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environmental compliance audit

What is an Environmental Compliance Audit? A Complete Guide

An environmental compliance audit measures how well your organization adheres to Local, State or Federal environmental laws, regulations, and internal policies.  The audit typically covers areas such as waste management, air, waste water & storm water quality as well as hazardous material handling. 

During an audit, environmental safety experts assess records, inspect facilities, and interview personnel to identify any violations or risks. If issues are found, the audit outlines corrective actions to bring the organization into compliance. 

These audits provide a number of benefits. They help organizations:

  • Avoid legal penalties
  • Reduce negative environmental impacts
  • Demonstrate corporate responsibility 
  • Promote sustainable practices 

In short, environmental compliance audits support sustainable and continuous improvement in how well your organization’s stewardship of the environment. You should also consider that rules and regulations for environmental compliance are always changing. 

Read on to learn how to stay on top of regulations and how experts at CDMS can help.

What is an Environmental Compliance Audit?

An environmental compliance audit is an independent systematic review that aims to assess how well your organization adheres to applicable state or federal environmental laws, regulations, and internal policies. 

The goal of an audit is to ensure that the operations, processes and systems, and facilities of your company comply with environmental standards meant to protect the natural environment and human health. 

An “Environmental Compliance Audit” is one of two types of environmental audit. The other type of audit is the “Environmental Management Audit.” What’s the difference? 

A compliance audit is more common and comprehensive and focuses on your company’s legal compliance status and is usually an external audit. On the other hand, management audits are internal audits implemented by management to assess how well they are meeting their own standards for environmental performance.

Importance of Doing an Environmental Compliance Audit

Environmental compliance audits can help you determine where your company is at in terms of how well it follows EHS laws and regulations. More than that, it can help identify areas where you have strength and areas where more improvement is required 

This type of evaluation will equip you with the information required to allocate resources where they are needed to improve your EHS audit score for environmental compliance. Here is a brief list of the benefits of an environmental compliance audit: 

  • It helps to safeguard the environment
  • It determines whether or not you’re complying with local and national laws
  • It can help catch critical current or future problems and environmental impacts
  • It evaluates training programs to provide information for future environmental training programs
  • Helps to improve your company’s environmental performance 
  • It can serve as proof that your company is committed to protecting the environment and by extension the public

Environmental compliance audits show that your company is a responsible stakeholder that understands the role it should play in keeping the environment safe. Also, your first audits serve as a basis for future audits to determine whether or not your company is making any progress. 

Who Conducts an Environmental Compliance Audit?

Who carries out an environmental compliance audit depends on the type of audit being conducted. Environmental compliance audits can be carried out either internally or externally. If it’s done internally, then it can be carried out by experts within the organization, who then report back to the managers. 

If an audit is carried out externally, then that would make it an independent audit. Independent audits are carried out by external third parties. An independent third-party audit may be preferable for several reasons.

Independent auditors may have more objectivity. Also, you may save time and cost as in-house editors may have to put their other tasks on hold while doing an internal audit.

Process of Conducting an Environmental Compliance Audit

The major steps in conducting the audit include deciding the scope and goals of the audit, carrying out the audit, and implementing its recommendations. Let’s take a look at all the steps that a properly done audit would involve.

Step 1: Choose an Auditor

Whether or not you decide the audit to be internal or external, you should choose the person (if it’s internal) or the third-party service (if it’s external).

Step 2: Decide the Scope and Objectives of the Audit

This would involve deciding how wide-ranging the audit will be. For example, will it include only one plant or all the plants operated by the company? Will it be an internal audit or an external one? 

Step 3: Decide the Date

Decide with the auditor what date would be the most appropriate for the assessment. 

Step 4: Inform all Employees of the Audit

Let employees know the date of the audit and that the auditor may have to ask some of them questions. 

Step 5: Conduct the Audit

The audit should be implemented on the chosen date without any interference that will affect the results. 

Step 6: Implement Feedback and Recommendations

All feedback and recommendations should be implemented to improve environmental performance in the future.

Compliance With the ISO 14001 Standards

ISO 14001 Standards are international standards that specify the requirements for effective environmental management systems (EMS). An EMS can be described as processes and systems put in place to ensure the protection of the environment.

In an ISO 14001-based audit, auditors assess whether the organization’s EMS meets the standard’s requirements, such as identifying and addressing environmental aspects, setting objectives for improvement, and ensuring compliance with legal and other obligations. 

The audit reviews procedures, practices, and records to ensure that the EMS is properly implemented and effective in managing environmental risks. The process involves several components, such as:

  • Gap analysis
  • Documentation review
  • Site inspections
  • Staff interviews

Just like with any other external audit, areas for improvement are identified and recommendations are made. By following ISO 14001, organizations ensure compliance according to the highest international standards. External auditors who follow that standard are recommended. 

Just think of it this way. If you can meet ISO 14001 standards, you don’t have to worry about meeting state or local standards. 

Conclusion

Environmental compliance audits provide you with the chance to determine how well your organization performs in terms of protecting the environment. It doesn’t just end with the audit. Take advantage of the audit to know what your weak points are and what your strengths are. This knowledge can help you decide where resources can be allocated to make the necessary improvements and to improve your performance. 

It is recommended that you rely on external audits by independent third parties, as these are more objective and efficient. Lastly, auditors are aware of and capable of enforcing  ISO 14001 standards, as these standards ensure that you even surpass local and state requirements. 

CDMS also offers environmental compliance audits. Get in touch with one of our experts for assistance.