Environmental Management Audit Full Process Guide

What is an Environmental Management Audit?

An environmental management audit is a systematic review of a company's operations to ensure that it complies with all relevant environmental laws and regulations. It is a way to proactively identify areas of possible non-compliance, helping to avoid potential fines and environmental damage.

Audits go beyond checking licenses and documents. Auditors typically assess the following:

• Waste management practices (storage, disposal, recycling)
• Air and water emissions
• Use and storage of hazardous substances
• Environmental Incident Emergency Preparedness Plan

Why do companies need environmental inspections?

Environmental inspections are vital to businesses for the following reasons:
Environmental regulations are complex and constantly changing. Audits help identify areas of non-compliance where a business may have inadvertently committed, allowing them to take corrective action before facing penalties.

Environmental issues can present significant risks to a business, including potential leaks, spills or improper waste disposal. Audits can help identify these risks and develop mitigation strategies.

Complying with environmental regulations often leads to operational efficiency gains. For example, reducing waste or optimizing energy use can save a business money. In addition, demonstrating a commitment to environmental responsibility can enhance a brand’s image and attract environmentally conscious customers and investors.

Types of Environmental Management Audits

Environmental management audits fall into three main categories, each suitable for a specific purpose. Below is a detailed description of each type of audit to help you choose the type of audit that suits your needs:

1. Environmental management audit

This is the core type of environmental audit, which focuses on verifying a company’s compliance with specific environmental regulations. It is similar to a checklist-driven inspection, ensuring that a company meets all legal requirements.

Typical coverage includes:

• Air Emissions: Do facility emissions comply with air quality regulations?
• Waste Management: Are there systems in place to handle hazardous and non-hazardous waste, and are correct storage and disposal procedures followed?
• Water use: Is water use being reduced and is there an adequate treatment system in place for wastewater that is generated?
• Permits and Licenses: Are all required environmental permits and licenses for operations in place and up to date?
• Training: Are employees properly trained on environmental regulations and the company’s environmental policies?

2. Environmental Management System (EMS) Audit

This audit assesses the effectiveness of an organization's Environmental Management System (EMS). It can be thought of as an audit of an organization's internal processes for managing environmental impacts.

Its focus includes:

• Policies and plans: Does the environmental policy clearly outline the company’s commitments and goals? Is there a plan to achieve these goals?
• Structure and resources: Does the company have the organizational structure and resources to implement an EMS?
• Implementation and Operation: Are environmental procedures implemented and operating effectively in all facilities?
• Monitoring and measurement: Is there a system in place to monitor environmental performance and measure progress towards targets?
• Continuous Improvement: Does the EMS include a process for continuous improvement and the identification of new areas of environmental responsibility?

3. Functional environment audit

This audit focuses on specific aspects of a business' operations that have an environmental impact. It drills down into a specific area to ensure compliance and best practices.

Here are some examples:

• Waste Management Audit: Evaluate waste separation practices, recycling programs, and waste disposal procedures.
• Air Emissions Audits: Evaluate air pollution control equipment, monitoring systems, and compliance with air quality regulations for specific pollutants.

Environmental Management Audit Checklist

To ensure your environmental management review is comprehensive, consider the following key areas:

Permits and Licenses

Verify that all necessary permits and licenses for air emissions, water discharges, waste management, and other environmental activities are current and up to date.

Record keeping

Assess whether the company properly maintains environmental data records, waste disposal inventories and training documents as required by regulations.

Waste Management

Evaluate hazardous and non-hazardous waste handling, storage and disposal procedures to ensure compliance with disposal regulations.

Spill Prevention and Control

Review spill prevention plans and emergency response procedures to ensure they are up to date and capable of responding to spills that may occur during operations.

Material Safety Data Sheet (MSDS)

Verify that all hazardous materials used on site have an available and up-to-date MSDS.

How to Conduct an Environmental Management Audit

Environmental management audits are a key process for companies to ensure they are operating within environmental regulations and reducing their environmental footprint. Here is a breakdown of the key steps to conducting an effective environmental management audit:

Phase 1: Pre-audit preparation

Building a team

Assemble a team with the necessary expertise, which may include environmental engineers, legal counsel, and operations staff familiar with the company’s environmental practices.

Develop an audit plan

Clarify the scope and objectives of the audit, including identification of areas to be reviewed, applicable regulations and audit timeframe.

Collecting Documents

Collect all relevant environment documents, such as:

• Environmental permits and licenses
• Waste Disposal Records
• Safety Data Sheets (SDS) of the materials used
• Environmental Program
• Staff training records
• Facility Maps and Floor Plans

Phase 2: Audit Implementation

On-site inspection

Conduct physical inspections of facilities to identify potential environmental risks and ensure compliance. Inspections include areas such as proper storage of hazardous materials, air emission controls, and wastewater treatment systems.

Document Review

Evaluate environmental policies, procedures and records to ensure compliance with relevant regulations, which may include reviewing training materials and operating protocols.

Employee Interviews

Interview staff responsible for different environmental aspects of operations and ask them about their understanding of environmental procedures, challenges faced, and observations of environmental practices.

Phase 3: Post-Audit Analysis and Reporting

Data analysis

Collate and analyze information gathered during the audit, including results of on-site inspections, document reviews, and employee interviews.

Results Report

Prepare comprehensive reports outlining areas of compliance and non-compliance, along with recommendations for corrective actions for issues identified.

Develop an action plan

Develop a plan to address noncompliance issues and implement corrective actions that includes a timeline, assignment of responsibilities, and allocation of resources for implementing necessary changes.

ISO 14001 Environmental Management System

The ISO 14001 standard provides a comprehensive framework for developing and implementing an environmental management system (EMS). An EMS helps organizations systematically manage their environmental impacts and achieve continual improvement in environmental performance. Although not required for all companies, implementing an ISO 14001 EMS can demonstrate a strong commitment to environmental responsibility and simplify compliance efforts.

Obtained ISO 14001 certification

Obtaining ISO 14001 certification involves the following series of steps:

Understanding the Standards

Become familiar with the core requirements of ISO 14001, for which there are numerous resources available online and from certification bodies.

Formulate environmental policies

Develop a clear and concise statement outlining the company's commitment to environmental responsibility, and this policy should be communicated throughout the organization.

Identify environmental factors and influences

Analyze operations to identify activities that have environmental impacts (e.g., energy use, waste generation).

Setting environmental goals and targets

Set measurable goals for environmental improvements that are SMART: specific, measurable, achievable, relevant and time-bound.

Develop an environmental management plan

Create a roadmap outlining how environmental goals will be achieved. The plan should detail procedures, responsibilities, and resource allocations.

Implementation and operation

Integrate EMS into daily operations and train employees on environmental procedures to ensure they understand their role in environmental responsibilities.

Monitoring and measurement

Continuous monitoring of environmental performance, tracking progress toward goals, and regular data collection are essential to assessing the effectiveness of the EMS.

Management Review

Reviews are conducted regularly to assess the overall performance of the EMS in order to identify areas for improvement and adjust the system as necessary.

Internal Audit

Conduct internal audits to verify that the EMS is operating effectively and in compliance with ISO 14001 standards.

Registration Review

Once the EMS is up and running smoothly, hire an accredited certification body to conduct a formal audit of the system and upon successful completion of the audit, receive ISO 14001 certification.