Professional Documents
Culture Documents
Unit Information
Unit
Unit
Unit
Unit
Overview
Aims
Learning Outcomes
Interdependencies
3
3
3
3
3
Key Readings
Further Readings
References
Case Studies
Section Overview
Section Learning Outcomes
1.1 Relationship between organisations and the environment
1.2 Public awareness
1.3 Sustainable development
1.4 Environmental management
Section 1 Self Assessment Question
2.0
Environmental auditing
Section Overview
Section Learning Outcomes
2.1 What is environmental auditing?
2.2 History of environmental auditing
2.3 Introduction to the types of audit
2.4 Why would an organisation wish to undertake an environmental audit?
Section 2 Self Assessment Questions
3.0 Benefits and costs of environmental auditing
Section Overview
Section Learning Outcomes
3.1 What are the main benefits and costs?
3.2
8
8
8
9
12
15
17
18
18
18
18
22
23
24
31
32
32
32
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Unit Summary
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37
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1 To
UNIT INFORMATION
introduce
environmental
management.
Unit 1
the
subject
of
auditing
and
2 To
Unit Overview
Unit Aims
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Unit 1
KEY READINGS
Section 1
Section 2
FURTHER READINGS
DEAT (2004) Environmental Auditing. Integrated Environmental Management
Information Series No 14, Department of Environmental Affairs and Tourism (DEAT).
Pretoria.
Available from:
https://www.environment.gov.za/sites/default/files/docs/series14_environmental_a
uditing.pdf
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REFERENCES
BBC News online (Wednesday 18 July 2007) Cement Firms Pollution Fine Cut.
Available from:
http://news.bbc.co.uk/1/hi/england/coventry_warwickshire/6904850.stm
[Accessed 26 March 2013]
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United Nations (1992) Agenda 21. Earth Summit. The United Nations Programme of
Action from Rio. Division for Sustainable Development, United Nations Department
of Economic and Social Affairs
Available from:
http://sustainabledevelopment.un.org/content/documents/Agenda21.pdf
[Accessed 23 April 2013]
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CASE STUDIES
Case Study 1 Construction Sector.
Section 1.1 provides an illustration of the benefits a company might gain from environmental
auditing.
Case Study 2 Electrical and Electronic Sector
Section 2.1 provides an illustration of the ways in which this sector interacts with the
environment.
Case Study 3 Hospitality Sector
Section 3.1 provides an illustration of the ways in which this sector interacts with the
environment.
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1 accidental
Section Overview
To provide an understanding of the
relationship between organisations and
the environment and the pressures and
effects each has on the other.
from
the
oil
1 recognise
the
organisation on
and vice versa
effects
of
an
the environment
2 identify
1 the
2 traffic
generated by employees of
the oil refinery may contribute to
pollution on local roads
3 waste
4 environmental
1.1
Relationship
between
organisation
s
and
the
environment
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which coincided with the 1973 oil crisis. Environmental pressure groups began to
increase in popularity, and Green political parties began to gain votes.
The series of high-profile incidents involving industry during the 1980s once again
increased the publics awareness of environmental issues and brought the
environment to the top of the political agenda worldwide. Disasters such as those at
Bhopal and Chernobyl undermined public confidence in certain sectors of industry
and forced the activities of industry and the subsequent damaging consequences for
the environment into the spotlight. Further details on the two incidents mentioned
above are presented in 1.2.1 and 1.2.2.
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5 1979
6 1984
Chernobyl
station disaster
country,
which
highlight
the
nuclear
power
9 1986
10 1989
1 Can you think of any events/incidents
gas explosion
Exxon
accident, Alaska
Valdez
tanker
11
12 1998 Reservoir
Identify and provide a
summary of an event/incident
in your country. You may also
want to include information
on:
how you think these events
influenced public opinion and
attitudes towards
environmental issues
13 2006
14 2010
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Sustainable development is
development that meets the
needs of the present without
compromising the ability of
future generations to meet
their own needs. It contains
within it two key concepts:
Unit 1
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resources
3 increasing
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1.4
Environmental
management
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While,
in
general,
governments
have
strengthened legislation and
institutions,
resulting
in
significantly
improved
environmental
performance,
particularly with respect to
pollution control, the rising
environmental
pressures
exerted
by
expanded
consumption and production
and
resource-extraction
processes
threaten
to
overwhelm
the
progress
achieved so far. High future
environmental, economic and
social infrastructure costs, a
growing tendency to generate
waste
decline
capital
signs
growth
Unit 1
The
continuing
focus
on
improving
environmental
performance
distracts
attention from the critical
need
to
improve
the
environmental sustainability of
economic growth patterns.
Without
doubt,
economic
growth is a prerequisite for
achieving
significant
reductions in poverty and
addressing key sustainable
development issues. However,
declining
environmental
sustainability
represents
a
critical political, institutional,
social and economic threat for
many countries in the region.
Source: UNESCAP (2005) p. 18.
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uestion 1
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2.0 ENVIRONMENTAL
AUDITING
Section Overview
To provide an introduction to
environmental auditing.
Unit 1
1 investigate
2 understand
3 identify
Definitions
2.1
the
is a
methodical
examination
involving
Environmental auditing is essentially ananalyses, tests, and confirmations of
environmental
management
tool
forprocedures and practices whose goal is to
measuring the effects of certain activitiesverify whether they comply with legal
on the environment against set criteria orrequirements,
internal
policies
and
standards. Depending on the types of accepted practices.
standards and the focus of the audit, there
are different types of environmental audit.The International Chamber of Commerce
(ICC) produced a definition in 1989 which
Organisations of all kinds now recogniseis along the same lines.
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Terminology
A
management
tool
comprising
systematic,
documented,
periodic
and
objective evaluation of how
well
environmental
organisation,
management
and equipment are performing
with the aim of helping to
safeguard the environment by
facilitating
management
control
of
practices
and
assessing
compliance with
company policies, which would
include
regulatory
requirements and standards
applicable.
1 Verification:
audits
evaluate
The
International
Organization
for
compliance to regulations or other
Standardization
(ISO)
has
produced
a
set criteria.
series of standards in the field of
2 Systematic: audits are carried outenvironmental auditing. These standards
in a planned and methodicalare
basically
intended
to
guide
manner.
organisations and auditors on the general
3 Periodic: audits are conducted toprinciples common to the execution of
environmental
audits.
These
are
an established schedule.
addressed elsewhere in this module.
4 Objective: information gained from
the audit is reported free of Environmental auditing means different
opinions.
things to different people. Environmental
auditing is often used as a generic term
5 Documented: notes are takencovering a variety of management
during the audit and the findings
practices used to evaluate a companys
recorded.
environmental performance. Strictly, it
6 Management tool: audits can berefers to checking systems and procedures
integrated into the managementagainst standards or regulations, but it is
system
(such
as
a
qualityoften used to cover the gathering and
management
system
orevaluation of any data with environmental
environmental
managementrelevance
system).
this should actually be termed an
environmental review. The distinction
between
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an environmental audit and an environmental review has become blurred, but the
table in 2.1.1 should enable you to understand the differences between the two.
Audit
Determine
which
performan
ce
standards
should be
met (eg
company
decides to
reduce
total
organic
compound
emissions
from 100
tonnes to
10 tonnes/
year)
without
explicit
standards to
measure
performance
All known
environmen
tal issues
with or
aud
it.
In
som
e
Irrespective of thecase
process
that
iss,
actually
beingther
undertaken,
someefor
organisations
prefere,
not to use the terman
Source: Dagg (2005)
Before
develop
ing
environ
mental
manage
ment
systems
or
before
and
after
any
signific
organ
isatio
n may
call
the
proce
dure
of
meas
uring
enviro
ant
changes
in
operation
s or
practices
Wherever
the
business
could
have an
environm
ental
nmen tal
tal
rev
perfor ie
manc w,
e
an
again en
st setvir
criteri on
a anme
enviro nta
nmen l
impact in
the life
of the
product
(ie raw
material
selection,
transport
ation,
manufact
uring,
product
use and
disposal)
asses
smen
t, or
anot
her
term
used
speci
ficall
y for
their
Verify
performance
against these
standards (eg
company
checks that it
really has
reduced
emission to 10
tonnes/year)
reboundari
plan
es, (eg
R
ned
e
limited
cycli
g
to site,
cal
u
distributi
basis
l
on
a
compani
r
es or
l
y
local
a
planning
n
Usually
authority
d
well)
o
defined
n
geograph
a
ic
p
own guish between these
purpo terms, and be able to
ses determine which is
(by which).
now,
you In addition, the term
shoul audit, coming from
the financial sector,
d be
may
suggest
that
able
financial
audits
to
(whose result typically
distin
ted
in
the
table below.
in
2.1.2,
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Environmental audits
With few
gal basis of audit Part of regulatory (legal) process, organisations have to
exceptions,
perform it
environmental
audits are
voluntary affairs.
Even the
preparatory
environmental
review which is
mandatory under
ISO 14001 is
voluntary as the
standard is
voluntary
Frequency
Annual affairs
Methodology
Dagg
(2005)
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32.3
Introduction
types of audit
to
Unit 1
Insurance
Waste minimisation
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3 How
can we
improvements?
make
further
1 pressures
issues
from
environmental
legislation
2 environmental
liabilities
and
insurance costs
3 investment
facilities
4 detailed
investigation
5 corporate
image
opportunities
of
and
specific
marketing
6 concern
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Answer.
Organisations who plan ahead and make provision for increasingly stringent
environmental legislation can avoid unexpected costs in the future. Keeping
legislative developments in mind when purchasing new equipment or
planning new processes or products helps to ensure that organisations are
not caught out. Organisations can therefore avoid heavy fines for breaches
of legislation, or being forced to purchase expensive new equipment at short
notice. 2.4.1 provides an example of a company which breached
environmental regulations, and were subsequently caught by enforcement
agencies. If these companies were carrying out regular environmental audits
in order to assess their compliance with environmental legislation, and to
identify any potential problems, it may have been possible to identify the
problems, and implement solutions before the regulatory agency decided to
take action.
sum
The original offence had consisted of not ensuring an external door was closed, leading
to an escape of dust.
The company had been prosecuted by the Environment Agency in October 2006.
Cemex claimed the original fine had been excessive.
After the ruling the Environment Agency said such a large reduction in fine was a
disappointing result.
We will not tolerate poor plant maintenance practices that might lead to incidents
such as this, especially when close to people's homes.
We will continue to thoroughly investigate all such incidents and, where appropriate,
pursue criminal charges, a spokesman said.
Source: BBC News online (Wednesday 18 July 2007)
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already
undertake
environmental audits as part of
a system of environmental
management and are therefore
aware of, and in control of, the
environmental effects of their
operations, may find it easier
to obtain insurance. It should
be
noted
that
the
cost
difference
between
an
environmentally
aware
company and another company
is in most cases not because of
the
reduced
environmental
impact of the former, but
because
of
increased
knowledge about the impact,
which,
as
the
insurance
company hopes, translates into
an
efficient
environmental
management
programme.
However,
the
research
evidence suggests that the
biggest
insurance
premium
cuts can be made when insurer
and
insured
discuss
an
environmental programme in
advance and agree on a set of
actions.
Answer.
Organisations with a dubious
environmental record will find it
increasingly
difficult
and
expensive to get insured.
Insurance
companies
are
reluctant to provide insurance
cover for pollution that arises
from prolonged and continuous
poor management practices or
negligence, which leads to
environmental damage.
Gradual pollution may be
extremely costly for those
responsible,
according
to
Smets (Smets 1988). Examples
of such pollution are serious
water pollution, air pollution,
soil
contamination
or
the
release of toxic waste into the
environment. Smets estimates
that between 1960 and 1985
there were at least 65 cases of
pollution costing over $18
million.
If an organisation can provide
the insurer with as much
accurate information on the
environmental
risks
as
possible, the uncertainty is
reduced. Organisations, who
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The outcome of your research will depend on a number of factors, for example, the
size of the organisation and the country within which it operates. If possible, it may
be useful for you to contact a couple of companies that you know are part of a larger
organisation, or obtain copies of any environmental policies or reports they may have
published. This may enable you to find out about their operational standards for
environmental issues.
In many cases, the operations of the organisation are constantly under scrutiny by
regulators, amongst others. This is especially the case with larger companies, who
are often very much in the public eye. This pressure may influence the organisations
environmental policy.
The example of the single-issue audit illustrates that focusing on a particular aspect
of an organisations operations can bring benefits. The majority of issue audits deal
with the evaluation of the impact that particular public issues can have on the
organisation, such as the rise in organic food, the role of dolphin-free tuna as a
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Environmental concern
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uestion 2
uestion 3
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effectiveness
Section Overview
To outline the benefits and costs of
environmental auditing.
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their performance
Most of these can be minimised or
well as reduced costs from minimising
overcome by careful forward planning to
waste, reducing use of raw materials and
so on, other areas where savings can be ensure that the audit runs smoothly.
Adopting an informal and approachable
made include
stance and pointing out the positive
1 the possibility of reduced insuranceaspects of undertaking an audit can dispel
premiums for good environmental any fears or misconceptions held by the
performance (refer to environmental
staff. The cost of the audit can often be
liabilities
and
insurance
costs
recovered by savings made through
discussion earlier)
improvements identified in the audit and a
2 reduced likelihood of unexpectednumber of auditing companies peg their
pollution events, therefore lessfees to the savings made subsequently, or
chance of incurring costly fines
may operate on a no gain, small fee
basis.
The benefits of environmental auditing
described so far are largely financial, and
can be measured directly. A range of less
Role of an
tangible benefits can also be identified, 3.2
environm
including
1 increased
environmental
responsibilities
workforce
2 increased
awareness
policies
among the
of
and
whole
ental
audit
within an
environm
ental
managem
ent
system
management confidence
due to a feeling of security that the
compliance (and safety) status of
the
plant
is
confirmed
andAs you have seen, environmental audits
documented
investigate the current environmental
performance of an organisation. Audits
3 favourable publicity
therefore provide information on the
4 improved
relationship
withactivities at that moment in time. Hunt
regulatory authorities
and Johnson (1995), for example, note
5 better understanding of consumerthat, environmental auditing on its own
cannot provide management with the
demands
assurance that environmental practices
However, there may also be various
and performance not only have met, but
perceived disadvantages associated with will also continue to meet, legislative
undertaking an environmental audit, for
requirements and sound corporate policy
instance
commitments and expectations.
1 disruption of plant activity while the
One role of an environmental audit is to
audit is carried out
identify areas for improvement, but an
2 the cost of the exercise
audit does not, in itself, provide the means
to implement changes. In order to do this,
3 the possible perception by staff inan environmental audit should be set in
the organisation that an audit is a
negative process, which assesses the framework of an environmental
management system.
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In order to ensure that employees and any other stakeholders understand the
management system, environmental management systems usually rely heavily on
documentation. Environmental effects, environmental regulations, objectives and
targets, and the procedures are usually all documented.
3.3
sophisticati
on
Confirm
management
system
effectiveness
Focus on
confirming
absence of
problems
Identify
problems
Focus on finding
problems
Time
Source: adapted from International Chamber of Commerce (1991)
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uestion 4
True or false?
Not only does an environmental audit
identify areas for improvement within an
organisation, such as cost savings, but
also provides the means to implement
changes.
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compliance/legislative audit
direct effects
documented
environmental auditing
environmental awareness
environmental management
investigate
issue audit
Unit 1
n or standards
the
global
plan of
action
adopted
at
the
Earth
Summit
in Rio in
1992
a
methodi
cal
examina
tion,
involving
analyses
,
tests
and
confirma
tions, of
procedur
es
and
practices
whose
goal
is
to verify
whether
they
comply
with
legal
require
ments,
internal
policies
and
accepted
practices
an audit
which
determi
nes the
degree
of
compan
y
complian
ce with
current
or
prospect
ive
legislatio
on
actions from an organisation that causeclimate
indirect
damage/harm
to
thechange
environment, for example, the use of
fossil fuels and the effect this may haveto
examine something
an audit which concentrates
on a topic that has been
identified
as
requiring
further investigation
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liability/transactional audit
macro-scale
management tool
micro-scale
minimisation audit
natural resources
an audit
conduct
ed prior
to
buying
or
selling a
facility/l
and in
order to
identify
potentia
l
liabilitie
s
global
level
objective
periodic
policy compliance audit
pressures
stakeholder
sustainable development
somethi
ng that
can be
integrat
ed into
the
manage
ment
system
of
a
compan
y/organ
isation,
for
exampl
e,
an
audit
local
level
systematic
verification
an audit
which
concent
rates on
a single
issue,
for
exampl
e,
waste,
and
seeks to
identify
ways to
reduce
the
amount
of
waste
produce
d
the
resourc
es
Unit 1
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