Environmental Auditing
Environmental Auditing in modern-day businesses are being incorporated to increase environmental awareness, sustainability, regulatory compliance, stakeholder expectations, and compulsory compliance for Corporate Social Responsibility(CSR) activities which is mandated by the Companies Act, 2013.
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Understanding Environmental Audit
An environmental audit is a processed, systematic and continuous assessment of the activities of an organisation to assess their impact on the environment as well as their performance environmental impact and performance in the conduct of their business. An environmental audit determines if a company has complied with the environmental law and met the environmental objective. Doing the environmental audit can improve the image of the company in the public eye and it might impress investors in case the company is trying to attract investors. The Government makes this compliance compulsory through international agreements. The body who is in charge of the auditing , which comes under the Supreme Audit Institution(SAI) is the Comproler and Auditor General(CAG) of India.The audit carried out by CAG falls under the three categories like: financial, compliance and performance audits.
Environmental Audit
Purpose of Environmental Audit
Now, we will be discussing the purpose for which the environmental audit would be serving the companies
1. This helps the government to determine, how well the company has complied with all the applicable laws and regulations, by this the government can figure out how many companies are respectful towards their decisions.
2. Helps in the smooth decision-making process, and it helps the company to be aware of the environmental consequences of a particular decision it decides to take.
3. Proper assessment and measuring sticks of company work, help. Promotes the betterment of environmental health and helps the U.N in achieving their sustainable development goals.
4. Contributes to providing negative and positive aspects of a project the company is undergoing.
5. Helps in giving the general public a better understanding of the ongoing development and projects.
6. Helps in preserving the natural environment and directs the company towards making use of the natural resources more responsibly.
7. Upholding the public trust.
Areas of Environmental Audit
The following are the areas of environmental audit
Material Audit : Checks on the diverse usage of raw materials, the usage of assets, the cost per unit, details of the product, wastage and preservation of the materials, capacity and material waste all these things are checked and considered
Vitality Audit: This is meant to check upon the vitality factor of the business, vitality factors include innovation, adaptability, financial status, consumer behaviour, use of technology the updates and the changes related to these
Water Audit:In this the usage of water is determined- the amount, the various sources as well as the purpose. How water is brought into any kind of use into the company, where water is used where the water flows and the channel is made and the end consequence it has caused to the environment.
Human Resources:This is done for the employees and the workers at various levels of the company. Starting from the workers, it is checked if they are in a hazardous environment and what precautionary measures have been taken to protect them and minimise the risk of them getting affected by the hazardous environment.
Natural Quality Audit:Maintaining the quality of everything done at every stage of the development of the product used is important, for the audit as well as the consumer who are associated with them.
Designing Audit:Use of innovation in the industry that helps in development in different ways rather than the old traditional methods. Checking on the use of innovation in an industry helps in creation of morden business methodology, if that includes usage of less natural resources or help it anyway, that is a huge bonus point on the assessment results.
Trash Audit: This evaluates the amount of trash, wastage of material that the company generates in a given period of time.
Consistency Audit: They constitute a part of the overall audit evaluation process, this is conducted as per the guidelines, procedure and the policies that are very industry specific.
Process of Environmental Audit
The steps that are involved in the environemntal audits are:
1. Describing the business and the industry of the business
2. Audit the place of business,
3. Employees/Staff opinions and interviews
4. Fomalities and procedure of the audit as directed
5. Inspection of the business
6. Arrangements made for the business projects to be carried out.
Phases
The environmental audit is done in three phases:
Phase 1: Pre-Audit Phase
1. Assemble the audit team which constitutes of the capable and skilled members
2. A plan for conducting the audit is prepared
3. Obtain all the necessary permissions and obtain all the previous records
4. List of the inquiries related to the business also needs to be prepared.
Phase 2: Audit Phase
1. Establishing of the evaluation method and the criteria for conducting the audit
2. Documentation of the steps taken and the audits conducted
3.Review of - policies, training, work environment as well as the risk management of the company.
4.Inspection of the place of conducting the business 5.Checking proper compliainces are applied, implemented.
Phase 3: Post-Audit:
1. Analysis problems in case of any, the organisation faces in case of compliance
2. Advice on the closing note of the assesment or evaluation conducted.
3. Helps the company in finding solution to improve their audit assessment in case of poor evaluation results.
Benefits of Environmental Audit
1. A proper and strucutured tool or statergy to evaluate the companys use of natural resources
2. Provides framework for various functioning of the company.
3. Gives a positive viewpoint of the company, of their natural usage of their environmental resources.
4. Helps the compnaies in giving back to the society by making them aware of the usage of the natural resources for conducting their business.
5. Companies get the opportunity to contribute to the U.N sustainability goals
6. Creates a good public image of the company, when the audit evaluations are good.
How does Register Karo Help ?
RegisterKaro has been a one-stop solution for assisting in conducting environmental audits for the varied ranges of benefits such as:
Pool of Experts: RegisterKaro holds a large pool of Experts from all over the world specializing in conducting environmental audit services. Our team of experts makes sure that your work is taken care of in the most effective manner possible.
Cost-effective: RegisterKaro environmental audit assessment services are of premium quality at the most efficient rate, which suits the client's pocket, making sure that quality service is not the only thing the client gains on our platform.
Client-oriented approach: Our team of experts is well-trained and equipped with a client-oriented approach, keeping in mind that the process must be client-centric, focusing on meeting all the requirements of their business and, therefore, satisfying their needs.
Process Alteration: For the fact that we focus on a Client-centric approach, we keep our process structurization open for the client to alter it as per their need, requirements, and vision. For us, obtaining the best results is the focus, along with the Client satisfaction.
Trusted partner of 10000+ Clients:RegisterKaro has earned the trust of more than 10000+ clients who have availed our SSI registration services. Their trust in us from a term in continuity is proof of our services backed by quality and assurance.
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FAQs
What is environmental auditing?
The systematic and formal procedure for evaluation and asssing a company’s use of natural resources and sutainable development and compliance of the environmental laws.
Why is environmental auditing important for businesses?
Environmental auduting is important for a business for various reasons to understand and comply with the environmental regulation, improve efficiency of the usage of natural resources and demonstrate commitment to the usage of natural resources and assist the United Nation in achieving the goals of sustainable development.
What are the key components of an environmental audit?
An environmental audit generally involves assesing the legal compliance with the regulations set by the government and fairly and property passing the assessment test, conduction of inspections in the work space and analysing any issues in case of any issues in compliance or with the assessment.
Who conducts environmental audits for businesses?
Environmental audit for businesses is conducted by, internal saff, external member who may be appointed by the government , or auditors who have knowledge of the compliance and the regulations, it is always advisable to seek professional help to assist in case of environmental audits so as to make the process faster and smooth.
What is the role of ISO 14001 in conducting environmental audits?
ISO 14001 is an international standard for environmental management systems. It provides a framework for organizations to establish, implement, maintain, and continually improve their environmental performance. Compliance with ISO 14001 principles is often a focus of environmental audits.
Difference between compliance and performance auditing?
Compliance auditing involves, the orgnaisation compliance with the environmental laws, whereas performance auditng involves the organsiation’s effecting management system related to the environment as well as initiatives related to sustainable development.
How often should an organization conduct audits?
The frequency of an organisation conducting audits depends on the size of the organsation, industry it is functioning in, as well as the regulatory requirements. Generally, environmental audit is conducted annually by some organsaition annually whereas some conduct rarely or once in a while.