DEFINITIONS OF ENVIRONMENTAL AUDIT

Various definitions of EA are available. Some of them are as follows:

(i) A systematic objective method of reviewing management systems & controls and verifying

whether environmental standards, regulatory, company and good industry standards, are being

met (M/s Arthur D. Little, USA, EA Consultants)

(ii) A systematic examination of performance to ensure compliance with requirements during

the operational phase of industrial activity including the following components:

- Full management commitment

- Audit team objectivity

- Professional competence

- Well-defined and systematic approach

- Written reports

- Quality assurance

- Follow-up

(Adopted from International Chamber of Commerce- position paper on environmental

auditing November 29, 1988)

Environmental Audit is typically a combination of: (1) Pollution Audit, (2) the

Pollution Prevention or Waste Minimization Audit and (iii) Environmental

Management Systems Audit.

The ObjectivesThe scope and nature of each audit varies according to the objectives of the audit and

the character of business being reviewed or examined. Broadly, the objective may fall

in one of the following categories:

1. Identification of actual and potential risk and liabilities

2. Ensuring whether the plant operations are in line with the Company's

requirement and adopting good management practices.

3. Determining whether the management and control systems are functioning to

assure n compliance, and

4. To determine compliance with statutory and regulatory bodies' requirements.

The Advantages

The advantages of EA to the pursuing industry are as broad as the audit objective. The

prime and obvious advantage of the audit is to help in safeguarding the environment

and to assist in compliance with the regulatory requirement. This action reduces

exposure to litigation. Furthermore, independent verification of audit team provides

timely warning against the issues needing immediate attention and potential further

problems.

Normally, the advantages of Audit vary from situation to situation as listed below:

1. Increasing employee awareness of Environmental laws, regulations and

standards

2. Finding out the potential cost saving areas within the plant including waste

minimization / resource recovery possibilities

3. Better exchange of data between group related to operation and management

4. Helping management to take decisions in relation to plant modification or

alteration

5. Ensuring better relation with the regulatory authorities by way of meeting

regulatory requirement.

6. Providing an info-base which can be used in emergent conditions and

validating its potential

Range of Audit Objectives:1. Identify and Document:

compliance status compliance discrepancies National laws and regulations Company policies and procedures shortcomings at sites Pattern of deficiencies that may emerge over time Effectiveness of the compliance management system

2. Improve Overall Environmental Performance: Reduce or restrict problems that can interfere with normal business

activities Provide an incentive to formalize procedures Improve housekeeping Avoid recurring problems

3. Better Understanding and Interpretation of: Legal requirements Company policies and guidelines Compliance problems Cost-effective measures that should be taken to achieve compliance Reinforcing the site's need for additional resources

4. Increase the Overall Level of Environmental Awareness Demonstrate management commitment to environmental issues

5. Accelerate Overall Development of EMS : Identify important lessons learned Modify systems Share information Encourage formulation of more formal procedures and standards for

measuring environmental performance Develop a database of information on environmental performance which

can used in other management functions6. Improve the Environmental Risk Management Systems:

Identify conditions that may have an adverse impact on the company

Audit Methodology

The Audit activities are carried out in three phases namely Pre-Audit, On-site and

Post- Audit activities.

Pre-audit Activities:

Scheduling the audit

Selecting the audit team

Gathering and reviewing background information

Planning the audit

Preparations

On-site Activities:

Interviewing site personnel

inspecting the site, the operations and equipment

Reviewing administrative and operating records and documents

Post-audit Activities:

Preparing and distributing the audit report

Determining potential solutions and preparing recommendations

Assigning responsibility for corrective action and establishing timescales

Implementing corrective action

Conducting follow-up to the action plan

Five stop audit approach:

Adoption of such an approach by the industry is extremely important to prove its

effectivity.

The on-site audit activities must follow a standard approach ensuring a systematic and

rigorous review. This approach is typically based on the following five steps:

Understanding Environmental Management Systems (EMS)

Assessing strengths and Weaknesses of EMS

Gathering Audit Evidence

Evaluating Audit Results

Reporting Audit Findings

EA in Developed Countries, broadly contains assessment and verification of existing

environmental related systems and procedures etc. Typically these audits are

completed in 'One Week' duration at site. It identifies Exceptions or Deficiencies and

Strengths in the EMS and recommendations to overcome these exceptions.

ENVIRONMENTAL AUDIT SCENARIO IN INDIA

EA in India is different from that in Developed Countries in terms of Objectives,

Scope, Coverage and Methodology.

The EA in India is named it Environmental Statement (ES), which ii a part of the EA.

The aim of the ES of an audit it to facilitate supervision and, at the same time, gain

information on the measures required to be taken by the concerned unit as regards

compliance with the company's Internal policies and with the regulations in force The

ES should enable units to take comprehensive look at (1) their industrial operations

and facilities, (2) understanding of the material flows, (3) focus on areas where waste

reduction if possible and, (4) consequently saving In Input costs.