Initially, environmental audit was considered a sharp andeffective tool in the internal environmental management system of companies, as well as a powerful tool to help environmental man
OVERVIEW OF ENVIRONMENTAL AUDITS
O BJECTIVES AND SCOPE OF NVIRONMENTAL E A UDITING
Environmental safety and health auditing emerged in the early 1970s, primarily within industries like oil and chemicals that have significant environmental impacts Over the years, the practice of environmental auditing has expanded swiftly, leading to the evolution of various approaches and techniques This growth has been driven by multiple influencing factors.
Industrial accidents, including the Bhopal, Chernobyl, and Exxon Valdez disasters, highlight the critical need for companies to not only establish corporate policies on environmental health and safety but also to actively implement them Conducting regular audits is essential in minimizing the risk of unforeseen incidents and ensuring compliance with safety standards.
Since the 1970s, there has been a significant increase in environmental regulations, making it increasingly challenging for companies to determine if their facilities in various countries are in compliance with all applicable laws.
Public awareness regarding environmental and safety issues has grown significantly, leading to a more vocal society As a result, companies are now required to effectively demonstrate their management of environmental risks to gain public trust.
The increase in legislation has resulted in a significant rise in litigation and liability claims, especially in the United States Meanwhile, Europe and other regions are placing greater focus on the accountability of individual directors and the importance of transparency in making information accessible to the public.
1.2 Objectives and scope of Environmental Auditing
The primary goal of environmental auditing is to protect the environment and reduce risks to human health While auditing serves as a valuable management tool, it is important to note that it cannot accomplish this objective on its own The essential aims of an environmental audit include identifying areas for improvement and ensuring compliance with environmental regulations.
determine how well the environmental management systems and equipment are performing
verify compliance with the relevant national, local or other laws and regulations
minimize human exposure to risks from environmental, health and safety problems
Audits primarily aim to assess the effectiveness of current management systems, distinguishing them from environmental performance monitoring They can focus on a specific issue or encompass a broader range of topics A wider audit scope typically requires a larger team, more onsite time, and a more thorough investigation In cases where international audits are conducted by a central team, it can be advantageous to address multiple areas during the onsite visit to reduce costs.
The scope of an audit can range from basic compliance testing to comprehensive examinations based on management's needs Auditing techniques are utilized across various domains, including operational environmental management, health and safety management, product safety, product quality management, and loss prevention To effectively manage these critical areas, audits must encompass a thorough review of each individual topic, such as environment, health, safety, and product safety, as outlined in Table 1.
Table 1 Scope of environmental audit
-Employee exposure to air contaminants -Exposure to
-Product safety program-Product quality control2 materials above ground below ground
-Special procedures for confined space entry, work on electrical equipment, breaking into pipelines, etc.
-Regulatory compliance physical agents, e.g., noise, radiation, heat -Measurements of employee exposure -Exposure records -Ventilation/engin eering controls -Personal protective equipment -Information and training on health hazards
-Medical surveillance program -Hearing conservation -First aid -Regulatory requirements
-Product packaging, storage and shipping -Product recall/withdrawal procedures -Customer information on product handling and quality
-Regulatory compliance -Labeling -Specifications for purchased materials/products/pac kaging
-Materials safety data -Vendor qualification program
-QA testing and inspections -Record keeping -Product literature -Process control
While many companies follow a regular annual audit cycle, the frequency and depth of audits are largely driven by specific needs and priorities As a result, not all facilities or aspects of a business undergo assessment with the same regularity or thoroughness.
I DEAS AND FUNCTIONS OF ENVIRONMENTAL AUDIT
1.3.1 Benefits Derived from Environmental Auditing
The main advantage of adopting internal environmental standards is the protection of the environment, which not only ensures compliance with environmental laws but also boosts investment efficiency and aligns with facility policies Many organizations have developed adaptable guidelines that meet local regulations, promoting sustainability and responsible business practices.
- Environmental auditing yields numerous additional benefits, such as improving management levels and enhancing workers' awareness and responsibility regarding environmental issues, thereby fostering overall environmental management improvement.
- Environmental audits facilitate an independent examination of whether current economic activities or policies comply with existing and anticipated environmental laws.
- Facilitate information exchange between production facilities (for example, identifying disparities in environmental standards between factories producing the same product, allowing corrective action based on audit findings).
- Evaluate training programs and support staff training initiatives.
- Provide comprehensive information about the facility's current environmental status, offering data and databases for emergency situations and prompt responses.
- Identify errors and areas of ineffective management, proposing corrective measures to enhance technological efficiency and reduce waste.
- Prevent and mitigate short-term and long-term environmental risks.
- Enhance the company's image and strengthen relationships with relevant agencies Environmental auditing may yield specific benefits tailored to individual cases, supplementing the general advantages mentioned above.
- Environmental audit serves as the cornerstone of management (e.g., identifying potential environmental issues early).
- Serves as a source of information (e.g., for illegal trading in real estate and companies acquiring such properties).
- Considered a fundamental document for insurance purposes (e.g., for risk and hazard control).
- Functions as a training tool for all staff, including facility personnel (e.g., environmental tools in schools, training officials, and employees).
- Serves as a means of information exchange with external parties (e.g., the public, authorities).
The overarching objective of environmental auditing is to provide guidance for effective management of environmental aspects, systems, and equipment within operational departments.
T HE ESSENTIALS OF AN ENVIRONMENTAL AUDIT
Environmental audits consist of thorough on-site inspections of activities, both on-site and off-site Key steps in the auditing process include gathering data, assessing this information, reaching conclusions, and pinpointing areas for enhancement For an effective environmental audit that maximizes benefits, several critical factors must be considered, as outlined by the International Chamber of Commerce (ICC, 1989).
An effective environmental audit program requires strong public support from leaders at all levels, which should be evident through active involvement from the board of directors and top management This commitment is crucial for implementing company policies, upholding and enforcing standards, and ensuring the allocation of suitable human resources for activities following the audit.
1.4.2 Objectivity of the audit team:
To maintain objectivity in the audit process, it is essential that key members of the audit team are impartial, objective, and competent The selection of the audit team should be tailored to the size and structure of the audited facility, as well as the specific nature of the audit being conducted.
Audit team members must possess the necessary expertise to evaluate the audited issue effectively This includes a solid understanding of environmental issues and policies, specific environmental expertise, and practical experience in environmental control measures.
1.4.4 Cooperation of audited facility staff:
For an audit to be effective, it is crucial to have the complete cooperation of facility staff This cooperation hinges on staff perceiving the audit as a valuable opportunity to enhance the environmental management system, rather than viewing it as merely a "error-finding" exercise.
1.4.5 Systematic and clearly defined procedures:
Audit procedures should be systematic and clearly defined to ensure that all audit issues are covered and that audit methods are effectively implemented according to the audit plan.
The final results of the environmental audit must be thoroughly documented and presented in a clear report to relevant facility management, clients, and stakeholders, tailored to the specific audit type This report should encompass objective and factual observations to ensure transparency and accountability.
The quality of audit reports needs to be guaranteed and should demonstrate the certainty, quality, and stability of the audit process.
To enhance the effectiveness of the audit and optimize its value, it is essential to implement proactive corrective measures and establish clear next steps for addressing the identified issues.
By following these essential factors, an organization can conduct a comprehensive and effective environmental audit to assess its environmental performance, identify areas for improvement, and enhance its environmental management practices.
C ONTENTS OF ENVIRONMENTAL AUDIT
Understanding the difference between auditing and environmental impact assessment (EIA) is crucial While EIA evaluates the potential environmental consequences of a proposed facility, an environmental audit focuses on systematically reviewing a company's current environmental performance Ideally, an audit involves a thorough examination of management systems and facilities; however, it can sometimes be a mere superficial assessment.
The term "environmental audit" varies in meaning across different organizations, often described using terms like assessment, survey, or review While some view it as solely focused on environmental issues, others include health and safety in their audits Despite the lack of a universal definition, leading companies generally adhere to a consistent philosophy, as outlined by the International Chambers of Commerce (ICC) in their 1989 publication The ICC defines environmental auditing as a management tool that involves a systematic, documented, periodic, and objective evaluation of an organization's environmental performance, aimed at safeguarding the environment.
(i) facilitating management control of environmental practices and
(ii) assessing compliance with company policies which would include meeting regulatory requirements.
The European Commission in its proposed regulation on environmental auditing also adopts the ICC definition of environmental audit.
T YPES OF AUDIT AND TYPES OF ENVIRONMENTAL AUDIT
Forensic audit involves a review examination
- Main goals of the country's environmental policy.
- How is the current law's ability to reach these goals?
- How can the law be best amended?
When evaluating state policies, it is essential to examine the laws governing the ownership, utilization, and management of natural resources, as well as regulations aimed at controlling pollution and preserving environmental quality Such comprehensive legal audits typically operate at a national level, making them infrequently applied in local contexts.
Auditing belongs to the organization
This type of audit includes information about the management structure within a company, ways of communicating information internally and externally, and training and exercise programs Check
An organizational audit reveals critical information, including the factory's history, the names of key personnel such as the factory manager, environmental officer, purchasing agency, consultant, and laboratory manager (Blakeslee and Grabowski, 1985) This audit is particularly valuable for information exchange and in the real estate sector.
A technical audit evaluates the findings from measurements and observations related to water and air pollution, hazardous waste, solid waste, and radioactive materials like asbestos For instance, an air emission source audit analyzes various aspects of air emissions, including the type and age of mechanical systems, the effectiveness of control devices, and details about the discharge point such as its location, altitude, and volume capacity.
Technical audits are the most common and widespread type of audit, especially often used to audit industrial production facilities, such as waste audits or gas emission source audits.
A waste audit is a technical evaluation commonly performed in industrial facilities, particularly in developed countries These internal audits aim to identify sources of material loss and pollution by creating a material balance The findings from waste audits lead to corrective actions, such as substituting raw materials and enhancing production processes to minimize waste generation at the source This approach not only conserves raw materials but also boosts production efficiency and promotes environmental sustainability, aligning with the goal of "cleaner production." In our country, waste audits are emerging as a practice in various factories.
An air emission source audit is a crucial technical audit within air pollution control programs It involves a comprehensive analysis of atmospheric conditions, meteorological observations, and the identification of waste sources alongside their pollutant concentrations The effectiveness of this analysis is highly dependent on the specific waste sources being evaluated.
Effective environmental management and pollution reduction begin with a thorough audit of waste sources This involves identifying the origin of waste, assessing the geometric size of the waste source, and analyzing parameters such as the height of chimneys and the dimensions of exhaust systems Key metrics to evaluate include the volume of pollutants emitted into the atmosphere per unit of time, the flow rate of exhaust gases, and the temperature of these emissions.
E NVIRONMENTAL AUDIT - A COMPONENT OF AN ENVIRONMENTAL
An Environmental Management System (EMS) is a systematic framework that organizations adopt to effectively manage their environmental responsibilities Its primary purpose is to provide a structured approach for identifying, controlling, and continuously enhancing environmental performance.
An Environmental Management System (EMS) is designed to assist organizations in reducing their environmental impacts, ensuring compliance with legal standards, and meeting their sustainability goals It offers a structured approach to incorporating environmental factors into everyday operations and decision-making processes.
An EMS typically consists of the following key components:
- Policy: A written statement from top management that outlines the organization's commitment to environmental protection and compliance.
- Planning: Identification of environmental aspects (such as emissions, waste generation, energy consumption) and associated impacts, setting environmental objectives and targets, and establishing programs to achieve them.
- Implementation and Operation: Allocation of resources, training of personnel, establishment of operational controls, and communication of environmental responsibilities and procedures.
- Monitoring and Measurement: Regular monitoring, measurement, and evaluation of environmental performance against objectives and targets, as well as legal and other requirements.
Regular management reviews of the Environmental Management System (EMS) are essential to verify its ongoing relevance, adequacy, and effectiveness These reviews facilitate the implementation of corrective and preventive measures to rectify deficiencies, fostering continuous improvement within the system.
ISO 14001, established by the International Organization for Standardization (ISO), is the leading standard for Environmental Management Systems (EMS) It outlines essential requirements and guidelines for the effective establishment, implementation, maintenance, and enhancement of an EMS By obtaining ISO 14001 certification, organizations can showcase their compliance, significantly boosting their credibility and reputation in the marketplace.
Implementing an EMS offers several benefits to organizations, including:
- Improved environmental performance and compliance with regulations.
- Enhanced resource efficiency and cost savings through better management of energy, water, and materials.
- Reduced risks of environmental incidents and liabilities.
- Increased stakeholder trust and confidence, including customers, regulators, investors, and the public.
- Opportunities for innovation and competitive advantage in environmentally conscious markets. e, Integration with Other Management Systems:
An Environmental Management System (EMS) can be seamlessly integrated with other management frameworks, including quality management systems like ISO 9001 and occupational health and safety management systems such as ISO 45001 This integration fosters a holistic approach to organizational management, referred to as an Integrated Management System (IMS).
Overall, an EMS provides a systematic framework for organizations to manage their environmental impacts, improve sustainability, and demonstrate commitment to environmental stewardship and corporate social responsibility.
1.7.2 Environmental audit - A component of an environmental management system
An environmental audit, as defined by the ICC Institute of International Trade in 1989, is an integral component of the environmental management system, serving as a practical and effective tool for reviewing various aspects of environmental management This process not only offers guidance for enhancing these components but also facilitates the development of projects, resource management, and sustainable development Widely and successfully implemented in developed countries, environmental auditing proves to be a valuable asset in promoting effective environmental practices.
The environmental management system audit aims to consider a series of established actions:
- The environmental management system operates appropriately and in accordance with the environmental program.
- The environmental management system is well implemented.
- The environmental management system operates effectively in implementing environmental policies, environmental goals and targets of the facility.
- The facility complies with regional, national and international environmental, health and safety regulations.
- Risks related to environmental defects have been identified.
- Any environmental improvement needs to be considered.
An environmental audit provides valuable data that enhances a facility's environmental management system The insights gained from the assessment also offer numerous benefits for the facility, contributing to overall operational improvements.
- Increase environmental awareness among facility employees.
- Increase the image of the facility.
- Create opportunities for leaders to increase the company's reputation for environmental performance.
- Update environmental data so that decisions or modifications can be made within the facility.
Evaluating employee training programs is essential, as certain elements of the environmental audit process may not yield benefits for the facility For instance, initial assessment costs, expenses related to compliance, and the financial implications of decommissioning operations can be significant Nonetheless, a facility that is dedicated to its environmental responsibilities can still derive value from these assessments.
12 management system, the above benefits will be higher costs for carrying out audits to facilitate the effective implementation of the environmental management system.
Since an audit is completed, the audit results will give a clear indication of the performance of the environmental management system.
An environmental management system (EMS) audit evaluates the effectiveness of policy changes in improving environmental performance The frequency of these audits is determined by the risk level associated with environmental activities; higher risks necessitate more frequent assessments, especially if previous audit results are uncertain Additionally, specific EMS frameworks, like ISO 14001, mandate that organizations complete an audit cycle within three years to ensure ongoing compliance and effectiveness of corrective actions.
1.7.3 Role of Environmental audit within EMS
Environmental audits play a crucial role in evaluating the effectiveness of an organization's Environmental Management System (EMS) They are instrumental in ensuring compliance with environmental policies, achieving set objectives, and fostering ongoing improvements in environmental performance.
Environmental audits conducted within an Environmental Management System (EMS) assess an organization's adherence to environmental regulations, laws, permits, and other obligations This process is crucial for ensuring compliance with legal requirements and minimizing the risk of regulatory violations.
Environmental audits in an Environmental Management System (EMS) can be performed either internally by the organization's trained staff or externally by independent third-party agencies, including certification bodies and regulatory authorities.
Environmental audits play a crucial role in pinpointing non-conformities and deficiencies within an Environmental Management System (EMS) They reveal compliance gaps, deviations from set procedures, and highlight opportunities for improving overall environmental performance.
Environmental audits provide organizations with essential findings and recommendations that enable them to implement corrective and preventive actions for addressing non-conformities This proactive approach fosters continual improvement in their Environmental Management System (EMS) and aligns seamlessly with the "Act" stage of the PDCA cycle.
Environmental audits are essential for an Environmental Management System (EMS) as they offer critical insights into environmental performance, guarantee adherence to regulations, and promote continuous improvement By systematically managing their environmental responsibilities, organizations can effectively work towards achieving their sustainability goals.
T HE RELATIONSHIP BETWEEN ENVIRONMENTAL AUDIT AND SOME OTHER
Environmental auditing is a vital management tool in the environmental management system, closely linked to various components such as environmental impact assessments, monitoring, inspections, economics, standards, and criteria.
Environmental inspection involves assessing compliance with laws, standards, and regulations that safeguard the environment from the impacts of economic and social activities This process is essential for ensuring adherence to legal requirements aimed at preventing, controlling, and mitigating environmental degradation.
Environmental pollution and incidents often arise from the activities of organizations and individuals exploiting environmental resources Environmental inspection plays a crucial role in ensuring compliance with environmental standards, working in tandem with environmental auditing The key distinction lies in their implementation methods; environmental inspections are mandatory assessments aimed at verifying that production facilities adhere to established environmental commitments Facilities found in violation of environmental laws may face suspension of operations, as stipulated by Government Decree 26/CP, which outlines administrative penalties for environmental breaches Inspections can be scheduled or conducted unexpectedly to ensure compliance.
Environmental auditing involves assessing a production facility's adherence to environmental management standards and regulations, focusing on compliance with environmental protection requirements, overall cleanliness, and sustainable development principles While environmental audits are essential for maintaining ecological integrity, they are only legally required in specific circumstances outlined by law.
"In cases of necessity, production facilities may conduct voluntary audits such as internal audits to improve their environment before environmental inspections.
The concept of environmental auditing is closely related to monitoring, standards, and criteria Environmental monitoring is the systematic observation of environmental conditions and influencing factors.
The primary aim of environmental monitoring is to predict changes in the environment and supply foundational data for the creation of relevant documents, programs, and projects This method will be legally established to ensure effective implementation.
Environmental criteria serve as benchmarks for assessing the consumption of natural resources per production unit, focusing on environmental quality and waste volume These criteria are supported by documentation that outlines relevant laws, guidelines, and numerical values derived from activities impacting the environment, which are crucial for environmental audits The auditing process involves a thorough analysis of existing monitoring data, along with a review of pertinent documents, to gain a comprehensive understanding of the audited issues When necessary, physical surveys and sampling are conducted to validate the accuracy of the provided data and gather additional evidence Consequently, effective environmental auditing is inherently linked to rigorous environmental monitoring.
Environmental Impact Assessment (EIA) is a mandatory assessment of compliance with planned activities, such as planning documents, programs, projects, with environmental protection requirements and sustainable development principles.
On that basis, optimal solutions are identified Audits, evaluations, and summaries provide a clear picture of current environmental conditions, often used to indicate current and past environmental conditions.
The connection between various tools and environmental impact assessment (EIA) can differ based on their specific purpose, requirements, and scale Often, these tools facilitate partial assessments related to projects, addressing aspects like pollution risks, sources of consumption, and overall environmental impact Additionally, EIA may serve as a component within a broader environmental management and planning framework.
Environmental impact assessment (EIA) is essential for evaluating future projects to ensure compliance with environmental regulations during both construction and operation It primarily analyzes and forecasts the potential positive and negative impacts of a project while proposing preventive measures The ultimate aim of the EIA is to minimize adverse effects by implementing rational solutions at the facility.
Environmental auditing is closely linked to environmental impact assessment, often viewed as its final stage While there are no mandatory regulations for industrial facilities to perform environmental audits, their significance is increasingly recognized Currently, environmental auditing is being refined to assess the scientific accuracy of the documents submitted in environmental impact assessments and to validate environmental management practices.
Audited facilities can implement various solutions for corrective or remedial actions post-audit, with the effectiveness of these solutions assessed through a well-developed action plan It's essential to evaluate these options from both economic and environmental viewpoints, utilizing environmental economics as a fundamental tool for making rational assessments of the most effective solutions.
A PPLICABLE STANDARDS FOR ENVIRONMENTAL AUDIT
In the late 1970s and 1980s, several countries, including the US, Germany, and the UK, established national environmental management systems to address environmental challenges more effectively Notably, the UK introduced BS 7750 standards, while the US adopted NSF 110 standards, and Canada implemented CSA food standards The European Union also played a significant role by developing regulations for ecological management and inspection schemes However, the fragmentation among these various systems highlighted the urgent need for consolidation of environmental management practices both regionally and globally, similar to the ISO 9000 quality management system.
It can be said that the above factors are important driving forces for the creation of an environmental management system according to ISO 14000 standards.
Various international standards, such as ISO 9000 and BS 7750, provide essential principles applicable to environmental auditing These standards, particularly the ISO guidelines on quality auditing outlined in ISO 10011-1, can effectively be utilized to enhance environmental auditing practices.
Environmental auditing plays a crucial role in the successful execution of an environmental management system, as it allows for the continuous monitoring and improvement of processes Several environmental management system standards, widely utilized in various European countries, are integral to conducting effective environmental audits.
Council Regulations No 1836/93 of 29 June 1993 allows companies to volunteer in the industrial sector under the Community eco-management and audit scheme (EMAS).
ISO international standards on environmental auditing
International and national standards for environmental management systems include auditing standards, highlighting the growing significance of environmental audits The publication of British Standards in 1992 and 1994, along with the introduction of ecological management and auditing plans in 1993, has further underscored the importance of these audits over the years.
An environmental audit is a structured process that gathers information and documentation to assess a company's adherence to environmental practices and the effectiveness of its environmental management system against established standards This program serves as a valuable tool for evaluating the alignment of the environmental management system with its operational goals and enhancing its overall performance.
Technical Committee 207/TC of the International Organization for Standardization published ISO 14000 Environmental Management System standards including regulations on environmental auditing in September 1996, specifically:
- ISO 14010/1996: Guidance on environmental auditing -General principles.
- ISO 14011/1996: Environmental auditing guide - Audit process - Environmental management system assessment.
- ISO 14012/1996: Environmental auditing guide - Competency standards for environmental auditors This standard provides professional/professional bases for environmental auditors school, for example, specialized training and necessary training courses
The ISO 14000 standard provides organizations with essential guidance on conducting audits of their environmental management systems Key principles of the environmental audit process, as outlined by ISO standards, ensure that companies can effectively assess and improve their environmental performance.
- Objectives must be clearly defined and auditing must be systematized.
- Audit methodology must be specific and accurate.
- The evidence found must be based on analysis and synthesis of relevant information and documents.
- Methods of finding evidence may include interviews, examination of documents and scene observation procedures.
The above international standards provide general principles of environmental auditing that can be applied to any type of audit, although they are designed for auditing management systems environment.
Environmental audit standards (environmental assessment) according to ISO
In 1997, one year after the initial release of ISO 14000, the Directorate for Standards, Metrology and Quality collaborated with the Department of Environment under the Ministry of Science, Technology and Environment (now part of the Ministry of Natural Resources and Environment) to adopt and implement several standards from the ISO 14000 series.
Vietnam (TCVN) ISO 14000 is equivalent to the environmental management system, including standards for environmental audit (or environmental assessment), specifically:
- TCVN 14010/1997, Guidelines for environmental assessment -General principles.
- TCVN 14011/1997, Environmental assessment guidelines - Assessment process -
Assessment of environmental management system
- TCVN 14012/1997, Environmental assessment guidelines - Competency standards for environmental assessors
I NTERNATIONAL AGENCIES INVOLVED IN ENVIRONMENTAL INSPECTION
The purpose of this section is to introduce agencies engaged in professional environmental auditing activities and agencies that participate in environmental auditing despite not being specialized in it.
Key organizations promoting environmental auditing in the United States include the Institute for Internal Auditing (IIA), the Environmental Auditing Forum (EAF), and the Environmental Audit Institute (IEA) These agencies play a crucial role in advancing the practice and development of environmental auditing.
The Environmental Audit Registration Association (EARA) is a professional organization protecting the rights of environmental consultants from external organizations.
The Environmental Audit and Management Network (NEMA Network) is a prominent organization in the UK dedicated to fostering the development of Environmental Management and Audit Systems (EMAS) within companies By bringing together researchers, consultants, and businesses, NEMA Network promotes collaborative discussions aimed at enhancing environmental practices in the corporate sector.
Additionally, it's worth mentioning some countries with strong professional organizations in environmental auditing such as Canada, Australia, the Netherlands, Germany, etc.
1.10.2 Non-specialized agencies participating in environmental auditing
Recently, internationally recognized organizations have included environmental auditing in their list of most effective environmental management tools Some of these organizations primarily focused on the environment, such as the U.S.
Environmental Protection Agency (EPA), the United Nations Environment Programme (UNEP), and Friends of the Earth.
Several organizations have been involved in environmental auditing, including the European Environmental Management and Audit Scheme (CEC, 1993), the International Organization for Standardization (ISO, 1994), and the World Bank (1995) Recently, numerous reputable newspapers have reported on the significance of environmental auditing and management systems.
P ERFORM ENVIRONMENTAL AUDITS IN THE WORLD AND IN V IETNAM
1.11.1 Current Status of Environmental Auditing Worldwide
Environmental auditing is recognized globally as an essential tool for assessing compliance with environmental regulations, including national laws and international standards like ISO 14001 In the United States, since 1970, the government has emphasized environmental auditing as a key component of its national environmental protection strategy, particularly in managing natural resources Following its successful implementation in the chemical sector, the U.S Environmental Protection Agency has officially endorsed environmental auditing as a vital state management tool, mandating its use for major industrial sectors such as Oil & Gas, Tin, and Aluminum.
In the UK, the British Industry Association has effectively encouraged environmental auditing among its members, enabling businesses to save thousands of pounds annually by reducing production and environmental costs Similarly, India's Downstream Environmental Standards Improvement and Resource Efficiency (DESIRE) audit program, initiated by the Indian Productivity Commission in 1993, has significantly contributed to lowering environmental pollution in the country.
Indonesia has implemented environmental auditing tools to ensure the accuracy of waste measurement data from businesses This data is then publicly shared within the business community for ranking purposes, encouraging private sector engagement in environmental protection initiatives.
Environmental auditing originated in production facilities on a voluntary basis but quickly gained traction among managers and experts due to its significant value This led to the formalization of auditing processes across various sectors, particularly in agriculture Countries like Australia, the UK, EU member states, New Zealand, and Canada are leading in this domain Environmental auditing can be categorized into voluntary or mandatory, and internal or independent types The content and standards of these audits, especially for voluntary or internal audits, can be tailored to meet the specific needs of businesses and production facilities Most auditing programs align with legal regulations and environmental standards, including Global GAP and ISO 14001.
Several prominent environmental management programs utilize auditing tools, including Canada’s Ontario Farm Environmental Plan (EFP), the UK's Linking Environment and Farming program (LEAF), Australia’s National Association of Sustainable Agriculture (NASAA), and Europe’s Eco-Management Audit Scheme (EMAS) The Ontario Farm Environmental Plan, established in 1992, was initiated by farmers facing environmental challenges This program involves collaboration between experts and managers to create an internal audit process tailored for farm environmental management, known as the "Farm Environmental Plan," which employs a comprehensive approach to farm management and leverages significant human and financial resources.
The Canadian government has mobilized efforts to implement the "Farm Environmental Plan" (EFP), engaging various types of farms, including livestock operations This successful initiative, which addresses environmental challenges, has expanded nationwide and attracted interest from other countries Participation involves training workshops, action plan reviews, and collaborative evaluations, emphasizing voluntary involvement and confidentiality EFP empowers producers to assess risks and adopt effective management practices, while also raising community awareness and enhancing environmental quality The program's success hinges on government interventions, including stringent environmental regulations, technical assistance, and financial support, aligning with ISO 14000 standards Completion of EFP facilitates easier access to ISO 14000 certification, motivating farm owners to engage actively Currently, EFP is widespread across Canada, playing a crucial role in guiding agriculture toward sustainable development goals.
The NASAA standard development program in Australia, established in 1986, utilizes environmental auditing to ensure the quality of nutrient-rich organic agricultural products while promoting environmental protection This program not only sets criteria for managing organic products but also serves as a basis for certifying participants against NASAA standards Globally, successful environmental auditing programs like EMAS (Eco-Management and Audit Scheme) and ISO 14001 exemplify this trend EMAS, implemented across the European Union and various sectors, enhances environmental management while providing competitive advantages in the market Similarly, ISO 14001 is an internationally recognized standard that focuses on creating standardized environmental management systems, attracting global interest from businesses and individuals Both EMAS and ISO 14001 represent the most widely applied environmental auditing programs, ensuring compliance with established standards across economic regions.
1.11.2 Perform environmental audits in Vietnam
In recent years, environmental auditing in our country has primarily taken the form of environmental impact assessments at various operational factories and production facilities Key reports, such as the Environmental Impact Assessment Report for Bai Bang Paper Mill and Pha Lai Thermal Power Plant, provide a comprehensive overview of the current environmental status, highlighting both positive and negative impacts These assessments not only forecast future environmental conditions but also offer recommendations for improvement Ultimately, the goal of this process is to conduct thorough environmental audits that evaluate emissions and ensure compliance with Vietnamese environmental regulations.
24 regulations at the factory level The audit scope covers the entire factory and its surrounding area.
The environmental auditing process in Vietnam primarily targets industrial waste management, focusing on facilities such as paper mills, textile factories, chemical plants, and breweries, including Vạn Điểm Paper Mill and Southeast Asia Brewery Despite some positive initial findings, the auditing process encounters significant challenges due to the aging infrastructure of these facilities and a lack of continuous monitoring data, which hampers effective analysis and evaluation Additionally, the absence of regulations governing environmental auditing based on the collected data raises concerns about the reliability of the results.
The preliminary audit findings indicate that enhancing environmental conditions is both economically viable and effective by increasing awareness among officials and workers in production facilities To implement end-of-pipe treatment measures, comprehensive research is essential It is anticipated that industrial waste auditing will evolve into a crucial management tool, facilitating the transition to cleaner production processes in the future.
In recent years, environmental auditing has gained significant attention in Vietnam, spurred by international projects like the Vietnam-Canada Environmental Project and training courses on Environmental Management Systems These initiatives have equipped Vietnamese researchers with valuable knowledge and innovative approaches However, environmental auditing in Vietnam has primarily focused on industrial waste, neglecting other global auditing objectives such as environmental management systems and impact assessments A new initiative by the Environmental Technology Center at Hanoi University of Science and Technology aims to broaden this scope by auditing the environmental management systems of state-owned enterprises in key industrial sectors The Ha Bac Chemical and Fertilizer Factory has been selected for this audit, yielding promising initial results With the backing of ISO 14000 and Vietnamese standard TCVN 14000, environmental auditing is poised to become an essential tool for evaluating diverse environmental objectives in Vietnam.
Since the introduction of the Vietnamese standard ISO 14000, interest in developing environmental management systems has grown among businesses, yet only over 40 have achieved certification This standard mandates an assessment cycle for environmental management systems every three years, with environmental auditing playing a crucial role in evaluating their effectiveness Additionally, environmental auditing is essential for competent authorities to issue certifications for businesses establishing ISO 14000-compliant systems As a result, environmental auditing is poised to become one of the most effective tools for environmental management in the near future.
BASIC STEPS IN ENVIRONMENTAL AUDITING
P RE - AUDIT ACTIVITIES OR PREPARATORY ACTIVITIES
Pre-audit activities encompass the essential administrative tasks involved in planning the audit, such as assembling the audit team from various departments or specialized units, developing the organization's audit protocol, and gathering relevant background information about the facility.
When implementing an audit program, especially in a multinational context, it is crucial to prioritize education for both auditors and those being audited to foster a cooperative atmosphere A major US company, for instance, emphasized the importance of briefing European plants and ensuring that audit protocols were tailored to local regulations By conducting pilot audits and promoting a collaborative approach instead of a punitive one, the company aimed to alleviate concerns from local management Additionally, gathering background information about a site can optimize the audit process, allowing teams to focus their efforts effectively and conserve resources.
The composition of an audit team varies by organization, often influenced by the availability of internal expertise and resources Companies lacking sufficient internal capabilities frequently engage independent consultants to perform audits Alternatively, some organizations opt for a hybrid approach, utilizing both in-house staff and external consultants to maintain an independent perspective While larger companies may rely solely on internal teams, many maintain dedicated environmental audit groups and often incorporate independent consultants into their auditing processes to enhance objectivity.
F ACILITY AUDIT ACTIVITIES
To effectively implement internal controls, it is essential to first comprehend the existing controls or those believed to be in place This involves evaluating formal procedures, record-keeping practices, monitoring systems, inspection and maintenance programs, as well as physical measures for spill containment The audit team collects information on these controls through observation, staff interviews, and detailed questionnaires.
Evaluating the strengths and weaknesses of internal controls is essential for guiding subsequent audit procedures Auditors focus on key indicators, including well-defined responsibilities, personnel competence, adequate documentation, and effective authorization systems Ultimately, the effectiveness of the internal control system is more critical than its complexity.
The audit team collects evidence to ensure that processes and controls are functioning effectively This evidence is gathered through various methods, including inquiries with personnel about their responses to potential incidents, direct observation of ongoing operations, and testing records to verify adherence to regulations.
Recording audit findings All the information obtained is recorded
The audit protocol document and accompanying working papers create a detailed record of the audit process and the facility's condition at the time of evaluation Any identified deficiencies are documented as part of the audit findings.
The audit team systematically integrates and assesses the findings from each member, identifying both unique and common observations In certain cases, informal discussions may be held to further explore specific findings.
28 plant manager may be sufficient; for others, inclusion in the formal report will be appropriate.
At the conclusion of the audit team's visit, the audit findings are reported during a meeting with plant management Each finding is discussed in detail, highlighting its significance to the plant personnel Before departing, the audit team typically delivers a written summary of the findings to the plant management, ensuring transparency and preventing any surprises in the final report.
P OST - AUDIT ACTIVITIES
After completing the onsite work, a draft report is prepared and reviewed by plant management for accuracy Once confirmed, the report is distributed to senior management in accordance with the company's requirements.
A crucial step in addressing deficiencies identified during an audit is to create a comprehensive action plan While some companies request that recommendations for corrective actions be included in the formal audit report, allowing the plant to base its strategy on these suggestions, others prefer the report to focus solely on stating the facts and deficiencies without corrective guidance In such cases, it falls upon the plant management to determine how to effectively resolve the identified issues.
Once an audit programme is in place, future audits will include past reports— and progress in the implementation of any recommendations made therein—as part of their evidence.
2.4 Extending the Audit Process—Other Types of Audit
Environmental auditing primarily evaluates a company's environmental performance, but it encompasses various types tailored to specific situations.
Pre-acquisition audits have become increasingly important due to concerns over potential liabilities, allowing buyers to identify actual or potential environmental issues before finalizing a deal These audits provide crucial insights into past operations, current activities, and previous incidents, which can significantly influence negotiations Despite often tight timelines, the information gathered during these audits can be invaluable in assessing risks associated with the acquisition.
Pre-sale audits, while less common than pre-acquisition audits, are gaining traction among major organizations like DSM and Neste These audits allow owners to assess the environmental status of a plant or subsidiary before selling it, enabling them to address any issues proactively Additionally, presenting the results of an independent audit to potential buyers serves as confirmation of the plant's condition Establishing a baseline through these audits is crucial for determining liability should any environmental problems arise post-sale.
Organizations often conduct issue audits to assess specific concerns that could affect the entire company, such as waste management For instance, BP, a UK-based oil multinational, has performed audits focused on the effects of ozone depletion and the public's worries regarding tropical deforestation.
1 What are some common challenges organizations face when conducting environmental audits?
When conducting environmental audits, organizations may face several common challenges These challenges can include:
Obtaining accurate and comprehensive data on environmental performance poses a significant challenge due to its scattered nature across various departments and systems Inconsistent collection and documentation of data can lead to incomplete or unreliable information, ultimately hindering the effectiveness of audits and complicating the accurate assessment of an organization's environmental performance.
Environmental regulations are often intricate and frequently updated, making it difficult for organizations to remain compliant during audits Staying informed about the latest regulatory requirements demands significant expertise and resources, as accurately interpreting these regulations is essential for successful navigation of the complex regulatory landscape.
Conducting environmental audits necessitates significant resources, including skilled personnel, adequate time, and financial backing Organizations often encounter challenges such as a lack of qualified auditors, budget limitations, and competing priorities, which can affect the depth and regularity of these audits Additionally, insufficient resources may impede the execution of corrective measures identified during the audit process.
A successful environmental audit hinges on the active participation and cooperation of employees throughout the organization However, if there is insufficient awareness or understanding of the significance of these audits among staff, it can result in resistance or reluctance to engage fully in the process, ultimately undermining the effectiveness and outcomes of the audit.
Organizational culture plays a crucial role in the successful implementation of environmental audit recommendations, as resistance to change, lack of management commitment, and a siloed approach can significantly hinder progress Additionally, organizations with complex supply chains may struggle to extend audits beyond their immediate operations due to logistical challenges in engaging suppliers and stakeholders, compounded by potential resistance and lack of transparency Furthermore, as sustainability priorities and stakeholder expectations evolve, organizations must remain adaptable, continuously updating their audit methodologies to address emerging environmental issues and social concerns effectively.
Effective environmental audits require careful planning, active stakeholder engagement, proper resource allocation, and a sustained commitment to environmental management Addressing these challenges enables organizations to enhance their environmental performance and foster positive change.
1 Environmental Audit: A systematic evaluation of an organization's environmental performance, practices, and compliance with environmental regulations and standards.
2 Audit Scope: The boundaries and extent of the environmental audit, including the organizational units, activities, facilities, and environmental aspects under review.
3 Audit Criteria: The standards, regulations, guidelines, and internal policies used as benchmarks to assess environmental performance during the audit.
4 Audit Plan: A documented plan outlining the objectives, scope, methodology, schedule, resources, and responsibilities for conducting the environmental audit.
5 Audit Team: The group of individuals responsible for planning, conducting, and reporting on the findings of the environmental audit, which may include auditors, specialists, and stakeholders.
6 Environmental Aspects: The elements of an organization's activities, products, or services that interact with the environment, such as emissions, waste generation, energy consumption, and natural resource use.
7 Environmental Impacts: The consequences or effects of an organization's activities, products, or services on the environment, including air and water pollution, habitat destruction, and climate change.
8 Non-conformance: Any deviation from applicable environmental requirements, standards, or policies identified during the audit.
9 Corrective Action: Measures taken by an organization to address non- conformities identified during the audit, aimed at preventing recurrence and improving environmental performance.
10 Preventive Action: Proactive measures implemented to prevent potential environmental non-conformities from occurring in the future.
11 Audit Findings: The results, observations, conclusions, and recommendations arising from the environmental audit, including non- conformities, areas for improvement, and best practices.
12 Audit Report: A formal document summarizing the findings, conclusions, and recommendations of the environmental audit, typically including an executive summary, detailed findings, and action plans.
13 Follow-up Audit: A subsequent audit conducted to verify the implementation and effectiveness of corrective actions taken in response to findings from a previous audit.
14 Continuous Improvement: Ongoing efforts by an organization to enhance its environmental performance, processes, and systems based on the findings and recommendations of environmental audits.
Environmental auditing involves assessing an organization's adherence to environmental regulations, evaluating its environmental performance, and pinpointing areas for improvement in its activities, processes, and products This process is essential for promoting sustainability and safeguarding the environment.
Environmental auditing involves several key processes, including data collection, compliance assessment, performance evaluation, and the identification of risks and opportunities This comprehensive approach also entails proposing improvement measures and developing implementation plans Typically, the auditing process encompasses document reviews, employee interviews, site inspections, and thorough data analysis to ensure effective evaluation and enhancement of environmental performance.
Environmental auditing offers significant advantages for organizations, such as ensuring compliance with environmental laws, mitigating environmental risks, boosting credibility and corporate reputation, conserving resources and energy, enhancing overall performance, and improving transparency in reporting Nevertheless, it also encounters challenges, including the complexity of environmental regulations, difficulties in data collection, inconsistencies in standards and evaluation methods, and evolving environmental requirements.