Environmental audit

Last updated

An environmental audit is a type of evaluation 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

Environmental compliance audits

Compliance obligations can be considered as applicable laws and regulations. Environmental compliance 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 legal 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 pre-identified regulatory areas, such as air. Audits are focused on environmental aspects and environmental impacts of a company/site, rather than the contamination status of the real property.

Environmental Audits and International Standards

ISO 14001 [1] is a voluntary international standard for environmental management systems ("EMS"). ISO 14001 provides the requirements for an EMS and ISO 14004 [2] gives general EMS guidelines. [3] An EMS meeting the requirements of ISO 14001 is a management tool enabling an organization of any size or type to: [3]

  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. The ISO 14000 family of international standards has been updated to include ISO 14044 Life cycle assessment and top management amongst other changes.

In 2002, the ISO organization also published ISO 19011, the international standard for auditing quality and environmental management systems, which is used for internal audits and certification audits of EMS. [4] 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. [5]

ISO provide many examples where Environmental Management Standards are used in support of other public policies. [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 or regulations, 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]

Environmental Audits and Private Standards

There is a proliferation of private standards supporting environmental audits associated with certification and labeling claims. These private standards address various environmental aspects which include net-zero claims, carbon footprint, eco-labeling and sustainable management of forests. It is important to note differences in the standards setting organizations that develop these standards [8] and the concerns raised with harmonisation and the multistakeholder governance of private standards. [9] [10]

Audit tools and technology

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 Information and communications technology (ICT) 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 Satellite imagery and Geographic Information Systems. [11]

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

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 CAG’s (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.

See also


Related Research Articles

A quality management system (QMS) is a collection of business processes focused on consistently meeting customer requirements and enhancing their satisfaction. It is aligned with an organization's purpose and strategic direction. It is expressed as the organizational goals and aspirations, policies, processes, documented information, and resources needed to implement and maintain it. Early quality management systems emphasized predictable outcomes of an industrial product production line, using simple statistics and random sampling. By the 20th century, labor inputs were typically the most costly inputs in most industrialized societies, so focus shifted to team cooperation and dynamics, especially the early signaling of problems via a continual improvement cycle. In the 21st century, QMS has tended to converge with sustainability and transparency initiatives, as both investor and customer satisfaction and perceived quality are increasingly tied to these factors. Of QMS regimes, the ISO 9000 family of standards is probably the most widely implemented worldwide – the ISO 19011 audit regime applies to both and deals with quality and sustainability and their integration.

The ISO 9000 family is a set of five quality management systems (QMS) standards by the International Organization for Standardization (ISO) that help organizations ensure they meet customer and other stakeholder needs within statutory and regulatory requirements related to a product or service. ISO 9000 deals with the fundamentals of QMS, including the seven quality management principles that underlie the family of standards. ISO 9001 deals with the requirements that organizations wishing to meet the standard must fulfill. ISO 9002 is a model for quality assurance in production and installation. ISO 9003 for quality assurance in final inspection and test. ISO 9004 gives guidance on achieving sustained organizational success.

ISO 14000 is a family of standards by the International Organization for Standardization (ISO) related to environmental management that exists to help organizations (a) minimize how their operations negatively affect the environment ; (b) comply with applicable laws, regulations, and other environmentally oriented requirements; and (c) continually improve in the above.

<span class="mw-page-title-main">Audit</span> Systematic and independent examination of books, accounts, documents and vouchers of an organization

An audit is an "independent examination of financial information of any entity, whether profit oriented or not, irrespective of its size or legal form when such an examination is conducted with a view to express an opinion thereon." Auditing also attempts to ensure that the books of accounts are properly maintained by the concern as required by law. Auditors consider the propositions before them, obtain evidence, roll forward prior year working papers, and evaluate the propositions in their auditing report.

Environmental consulting is often a form of compliance consulting, in which the consultant ensures that the client maintains an appropriate measure of compliance with environmental regulations. Sustainable consulting is a specialized field that offers guidance and solutions for businesses seeking to operate in an environmentally responsible and sustainable way. The goal of sustainable consulting is to help organizations reduce their environmental impact while maintaining profitability and social responsibility. There are many types of environmental consultants, but the two main groups are those who enter the field from the industry side, and those who enter the field from the environmentalist side.

ISO 19011 is an international standard that sets forth guidelines for management systems auditing. The current version is ISO 19011:2018. It is developed by the International Organization for Standardization (ISO).

Quality audit is the process of systematic examination of a quality system carried out by an internal or external quality auditor or an audit team. It is an important part of an organization's quality management system and is a key element in the ISO quality system standard, ISO 9001.

<span class="mw-page-title-main">Eco-Management and Audit Scheme</span>

The Eco-Management and Audit Scheme (EMAS) is a voluntary environmental management instrument, which was developed in 1993 by the European Commission. It enables organizations to assess, manage and continuously improve their environmental performance. The scheme is globally applicable and open to all types of private and public organizations. In order to register with EMAS, organisations must meet the requirements of the EU EMAS-Regulation. Currently, more than 4,600 organisations and more than 7,900 sites are EMAS registered.

An environmental management system (EMS) is "a system which integrates policy, procedures and processes for training of personnel, monitoring, summarizing, and reporting of specialized environmental performance information to internal and external stakeholders of a firm".

<span class="mw-page-title-main">ISO 22000</span> Food safety standard

ISO 22000 is a food safety management system by the International Organization for Standardization (ISO) which is outcome focused, providing requirements for any organization in the food industry with objective to help to improve overall performance in food safety. These standards are intended to ensure safety in the global food supply chain. The standards involve the overall guidelines for food safety management and also focuses on traceability in the feed and food chain.

<span class="mw-page-title-main">Sustainable Development Strategy in Canada</span>

Sustainable Development Strategy for organizations in Canada is about the Government of Canada finding ways to develop social, financial, and environmental resources that meet the needs of the present without compromising the ability of future generations to meet their own needs in Canada. A Sustainable Development Strategy for the organization needs to be developed that establishes the Sustainable Development goals and objectives set by the Auditor General Act of Canada and provides the written policies and procedures to achieve them. Sustainable Development is based on responsible decision-making, which considers not only the economic benefits of development, but also the short-term and long-term, Canadian environment and environmental impacts.

<span class="mw-page-title-main">BSI Group</span> National standards body of the UK

The British Standards Institution (BSI) is the national standards body of the United Kingdom. BSI produces technical standards on a wide range of products and services and also supplies certification and standards-related services to businesses.

The Green Globe certification is an assessment of the sustainability performance of travel and tourism businesses and their suppliers. Businesses can monitor improvements and document achievements leading to certification of their sustainable operation and management.

The ISO/IEC 27001 Lead Auditor certification consists of a professional certification for auditors specializing in information security management systems (ISMS) based on the ISO/IEC 27001 standard and ISO 19011.

A safety management system (SMS) is a management system designed to manage occupational safety and health risks in the workplace. If the system contains elements elements of management of longer-term health impacts and occupational disease, it may be referred to as a safety and health management system (SHMS) or health and safety management system.

The Global Food Safety Initiative (GFSI) is a private organization that works as a "coalition of action" from the Consumer Goods Forum (CGF) and brings together retailers and brand owners (manufacturers) from across the CGF membership. The GFSI operates under multi-stakeholder governance, with the objective to create "an extended food safety community to oversee food safety standards for businesses and help provide access to safe food for people everywhere". GFSI's work in benchmarking and harmonization aims to foster mutual acceptance of GFSI-recognized certification programs across the industry, with the ambition to enable a "once certified, accepted everywhere" approach.

ISO 50001Energy management systems - Requirements with guidance for use, is an international standard created by the International Organization for Standardization (ISO). It supports organizations in all sectors to use energy more efficiently through the development of an energy Management System. The standard specifies the requirements for establishing, implementing, maintaining and improving an energy management system, whose purpose is to enable an organization to follow a systematic approach in achieving continual improvement of energy performance, including energy efficiency, energy security, energy use and consumption.

Environmental certification is a form of environmental regulation and development where a company can voluntarily choose to comply with predefined processes or objectives set forth by the certification service. Most certification services have a logo which can be applied to products certified under their standards. This is seen as a form of corporate social responsibility allowing companies to address their obligation to minimise the harmful impacts to the environment by voluntarily following a set of externally set and measured objectives.

The European Organization for Quality (EOQ) is an autonomous, non-profit making association under Belgian law, having its legal office in Brussels. EOQ is the European interdisciplinary organization striving for effective improvement in the sphere of quality management as the coordinating body and catalyst of its National Representative Organizations (NR's). EOQ's Network comprises National Representative, Associated, Affiliated members’ and partners’ organizations from 40 countries, reaching up to 70,000 members and 500,000 companies linked to its members.

ISO/IEC 27001 is an international standard to manage information security. The standard was originally published jointly by the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC) in 2005, revised in 2013, and again most recently in 2022. There are also numerous recognized national variants of the standard. It details requirements for establishing, implementing, maintaining and continually improving an information security management system (ISMS) – the aim of which is to help organizations make the information assets they hold more secure. Organizations that meet the standard's requirements can choose to be certified by an accredited certification body following successful completion of an audit. The effectiveness of the ISO/IEC 27001 certification process and the overall standard has been addressed in a large-scale study conducted in 2020.

References

  1. ↑ BS EN ISO 14001: "Environmental management systems. Requirements with guidance for use" (2004)
  2. ↑ BS EN ISO 14004: "Environmental management systems. General guidelines on principles, systems and support techniques" (2010)
  3. 1 2 "Environmental management".
  4. ↑ BS EN ISO 19011: "Guidelines for auditing management systems" (2011)
  5. ↑ BS EN ISO/IEC 17021: "Conformity assessment. Requirements for bodies providing audit and certification of management systems" (2011)
  6. ↑ "Examples of ISO Environmental Management Standards used in support of other public policies". policy.iso.org. International Organization for Standardization.
  7. ↑ EA-7/04: "Legal Compliance as a part of Accredited ISO 14001:2004 certification Archived 2012-04-20 at the Wayback Machine ", European co-operation for Accreditation (2010).
  8. ↑ International standards and private standards. International Organization for Standardization. 2010. ISBN   978-92-67-10518-5.
  9. ↑ Not Fit-for-Purpose The Grand Experiment of Multi-Stakeholder Initiatives in Corporate Accountability, Human Rights and Global Governance. San Francisco: Institute for Multi-Stakeholder Initiative Integrity: MSI Integrity. July 2020.
  10. ↑ Baue, Bill (August 2023). The Lost Decade: Sustainability Standards Sabotage Sustainability. Papelallee 78-79 10437 Berlin, Germany: r3.0 (Redesign for Resilience & Regeneration).{{cite book}}: CS1 maint: location (link)
  11. ↑ "COMPENDIUM of Country Papers on Environmental Auditing" (PDF). environmental-auditing.org. International Organization of Supreme Audit Institutions.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.