2. What is Environmental
Auditing (EA)
• Definition: A systematic, independent review to assess
environmental performance.
• Purpose: Ensuring compliance with targets and
regulatory requirements.
• Methods: Document review, interviews, assessment of
deviations.
• ISO 14001 Definition
• A systematic and documented verification process.
• Evaluates evidence against organizational EMS criteria.
• Communicates results to management.
3. Why Conduct an Environmental
Audit
• Verify compliance with regulations.
• Assess implementation of policies.
• Identify environmental liabilities.
• Review management systems.
• Recognize strengths and weaknesses.
• Promote environmental awareness.
4. Objectives of Environmental
Audits
• Evaluate efficiency of resource
utilization (people, machines,
materials).
• Identify risks, liabilities, and
management weaknesses.
• Ensure compliance with
environmental regulations.
• Control waste and pollutant
generation.
Key Areas of Environmental
Audits
• Design specifications and
layout
• Resource management (air,
water, energy, raw materials)
• Pollution control systems
and procedures
• Emergency response plans
and safety systems
• Industrial hygiene and
occupational health
• Regulatory compliance
5. Scope of Environmental Audits
1.Assess compliance with
policies, requirements, and
procedures.
2.Assess the adequacy of
policies and procedures
before evaluating
compliance.
Audit Scope Considerations
• Frequent audits need not
assess program adequacy.
• High-level management
overview required for
program adequacy
assessment.
• Prevent redundant revisits of
previously addressed issues.
6. Types of Environmental
Audits
• Objective-based: Focused on specific environmental
concerns.
• Client-driven: Conducted based on the needs of the
audit requester.
8. General Audit Methodology in
Environmental Auditing
• Environmental audits vary based on client requirements.
• Audit methods and tools are customized for different purposes.
• Despite differences, all audit programs follow a basic framework.
• Basic Structure of an Environmental Audit
• Key elements of an effective environmental audit program:
• Strong top management support and commitment.
• Independence of the audit function.
• Proper staffing and auditor training.
• Clear objectives, scope, and resources.
• Effective data collection, analysis, and documentation.
• Clear reporting on findings and corrective actions.
• Quality assurance measures for accuracy and thoroughness.
9. Steps in an Environmental Audit
The audit process consists of four major steps
1.Audit Preparation
2.Facility Scrutiny and Review
3.Reporting of Findings
4.Follow-up Actions
10. Step 1 - Audit Preparation
• Selection of audit team and
planning.
• Collection of background
information.
• Identification of audit-
specific tools and materials.
• Preliminary review of the
facility or activities.
Step 2 - Facility Scrutiny and
Review
• Conduct systematic review of
facility and operations.
• Audit focus varies based on
goals and type of audit.
• Includes analysis of
production processes and
environmental impacts.
• Evaluation of compliance
with audit objectives.
11. Step 3 - Reporting of Findings
• Documentation of
deficiencies and alternatives.
• Audits highlight previously
unknown environmental
problems.
• Reports may suggest process
changes, new investments,
or training.
• Key stakeholders must
commit to addressing
findings.
Step 4 - Follow-up Actions
• Evaluation of corrective
actions taken.
• Continuous review to
enhance environmental
protection measures.
• Avoiding stagnation through
ongoing improvement of
audit methodology.
12. Typical Audit Procedure
Basic Steps
• Pre-visit Activities: Select and schedule the facility
audit.
• Key Activities at Site:
• Understand management systems through interviews and
document review.
• Assess internal risks, strengths, and weaknesses.
• Post-Audit Activities:
• Prepare and issue reports for management.
• Develop and monitor corrective action plans.
13. General Audit Methodology
• Audit methods are tailored to client requirements.
• All audits must follow a basic framework.
• Steps involved in an audit program:
• Basic Structure of EA
• EA Steps
14. Basic Structure of
Environmental Audit
• Essential elements of an effective audit program:
1. Top management support and commitment.
2. Independent audit function.
3. Adequate staffing and auditor training.
4. Clear audit objectives, scope, resources, and
frequency.
5. Data collection, analysis, and documentation
process.
6. Clear, written reports on findings and corrective
actions.
7. Quality assurance to ensure accuracy.
15. Elements of Audit Process
• What to audit?
• Who should audit?
• Why conduct an audit?
• How to audit?
• Planning an environmental audit includes:
• Defining audit scope.
• Assembling an audit team.
• Setting audit objectives.
• Choosing an audit methodology
16. • What to Audit?
• Audits can cover decisions,
functions, equipment, and
management systems.
• Initial audits often lead to
structured procedures and
evaluation of effectiveness.
• Quality environmental audits
focus on management systems,
controls, and standards.
• Who Should Audit?
• Industries prefer to conduct
their own audits.
• Regulatory agencies conduct
audits for compliance.
• Other stakeholders (consumers,
investors, NGOs) have an
interest in audit outcomes.
• Environmental audits should not
be limited to a single entity.
17. • Why Conduct an Audit?
• Industries: Reduce
environmental risks and legal
liabilities.
• Environmental groups: Minimize
risks to nature.
• Broader agreement on
sustainability and preventive
environmental protection.
• Audits help identify areas for
reducing pollution, waste, and
costs.
• How to Conduct an Audit?
• Follow established financial and quality
audit procedures.
• Key principles:
• Systematic, objective, and
independent process.
• Competent auditors without direct
responsibility for areas being
audited.
• Collaboration with personnel to
enhance understanding.
• Proper documentation and
periodic reviews.
• Auditors may recommend
improvements but do not take
operational responsibility.
18. Waste Audits and Pollution
Prevention Assessments
• Waste audits identify opportunities for improvement.
• Focus on technical and economic evaluation of waste
minimization alternatives.
• Origin traced to Resource Conservation and Recovery
Act (RCRA), USA.
• Enforced waste reduction reporting for large
producers.
19. Waste Audit Process
Phase I: Pre-Assessment
Prepare audit team.
Divide processes into unit operations.
Construct process flow diagrams.
Phase II: Material Balance
Identify inputs and outputs.
Measure waste levels.
Record water usage, emissions, and by-products.
Phase III: Synthesis
Identify waste reduction options.
Evaluate environmental and economic impacts. Implement a
waste reduction action plan.
20. • Pollution Prevention Audits
• Audits with explicit pollution prevention approaches.
• Integrated into compliance, management, and risk
audits.
• Environmental Audits ensure sustainability and
compliance.
• Identifies risks, improves efficiency, and strengthens
policies.
• Waste audits contribute to pollution reduction and
resource optimization
22. Environmental Audits in
Industrial Projects
• Environmental audits assess environmental concerns at industrial plants,
abandoned sites, mine areas, etc.
• They quantify pollution levels and identify causes and potential remedies.
• Used for industrial pollution management and regulatory compliance.
• Purpose of an Environmental Audit
• Identifies critical environmental issues.
• Suggests cost-effective solutions and mitigation strategies.
• Provides a structured timeline for action and resource allocation.
• Aims to achieve compliance and sustainability goals.
23. Site Audits – First Step in
Environmental Assessment
• Helps in understanding pollution problems quantitatively.
• Evaluates priorities, cost of control, and remediation measures.
• Shapes actions and investments for pollution control.
Stages of a Site Audit
• Initial Assessment: Quick evaluation using site interviews and available data.
• Detailed Site Audit: In-depth inspection, sampling, and review of production
processes.
• Regulatory Framework Analysis: Understanding laws, licensing agreements,
and environmental standards.
• Benchmarking: Defining achievable environmental targets for the facility.
24. Terms of Reference (TOR) for
Site Audits
• Site-specific objectives and scope.
• Baseline environmental data collection.
• Identifying contamination sources and impact areas.
• Defining preventive, control, and mitigation strategies.
• Developing an environmental management plan.
• Defining norms, standards, and laboratory services needed.
• Ensuring pre-bid site visits and stakeholder engagement.
25. Components of a Site Audit
Report
Executive Summary Key findings and recommendations
Project Description Overview of the facility and
processes.
Regulatory Setting Applicable laws and policies.
Audit Procedure Methods and techniques used.
Mitigation Strategies Proposed solutions for pollution
control.
Cost and Schedule Estimated budget and timeline.
Annexures Supporting data and documents.
26. Points of Procedure
• Selection of Auditors: Must have expertise in environmental and engineering
assessments.
• Briefing and TOR Development: Clear understanding of audit objectives and
expectations.
• Audit Preparation Phase
Collect relevant data, Develop a detailed site visit plan, Define a protocol for
information gathering.
• Audit Execution:
Conduct site visits and interviews, Document findings thoroughly, Ensure
cooperation of plant management
• Review of Findings:
Engage stakeholders for feedback, Finalize recommendations and compliance
27. Importance of Management
Involvement in Audits
• Ensures transparency and accountability.
• Facilitates better implementation of recommendations.
• Reduces costs and enhances operational efficiency.
• Promotes long-term environmental compliance. Environmental Audits
Beyond Industries
• Useful in other sectors like waste management and municipal
planning.
• Applied for potential site contamination assessments.
• Helps in policy development and urban environmental planning.
28. Liability Audits and Site Assessment
• Growing Need for Site Assessments
• Stricter laws on contaminated soil and groundwater
• Identifying environmental risks before redevelopment
• Contaminated Sites ("Brownfields")
• 100,000 sites in the U.S. labeled contaminated
• 10,000 priority sites under Superfund (CERCLA)
• Prevalent in Central & Eastern Europe, developing nations (e.g., India)
• Major Liabilities in Contaminated Sites
• Cleanup and remediation costs
• Regulatory compliance, fines, and penalties
• Compensation to affected private parties
29. Site Due Diligence & Liability Audits
• Why Conduct a Liability Audit?
• Identify contamination risk before property transactions
• Reduce uncertainty in environmental liabilities
• Types of Liability Audits (Environmental Site Assessments -
ESA)
• Phase 1: Preliminary investigation (interviews, site
inspection, historical records)
• Phase 2: Detailed sampling/testing (soil, groundwater
contamination assessment)
• Phase 3: Remediation & cleanup based on findings
30. Phase 1 Liability Audit
• Purpose
• Screen sites for potential contamination
• Determine need for further investigation
• Methods Used
• Historical land use records
• Interviews with current/past site occupants
• Site inspections (no physical testing yet)
• Country-Specific Guidelines
• ASTM Standard E 1527-97 (USA)
• UK ICRCL Guidance Note 59/83
• Environmental Site Due Diligence Regulations (varies by country)
31. Phase 2 Liability Audit
• When is Phase 2 Needed?
• If Phase 1 suggests possible contamination
• If legal compliance requires detailed analysis
• Key Activities
• Soil & groundwater sampling
• Lab testing for contaminants
• Geological & hydrogeological data collection
• Comparison with Cleanup Standards
• Dutch Soil & Groundwater Standards
• Country-specific guidelines for contamination levels
32. Phase 3 - Remediation &
Cleanup
• When is Cleanup Required?
• Legal mandates & future land use concerns
• Potential human & environmental health risks
• Remediation Steps
• Defining extent of contamination
• Implementing site-specific cleanup measures
• Monitoring post-cleanup effectiveness
• Balancing Cost & Effectiveness
• Avoid unnecessary investigations
• Ensure compliance with minimal expenses
33. Scope of Liability Audit
• Key Elements Covered
• Review of environmental & occupational safety laws
• Examination of facility documents & records
• On-site inspection of buildings & storage areas
• Identification of past & ongoing environmental risks
• Prioritization of concerns (High, Medium, Low)
• Final Deliverables
• Report on compliance status & safety risks
• Cost estimates for remediation measures
• Executive summary with key findings
34. Environmental Management System
(EMS) Auditing
• Systematic verification of EMS compliance
• Ensures alignment with ISO 14001 and other regulations
• Audit Criteria
• Policies, procedures, and practices of the organization
• Comparison with established EMS requirements
• Purpose of EMS Audits
• Verify compliance with environmental management standards
• Identify areas for improvement and ensure proper
implementation
35. EMS Audit Process – Scope &
Preparation
• Scope of the Audit
• Defined by client & lead auditor
• Covers location, activities, reporting methods
• Audit Preparation
• Reviewing environmental policies, records, manuals
• Ensuring necessary background information is available
• Developing a flexible audit plan
• Key Elements of the Audit Plan
• Objectives, scope, criteria, audit team members
• Functions, responsibilities, reference documents
• Schedule, confidentiality, report format
36. Conducting the EMS Audit
• Opening Meeting
• Introduce audit team & objectives
• Confirm audit scope, timeline, and reporting methods
• Discuss safety and emergency procedures
• Audit Execution
• Data collection: Interviews, document review, site observation
• Verification through independent sources
• Sampling & quality control checks
• Closing Meeting
• Present preliminary audit findings
• Address disagreements and clarifications
37. EMS Audit Report – Content &
Findings
• Key Components of the Report
• Audit objectives, scope, plan, and criteria
• Identification of organization & audit team members
• Summary of audit process and obstacles faced
• Audit Conclusions
• EMS compliance status and effectiveness
• Areas needing improvement & recommendations
• Final assessment on EMS implementation & maintenance
38. Completing the EMS Audit
• Finalization of the Report
• Lead auditor signs and dates the report
• Confidentiality and distribution ensured
• Audit Completion
• Once all activities in the audit plan are concluded
• Recommendations for continuous improvement
• Importance of EMS Audits
• Ensures regulatory compliance & environmental responsibility
• Enhances operational efficiency & sustainability
