to reduce and control releases that require remediation.
Efforts to study and control PFAS hazards initially focused on a small number of compounds and situations but have steadily expanded as the ubiquity, persistence, and potential hazards of many PFAS compounds have become more apparent. Specific examples follow.
- Under the authority of the Canadian Environmental Protection Act (CEPA), ECCC gathers information about specific PFAS, which has led to bans on the manufacture, importation, and use of targeted compounds. For example, on July 27, ECCC published a CEPA Notice requiring a wide variety of specified manufacturers, importers, and users to provide information about their use of 312 specific PFAS during calendar year 2023, with an aggressive January 29, 2025 compliance deadline.
- ECCC applies CEPA authority to evaluate hazards from specific PFAS and prescribe environmental limits through chemical analyses, environmental concentration and impact assessments, and human (and other species) health assessments.
- Agencies prescribe standards to protect human health and the environment, including existing drinking water quality guidelines and soil screening values (federal, Alberta, British Columbia, and Ontario), and broader surface, groundwater, and soil guidelines under development by the Canadian Council of Ministers of the Environment (CCME). The report identifies standards and guidelines for further review.
- The government remediates federal-responsible sites on the Federal Contaminated Sites Inventory, including for PFAS, applying standards appropriate for the particular site.
- Federal, provincial, and municipal agencies apply regulatory standards to waste management facilities.
- Canada and the U.S. address discharges into the Great Lakes under the Great Lakes Water Quality Agreement.
How are these agency actions expanding property owners’ responsibilities?
Although the pace and location vary, general trends regarding PFAS are well-established:
- Additional types of PFAS are being studied to determine their hazards and pervasiveness.
- These studies identify which additional PFAS are hazardous to human health and the environment.
- Standards are being developed to manage these newly recognized hazards.
As new standards come into force, entities involved with PFAS-contaminated or potentially contaminated waste, land, and water will need to determine their compliance obligations.
What’s next?
The latest report provides an extensive compilation of PFAS-related agency activities throughout Canada with references to activities by other nations and international organizations. It provides a useful reminder of the extent to which PFAS-related legal obligations are expanding and provides a roadmap that indicates where research and regulations are potentially heading.
Public comments on this report were due September 11. ECCC and Health Canada stated a general intent to finalize the report and propose an appropriate risk management approach for these chemicals but did not provide a timeline for doing so. Meanwhile, federal, provincial, and even local agencies continue to develop the many regulatory programs referenced in the report, so landowners and other parties who know of or suspect PFAS contamination must pay close attention to evolving regulatory developments.
CRE MARKET UPDATE
The Latest Market Trends in the Canadian Commercial Real Estate Industry
Market remained largely flat in Q3 2024
According to Altus Group’s Investment Trends Survey, the Canadian CRE industry continued its flat performance in Q3 due to the residual effects of elevated interest rates and sluggish economic growth.
Key Highlights:
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- The overall capitalization rate (OCR) remained largely flat at 5.90% in Q3, compared to 5.87% in Q2.
- In Q3, investors' top three preferred property types continued to be food-anchored retail strip assets, multi-tenant industrial, and suburban multiple-unit residential.
- While Class-B office and office land assets were the least preferred by investors, the demand for newer and well-located office buildings is expected to remain strong.
- The top three preferred markets for investors across all asset classes were Vancouver, Calgary, and Edmonton, while Toronto slipped to fourth place.
The relatively flat Q3 performance indicates that a momentum change can be slow-moving, even as inflation and interest rates trend downward. However, the gradual reduction in borrowing costs and increase in investor confidence should lead to increased activity in the coming quarters.
Source: Altus Group. Read the full report here.
To view larger images and dive deeper into the data, click on the images below.
Latest Developments
Tailoring Development, Operations, and Cleanups to Arctic Conditions
Adaptation and resilience in the face of climate change is increasingly important, and nowhere more than in the rapidly warming regions of Canada’s North. Many communities and infrastructure are located in areas where melting permafrost and rising waters threaten ongoing operations and planned growth. Agencies and professional organizations are addressing these challenges with research, standards for construction and maintenance, and regulatory initiatives. For example, Environment and Climate Change Canada’s (ECCC’s) Strategic Assessment of Climate Change guides its planning and environmental assessment activities. Strategic development efforts include the Canadian Northern Economic Development Agency’s (CanNor’s) work with communities, organizations, and other agencies to guide economic development in ways that will remain sustainable as the North warms. On the ground, the Standards Council of Canada Northern Infrastructure Standardization Initiative works with northern entities to tailor standards for infrastructure, while the Canadian Standards Association (CSA) also works to ensure that its many standards address conditions in the North. Site cleanup issues also arise from new projects and when permafrost thaw mobilizes hazardous substances from industrial and natural sources. For example, an academic review found permafrost dominates thousands of sites on the Federal Contaminated Sites Inventory.
Federal Government Responds to Supreme Court Decision with Impact Assessment Act Revisions
Since the October 2023 Supreme Court of Canada decision declaring important elements of the federal Impact Assessment Act (IAA) unconstitutional, Parliament and federal agencies have moved quickly to establish workable systems that pass constitutional muster. In June 2024, Parliament amended the IAA (in the omnibus Budget Implementation Act, 2024, No. 1, Bill C-69) to clarify decision-making provisions and define “adverse effects within federal jurisdiction” to provide a constitutional basis for federal action (addressing the Supreme Court’s rejection of the prior/vague standard). Also in June, the Ministerial Working Group on Regulatory Efficiency for Clean Growth Projects issued “Building Canada’s Clean Future – a plan to modernize federal assessment and permitting processes to get clean growth projects built faster,” anticipating statutory, regulatory, and procedural revisions to meet the new requirements.
Radon Risks Persist at High Levels
Naturally occurring radon gas is released by radioactive decay within rock formations, from which it can percolate to the surface where it infiltrates basements and could be trapped or spread throughout the structure by the ventilation system. Because of its radioactive origin, radon can pose health risks – it’s the leading cause of lung cancer in non-smokers. A new report from the University of Calgary focuses on housing and estimates that nearly 18% of Canadians live in buildings with radon gas concentrations above Health Canada safety levels, 200 Bequerels per cubic meter (Bq/m³), and an additional 24% live in buildings with elevated levels (at least 100 Bq/m³). Survey data showed regional variations across Canada and that single family homes tended to have higher concentrations than multi-family homes. Health Canada administers a national program that provides information and encourages testing, directed at residents and real estate agents. The same hazards can apply in commercial and industrial buildings, and professional practice standards cover all types of construction. For example, the CSA Group supports an ISO standard for radon testing, ISO 11665-6:2020, and others including the American National Standards Association (ANSI) and the Indoor Environments Association (ANSI/AARST MA-MFLB-2023), and the U.S. Environmental Protection Agency. Identification of possible radon hazards based on geology and surface activities continues to be an important action during property assessments, as well as the implementation of mitigation efforts.
ERIS addresses the presence or likely presence of radon through our Physical Setting Reports.
OSFI’s Climate Risk Disclosure Requirements Come into Effect
The Office of the Superintendent of Financial Institutions Canada (OSFI) introduced climate risk disclosure requirements that will come into effect starting in fiscal year-end 2024, with full compliance expected by 2025. These disclosures will focus on physical climate risks such as extreme weather events, rising sea levels, and other environmental impacts that can affect assets and operations.
Financial institutions will need to report how they assess and manage these risks, aligning with frameworks first established by the Task Force on Climate-Related Financial Disclosures (TCFD) to ensure transparency and preparedness.
This change is part of OSFI’s ongoing commitment to enhancing climate risk management in the financial sector. For institutions, it’s a critical step toward integrating climate considerations into business strategies and ensuring resilience against evolving environmental risks.
Learn more about these requirements and how they will impact your organisation here.
Regulatory Updates
New CSA Standards for Climate Resilience
On September 9, the Canadian Standards Association (CSA) announced the issuance of CSA W224:24 – Coastal Flood Risk Assessment for Buildings and Infrastructure. This standard provides guidance on conducting coastal flood risk assessments along Canada’s marine coasts and Great Lakes to inform the planning design of new buildings and infrastructure. It also covers retrofitting measures for existing buildings and infrastructure potentially exposed to coastal flood hazards. Another new draft standard addressing flood risks and supporting climate resilience planning was issued as a draft in July 2024. This standard, CSA W231 – Developing and Interpreting Intensity-Duration-Frequency (IDF) Information Under a Changing Climate, provides methods to formulate and interpret climate IDF curves, which are used to manage the risks associated with extreme rainfall, such as landslides and severe damage to buildings and infrastructure. The draft was open for comments through September 3 and is currently in development. Information on new and proposed CSA standards is available at Standards Activities.
New Brunswick Clean Environment Act, Contaminated Sites Regulation
New Brunswick Regulation 2024-57, issued by the Department of Environment and Local Government (DELG), establishes a detailed regulatory roadmap for managing contaminated sites with files opened on or after August 1. The specified requirements include immediate notices of new contamination; notices of historical contamination within 30 days of determination or suspicion; the duty to prevent adverse impacts of contaminants; environmental site assessments; site remediation and related document filings (e.g., monitoring and closure reports, records of site conditions); and certification by a site professional. Additional provisions address limited impact releases, agency administration, and site professional qualifications and responsibilities. The regulation adopts several Ministerial Protocols by reference to direct each stage of contaminated site management. Note: contaminated site files opened before August 1, 2024, are not subject to this regulation but must follow the applicable guidance and requirements listed in the ministerial protocols. Review additional details on the referenced protocols and this program here.
Content provided by STP ComplianceEHS.
FEATURED ERIS PRODUCT
ERIS Mobile App: Your Fieldwork Power Tool
Environmental professionals use the ERIS Mobile App to directly access their ERIS projects, data, notes, and photos from anywhere to allow comprehensive and time-saving onsite visits. Recent enhancements to the application have added features and increased its efficiency and indispensability as a field-to-office workflow tool.
ERIS Mobile can now be used for any type of project – any project that you need to collect data, take notes, enter checklists, and take photos from the field.
Other enhancements include a more streamlined photo collection. Easily upload multiple photos from the photo gallery, all at once. And photo navigational directions are now detected and assigned to photos taken through the mobile phone’s camera. You can also add multiple checklists for your project – choose the ERIS standard checklist as well as any custom checklists you have set up, even for the same project. Another significant upgrade is how you can manage contractors with ease by assigning them to specific projects. Contractors will be able to access projects assigned to them in both mobile and desktop Xplorer and Scriva applications.
The functionality for professionals using Scriva, ERIS’ report writing platform, has expanded. Scriva users now have seamless integration from field to office with the addition of all the same functions and features in our standard Mobile App. Select “Scriva Mobile” at the App’s login and save time on your photo log creation and onsite documentation within Scriva.
Work in a connected system – all ERIS platforms sync together including the Mobile App, ERIS Xplorer, Figure Creator, Scriva, and the ‘My Orders’ dashboard. Learn more and download the latest Mobile App version here.
Spotlight On
Special Profile: Jenny Hoppe, Director, City Directories
Jenny Hoppe joined ERIS in 2018, working part-time as a researcher in our city directory department when love struck twice. She fell in love with her work, and what started as a side gig to earn extra money to help pay for her wedding turned into a full-time job. Today, she is happily married and the director of our city directory department.
Jenny enjoys collaborating with a talented team to solve research issues that lead to “Aha!” moments, particularly when street names or numbers have changed over time and were never documented anywhere. While conducting research, she has uncovered a few unique and clever business names in city directories over various cities and years. Two favorites include Barkingham Palace and Fabracadabrics.
About a particular colleague, Mike Nagy, VP of Research Projects, North America, Jenny says, “Always ready with good advice, Mike has been a wonderful mentor to me at ERIS. My favorite interactions are when we are throwing ideas back and forth, sparking even more ideas and leaving us both inspired. Mike is certainly a part of the reason for my success.”
When not supporting her team and fielding research questions from clients, Jenny spends time walking with her two rescue dogs, Pepper Potts and Bruce, and playing video games with her husband. She also plays on a wallyball (volleyball but played on a racquetball court) team in her local league with friends.
Upcoming Events
Nov 19-20, Winnipeg, MB: Mike Seifert and Brayden Ford will attend MEIA’s Annual Cleantech Conference.
Nov 20, Vancouver, BC: Join Jasmeen Jatana at BCEIA & EMA of BC’s Emerging Professionals Social.
Dec 4, Toronto, ON: Join ERIS at ONEIA’s annual Environment Industry Day.
Jan 29-30, Vancouver, BC: Carol Le Noury and Diana Saccone will attend CE3C – the Canadian Environmental & Engineering Executives Conference.
Jan 30, Toronto, ON: Join Brayden Ford and Melissa Tran at SMART Remediation.
Feb 6, Ottawa, ON: Join Brayden Ford and Melissa Tran at SMART Remediation.
Mar 5-7, Edmonton, AB: Join Mike Seifert at CLRA’s National and Alberta Conference and Annual General Meetings.
Mar 19-20, Saskatoon, SK: Join Mike Seifert at SEIMA’s SustainTech Conference.
Apr 1-3, Kananaskis, AB: Join Mike Seifert at ESAA’s Environmental Summit.
Apr 29-May 1, Vaughan, ON: Join ERIS at CANECT.
May 21-23, Whistler, BC: Join Jasmeen Jatana and Brayden Ford at BCEIA’s BEST Conference.
Jun 17, Toronto, ON: Join ERIS at CBN’s Canadian Brownfields Conference.
Thank you for reading this issue of ERIS Insider newsletter. Our next issue will drop in June.
