Tools for Sustainability

Well being of future generations.

Voluntary standards by institutions, industries and products.
Beyond profit motive, rules and regulations must be followed.
 What is Environmental Management
System(EMS)
A set of methods and procedures for aligning
corporate strategies, policies and operations with
principles that protect ecosystems.

International Organization for

standardization(ISO)14001

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 The aim of EMS
to increase compliance and reduce waste

Compliance
the act of reaching and maintaining minimal legal
standards

Reduce Waste
to reduce environmental impact

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 In September 1996, Standardization published the
first edition of ISO 14001, the EMS standard.

describing specific requirements for an EMS.

A second edition of ISO 14001 was published in 2004

the dominant environmental management system in

the world.
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EMS Model or PDCA Cycle

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 EMS Model or PDCA Cycle
Act Plan
Policy

Act Planning

Implement
Checking ation &
Check Operation Do

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PLAN
Identify Environmental Aspects
E.g. air pollutants
Determine most important to company
E.g. worker health & safety
Legal and Other Requirements
Objectives and Targets
E.g. Objectives – Overall Goal, e.g. minimize use
Target – Detailed, Quantified, e.g. minimize by 10% by specific date
Management Actions to Support Objectives and Targets

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DO
Structure
Training, Awareness
Communication
EMS Documentation
Document Control
Operational Control
Emergency Preparedness and Response

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Check
Monitoring and Measurement
Nonconformance, Corrective and Preventative Action
Records

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ACT
EMS Audits
Management Review
This final review stage creates a loop of continuous improvement for
a company

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Environmental Management System
(EMS)
Air Pollution Control Programs

Water Pollution Control Programs

Waste Management Programs

Workplace Environmental Health Programs

Other Environmental Program
Management
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 General Benefits Of An EMS
 Drives Sustained Performance
 Set targets to reduce energy use, water use & waste to landfill
 Achieve cost savings
 Easier compliance
 Pollution prevention
 Increased efficiency
 Improved morale

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 Environmental Improvement Plan
CO2 emissions
Electricity use
Vehicle emissions
Storage and use of oil
Use of diesel, petrol and gas
Discharges to drains
Water
Storage and use of timber treatment chemicals
Purchase and sale of products, particularly timber.
Action Lists and Responsibilities
 Observing all relevant legislation
 Seeking to prevent pollution
 Looking for ways to make continuous improvements

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Internal and External Communication
 A successful EMS depends on good communication.
 Based on everyone taking responsibility for Environmental Management
 Every employee has seen a training video
 Internal newsletter
 Environmental Policy is displayed in all work areas
 Display boards and training materials

Example
Waste
DO DON’T
Keep hazardous waste separate from Leave empty chemical containers in the
general waste open
Break down boxes before putting in the Put oil or oil contaminated waste in the
waste containers general waste container

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 Costs and Benefits of EMS
The benefits are achieved through a number of cost
reductions.
nature and the environment in general are also clear winners

its business processes have been redesigned using the formula

shown.

Prevent Reduce Reuse Recover

Waste Waste Waste Waste

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Components of LCA
Merits of LCA
• LCA provides the possibility to identify hotspots in the environmental
impact
• it provides insight in how to improve processes to achieve reduced
environmental effects
• LCA is based on internationally accepted standards.
• It is widely recognized as the best approach to quantify the
environmental impacts of a product.
Demerits of LCA
• LCA also has limitations that sometimes lead to skepticism about LCA
results
• LCA studies depend on assumptions and scenarios, as LCA assesses
the real world in a simplified model
• The assumptions, scenarios and scope may vary from one study to the
other.
Case Studies
• Life Cycle Assessment of the existing and proposed plastic waste
management options in India: A case study
https://doi.org/10.1016/j.jclepro.2018.11.236
What is Environment Audit?
Defined as performance, compliance or financial audit addressing the
approach taken by responsible bodies (e.g. government) to a specific
environmental problem, or environmental policies, or programmes, as
well as their performance in managing environmental issues.

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 Environment Audit

Are the right things being

done?

Are things done in a right way?

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Organizations for Environmental
Governance - Overview

Global Treaties

Regional Agreements

Organizations for Environmental

Governance in India
Government of India and State
Governments and Local Governments
Private Sector NGOs

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 Environmental Audit
Primarily there are three types
mandate
Nodal Ministry of the
of organizations and Central Government for
institutions which are subject the planning, promotion, Environmental aspects in all
co-ordination and other executive functions of
to audit: overseeing the the Government e.g.
a) Those whose operations implementation of Industry, Mines, Energy, etc.
India’s environmental
directly or indirectly affect
the environment;
and forestry policies and
programmes. MoEFCC Others
positively or negatively.
b) Those with powers to
make or influence
environment policy
formulation and MNRE No
d
regulation; G o a l Mi
for vernm nistry
c) Those with powers to to n all ma ent o of the
ew tter f Ind
monitor and control the and s re
ren latin
ia
ene ew g
environmental actions of rgy
.
abl
e
others.

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Standards and Guidelines for
Environmental Audits

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 International Standards for
Supreme Audit Institutions (ISSAI)
framework
Level Subject ISSAI No
1. Founding Principles Lima Declaration 1

2. Prerequisites for Independence 10-40

functioning of SAIs Transparency and Accountability
Ethics, Quality

3. Fundamental Auditing General, Field and Reporting Standards 100-400

Principles

4. Auditing Guidelines Financial Audit Guidelines 1000-2999

Performance Audit Guidelines 3000-3999 (3)
Compliance Audit Guidelines 4000-4999 (1)

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 Background- ISSAIs for Environmental
Audit
XIVth INCOSAI (Congress of INTOSAI) (Washington, October 1992) - strong interest
was shown in the roles and activities of SAIs in issues of environmental auditing.
Formation of a Working Group on Environmental Auditing (WGEA) was initiated
and approved by the Congress. WGEA aims to improve the use of audit mandate
and audit instruments in the field of environmental protection policies by SAIs.

XVth INCOSAI in Cairo 1995: Using INTOSAI Auditing Standards as a basis, the
INTOSAI WGEA to develop a guide containing guidelines and methodologies for the
conduct of environmental audits.

XVIth INCOSAI in Montevideo 1998, an exposure draft of the guide was presented.

At its 47th meeting in Seoul, October 2000, the INTOSAI Governing Board agreed to
make the booklet an official INTOSAI-document and subsequently it was presented
to the XVIIth INCOSAI in Seoul, October 2001.

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INTOSAI Guidance on Conducting
Audits of Activities with an
Environmental Perspective
Purpose of this guide:

• Provide SAIs with a basis for understanding the nature of

environmental auditing as it has so far developed in the governmental
sphere.
• Provide sound starting point to create an approach of its own within
each SAI’s jurisdiction and mandate.

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INTOSAI Guidance on Conducting
Audits of Activities with an
Environmental Perspective
3 sections in the guide:
• Application of the INTOSAI Auditing Standards to EAs.
• Offer practical assistance in developing methods and practices for EAs
especially PAs, through examples.
• Suggest an approach to establish the technical criteria to be used as
the benchmarks for an EA.

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 ISSAIs for Environmental
Audit
ISSAI Title Review

ISSAI 5110 Guidance on conducting audits of activities with an

environmental perspective.
Used for Performance Audits

ISSAI 5120 Environmental audit and regularity auditing To be

reviewed at
Used for Compliance Audits & Financial Audits least every
five years.
ISSAI 5130 Sustainable development: the role of supreme audit institutions

ISSAI 5140 How SAIs may co-operate on the audit of international

environmental accords

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ISSAI 5110: Guidance on conducting
audit of activities with an
environmental perspective

Developed by the INTOSAI Working Group on Environmental Auditing

(WGEA).

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Environmental Auditing in the context of
Financial and Compliance Audits (ISSAI 5120)
• Special guidelines in ISSAI 5120 – possibilities for conducting audits with
environmental focus using financial or compliance framework.
• No need for special mandate
• Four issues covered in the standard:
• Nature of EA and characteristics of FA, CA, PA
• Purpose, objectives and approaches to FA / CA
• Specific methods and techniques considering risks, audit criteria, substantive
procedures etc.
• Governmental reporting on Environmental and Sustainability Issues
• Compliance auditing with regard to environmental issues may relate to
providing assurance that governmental activities are conducted in
accordance with relevant environmental laws, standards and policies,
both at national and international (where relevant) levels.
• Compliance can also be part of Performance Audits (5110)

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 Nature of EA in context of FA
• The objective of an audit of financial statements is to enable the auditor to
express an opinion on whether the financial statements are prepared, in all
material respects, in accordance with an identified financial reporting
framework.
• Material respects can be directly linked to environmental costs,
obligations, impacts, and outcomes. The audit of financial statements
requires the auditor to consider environmental regulations as part of the
audit, and in particular environmental issues and matters if they have
material effect on the financial statements.
• Issues that may arise in FA:
• initiatives to prevent, abate or remedy damage to the environment;
• the conservation of renewable and non-renewable resources;
• the consequences of violating environmental laws and regulations; and
• the consequences of vicarious liability- one is responsible for others wrong-
doing eg. Company has to pay penalty for pollution caused by subsidiary

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 FA and Environment

• Information can be material even if it is not presented in

monetary terms.
• Environmental liabilities as well as ‘Assets’ providing
ecosystem services. This idea stresses that bodies are
accountable not only to their shareholders but also to
society for the stewardship of the natural environment.
• Financial accounting systems are not designed to take into
account the risks associated with the biodiversity and
ecosystem services. The degradation of these services,
however, poses serious risks to societies and their
economies and therefore the potential for increased costs.
• Cash Vs Accrual Accounting and Environmental Issues-e.g.
contingent liabilities and provisions, additional disclosures
etc. 45
Compliance Audit with
Environmental Perspective
• This type of environmental audit can:
• promote compliance or provide increased assurance
about compliance with existing and impending
environmental policy and legislation;
• reduce the risks and costs associated with non-
compliance with regulations;
• save costs by minimising waste and preventing pollution;
and
• identify liabilities and risks.

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 Dealing with Environment Issues in FA and CA

• Obtain Knowledge of environment Matters – external experts,

focus groups, evaluate the sector as some are more exposed to
env. risks e.g. mining, chemicals, oil and gas etc.
• Assess inherent risks, Internal Control (IC) systems and Control
environment – Normal IC or separate IC sub-system like EMS
(Environment Management System) in high risk entities
• Audit Criteria (FA) - Laws and Regulations, International
Agreements, Binding standards, Contracts and Policy directives,
EIA Reports
• Audit Criteria (CA) – Laws (national / supranational
/international), Binding standards, Contracts, Policy directives etc.
• Performing substantive procedures – systems / controls for
collection of special funds and their use eg. Dedicated escrow
accounts
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 ISSAI 5130: Role of SAIs in
Sustainable Development
• It explain the concept of Sustainable Development (SD) i.e.
intergenerational equity. It also assesses the role that SAIs might play in
auditing national progress towards sustainable development, It
comprises four parts
• It defines SD as development that reconciles social, economic and
environmental objectives (three objectives). It provides an overview of how the
concept of sustainable development may be reflected in the strategies, policies
and operations of governments and individual agencies, and how it affects SAIs.
• Explains how governments have set about developing frameworks and
national strategies for pursuing SD objectives, and considers the opportunities
these might offer to SAIs for review.
• Examines how the concept of SD has been applied to individual policies or
programs, and the role played by SAIs in auditing how well this has been done.
• Considers the steps SAIs may need to take to develop their ability to undertake
audits in the field of SD. 48
 ISSAI 5140: How SAIs may
cooperate on the Audit of
International Environmental Accords
• Trans boundary nature of environmental issues i.e.
environmental degradation crosses national
boundaries which are manmade e.g. Loss of Coastal
habitats in Mediterranean Sea
• Growing importance of international agreements
• Common resources – Protected Areas, Rivers
• Role of INTOSAI as ‘brokers’ in Co-operative Audits
• Planning, implementation, reporting and evaluating
• Joint, concurrent and co-ordinated audits and their
advantages, disadvantages 49
Guidance on conducting Environment Audit-8th
ASOSAI (Asian Organization of SAIs) Research
Project
• Approved in 37th meeting of the Governing Board of ASOSAI held at Shanghai, China on 15th Sep
2006
• AIM: Guide ASOSAI member nations in initiating and facilitating conduct of compliance and
performance audits of environment in a more detailed manner, since ASOSAI member nations are
at a nascent stage in EA
• Financial Audit of environment issues has been kept out of the scope of this guidance.
• Contents:
1. Flags basic issues for audit enquiry that auditors need to examine before drawing audit conclusions
2. Detailed checklists of issues to be seen while conducting PA and CA in the areas of waste
management, air pollution, water pollution and biodiversity.
3. Database of gist of EAs already conducted by some ASOSAI members highlighting many critical
environmental issues specific to ASOSAI region.
 Member of this Research Project: India (RG Vishwanathan Sir-Team Lead and Nameeta Prasad
Madam); China, Malaysia, Pakistan and Saudi Arabia
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 IA&AD’s Environment and Climate Change-
Auditing Guidelines
• Dated 30th August 2010
• Need:
 Public Auditors’ increasing role in the evaluation of Governments’ efforts in conservation
and protection of the environment
 Increase in fund allocation for environmental programmes
 Expanding horizon of this highly technical and specialized area
 Enable more effective Environment Audits, especially at the state level
 Basis:
 Draws from IA&AD’s experience of carrying out EAs embracing a diverse issues
 Incorporates good practices in Environment Auditing worldwide such as INTOSAI
publications, research papers, etc.
• For general guidance, can be suitably customized as required
• Focuses on the 3 types of audit- Performance, Compliance and Financial as they apply to
environmental issues
• Covers areas of environment-related activities such as Waste Management, Climate Change
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etc. giving detailed guidelines to plan and conduct such audits
IA&AD’s Environment and Climate
Change- Auditing Guidelines
The Manual has been drafted in two sections.
SECTION: I INTRODUCTION TO AUDIT OF ENVIRONMENT AND CLIMATE CHANGE
• Gives general and comprehensive information on major issues related to environment and climate
change.
• Includes references to the national and international efforts being made to arrest the trend of
environmental degradation.
• Contains guidelines on planning and execution of Environmental Audits, along with checklists and
questionnaires to assist in these processes.
SECTION: II DETAILED GUIDELINES FOR THE AUDIT OF ENVIRONMENT AND CLIMATE CHANGE
• Provides detailed audit guidelines and questionnaires on selected areas of audit like Biological Diversity
including forests and forest management, wetlands, mangroves etc., Air Pollution, Water Pollution, Waste
Management, Climate Change and Coastal Zone Management.
• These may, need to be customized and supplemented with additional materials, specially state level
initiatives like acts/programmes/schemes and information at the audit planning stage through
independent research on the selected topic.
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Manual of Standing Orders (Audit)-
Chapter on Environment Audit
Enumerates:
• Environment Audit objectives and scope
• Audit Approach- EA within ambit of the Financial, Compliance and
Performance Audit frameworks
• Environmental Governance in India-Laws and Organizations i.e.
MoEFCC, CPCB etc. explained
• Briefs on Issues for Audit Scrutiny e.g. Environmental Impact
Assessment, etc.
Updated in 2020.

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Manual of Audit for Scientific Departments/
Organizations - O/o DGA ESD Manual
 AIM
• Scientific departments have complex arrangements to achieve organizational
goals - Thus to increase familiarity with scientific terms & practices.
• Interlinkages between the research programmes and organizations to be
understood for increasing 3 Es of ever-rising investment in scientific
departments
 Mainly for compliance audits.
 Each Ministry and Department under audit jurisdiction of O/o DGA ESD has
been covered.
 Being updated by Kolkata Branch Office of O/o DGA ESD.

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 Standard Operating Procedure for
conduct of audits relating to
environment
• International Centre for Environment Audit and Sustainable
Development (iCED), Jaipur is the research and knowledge centre for
Environment Audit and Sustainable Development.
• O/o CAG in Strategic Management Unit letter no. 1214-A/SMU/41-
2019 dated 2nd Dec 2019 issued Standard Operating Procedure for
conduct of audits relating to environment.
• iCED and the Field Audit Offices (FAOs) i.e. O/o DGA ESD for Central
Government Budget and State Audit Offices for respective State
Budgets work together.

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Standard Operating Procedure for
conduct of audits relating to
environment
Risk Analysis and Selection of EA Topics
iCED in collaboration with O/o DGA ESD carries out a periodic risk assessment
exercise of the policies and areas in EA and Sustainable Development.
Supported by FAOs and functional wings at O/o CAG.
Risk Assessment Committee co-chaired by Dy CAG (RC) and Dy CAG (HR) and
other HoD level officers lead the exercise.
iCED is co-lead auditor in All India Audits and in other audit assignments,
extent of iCED’s involvement is envisaged
Shelf of topics for next 2 FYs decided and in Annual Workshop 2 year rolling
plan is made.
Engagement of experts by the FAOs or through iCED enumerated.
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Standard Operating Procedure for
conduct of audits relating to
environment
Audit Plans
 Audit Offices will incorporate audit topics as per the 2 year rolling plan in
their Annual Audit Plan, explaining deviation if any.
 Strategic Management Unit obtains and communicates approval of the
CAG for the AAP.
Audit Planning and Execution
 Lead Audit Offices prepare Guidelines/Audit Design Matrix/Audit
Questions for audits planned. Functional Wing at Hqr. approves.
 iCED extends support by holding workshops, mid and end-term reviews,
engaging experts and providing inputs and domain knowledge.
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Standard Operating Procedure for
conduct of audits relating to
environment
Audit Reporting
 DG (iCED) participates in end term conferences with lead audit office and FAOs.
SOP applicable from FY 2020-21.
Timelines for each stage defined in SOP.
Review and Monitoring of SOP
 iCED submits note on functioning of the SOP to the Senior Management
 Annual review of SOP by Senior Management based on feedback from
functional wings and iCED
 Concerned wing i.e. RC wing or functional wings of concerned state audit offices
can request Training Wing and iCED for training to cover existing skill gaps.

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What is bio mimicking in sustainable
engineering?
• Biomimicry is a technological-oriented approach focused on putting
nature's lessons into practice.
• It studies nature's models and imitates them or uses them as
inspiration for designs or processes with the goal of solving human
problems to achieve sustainable development.
• Biomimicry concerns many sectors of human activity. From medicine to
research, industry, economy, architecture and urban planning,
agriculture and management… This list is not exhaustive because
biomimicry is, above all, a question of how we approach these areas of
expertise. Therefore, it may apply more or less directly to all sectors
The concept of biomimicry is based on a key idea: nature always operates on the

principles of economy and efficiency while generating no waste. Remember the

sayings “nothing is lost, nothing is created, everything is transformed”? That’s the

idea. No matter the field of application, the biomimetic philosophy is part of a

global strategy of responsible and sustainable development that aims to balance

the way the planet’s resources are used