Businesses have become increasingly aware of environmental implications on their operations, products, and services. Environmental risks may have serious consequences for the prospects of a company, with particular financial consequences such as clean up costs or fines if a company fails to meet regulations. Environmental sensitive industries such as oil companies, waste management, or chemical industries are especially jeopardised.
Various pressure groups, such as the public, investors, customers, employees, media, or business partners are interested in the environmental activities of a company. Greater attention is paid to the way the company manages and improves its environmental performance. In some countries, such as Sweden, Denmark, and the Netherlands, there exists a complex and strong legislation regarding environmental behaviour. Companies are required to meet certain conditions to continue their operations and various standards have been developed in order to compensate for the lack of legislation in other countries. These standards are for example the British Standard for Environmental Management in the UK, ISO 14001 from the International Standards Organisation, or the European Union’s Eco- Management and Audit Scheme. These standards demand the establishment of an environmental management system, which is a framework of environmental objectives within which a company has to operate, and include the compliance of environmental regulations and statutes.
Internal environmental audits have to be carried out to ensure the effectiveness of the environmental management system. These help to estimate the risk of environmental impacts, to prevent pollution, to allocate the source of pollution or to quantify liability accruals for known environmental issues. External environmental audits are required to validate reports being published and the information found during the internal audit.
a far-reaching knowledge and sufficient competence. But some environmental issues are too complex and only professionals, such as engineers for example, can deal with them.
The environmental audit becomes an essential and vital component of the environmental management profession. The demand for skilled auditors has been risen, but a professional body of environmental auditors to ensure the competence of an environmental auditor does not exist. Various approaches to tackle these circumstances have been made.
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Table of Contents
1. EXECUTIVE SUMMARY
Objectives and Topics
The primary objective of this assignment is to analyze the necessity of environmental behavior and the role of various pressure groups in shaping it. Furthermore, the paper investigates the regulatory frameworks and audit requirements for environmental protection in Scandinavian countries compared to the UK, while examining the implications for auditor expertise and professional standards.
- Environmental impacts and corporate risks
- Role of stakeholders and pressure groups
- Comparative analysis of environmental legislation
- Environmental management systems and standards
- Audit procedures and auditor qualifications
Excerpt from the Book
EXECUTIVE SUMMARY
Businesses have become increasingly aware of environmental implications on their operations, products, and services. Environmental risks may have serious consequences for the prospects of a company, with particular financial consequences such as clean up costs or fines if a company fails to meet regulations. Environmental sensitive industries such as oil companies, waste management, or chemical industries are especially jeopardised.
Various pressure groups, such as the public, investors, customers, employees, media, or business partners are interested in the environmental activities of a company. Greater attention is paid to the way the company manages and improves its environmental performance. In some countries, such as Sweden, Denmark, and the Netherlands, there exists a complex and strong legislation regarding environmental behaviour. Companies are required to meet certain conditions to continue their operations and various standards have been developed in order to compensate for the lack of legislation in other countries.
Summary of Chapters
EXECUTIVE SUMMARY: This chapter provides an overview of environmental risks for businesses, the influence of stakeholders, the necessity of strong environmental legislation, and the growing demand for professional environmental auditing.
Keywords
Environmental Auditing, Corporate Governance, Stakeholders, Environmental Legislation, Sustainability, ISO 14001, EMAS, Environmental Risk, Auditor Competence, Internal Audit, External Audit, Environmental Management System, Environmental Regulation, Financial Consequences, Reporting Standards.
Frequently Asked Questions
What is the core focus of this assignment?
The assignment explores the critical intersection between business operations, environmental responsibility, and the evolving field of environmental auditing, particularly in Europe.
Which thematic areas are centrally addressed?
Key topics include environmental legislation across different nations, the impact of stakeholder pressure, the implementation of management standards like ISO 14001, and the professional requirements for auditors.
What is the primary objective of this research?
The work aims to explain why environmental behavior is essential for modern companies and to compare how regulatory approaches and audit requirements differ between Scandinavia and the United Kingdom.
Which scientific methods or approaches are utilized?
The research employs a comparative analysis of legislative frameworks and evaluates professional standards and guidelines established by international bodies like the IFAC and the IAASB.
What content is covered in the main body of the text?
The text covers the definition and types of environmental audits, the role of internal and external auditors, and the specific challenges regarding auditor qualifications and certification.
Which keywords best characterize this work?
Core terms include environmental auditing, environmental legislation, sustainable development, environmental management systems, and auditor competence.
How do Scandinavian countries differ from the UK regarding environmental regulation?
The paper highlights that Scandinavian countries possess complex and strong mandatory legislation, whereas the UK has historically relied more on voluntary approaches and market-driven standards.
What is the significance of the "Green Revolution" mentioned in the text?
It describes the shift in corporate attitudes and stakeholder demands towards greater transparency and responsibility regarding the environmental impact of business activities.
Why is there a demand for specialized environmental auditors?
Due to the increasing complexity of environmental issues and the financial risks associated with non-compliance, there is a recognized need for professionals who possess both auditing expertise and technical environmental knowledge.
- Arbeit zitieren
- Isabell Keil (Autor:in), 2003, Environmental Auditing, München, GRIN Verlag, https://www.grin.com/document/28895
