MODULE 4

ENVIRONMENT AUDIT

 ISO 19011 is defined as the standard that sets forth guidelines for auditing management
systems. The standard contains guidance on managing an audit program, the principles of
auditing, and the evaluation of individuals responsible for managing the audit programs.
An audit program consists of the arrangements made to complete all of the individual audits
needed to achieve a specific purpose

 ISO 19011:2018 provides valuable information on how to improve an audit program

systematically, just as other departments in an organization are expected to improve. One
aspect of such improvement is continuously ensuring the audit program objectives are in
line with the management system policies and objectives. Organizations, in pushing for
auditing improvements, should consider the needs of customers and other interested partie

ISO 19011 offers guidance on every step of auditing a management system or audit
program, including:

 Defining program objectives

Ensuring you understand the specific objectives you hope to achieve
Making audit arrangements

Dr. Asha G, Associate Professor, Department of Civil Engineering, SJB Institute of Technology, Bengaluru
 Assigning roles and responsibilities
Defining number, scope, location, and duration of audits
Determining criteria and specific checklists

Establishing review procedures

 Completing the audits needed

Planning and reviewing internal documents
Collecting and verifying audit evidence
Generating findings and preparing reports
Communicating findings

 Reviewing the results and process

Assessing results and trends
Conforming with audit program procedures

Evolving needs and expectations of interested parties

Analyzing audit program records
Examining effectiveness of the measures to address risks

Ensuring confidentiality and information security

What are the Requirements to become an Environmental Auditor?

An environmental auditor needs several years of experience in environmental compliance or a
bachelor‟s degree in one of the following:
Environmental Science
Environmental Management
Natural Resource Management
Environmental Engineering
Environmental Assessment
 Professional certification as a Certified Environmental AuditorSM is available from the
National Registry of Environmental Professions.
 Applicable certifications include:
Environmental Professional – Compliance Environmental Auditor (EPCEA)

Dr. Asha G, Associate Professor, Department of Civil Engineering, SJB Institute of Technology, Bengaluru
 Environmental Professional – Environmental Management Systems Auditor (EPEMSA)
Certified Environmental Auditor(CEA)
 Additional Education for Environmental Auditors
While you can begin a career as an environmental auditor with a bachelor‟s degree or experience
in a related field, some employers may require a master‟s degree and/or certification to be
considered for the position. Certification or a master‟s degree can also be beneficial to advancing
into senior level or management positions in the field.

Typical Job Duties of Environmental Auditors

 As an environmental auditor, you will be responsible for the regular auditing of all
environmental policies and procedures. This involves working with an audit team and with
staff to get a good picture of how environmental compliance is being handled. You will be
responsible for:

 Selecting and managing the audit team

 Reviewing the operations of the business being audited and determining how
environmental issues are being handled
 Gathering data on the business operations through on-site inspections, document reviews,
staff interviews, and other methods
 Check business records for governmental permits and requirements, safety standards,
maintenance, and inventory control measures
 Review emergency preparedness and response procedures
 Review management systems, environmental monitoring programs and waste management
efforts
 Review employee training procedures and programs and the work environment for
compliance with government and corporate standards
 Write and compile final audit reports including results of the audit and recommendations
for changes and improvement
 Present the audit findings to the business managers and directors
 Assist in the development of an environmental management plan
 Follow up at a future time to ensure improvements and recommendations have been
successfully implemented

Dr. Asha G, Associate Professor, Department of Civil Engineering, SJB Institute of Technology, Bengaluru
 ISO 19011 is a standard designed to help companies perform audits.
When it comes to ISO standards, there are two main different types of audit:
 Internal audits (first-party)
 External audits (second-party and third-party)

First-party This is simply an internal audit.

 Internal audits are conducted by (or on behalf of) the organization itself. These audits are
typically in the context of assessing conformity, evaluating effectiveness, identifying areas
that could be improved, or as requirements for certain ISO standards specifying that internal
audits need to be carried out.
 First-party audits may also be done as a preparation for a 3rd party audit; however, first
party audits can never result in an ISO certification.

Second-party
 External audits encompass both second and third-party audits.
 Second-party audits are conducted by, or at the request of relevant interested parties outside
of the organization, like customers or contracted organizations on behalf of a customer.

Dr. Asha G, Associate Professor, Department of Civil Engineering, SJB Institute of Technology, Bengaluru
  For example, a client and vendor have a contract, and goods or services are being
exchanged. Typically, second-party audits will be more formal than first-party, because
they will influence the relations with customers or other relevant interested parties.

Third-party
 Third party audits are done by independent organizations that have no vested or conflict of
interest in the organization being audited, like those that provide certification, or
government agencies.
 Independence of the audit organization is one of the defining factors of a third-party audit.
 Customers can also request third-party audits, and this will usually be in order to verify
you conform to some specific requirements.
 Only third-party audits can be used to get ISO certified. Third-party audits may also result
in other types of registration, recognition, or licensing.
Equally, failing a third-party audit might also result in a fine or citation

Principles of international standard organization

1. Integrity: The foundation of professionalism

 Auditors and audit programme managers should perform their work ethically, in an honest
and responsible manner, and using their best judgement should:
 Undertake audit activities only if competent to do so
 Perform work in a fair and unbiased manner
 Remain sensitive to influences exerted upon their judgement while carrying out audits

2. Fair presentation: the obligation to report truthfully and accurately

 All audit findings, including documented evidence, conclusions and written reports should
reflect truthfully and accurately the activities of the audit.
 This includes any obstacles, disagreements with other auditors, or difficulties facedduring
the audit. Everything must be adequately documented.
 It goes without saying that all communication, not just documented and reported
information, should be truthful, timely, rational, clear, and complete.
3. Due professional care: Diligence and judgement in auditing

 Auditors should exercise due professional care in all tasks performed during the audit, in
accordance with the confidence placed in them by the auditee and in recognition of the
importance of the task they are performing.

 One of the most important requirements of this principle is that auditors have the ability
to make reasoned judgements in all situations during the audit.

4. Confidentiality: Security of information

 Auditors should respect the confidentiality of all information they‟re dealing with
throughout the audit.
 This means exercising due diligence in making sure all information acquired during the
course of their duties as auditors is respected and adequately protected.
 Making sure information is secure includes taking special precautions where necessary,
such as handling sensitive or confidential information.

5. Independence: Audit impartiality and objectivity

 Audits, by nature, should be independent of the activity being audited, to the furthest extent
possible. They should not interfere with the activity, nor should they hold any bias or
conflict of interest.
 If possible, internal audits should preferably be independent from the function being
audited.
  Key to all audits is the pursuit of objectivity via rational process, to make sure all findings
and results from the audit are based only on audit evidence.
 Smaller organizations may find it difficult to enlist truly independent auditors; as such
every effort should be made to eliminate bias and encourage the pursuit of rational
objectivity.

6. Evidence-based approach: Rational, reliable, reproducible results

 Evidence is one of the pillars of a successful audit, and the foundation of rational, reliable,
reproducible results.
 Audit evidence should be based on samples of available information, in acknowledgement
of the fact that audits are conducted within limited periods of time, with limited resources.

 Collection of audit evidence is based on a formalized process known as audit sampling.

 Setting clear sampling objectives
 Determining how much of, and what will be sampled
 Selecting a sampling method
 Deciding on a sample size
 Carrying out the sampling

 Documenting and reporting all results

7. Risk-based approach: Considering risks and opportunities

 Risk management is a substantial factor when planning for, conducting, and documenting
an audit.
 The goal of a risk-based approach is simply to orient the audits more clearly towards
matters that are important for audit clients and the achievement of audit objectives.
  Generally speaking, an ISO audit will consist of the following key elements, or stages:
 Audit management
 Audit preparation
 Audit process
 Gathering evidence

 Evaluation of audit evidence against audit criteria

 Closing the audit
 Following up

 Competence and evaluation of auditors

Audit management
 Audit management starts with the establishment of an audit programme. The purpose of
the audit programme is to oversee the whole audit process, including planning and scope,
which includes determining which management system (or systems) will be audited, and
the specific requirements.
  The full scope of the audit system will also depend on the size of the auditee (company
being audited), as well as the nature and complexity of the management system being
audited.

 During this stage, audit planning and preparations are made, including review of all
available documented information for the management system being audited, and
establishment of clear audit objectives and criteria.

 Work done under the banner of “audit management” goes on to inform and direct the
actions of the auditors during the main audit process.
 An important part of audit management is making sure the entire audit party has adequately
reviewed all documented information for the management system being audited.

Audit process
 “Audit process” might be a bit vague, but it basically means everything that goes into
actually conducting the audit, starting from making contact with the auditee to prepare or
request any documented information, and ending with conducting closing meetings and
distributing the completed audit report.

 One of the first things to be done is to determine audit feasibility.

 Working from the audit objectives established during the planning stage of audit
management, this basically asks “can we (the auditor) achieve the audit objectives, based
on time, resources, information, and cooperation with the auditee?”.
 The audit process also involves preparing a complete audit plan, preparing additional
documented information for the audit (like reference standards and documents to bring
with you during on-site evidence collection), preparing for and conducting opening
meetings, collecting audit evidence, evaluating evidence against audit criteria, and
preparing the final audit report.

 There‟s a lot that goes into the main audit process; the above points are just a brief
summary of key steps. The complete process, start-to-finish, is outlined in the free ISO
19011:2018 template that appears later on in the article.

Competence and evaluation of auditors

 The final component of the ISO 19011 standard is aimed at providing general guidelines
for making sure the auditors are competent to do their job.
 Ideally, competence should be evaluated on a regular basis using a process that takes into
account the behaviour and knowledge of each auditor.
 Such a process should also consider the specific needs, objectives, and considerations of
the audit program in question.
  As with all ISO standards, requirements and guidelines alike, the whole process of
evaluating auditor competence should be adequately documented, in order to maintain
consistency, and ensure fair and reliable results.

 The process for evaluating auditor competence has four main steps:
 Determine the level of competence required for the job

 Establish some criteria for evaluating competence

 Choose a method for evaluating competence
 Conduct the evaluation
 Following the evaluation, the results will contribute to the ongoing performance evaluation
of the auditors, and can be used to inform the following decisions:
 Selecting the audit team

 Determining whether there is a need for improved competence (e.g. more training)
 Competence and evaluation of auditors also feeds back into and supports the principle
of continuous improvement, allowing an audit team to maintain and improve competence
via recurring participation in audits.

ENVIRONMENTAL STATEMENT FORM-V (See rule 14)

Environmental Statement for the financial year ending with 31st March
PART-A
i. Name and address of the owner/ occupier of the industry operation or process.
ii. Industry category Primary-Secondary-

iii. Production category - Units.

iv. Year of establishment v. Date of the last environmental statement submitted.
PART -B
Water and Raw Material Consumption:
i. Water consumption in m3/d
Process :

Cooling :
Domestic :
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 PART – F
Please specify the characteristics (in terms of concentration and quantum) of hazardous as well
as solid wastes and indicate disposal practice adopted for both these categories of wastes.
PART-G
Impact of the pollution control measures taken on conservation of natural resources and
consequently on the cost of production.
PART – H
Additional measures/investment proposal for environmental protection including abatement of
pollution.
PART –I
MISCELLANEOUS: Any other particulars inrespect of environmental protection and abatement
of pollution.
 What is non conformance

 Non conformance (NC) is an ISO 9000 audit designation indicating the quality
management system or a portion of it does not meet the requirements established by ISO
9000.

 Non-conformance is a sign that something went wrong in a service, process, product or

in the system itself by not meeting a certain set of specifications. The existence of a non
conformance implies that some aspects of a company‟s standard operating procedures are
not being followed or they need to be modified or even updated.
 These deviations can be identified through internal and external audits, customer
complaints, material inspection or routine testing. A non-conformance report is then
prepared. The purpose of the report is to document the details of a deviation from
expectations.

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  The report helps define the problem in a clear, logical and concise way so that management
can take steps to implement changes. ISO 9001:2015 no longer requires a documented
procedure, but one must still keep records of the nonconformity and what was done to
correct it.

Here are ways to prevent or minimize non-conformance:

1. Management Review
 Management review is akin to getting your car serviced every year even when there are no
overt signs of problems.
 Management reviews are generally conducted once a year and present an opportunity to
review the company‟s existing quality policy as well as set new objectives for the rest of
the year. New objectives can be invaluable for minimizing non conformance.
 Product changes, new requirements, new processes, change management etc. are all
reviewed. The management review process can identify and correct any current
deficiencies before they might be revealed by an audit or incident.
Routinely reviewing the organization‟s process helps continuous improvement. A system should
be in place for implementing any resulting plans for improvement or corrective action and
verifying their effectiveness

2. Internal Audit

 An audit is simply another form of testing i.e. comparing things as they are to how they
ought to be. Internal Audits need to be scheduled at regular intervals to check whether the
quality system conforms to requirements and to ensure the system‟s efficacy.

 Unlike an external audit, all the processes need not be audited at the same. Internal audits
can be conducted as a series of smaller audits, with different processes audited at different
times.
 The frequency of audit can also be set depending on the process in question. With changing
internal and external dynamics, the criteria for the audit can be decided prior to the audit
rather than the planning stage.
 Any previous findings, past audit conclusions, and pre-defined questions all become
valuable data. Observations raised during internal audits could be classed as preventive
actions as they can suggest improvements within the system to prevent non-conformances
from occurring in the future.

3. Feedback

 While all customer complaints are recorded and must be actioned, customer feedback also
plays a role in minimizing non-conformance.

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  Feedback from customers helps to understand potential non-conformance issues and is an
opportunity for improvement. Customer suggestions may prevent any issues from being
raised in the future.

 Negative as well as positive feedback is valuable data. Spending time to analyze could help
spot trends and patterns.
 Feedbacks help to dig into the root cause of the issue which may not always be obvious
(else it would have been picked up in audit testing). Understanding the root cause can
help differentiate a temporary lapse from a process flaw

DUE DILIGENCE.
Due diligence is the investigation or exercise of care that a reasonable business or person is normally
expected to take before entering into an agreement or contract with another party or an act with a certain
standard of care.

 It can be a legal obligation, but the term will more commonly apply to voluntary investigations. A
common example of due diligence in various industries is the process through which a potential
acquirer evaluates a target company .

 The theory behind due diligence holds that performing this type of investigation contributes
significantly to informed decision making by enhancing the amount and quality of information
available to decision makers and by ensuring that this information is systematically used to
deliberate on the decision at hand and all its costs, benefits, and risks.

Example for due diligence Business transactions and corporate finance[edit]

 Due diligence takes different forms depending on its purpose:

 The examination of a potential target for merger, acquisition, privatization, or similar corporate
finance transaction normally by a buyer. (This can include self due diligence or “reverse due
diligence”, i.e. an assessment of a company, usually by a third party on behalf of the company,
prior to taking the company to market.)

 A reasonable investigation focusing on material future matters.

 An examination being achieved by asking certain key questions, including, how do we buy, how
do we structure an acquisition, and how much do we pay?

 An investigation of current practices of process and policies.

 An examination aiming to make an acquisition decision via the principles of valuation and
shareholder value analysis

COMPLIANCE AUDIT

 A compliance audit is a comprehensive review of an organization's adherence to regulatory

guidelines. Audit reports evaluate the strength and thoroughness of compliance preparations,
security policies, user access controls and risk management procedures over the course of a
compliance audit.

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 Internal vs. compliance audit

 Internal audits are carried out by employees of a company to gauge overall risks to compliance and
security and to determine whether the company is following internal guidelines.

 Internal audits occur throughout the fiscal year and reports can be used by management teams to
identify areas that require improvement. Internal audits measure company objectives against output
and strategic risks.

 External audits are formal compliance audits that are carried out by independent third parties and
follow a specific format that is determined based on the compliance regulation being assessed.
External audit reports measure if an organization is complying with state, federal or corporate
regulations, rules and standards.

What is a Waste Audit?

A waste audit is a physical analysis of waste composition to provide a detailed understanding of problems,
identify potential opportunities, and give you a detailed analysis of your waste composition. A waste
audit will help you clearly identify your waste generation to:

 Establish baseline or benchmark data.

 Characterise and quantify waste streams.

 Verify waste pathways.

 Identify waste diversion opportunities.

 Identify source reduction opportunities.

 Assess effectiveness and determine ways to improve efficiency of your current waste management
systems.

 Gain specific information for local government

 Obtain detailed data on waste generation.

PHASES OF WASTE MINIMIZATION PLANNING

Phase 1: Extensive uncontrolled dumping

 In many countries waste is dumped on uncontrolled tips; there is no properly managed waste
collection. At best, recyclable materials such as metals and plastics are collected by the informal
sector and re-enter the resource cycle through a number of stages.

 People live on the rubbish heaps in appalling conditions. Basic principles of urban hygiene and
environmental conservation are ignored. Rubbish is often used for heating and cooking with all the
negative consequences for human health.

Phase 2: Reliable collection and better landfill sites

 Introducing systematic, regulated and reliable collection and establishing properly managed
landfills comprises the first step in developing the waste management sector. Convenientlylocated
transfer stations facilitate cost-efficient transportation of waste.

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  It is crucial that collection is carried out efficiently since this is the most expensive element of waste
management. However, along with the sorting processes, it also offers the greatest employment
potential. It is important to identify the „right‟ collection system for each town or community and
its particular circumstances.

Phase 3: Separate collection and sorting

 Separating and collecting in several containers forms the basis of high-quality sorting and high-
grade recycling processes. Efficient purpose- built vehicles with compactors are introduced for
collecting the waste.

 The first optical separators make it possible to produce high-quality monofractions. A downstream,
secondary industry develops as the supply of inputs becomes reliable. Increasingly, the industry
adapts its processes to these materials. A significant number of jobs are created and waste
management becomes part of industrial policy.

 The sorting facilities contain mechanical separation stages, screens and separators and prepare
material for more efficient hand-picking. The first elements of a trading system emerge for
recyclable materials that meet industry demand and bring in revenue (such as metal, PET and
paper).

 Composting separately collected organic waste and extracting fractions with high-calorific value
to generate refuse-derived fuel (RDF) leads to the emergence of new products for which there is
increasingly a market.

Phase 4: Expanding the recycling industry

 Modern sorting facilities produce high-quality monofractions from separated waste; these are
prioritised for recycling. Processes to separate plastics and sort by colour are used.

 Compost and/or biogas are produced from organic waste in composting and fermentation plants.
Residual waste undergoes energy recovery in incinerators or is treated in mechanical-biological
treatment facilities (MBT).

MBT extracts recyclable materials, delivers high-calorific fractions for energy generation and controls the
decomposition of organic substances, which are mainly responsible for emissions from landfill sites – in
particular landfill gas and leachate. Waste-to-energy facilities and waste biomass CHP Combined Heat
and Power Plants replace primary fuels. This leads to a significant reduction in greenhouse gas emissions

Phase 5: The circular economy – waste as a resource

 In this phase waste is predominantly recycled or undergoes energy recovery; untreated household
waste no longer goes into landfill.

 The high recycling rates achieved result in a functioning circular economy. Only small amounts
of residual waste are landfilled and do not harm the environment. Preventing waste and taking a
life-cycle perspective are underlying principles in all production processes and many consumer
choices.

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 Module 4 continuation
Explain phases of Environmental Audit in industry or organization
There are three main Environmental Audit Stages or Phases:
 Pre-Audit
 Audit
 Post-Audit

Phase 1: The Pre-Audit

 Create the Audit Team, including a mixture of skills, talents and perspectives
 Create an Audit Plan
 Request and review documents, including:
o Permits or permit applications
o Production Records
o Reports
o Previous Audits including corrective actions and status of prior audit items
 Prepare a list of questions that regulators would ask, follow-up questions on prior audits, and
requests for additional materials needed
 Begin to fill-in the Disclosure of Violation Table as issues are identified

Phase 2: The Audit

 Set the ground rules
 Determine what happens which issues are identified
 Conduct daily meetings to keep every informed
 Perform a document review:
o Policies
o Compliance
o Training
o Air/Water/Waste/Noise controls, monitoring and records
o Emergency Response Procedures
o Response to Complaints
o Check documents for completeness, consistency, legal compliance, and whether it’s up to
date
 Conduct a Site Inspection
 Evaluate Operations for Compliance
 Take samples if needed
 Interview EHS personnel, operations, management, maintenance, to see if policies are understood
and consistently handled.
 Discover issues of concern
 Conduct a Closing Meeting listing and discussing of all issues, develop corrective actions for
each issue

Phase 3: Post-Audit
 Preparing the Environmental Audit Report and Disclosure of Violations form
 List confirmed issues and Areas of Concern
 List Action Items and required follow-up

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