ENVIRONMENTAL MANAGEMENT SYSTEM AND ENVIRONMENTAL AUDIT

PRESENTED BY, ANAND VISHNU B NAIR S3 MBA GIMS

INTRODUCTION

An Environmental Management System (EMS) is a set of processes and practices that enable an organization to reduce its environmental impacts and increase its operating efficiency.

WHAT IS EMS ?
An Environmental Management System (EMS) is a framework that helps a company achieve its environmental goals through consistent control of its operations. The assumption is that this increased control will improve the environmental performance of the company. The EMS itself does not dictate a level of environmental performance that must be achieved; each company's EMS is tailored to the company's business and goals.

BASIC ELEMENTS OF AN EMS ?

Reviewing the company's environmental goals Analyzing its environmental impacts and legal requirements Setting environmental objectives and targets to reduce environmental impacts and comply with legal requirements Establishing programs to meet these objectives and targets Monitoring and measuring progress in achieving the objectives

Ensuring employees' environmental awareness and competence

Reviewing progress of the EMS and making improvements

COSTS AND BENEFITS OF AN EMS

Potential Costs Potential Benefits

Improved environmental performance

Internal

Enhanced compliance
Pollution prevention Resource conservation New customers/markets Increased efficiency/reduced costs Enhanced employee morale Enhanced image with public, regulators, lenders, investors Employee awareness of environmental issues and responsibilities

Staff (manager) time

Other employee time

(Note: Internal labor costs represent the bulk of the EMS resources expended by most organizations) External

Potential consulting assistance Outside training of personnel

ISO 14001
The most commonly used framework for an EMS is the one developed by the International Organization for Standardization (ISO) for the ISO 14001 standard. Established in 1996, this framework is the official international standard for an EMS.

EMS UNDER ISO 14001

An EMS encourages a company to continuously improve its environmental performance. The system follows a repeating cycle (continuous improvement cycle). The company first commits to an environmental policy, then uses its policy as a basis for establishing a plan, which sets objectives and targets for improving environmental performance. The next step is implementation. After that, the company evaluates its environmental performance to see whether the objectives and targets are being met. If targets are not being met, corrective action is taken. The results of this evaluation are then reviewed by top management to see if the EMS is working. Management revisits the environmental policy and sets new targets in a revised plan. The company then implements the revised plan. The cycle repeats, and continuous improvement occurs.

CONTINOUS IMPROVEMENT CYCLE

conclusion
An environmental management system takes time and commitment from the entire organization. Effective running of an EMS will provide ongoing environmental benefits, cost savings and contribute to building an attractive work place culture.

ENVIRONMENTAL AUDIT

INTRODUCTION
Environmental audit is a general term that can reflect various types or evaluations intended to identify environmental compliance and management system implementation gaps, along with related corrective actions. In this way they performs similar function to financial audits.

Factors that lead to the development of environmental audit

Industrial accidents Regulatory developments Public awareness litigation

Industrial accidents
Major incidents such as the Bhopal, Chernobyl and Exxon-Valdez disasters have reminded companies that it is not sufficient to set corporate policies and standards on environmental health and safety matters without ensuring that they are being implemented. Audits can help reduce the risk of unpleasant surprises.

Regulatory developments
Since the early 1970s regulations on environmental topics have increased substantially. This has made it steadily more difficult for a company to ascertain whether a specific plant in a particular country is complying with all of the relevant legislation.

Public awareness
The public has become increasingly aware of, and vocal about, environmental and safety issues. Companies have had to demonstrate to the public that they are managing environmental risks effectively.

litigation
The growth of legislation has led to a corresponding explosion of litigation and liability claims, particularly in the United States. In Europe and elsewhere, there is growing emphasis on the responsibilities of individual directors and on making information available to the public.

definition
The ICC (international chambers of commerce) defines environmental auditing as: a management tool comprising a systematic, documented periodic and objective evaluation of how well environmental organization, management and equipment are performing, with the aim of helping safeguard the environment by: (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.

objectives
The overall objective of environmental auditing is to help safeguard the environment and minimize risks to human health. Clearly, auditing alone will not achieve this goal (hence the use of the word help); it is a management tool. The key objectives of an environmental audit therefore are to: 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.

benefits
Organizations understand how to meet their legal requirements and other requirements; Meeting specific statutory reporting requirements; Organizations can demonstrate they are environmentally responsible; Organizations can demonstrate they meet the requirements of their environmental policy; Understanding environmental interactions of products, services and activities, and managing environmental risks; Understanding how to develop and implement a more effective ISO 14001 EMS; and Organizations can understand how they can improve environmental performance and save money.

Different types of audits

compliance audit - the most common type of audit consisting of checks against environmental legislation and company policy; issues audit - an evaluation of how a company's activities relate to an environmental issue or (e.g. global pollution, energy use) or an evaluation of a specific issue (e.g. buildings, supplies); health and safety audit - an assessment of risks and contingency planning (sometimes merged with environmental auditing because of the interconnected impacts of industrial processes and hazards); site audit - an audit of a particular site to examine actual or potential environmental problems; corporate audit - an audit of the whole company and its polices, structures, procedures and practices; due diligence audit - an assessment of potential environmental and financial risks and liabilities carried out before a company merger or site acquisition or divestiture (e.g. contaminated land remediation costs); activity or operational audit - an assessment of activities that may cross company departments or units (e.g. energy or waste management) and product or life cycle audit - an analysis of environmental impacts of a product throughout all stages of its design, production, use and disposal, including its reuse and recycling (cradle to grave).

Three stages of environmental audit

Pre-audit stage full management commitment; setting overall goals, objectives, scope and priorities; selecting a team to ensure objectivity and professional competence; Audit stage on-site audit, well defined and systematic using protocols or checklists; review of documents and records; review of policies; interviews; site inspection; Post- audit stage evaluation of findings; reporting with recommendations; preparation of an action plan; follow-up.

conclusion
An environmental audit is useful for finding the areas of your business that impact the most on the environment. It is also an effective risk management tool for checking how effectively your business acts in accordance with environmental regulations. An environmental audit assesses the nature and extent of harm to the environment caused by the activities, waste or noise from your business. Use the audit as a tool to help you: assess how you can manage or improve the condition of the environment prioritise what actions you can take to reduce your impact on the environment demonstrate accountability to third parties such as government, customers and shareholders. Environmental audits must be independent, objective, credible and transparent in order to be successful. Audits should also be regular and ongoing, and conducted against a benchmark or initial assessment, generally detailed in your environmental plan.