Which of the following is NOT a component of environmental due diligence?

The identification of applicable environmental regulations, assessing potential environmental liabilities, and implementing risk management strategies are all key components of environmental due diligence. These steps ensure that an organization is aware of its responsibilities and potential issues related to environmental compliance.

Evaluating financial forecasts, on the other hand, pertains more to financial analysis rather than the specific requirements of environmental due diligence. While financial forecasts may be important in a business context, they do not directly address the environmental aspects or the specific liabilities and regulatory frameworks that organizations must navigate. Therefore, understanding what constitutes environmental due diligence involves recognizing the focus on environmental impact and compliance rather than financial projections.