Environmental Auditing and Improvement

11 December 2004

Clement LiSenior Consultant

Hong Kong Productivity CouncilTel: 2788 5615; Fax: 2788 5608;

Email: clementl@hkpc.org; website: www.hkpc.org

ContentsContentsIntroduction to AuditingIntroduction to AuditingEnvironmental Management System (EMS) Auditing Environmental Management System (EMS) Auditing ProceduresProceduresImportance of Innovative ThinkingImportance of Innovative ThinkingBenefits and OpportunitiesBenefits and Opportunities

Introduction to AuditingIntroduction to Auditing

AUDIT CHARACTERISTICSAUDIT CHARACTERISTICS

SystematicSystematicDocumentedDocumentedObjectiveObjectivePeriodicPeriodic

TYPES OF TYPES OF ENVIRONMENTAL AUDITENVIRONMENTAL AUDIT

Follow the same principles & techniques Follow the same principles & techniques but with a different focusbut with a different focus

PrePre--acquisitionacquisitionComplianceComplianceSingle IssueSingle IssueSupplierSupplierInsuranceInsuranceEMS Audit (Self audit or Third Party EMS Audit (Self audit or Third Party Certification Audit)Certification Audit)

ISO 19011ISO 19011Guidelines for AuditingGuidelines for Auditing

Audit Procedures Audit Procedures -- Auditing of Environmental Auditing of Environmental Management Systems and Quality Management SystemManagement Systems and Quality Management System

Purpose: Purpose: Establishes procedures for planning and Establishes procedures for planning and performing a QMS and EMS Audit performing a QMS and EMS Audit -- to to determine conformance with the QMS and determine conformance with the QMS and EMS audit criteria.EMS audit criteria.

ResponsibilitiesResponsibilities

AuditingAuditing

––Auditor, Audit TeamAuditor, Audit Team––Client, AuditeeClient, Auditee

––Scope, Document ReviewScope, Document Review––Preparation, ExecutionPreparation, Execution––ReportingReporting

EMS Audit Procedures

EMS Audit - BASIC STEPS

Select TeamSelect Team

FamiliariseFamiliarise

PlanningPlanning

Opening Opening MeetingMeeting

DocumentDocumentReviewReview

InterviewsInterviews

SiteSiteObservationObservation

AssessAssess& Verify& Verify

Closing Closing MeetingMeeting

Draft Draft ReportReport

Phase IIPhase II

Final Final ReportReport

Pre Audit Preparation Conducting the Audit Post Audit

DEFINE THE SCOPE &OBJECTIVESScope: defines the elements to be included

specific parts of a sitespecific productsspecific parts of a companyspecific elements of an EMS

According to the EMS Audit Programme

PREPARATION OF AN EMS AUDIT SCHEDULE

Frequency based on the nature and importance of the operation in terms of environmental aspects and potential impacts

Previous audit results

PREPARATION OF AN EMS AUDIT PROGRAMME

Location - orientedaudit actions resulting from EACH element of the EMS at ONE particular location

Function - orientedaudit activities related to ONE particular element of the EMS at ALL locations

PREPARATION OF CHECKLISTConsistent with the purpose, objectives and scope of the auditBased on the auditing criteria (e.g. ISO 14001 Requirements, Procedures, WIs, Legislation, etc.)Adequate coverage and depthNo universal style and formatPrevious audit resultsGeneric vs Specific

AN EXAMPLE OF CHECKLISTAudit Areas Topics Document

ReviewedComplianc

e SatusObs

Objectives/Targets/ManagementProgrammes

• Check progress againstmanagement programmes

• Check that department headsunderstand objectives andtargets

• Check that the progress is beingadequately reviewed

• Check that assigned taskes arebeing completed

• Interview managers to check thatthey are aware of and understandtheir responsibilities in the EMPs

• Check that all new criterias areadequately addressed byoperation controls or O&T

• Check that new objectives andtargets have been set when oldones have been completed

AUDIT PLANA clear plan is needed for the audit which defines:

date & locationsaudit objectives and scopeaudit methodology, procedureinterview requirementsidentification of high priority areasidentification of audit team membersidentification of reference documentstime and duration of major activitiesschedule of meetingsconfidentiality requirementsreport format/structuredocument retention requirementsaudit language

OPENING MEETINGIntroduce members of audit team to auditee’s managementReview scope, objectives, audit planProvide summary of methods and proceduresConfirm availability of resources

Use of Audit ChecklistBased on company’s EMS Documentation Provides guidance and document referenceAlways refer to the relevant EMS documentation for the detailed requirementsRequires understanding of ISO 14001 principlesFollow audit trailCheck documents/records - Readiness & Appropriateness

DOCUMENT REVIEWYou may need to review a sample of available evidence. For example:

field log sheet / site operation datamonitoring measuring resultscommunication recordscomplaints lognon-conformance reportsinspection recordsdrill records

Sampling Method

INTERVIEWWhy?

Accumulate dataStimulate interviewees interestGet individual participationDetermine interviewees knowledge and understanding Training, Awareness and

CompetenceFacilitate conclusions

SITE OBSERVATIONMay include:materials handlingstoragewaste handlingodoursenvironmental noisewastagehousekeeping

Depending on the audit scope, objectives, programme/plan

evidence of contaminationlack of vegetationdrains and gulliestanks and bundslabels and signs

WORKING PAPERSVisual observationsNames of intervieweesInformation gathered through interviewsDocuments reviewedSummary of contents of documents reviewedDescription and results of tests/sampling performed to evaluate site conformance with environmental standards

DEVELOP AUDIT FINDINGSDEVELOP AUDIT FINDINGS

Audit findings need to be developed Audit findings need to be developed in the context of the audit criteriain the context of the audit criteria– ISO 14001 Standard– Corporate/Site EMS Manual– Procedures and Work Instructions– Legislative Requirements

How??

THE CLOSING MEETINGAt the end of the audit, the close out meeting will provide a forum to:

present findings & observationsdiscuss any contentious issuesresolve disagreements (final decisions fall on the lead auditor)confirm format of the final reportdiscuss any recommendationsagree a timetable for issue of any supplementary information

INTERNAL EMS

AUDIT

ReportingAt a minimum the report should contain:

identification of the organization/area auditedreference to auditees representativesaudit team, dateagreed objectives, scopeagreed criteria against which the audit is to be conductedsummary of audit process, any problems encounteredaudit findings audit conclusions

Conformance to audit criteriasystem properly maintained and implementedinput into internal management review process

COMMON PITFALLSPoorPoor

Spill containment provisions on the Spill containment provisions on the loading dock may lead to a dangerous loading dock may lead to a dangerous situationsituation

ImprovedImprovedThe loading dock does not have spill The loading dock does not have spill containment measures to prevent, containment measures to prevent, spills from potentially reaching the spills from potentially reaching the stormsewer, during loading/unloading stormsewer, during loading/unloading operationsoperations

Importance of Innovative Thinking

Attribute Listingbreakdown a problem to its most basic attributes - list of ideas can be developed to address improvement of each elements by reducing the problems into a collection of interrelated, smaller and more manageable elements, it is possible to improve the whole bysimply changing one or more of the attributese.g. a retailer wants to reduce plastic bag consumption

Feature Attribute IdeasMaterial Plastics Recycled plastics or paperThickness 2 mm less than 2 mmSize Standard Different sizesDistribution Every customer Ask customers if they require a bagCost Fee to customers Charge customer per bagReturn Nil Purchase discount for returned bags

Escape Thinkinguseful for organisations looking to redesign work processidentify patterns and impose categories on things and situationsbased on pre-conceived ideas, thereby limiting lateral thinkinge.g. create a new sales concept for a record store

One assumption on the list might be: record shops sell rods.

Using Escape Thinking technique, the assumption statement is turned into aprovocation statement such as: record shops do NOT sell records.

This is the straight point for looking at a record shop in a new way.

It might lead on an idea like displaying/suggesting different song recordingswhich can be purchased and downloaded onto customer’ personal computerso personal data assistants.

Benefits and Opportunities

Examples of Potential Benefits & Opportunities

Scope for Housekeeping Savings:Electricity 5 – 20%Solid waste 10 – 50%Consumables 10 - 30%

Reduced insurance premiums

A photocopier left on all night usesenough electricity to produce over 5,000 A4 copies

Example from Metro City Management Limited

problem: to clean artifical fountains, channels, aqueducts and pools - discharge all the water and replaced with fresh watersolution: develped a Mobile Aqueous Cleaner (MAC) (consist of a water pump, a sand filtration tank, a control panel, a suction paper and scapers mounted on wheels) to filter the water

Environmental Attribute Without MAC With MACMaterial Efficiency Contained water is pumped out and disposed

of. Fresh water is cleaned and pumped inContained water remainsthroughout the cleaning process

Energy Efficiency Energy is used to pump in /out water. Freshwater is filtered

Energy is used ot pump waterthroughout the filter

Function and ServiceExtension

Water is not recycled Water is recycled

Environmentally SensitiveResource Conservation

More fresh water supply via watertreatment works

Less fresh water supply via watertreatment works

Environmental Pollution Cost Minimal MinimalEnvironmental Risk andLiability

Minimal Minimal

Thank you