The Environment Protection Act 1970 (the Act) states that an environmental audit assesses the nature
and extent of harm, or risk of harm, to the environment posed by an industrial process or activity,
waste, substance or noise. It is about understanding the type of contamination or pollution and the harm
it poses.
Planning authorities, government agencies and private businesses use the environmental audit system
to determine the condition of a site and its suitability for use, or to advise whats required to make a site
suitable for use.
The auditing process must clearly identify the environmental quality of a site, and any detriment to
using that site.
Environmental audits must deliver authoritative, independent and transparent advice and recommend
measures to reduce identified risks to the environment from a site or industrial facility.
Benefits of environmental auditing
An environmental audit of a site provides people with confidence as to what a site can be used for and
to determine what, if any, costs may apply in managing it into the future.
Since the audit system commenced in 1990, more than 3000 audits have been completed, underpinning
some of the most significant urban-infill and building projects across the state. As an example, the
Docklands precinct was able to be transformed into the safe, vibrant place that you see today, through
the undertaking of several 53X audits.
Without this system, many sites may not be developed for future use or may pose unacceptable risks to
human health and the environment projects that ultimately benefit the wider community.
Environmental audit
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The examples and perspective in this article deal primarily with the United States and do
not represent a worldwide view of the subject. Please improve this article and discuss the
issue on the talk page. (May 2014)
Environmental audit is a general term that can reflect various types of evaluations intended to identify
environmental compliance and management system implementation gaps, along with related corrective
actions. In this way they perform an analogous (similar) function to financial audits. There are
generally two different types of environmental audits: compliance audits and management systems
audits. Compliance audits tend to be the primary type in the US or within US-based multinationals.
Contents
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1 Environmental compliance audits
2 ISO 14001
3 Audit tools and technology
4 Related types of assessments
5 Environmental auditing in India
6 See also
7 References
8 External links
Environmental compliance audits[edit]
As the name implies, these audits are intended to review the site's/company's legal compliance status in
an operational context. Compliance audits generally begin with determining the applicable compliance
requirements against which the operations will be assessed. This tends to include federal regulations,
state regulations, permits and local ordinances/codes. In some cases, it may also include requirements
within legal settlements.
Compliance audits may be multimedia or programmatic. Multimedia audits involve identifying and
auditing all environmental media (air, water, waste, etc.) that apply to the operation/company.
Programmatic audits (which may also be called thematic or media-specific) are limited in scope to preidentified regulatory areas, such as air.
Audits are also focused on operational aspects of a company/site, rather than the contamination status
of the real property. Assessments, studies, etc. that involve property contamination/remediation are
typically not considered an environmental audit.
ISO 14001[edit]
Main article: ISO 14000
ISO 14001[1] is a voluntary international standard for environmental management systems ("EMS").
ISO 14001:2004 provides the requirements for an EMS and ISO 14004[2] gives general EMS
guidelines.[3] An EMS meeting the requirements of ISO 14001:2004 is a management tool enabling an
organization of any size or type to:[4]
1. Identify and control the environmental impact of its activities, products or services;
2. Improve its environmental performance continually, and
3. Implement a systematic approach to setting environmental objectives and targets, to achieving
these and to demonstrating that they have been achieved.
Organizations implementing ISO 14001 usually seek to obtain certification by independent
Certification Bodies. Certification indicates that the documentation, implementation and effectiveness
of the EMS conform to the specific requirements of ISO 14001. This standard is currently being
updated to include elements of including a lifecycle perspective and including top management anongst
other changes. The draft (DIS) standard ISODIS 14001:2014 is currently the draft standard applicable
until the ISO 14001:2015 standard is finalised and published.
In 2002, the ISO organization also published ISO 19011, the standard for auditing quality and
environmental management systems (ISO 19011:2002), which was used for internal audits and
certification audits of EMS until it was updated in 2011.[5] The 2011 version on ISO 19011 restricts its
use in first and second part audits, while third part audits (certification audits) are now covered in
ISO/IEC 17021.[6]
A common misconception is that ISO 14001 certification automatically implies legal compliance.
Certification under ISO 14001 does not directly reflect compliance with any legal requirements,
although ISO 14001 demands the organization to evaluate its compliance with legal requirements. If
there is no compliance with some legal requirement, ISO 14001 requires that the organization sets
specific targets related to the non-compliance(s) and establishes, implements and maintains
programmes to achieve compliance. Therefore it is possible that, at the time of audit, the organization
fulfils the requirements of ISO 14001, yet there are one or more non-compliances with specific
requirements, which are identified and which the organization actively works to correct. Specific
guidance on this subject is provided by the European co-operation for Accreditation.[7]
Audit tools and technology[edit]
The term "protocol" means the checklist used by environmental auditors as the guide for conducting
the audit activities. There is no standard protocol, either in form or content. Typically, companies
develop their own protocols to meet their specific compliance requirements and management systems.
Audit firms frequently develop general protocols that can be applied to a broad range of
companies/operations.
Current technology supports many versions of computer-based protocols that attempt to simplify the
audit process by converting regulatory requirements into questions with "yes", "no" and "not
applicable" check boxes. Many companies and auditors find these useful and there are several such
protocol systems commercially available. Other auditors (typically those with many years of
environmental auditing experience) use the regulations/permits directly as protocols. There is a long
standing debate among environmental audit professionals on the value of large, highly detailed and
prescriptive protocols (i.e., that can, in theory, be completed by an auditor with little or no technical
experience) versus more flexible protocols that rely on the expertise and knowledge of experienced
auditors and source documents (regulations, permits, etc.) directly. However usage of structured and
prescriptive protocols in ISO 14001 audits allows easier review by other parties, either internal to the
Certification Body (e.g. technical reviewers and certification managers) or external (accreditation
bodies).
In the US, permits for air emissions, wastewater discharges and other operational aspects, many times
establish the primary legal compliance standards for companies. In these cases, auditing only to the
regulations is inadequate. However, as these permits are site specific, standard protocols are not
commercially available that reflect every permit condition for every company/site. Therefore, permit
holders and the auditors they hire must identify the permit requirements and determine the most
effective way to audit against those requirements.
During the past 20 years, advances in technology have had major impacts on auditing. Laptop
computers, portable printers, CD/DVDs, the internet, email and wireless internet access have all been
used to improve audits, increase/improve auditor access to regulatory information and create audit
reports on-site. At one point in the 1990s, one major company invested significant resources in testing
"video audits" where the auditor (located at the corporate headquarters) used real-time video
conferencing technology to direct staff at a site to carry live video cameras to specific areas of the
plant. While initially promising, this technology/concept did not prove acceptable. An emerging
technology in environmental auditing is the use of tablet computers.
Related types of assessments[edit]
Phase I Environmental Site Assessment ("ESA") are generally done in relation to mergers, acquisitions
or financing activities. The intent of ESAs is to identify potential sources/existence of property
contamination for purposes of clean up costs/liability under US law. ESA's rarely contain a compliance
audit component and should not be confused with audits.
Environmental auditing in India[edit]
The Supreme Audit Institution (SAI) in India is headed by the Comptroller and Auditor General (CAG)
of India who is a constitutional authority. The CAG of India derives his mandate from Articles 148 to
151 of the Indian Constitution. The CAGs (Duties, Powers and Conditions of Service) Act, 1971
prescribes functions, duties and powers of the CAG. While fulfilling his constitutional obligations, the
CAG examines various aspects of government expenditure and revenues. The audit conducted by CAG
is broadly classified into Financial, Compliance and Performance Audit. Environmental audit by SAI
India is conducted within the broad framework of compliance and performance audit.
Environmental audits are tools which can quantify an organisational environmental performance and
position.
What are the different types of environmental audits?
There are three main types of audits which are environmental compliance audits, environmental
management audits to verify whether an organisation meets its stated objectives, and, functional
environmental audits such as for water and electricity.
What are their benefits?
Benefits vary depending on the objectives and scope of the audit. Environmental auditing benefits
include:
Organisations understand how to meet their legal requirements;
Meeting specific statutory reporting requirements;
Organisations can demonstrate they are environmentally responsible;
Organisations can demonstrate their environmental policy is implemented;
Understanding environmental interactions of products, services & activities,
Knowing their environmental risks are managed appropriately;
Understanding how to develop and implement an ISO 14001 EMS; and
Improving environmental performance and saving money.
Who should complete an environmental audit?
ISO 19011:2012 Guidelines for auditing management systems provides information regarding the
choice of Environmental Auditor. Environmental Auditors should have personal attributes, such as
ethics, open-mindedness, perceptiveness and tact. They should understand audit principles, procedures
and techniques, as well as having gained experience through conducting audits. They should know the
subject matter they are auditing against and how this applies to different organisations.
Audit Team Leaders should be able to plan and resource effectively, have good communication and
leadership skills. Preferably Environmental Auditors should complete training and have attained an
appropriate level of education. A good Auditor should have adequate skills and experience.
When seeking an external Auditor consideration could be given to the skills outlined above. Exemplar
Global Environmental Auditors have completed training (5 days) and have met a minimum certification
standard. Depending on the auditing requirements consideration could be given to determining
whether the Auditor needs to be certified by additional organisations (e.g. EPA appointed
Environmental Auditors).