How Environmental Audit Works
An environmental audit is a structured and rigorous assessment that evaluates either the suitability of land for its current or proposed use—particularly from a contamination perspective—or an organisation’s overall environmental management practices. These audits help identify potential environmental harm, assess compliance with regulations, and provide recommendations for improving sustainability efforts.
An environmental compliance audit is often required as part of planning decisions, such as Development Approvals or Planning Permits issued by local councils, particularly when land contamination is a concern. Audits may also be undertaken voluntarily to ensure organisations meet regulatory obligations and improve environmental performance.
At Douglas Partners, our Certified Environmental Practitioners (Contaminated Sites) conduct comprehensive audits to assess environmental management practices and verify compliance with regulatory requirements. With expertise in contaminated site assessments, regulatory compliance, and management plan evaluations, we help clients mitigate risks, ensure environmental compliance, and promote responsible land use.
Here are three types of environmental audits commonly used across different markets in Australia:
1. Contaminated site audit
This type of audit evaluates the environmental conditions of a site to determine whether it is suitable for a particular use or development. The conditions under which they are conducted are governed by EPA regulations in each State and Territory and environmental auditors are required to abide by guidelines issued by the EPA.
A contaminated land audit involves a thorough examination of the site’s history, identifying potential sources of contamination, and current environmental conditions, including air, soil, and water quality. They are commonly used in the context of property transactions, such as when a new owner wishes to purchase or lease a site for development or use. They are also required by regulatory bodies when a site is being decommissioned, a new development planned, or when a change of land use is proposed.
These audits are relevant to a range of industries, including real estate, construction, and land development. They are also important in industries that involve potentially hazardous materials, such as manufacturing, mining, waste management and transportation. The result of conducting a site assessment audit is the production of a thorough report that provides extensive information on the environmental conditions of the site. This report includes an evaluation of potential risks, recommendations for remediation or management measures, and often assesses the suitability of the site for its current or intended purpose. The report may also include recommendations for ongoing environmental monitoring or management.
2. Compliance audit
Most often, this type of audit assesses a business’ compliance with environmental regulations, laws, and standards. It ensures that the business is meeting all legal requirements and can identify potential non-compliance issues. It can also be used to ensure that various regulatory and other controls (such as environmental management plans required as part of Planning approvals). This type of audit is commonly used in industries that can have a high impact on the environment, such as mining, oil and gas, waste management and manufacturing. They are also sometimes required in building and property development project approvals.
3. Environmental management system audit
This audit evaluates the effectiveness of an organisation’s environmental management system (EMS), including its policies, procedures, and performance.
A management system audit evaluates a business’ environmental management system (EMS) to ensure that it is effective and meets the intended objectives. It can identify areas for improvement and provide recommendations for optimising the EMS. This type of audit is commonly used in industries that are focused on sustainable development, such as renewable energy and eco-tourism.
These types of audits collectively contribute to sustainable business practices, responsible land use, and the protection of our natural resources. By undergoing these audits, businesses not only meet compliance requirements but also gain valuable insights into their environmental impact and potential areas for improvement.
Environmental audits are indispensable tools for promoting sustainable development and responsible environmental stewardship.
Environmental Compliance Audit: Ensuring Regulatory Standards
An environmental compliance audit assesses whether a business is operating within environmental laws, state regulations (eg. EPA) and industry best practices.These audits are conducted across various industries, particularly in construction, mining, waste management, and manufacturing, to evaluate key areas such as waste management practices, pollution control measures, environmental permits, and compliance with environmental management plans.
Failure to meet compliance requirements can lead to regulatory penalties, legal consequences, and project delays, making proactive environmental management essential. Through an environmental compliance audit, businesses can identify non-compliance risks, implement corrective actions, and enhance their environmental responsibility.
Rather than a one-time process, audits should be part of a continuous environmental management strategy (EMS).
Environmental Audit Process and Plan
The environmental auditing process follows a systematic approach to evaluate an organisation’s environmental management practices and identify areas for improvement. A comprehensive environmental compliance audit involves several key steps:
- Planning the Environmental Audit – Defining objectives, scope, and regulatory requirements conducted internally or by independent environmental consultants to ensure compliance with government regulations.Site Inspections & Assessment – Conducting on-site evaluations to review operations, contamination status, and adherence to environmental laws.
- Data Collection & Audit Checklists – Gathering evidence through audit checklists, reports, and site conditions to assess environmental performance.
- Audit Reporting – Summarising findings, compliance status, and areas requiring corrective action.
- Corrective Measures & Monitoring – Implementing improvements based on the audit statement and ensuring ongoing compliance.
By following this structured environmental audit process, businesses can strengthen their environmental management systems, reduce environmental harm, and maintain compliance with regulatory standards.
