The StarLai Environmental Compliance White Paper was released in 2023, featuring seven articles that explore critical topics closely tied to corporate environmental compliance. These include the negative impacts of companies' environmental violations, key principles for building robust environmental compliance frameworks, practical insights and defense strategies for major environmental-related crimes, and case studies on environmental public interest litigation. The white paper encapsulates years of hands-on experience and research findings from StarLai’s environmental practice team, reflecting the firm’s expert wisdom dedicated to helping businesses achieve sustainable compliance. It serves as a valuable resource and plays a proactive role in supporting companies’ efforts to strengthen their environmental compliance systems while enhancing overall operational and management excellence.

After taking on the case, Attorney Wang Weining promptly assembled the Xinglai Environmental Protection team to begin their work. Through reviewing case files, conducting meetings, and carrying out preliminary interviews and investigations, the team discovered that a key basis for the prosecution’s allegations was the illegal disposal of waste incineration fly ash by the waste-to-energy plant—specifically, its operation without a hazardous waste management permit. In response, the Xinglai team conducted a focused analysis and legal review, ultimately concluding that although the incineration fly ash is classified as hazardous waste, it falls under the category of exempted hazardous materials. As such, its disposal—including landfilling—can be handled outside the strict framework of hazardous waste regulations. Armed with this critical insight, the Xinglai team engaged in multiple rounds of communication with the court, procuratorate, and environmental oversight authorities, submitting several detailed legal opinions throughout the process. Ultimately, the defense arguments and legal opinions presented by the Xinglai Environmental Protection team were accepted, leading the procuratorate to withdraw the prosecution.

A listed environmental company based in Southwest China is a firm with significant influence in the industry. To meet business needs, it has partnered with the local government to take over and operate a state-owned municipal solid waste landfill. However, due to insufficient pre-emptive environmental due diligence, the company discovered upon接手 the site that the landfill was plagued by numerous long-standing environmental issues and heavily contaminated by nearby pollution sources, posing substantial risks to its environmental compliance efforts.

After taking over the case, the Xinglai Environmental Compliance Team immediately traveled to the site to conduct a comprehensive environmental compliance due diligence. After gathering the foundational facts, they assisted the company in thoroughly mapping out the historical contamination at the landfill as well as identifying nearby pollution sources. The team then guided the company through both technical and legal assessments, ultimately producing a dedicated report. This report was used by the company to deliver a focused presentation to the landfill’s regulatory authorities, property owners, and local government, clearly defining the environmental responsibility boundaries between the company, its partners, and neighboring businesses. Following the completion of this initial phase, the Xinglai Environmental Compliance Team convened a specialized discussion on key legal issues, leveraging consultations with environmental regulators to gain insights into their policies and perspectives. As a result, the team secured regulatory feedback from the company’s home region and other relevant areas, further clarifying the company’s environmental accountability framework.

On this basis, The Xinglai Environmental Protection team thoroughly reviewed the company’s compliance obligations and identified the associated compliance risks, providing the company with tailored recommendations for environmental compliance improvements. They also conducted specialized environmental compliance training sessions and helped the company establish a robust, long-term environmental compliance management system, ensuring the continued stable operation of the landfill.

Heilongjiang's mining company is a restructured enterprise that transitioned from a collectively owned business. It has a large workforce, carries a heavy historical burden, and currently struggles with poor financial performance—since the incident, the company has remained shut down for an extended period.

Due to the delayed expansion of mining rights, reserves within the original license area were depleted, leading enterprises to engage in illegal mining activities such as over-extraction. Ultimately, after investigation by public security authorities, the case was referred to the procuratorate for review and prosecution.

After taking over the case, the Xinglai Environmental Compliance Team immediately traveled to the site to conduct a due diligence assessment. Upon forming their preliminary findings, they promptly communicated with the investigating prosecutors. Given that the company has long carried a significant historical burden, provided substantial employment opportunities, and that its failure to secure expanded operational rights was primarily due to recent policy shifts rather than any inherent issues within the company itself, there are no fundamental obstacles to processing the application for expanded authority. Seizing this opportunity, the Xinglai Environmental team is leveraging the chance presented by the mining permit expansion and the ongoing upgrade toward becoming a green mine to further advance the process. Not only did it help the company’s legal representative and key personnel secure a suspended sentence, but it also supported the company in comprehensively upgrading its environmental protection measures for the mine and implementing standardized management practices—ultimately enabling the business to resume operations and rebuild, while simultaneously achieving a harmonious balance between environmental and social benefits.

A company in Zhejiang Province is suspected of polluting the environment. During an administrative inspection, the company was found to have illegally disposed of waste engine oil. The total amount of hazardous waste involved has already met the threshold required for criminal investigation and prosecution. Additionally, soil testing at the company’s site revealed heavy metal contamination. As a result, the local Ecological Environment Bureau has referred the case to the public security authorities on charges of environmental pollution.

After taking on this case, the Xinglai Environmental Protection team immediately traveled to the crime scene for a thorough on-site investigation. Through comprehensive argumentation and reasoned analysis, they successfully secured a decision allowing the company’s management personnel to be released on bail pending further investigation. During the review and prosecution phase, Xinglai’s lawyers conducted extensive legal analyses regarding the classification of the case as a corporate crime, the calculation of illegally disposed quantities, and the statistical methods and conclusions presented in the environmental protection forensic report. They also prepared a detailed case-research report and submitted it to the procuratorate, engaging in multiple rounds of in-depth discussions with prosecutors and providing several written legal opinions. Ultimately, the defense arguments were fully recognized and accepted by the prosecution, securing a decision of non-prosecution for the client.

The paper-making industry is a sector characterized by high production volumes, significant water consumption, and relatively severe heavy-metal pollution. A paper company in Fujian is one of the larger-scale paper enterprises in the region. However, due to its long-standing traditionally operated business model, the company urgently needs to optimize its governance structure, enhance its management practices, and strengthen compliance efforts. To address these challenges, the company has engaged Xinglai Environmental Services to help establish a comprehensive compliance management system and refine its specialized compliance processes. The specific tasks include: 1. Conducting thorough due diligence to gain a deep understanding of the company’s operational and management practices; 2. Identifying and assessing the company’s legal obligations and risks associated with its operations, with a particular focus on environmental compliance risks; 3. Assisting the company in building a robust, enterprise-wide compliance management framework; 4. Supporting the company in improving its specialized compliance processes related to environmental protection, occupational safety, and other critical areas; 5. Screening for existing or potential legal risks tied to dispute resolution within the company; 6. Providing ongoing compliance consulting and support to ensure the client’s operations remain fully compliant with applicable regulations.

The above work by StarLai's environmental compliance team not only helped the company refine its operational processes and elevate its management standards, but the successful outcomes in environmental compliance also served as compelling evidence, enabling the company to win a commercial dispute lawsuit and ultimately reduce its financial losses by nearly 12 million yuan.

The StarLai Environmental Compliance White Paper was released in 2023, featuring seven articles that delve into critical topics closely tied to corporate environmental compliance. These include the negative impacts of companies’ environmental violations, key principles for building robust environmental compliance frameworks, practical insights and defense strategies for major environmental-related crimes, and case studies on environmental public interest litigation. The white paper encapsulates years of hands-on experience and research成果 from StarLai’s environmental practice team, representing the firm’s expert wisdom dedicated to helping businesses achieve sustainable compliance. It serves as a valuable resource and plays a proactive role in supporting companies’ efforts to strengthen their environmental compliance systems while enhancing overall operational and management excellence.

Layout: Wang Xin

Review: Management Committee