8. Environmental Management and AuditIntroductionRemit 8.1 In its initial review of possible topics for consideration, the Round Table felt it important that at least one topic should be concerned with mechanisms for ensuring that sustainable development is put into practice. It identified environmental auditing, and the use of environmental management systems more generally, as a subject that raised important issues of accountability and disclosure, and which would show how far environmental appraisal was integrated into organisations' activities. The Round Table therefore decided to carry out a study into this topic, concentrating in particular on examining how far good practice in environmental management was being followed, and obstacles to the wider introduction of good practice. 8.2 Initial work was carried out by a subgroup drawn from a wide range of backgrounds, membership of which is shown at Annex C. 8.3 The group invited organisations from a variety of sectors (Government Departments, local authorities, commercial organisations and voluntary bodies) to complete and comment on a questionnaire describing their current arrangements for environmental management, the strengths of those systems and the problems they had encountered. The list of organisations consulted is at Appendix 8i. Environmental management 8.4 In the last few years, there has been increased interest in environmental management. The reasons for introducing environmental management systems include cost savings, taking advantage of marketing opportunities and reducing future environmental liabilities, as well as being seen to respond to public concern. 8.5 A good deal of advice has been published on the subject. A simple summary of the main steps to introduce an effective environmental management system is at Appendix 8ii. 8.6 There have recently been two developments which help to provide organisations with a systematic framework for assessing their environmental performance:
8.7 Participation in both schemes is voluntary. BS 7750 is open to all sectors and to the whole organisation or to units within an organisation. EMAS is primarily a registration scheme for industrial and manufacturing sites, although it has also been extended, in the UK, to local authorities. Current PracticeThe overall picture 8.8 The responses to the questionnaire supported the general view of Round Table members that organisations are at very different stages in terms of understanding how to apply environmental systems. In each sector, some organisations have a much greater appreciation than others both of the problems and the potential solutions. But even those who are furthest advanced tend to be at the stage of assessing relatively informally individual environmental impacts (such as volumes of waste produced) rather than having in place audited systems covering the full range of the organisation's activities. Sectoral differences 8.9 Some obvious differences emerge in the scope and motivation for environmental assessment between sectors. Public sector bodies such as Government Departments and local authorities are often responsible for setting the policy framework within which others must operate. Taking environmental factors properly into account when doing so (for example in devising a Structure Plan) is conceptually challenging, and requires a high degree of coordination between different parts of the organisation. 8.10 Attempts are being made to tackle such problems. Local authorities, for example, have been encouraged to adopt a "Local Agenda 21" for their community by 1996. They are also advised to carry out environmental assessments for development plans. In effect, this means defining sustainable development strategies at local level, focusing on initiatives that they can influence through their statutory powers and responsibilities. For Government Departments, a booklet "A Guide to Policy Appraisal and the Environment" was published in 1991, followed by "Environmental Appraisal in Government Departments" in 1994. 8.11 The Round Table's conclusion is however that there is still a long way to go - particularly for Government Departments - in bringing together systematically the results of the various initiatives that organisations have been recommended to pursue, and having targets against which to measure achievements. 8.12 Business interest in environmental systems is driven mainly by image and cost. Those who have done most work tend to be those who have most to lose - manufacturing companies whose environmental impacts are large both in volume and geographical extent. Among the large firms who responded to our questionnaire, the obstacles identified to taking environmental assessment further included a lack of information about wider impacts, the need for agreed standards (internationally as well as in the UK), and that little is known about Life Cycle Analysis without which it is very difficult to assess whether a particular product or process meets the requirements of sustainable development. 8.13 Smaller companies in the manufacturing sector are likely to be less well-equipped to take advantage by implementing improvements to their systems, and may often see less urgency in doing so. Pressure (and assistance) from further down the supply chain may be necessary in their case. Such collaboration - for example between vehicle manufacturers and component suppliers - may also make it easier to assess environmental impacts over the whole of a product's life. All organisations (including public sector bodies) can also have an impact through their procurement decisions. 8.14 The financial sector has particular scope for encouraging improvements in environmental management through the policies it adopts in terms of (for example) lending or insurance, and the risk premium required for firms who cannot demonstrate sound environmental practices. We support the work that the Advisory Committee on Business and the Environment (ACBE) has been doing to generate increased interest in this area. 8.15 "Green housekeeping", in matters such as energy efficiency and recycling, is an issue for every kind of organisation. Improving energy efficiency, minimising waste, and recycling materials wherever possible will produce cost savings, often for very little outlay. These are areas where good practice is relatively straightforward to identify and to implement, and - although there is still scope to do more - a good deal of action is being taken. Environmental education 8.16 One of the main drivers for improved environmental management will be public expectations. Organisations also find it easier to obtain support for improvements in environmental performance if their employees (at all levels) have a good general understanding of environmental issues. The Round Table was concerned to be told, in the course of its work, that General National Vocational Qualifications (GNVQs) do not include anything on sustainable development as a concept, and take only limited account of specific initiatives (such as BS 7750). The requirements of better environmental management are additional reasons for giving a higher priority to environmental education. Conclusions8.17 In the course of its work on this topic, it became clear to the Round Table that there is at present a good deal of activity on various aspects of environmental management. This may be partly in anticipation of the new system of environmental regulation that will begin in April 1996 as well as recent initiatives such as BS 7750 and EMAS. 8.18 The Round Table proposes to see how the various initiatives currently in hand develop, before deciding whether to carry out a further review of progress later in 1996. 8.19 At this stage, the Round Table's specific recommendations are as follows.
Appendix 8i Organisations ConsultedThe subgroup invited the organisations listed below to complete a questionnaire, and also to offer comments on it.
Appendix 8ii Ten point environmental plan*
* From A DIY Environmental Review for Companies - Business in the Environment/Coopers & Lybrand 1994.    Published 31 March 1999 Go to DETR Sustainable Development Index Go to British Government Panel on Sustainable Development Go to DETR Home Page |