Financial capacity

We sometimes need to consider the financial capacity of regulated companies or persons – their ability to pay for the costs of their environment protection and human health obligations.

We may need to do this when:

  • considering whether to require a regulated person or company to provide a financial assurance – a bank guarantee or surety bond to cover the costs of clean up or remediation if pollution or contamination occurs
  • determining whether a responsible person or company is a ‘fit and proper person’ when considering a licence application, review or renewal
  • determining who is the appropriate person to be made subject to a contaminated land management order
  • issuing an environment protection notice
  • requiring pollution reduction programs
  • undertaking compliance actions.

Financial capacity is relevant when we exercise powers under the: 

Financial risk assessment

To understand a company’s financial capacity we carry out a financial risk assessment.