Environmental Audit

1. ENVIRONMENTAL AUDIT
Dayana Mastura Baharudin

2. Environmental Auditing
• Environmental auditing originated in the United
States in the 1970s.
• At first reactive in focus, environmental
considerations were dealt with by 'end of pipe'
solutions. (when the damage is done)
• Control measures were heavily influenced by the
need to reduce remediation costs and fines which
might stem from industrial accidents, and from the
need to manage environmental liabilities.

3. Environmental Auditing
• Environmental auditing was introduced to the UK and
elsewhere mainly by multinational companies who
began to apply the audit procedures corporately and
via subsidiaries (horizontally).
• It is now being encouraged down the supply chain
when large companies demand that their suppliers
have green credentials (vertically).
• Environmental auditing has also become more
proactive as organisations have recognised potential
market and stakeholder benefits, efficiency gains,
financial savings, and the importance of improved
public relations.

4. Environmental Auditing
• Historically, environmental auditing has been developed
for industrial (chemical and manufacturing) applications.
• Interest has also occurred in the public sector, resulting
from the various Charter initiatives to open up activities
to greater public scrutiny.
• Local authorities now apply auditing in their work.
• This can be expected to grow more rapidly as a result of
new commitments towards sustainable development and
the implementation of Local Agenda 21 ( United Nations
initiative).

5. Environmental Audit - Definition
• 'a management tool comprising a systematic, documented,
periodic and objective evaluation of the performance of the
organisation, management system and processes designed to
protect the environment with the aim of:
• (1) facilitating management control of practices which may
have impact on the environment, and
• (2) assessing compliance with company policies'. (CEC, 1993);
and the systematic examination of the interaction between
any business operation and its surrounding.
• This includes all emissions to air, land and water legal
constraints; the effects on the neighbouring community,
landscape and ecology; and the public's perception of the
operating company in the local area' (CBI, 1990).

6. Environmental auditing practice and
procedures
• The more specific type of environmental audit
involves the collection, collation, analysis,
interpretation, and presentation of information
which is used to:
• assess performance against a set of requirements or
targets, related to specific issues;
• evaluate compliance with environmental legislation
and corporate policies; and
• measure performance against the requirements of an
environmental management system standard.

7. Environmental auditing practice
and procedures
• The systematic, periodic, documented and objective aspects
of environmental auditing are fundamental to effectiveness.
• It is fast developing as an important and powerful tool in the
corporate environmental assessment and management toolkit
• The requirement periodically to repeat audits ensures that
there is an ongoing commitment and a systematic process to
improve environmental performance (Grayson, 1992).
• The scope of repeat audits can also broaden to become more
comprehensive as experience and expertise are accrued or as
new issues or legislation emerge.

8. Environmental auditing practice
and procedures
• Environmental Reviews provide a baseline overview
of current environmental effects or impacts,
relevant environmental legislation and a statement
of existing environmental performance.
• The Reviews provide a basis for establishing a
management action plan.
• They can become part of an environmental
management system to help implement the plan.
• When they are undertaken as the first of a series of
periodic environmental audits they have been
referred to as a 'Baseline Environmental Audit'.

9. Environmental
auditing
practice and
procedures
Environmental audits should be
appropriate to the particular
circumstances.
As environmental auditing draws upon
various methodologies, each
organisation will define its own system
depending upon its size, its activities
and its corporate culture.
The scope and style of audits vary, but
common stages and activities include:

10. Pre-audit
stage
full management
commitment;
setting overall goals,
objectives, scope and
priorities;
selecting a team to ensure
objectivity and professional
competence;

11. Audit Stage
On-site audit, well defined and systematic
using protocols or checklists;
review of documents and records;
review of policies;
interviews;
site inspection;

12. Post-Audit
Stage
EVALUATION OF
FINDINGS;
REPORTING WITH
RECOMMENDATIONS;
PREPARATION OF AN
ACTION PLAN; AND
FOLLOWUP.

13. Environmental auditing practice
and procedures
• There is an increasing demand for the results of auditing
to be disclosed.
• Recent European initiatives on access to environmental
information (CEC, 1990) and
• the requirement of the Eco Management and Audit
Scheme (CEC, 1993) for participants to publish
environmental statements confirm the importance of this.

14. Environmental Auditing and Environmental
Management Systems (EMS)
• An EMS is a tool designed to enable organisations to
target, achieve and demonstrate continuous improvement
in environmental performance.
• It is one integrated management process with a number
of stages, which includes an environmental audit.
• There are a number of standards (e.g. the British
Standard BS7750 (BS11992), the European Eco-
Management and Audit Scheme for Industry (CEC, 1993)
and the DoE EcoManagement and Audit Scheme for UK
Local Authorities (DoE,1995)).

15. Environmental Management
Systems
• In the last few years, the voluntary environmental
management initiatives undertaken by organisations have
gained increasing importance both in public policies and
corporate strategies.
• At a worldwide level, there are many certification
schemes that private organisations can adhere to in order
to obtain public recognition of their voluntary
commitment to environmental improvements.
• The most widespread and renowned schemes for
environmental management systems are ISO 14001 and
the Environmental Management and Audit Scheme (EMAS)
(Heras – Saizarbitoria et al., 2015b; Stevens et al., 2012).

16. Environmental
Auditing and
Environmental
Management
Systems (EMS)
These consist of most or all of the following elements depending on
the standard, to:
1. adopt an environmental policy to confirm and promote
commitment to continual improvement in environmental
performance;
2. undertake an environmental review to identify significant
environmental issues and effects;
3. set up environmental programmes of objectives, targets and
actions;
4. establish an environmental management system to ensure the
implementation of the necessary actions to achieve these
objectives;
5. undertake periodic environmental audits to assess the
performance of such components
6. prepare an environmental statement on environmental
performance; and
7. obtain independent verification of the environmental statement.

17. ISO 14001 and the Environmental
Management and Audit Scheme (EMAS)
• Both EMAS and ISO 14001 are voluntary policy tools
that require organisations to implement certain rules
and procedures to monitor environmental aspects and
to improve their performance (Hillary, 2004; Testa et
al., 2014).
• By adopting an environmental certification (i.e. by
participating in one of these voluntary schemes) firms
decide voluntarily to improve their environmental
performance beyond the legal requirements (Daddi et
al., 2015).

18. Benefits of Environmental Audits
• While environmental audits are designed to identify
environmental problems, there may be widely differing
reasons for undertaking them: compliance with
legislation, pressure from suppliers and customers,
requirements from insurers or for capital projects, or to
demonstrate environmental activities to the public.
• The benefits of environmental auditing include:
• ensuring compliance, not only with laws, regulations and
standards, but also with company policies and the
requirements of an Environmental Management System
(EMS) standard

19. Benefits of Environmental Audits
• enabling environmental problems and risks to be
anticipated and responses planned;
• to demonstrate that an organisation is aware of its impact
upon the environment through providing feedback;
• increased awareness amongst stakeholders; and
• more efficient resource use and financial savings.