Environmental audits
Encyclopedia
Environmental audit is a general term that can reflect various types or 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 audit
s. 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.
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 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.
(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.
The goal of ISO 14001 implementation is to obtain certification. This indicates that the environmental procedures, systems and documentation standards conform to the established ISO14001 standard. A common misconception is that ISO certification directly reflects legal compliance. Certification under ISO 14001 does not directly reflect compliance with any legal requirements.
In 2002, the ISO organization also published 19011, the final standard relating to combined quality and environmental management systems (ISO 19011:2002). The abstract of the standard states:
ISO 19011:2002 provides guidance on the principles of auditing, managing audit programmes, conducting quality management system audits and environmental management system audits, as well as guidance on the competence of quality and environmental management system auditors. It is applicable to all organizations needing to conduct internal or external audits of quality and/or environmental management systems or to manage an audit programme. The application of ISO 19011 to other types of audits is possible in principle provided that special consideration is paid to identifying the competence needed by the audit team members in such cases...
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
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 1990's, 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.
The current "disruptive technology
" in environmental auditing is Apple Computer's iPad. At this time, one audit consulting firm is using the iPad extensively for environmental audits, which includes specific protocols for the new technology.
Financial audit
A financial audit, or more accurately, an audit of financial statements, is the verification of the financial statements of a legal entity, with a view to express an audit opinion...
s. 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.
Environmental Compliance Audits
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 pre-identified 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 14001/19011
ISO 14001 is a voluntary international standard for environmental management systems ("EMS"). ISO 14001:2004 provides the requirements for an EMS and ISO 14004:2004 gives general EMS guidelines. An EMS meeting the requirements of ISO 14001:2004 is a management tool enabling an organization of any size or type to:(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.
The goal of ISO 14001 implementation is to obtain certification. This indicates that the environmental procedures, systems and documentation standards conform to the established ISO14001 standard. A common misconception is that ISO certification directly reflects legal compliance. Certification under ISO 14001 does not directly reflect compliance with any legal requirements.
In 2002, the ISO organization also published 19011, the final standard relating to combined quality and environmental management systems (ISO 19011:2002). The abstract of the standard states:
ISO 19011:2002 provides guidance on the principles of auditing, managing audit programmes, conducting quality management system audits and environmental management system audits, as well as guidance on the competence of quality and environmental management system auditors. It is applicable to all organizations needing to conduct internal or external audits of quality and/or environmental management systems or to manage an audit programme. The application of ISO 19011 to other types of audits is possible in principle provided that special consideration is paid to identifying the competence needed by the audit team members in such cases...
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
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 1990's, 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.
The current "disruptive technology
Disruptive technology
A disruptive technology or disruptive innovation is an innovation that helps create a new market and value network, and eventually goes on to disrupt an existing market and value network , displacing an earlier technology there...
" in environmental auditing is Apple Computer's iPad. At this time, one audit consulting firm is using the iPad extensively for environmental audits, which includes specific protocols for the new technology.
Related types of assessments
Phase I Environmental Site Assessments ("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.External links
- ENVIRONMENTAL AUDITOR GUIDELINES FOR APPOINTMENT AND CONDUCT (Victoria, Australia)
- Working Group on Environmental Auditing (WGEA), under the International Organization of Supreme Audit Institutions (INTOSAI)
- Environmental Auditors Registration Association, Regional Institute of Environmental Technology According to their website, EARA is the leading UK membership organisation dedicated to the promotion of the goal of sustainable development.
- The Institute of Environmental Management And Assessment, UK, now maintains the Environmental Auditors Register of the erstwhile EARA