The Application of Environmental Auditing Techniques to Cities and Regions

The Application of Environmental Auditing Techniques to Cities and Regions by Michael Frisch B.A. Economics Earlham College, 1983 Submitted to the Department of Urban Studies and Planning in Partial Fulfillment of the requirements for the Degree of Master of City Planning, Environmental Policy and Planning at the Massachusetts Institute of Technology June 1996 @ Michael Frisch, 1996, All rights reserved The author hereby grants MIT permission to reproduce and to distribute publicly paper and electronic copies of this thesis document in whole or in part. Signature of Author.................. Michael Frisch Department of Urban Studies and Planning May 23, 1996 Certified by.... Lawrence Susskind Ford Professor of Urban and Environmental Planning Department of Urban Studies and Planning Thesis Advisor Accepted by........................ J. Mark Schuster Associate Professor of Urban Studies and Planning i,4ssu-iSLrr; [ 4 U L Chair, Masters in City Planning Program OF TFECHNOLOGY JUL 0 2 1996 LIBRARIES 6 THE APPLICATION OF ENVIRONMENTAL AUDITING TECHNIQUES TO CITIES AND REGIONS by Michael Frisch Submitted to the Department of Urban Studies and Planning on May 23, 1996 in partial fulfillment of the requirements for the Degree of Master of City Planning ABSTRACT Environmental auditing is an evaluation technique often used in the private sector to increase compliance with environmental laws, identify operational liabilities, reduce costs, and review environmental management systems. Cities and regions perform many environmental management functions. They might also benefit from environmental audits. This study examines how environmental auditing techniques developed in the private sector might be applied in the public sector. The development of environmental auditing practice is reviewed via two case studies of auditing practice. International auditing standards are discussed. Environmental auditing is shown to be an emerging discipline. Through interviews with practitioners and a review of the literature, elements of successful auditing practice are identified. Environmental auditing in the public sector is less developed than the practice in the private sector. Two case studies of public sector audits are reviewed against the elements of successful audits previously identified. This study finds that there are fewer motivations to audit in the public sector. Cost reduction is the primary motive for cities and towns. I make nine recommendations for environmental audit implementation in cities and regions. Thesis Supervisor: Lawrence Susskind Title: Ford Professor of Environmental and Urban Planning Department of Urban Studies and Planning Table of Contents ABSTRACT ............................................................................................................................ ....... ------------.......... 2 A CK NO W LEDGM ENTS.................................................................................................................................... 6 CHAPTER 1: INTRODUCTION TO ENVIRONMENTAL AUDITING ......................................................... 7 INTRODUCTION ....................................................................................................................----. ---..-...................... 7 . ......... ......... ......... ......... .. .. .. .......... ........ ... W HAT Is ENVIRONMENTAL AUDITING7...................................... .. 7 Reactive Environmental Audits .......................................................................................................................... 8 Proactive EnvironmentalA udits......................................................................................................................... 8 The ICC D efnition........................................................................................................................................... 10 The EPA 's D efinition ....................................................................................................................................... 10 The ISO D efinition ........................................................................................................................................... 10 THE BENEFITS OF ENVIRONMENTAL AUDITING...................................................................................................... 12 ......... ......... ................. W HY SHOULD CITIES AND REGIONS PERFORM ENVIRONMENTAL AUDITS?.......................... 13 CHAPTER 2. THE RISE OF ENVIRONMENTAL AUDITING IN THE PRIVATE SECTOR......... 17 THE RISE OF ENVIRONMENTAL AUDITING-THE CASE OF ARTHUR D. LITTLE (DIBERTO, 1996)......... ............. 17 THE PRACTICE OF ENVIRONMENTAL AUDITING IN THE PRIVATE SECTOR. ........ ....................... ................ 18 AN INTERNATIONAL AUDITING PRACTICE-THE CASE OF ERM (WOOLARD, 1996)................................................. 19 THE RISE OF ENVIRONMENTAL AUDITING STANDARDS ........................................................................................... 20 US Sta n da rd s ................................................................................................................................................... 2 0 CanadianStandards......................................................................................................................................... 21 British Standards............................................................................................................................................. 21 Other Countries ............................................................................................................................................... 22 The European Union Standards: Eco-Management and Audit Scheme (EMAS).................................. ..... 22 The ISO 14000 Standards................................................................................................................................. 22 A DEVELOPING DISCIPLINE OF ENVIRONMENTAL AUDITING.................................................................................... 23 THE CONTROVERSY OVER SHIELDING OF ENVIRONMENTAL AUDITS ...................................................................... 23 The Responsible Corporate Officer Doctrine................................................................................................. 24 Du e Dilig e n ce ? ................................................................................................................................................ 2 4 Audit Shielding Laws........................................................................................................................................ 25 CHAPTER 3: WHAT IS A SUCCESSFUL ENVIRONMENTAL AUDIT?................................................... 26 ENVIRONMENTAL AUDITING AT POLAROID (BORGHESANI, 1996) ............................................. 26 ENVIRONMENTAL AUDITING AT RAYTHEON (M ARINO, 1996) .............................................................................. 27 THE STRUCTURE OF SUCCESSFUL ENVIRONMENTAL AUDITS................................................................................. 28 Stage One: Preparingto Conduct an EnvironmentalAudit ........................................................................... 29 Stage Two: Conducting the A udit..................................................................................................................... 31 Stage Three: Reporting the Results of the Audit ............................................................................................. 33 AUDITING AS A PART OF A SUCCESSFUL ENVIRONMENTAL MANAGEMENT PROGRAM............................................. 35 The Tone of the A udit- A Case of a FailedAuditing Program....................................................................... 35 Top M anagement Support ................................................................................................................................ 36 Communication in Auditing Situations ............................................................................................................. 36 Commitment to EnvironmentalM anagement at the Audited Site ............................... ................................. 37 The Independence of the Auditing Function ................................................................................................... 37 Summary of Findingsabout Successful Audit Practice.................................................................................. 39 CHAPTER 4. THE EMERGING PUBLIC SECTOR ENVIRONMENTAL AUDITING PRACTICE........ 40 THE DEVELOPING PUBLIC SECTOR AUDITING PRACTICE ................. ............ ..................................................... 40 CASE ONE - LANCASH IRE- A GREEN AUDIT.......................................................................................................... 43 1. The Context of the Audit............................................................................................................................... 43 2. EnvironmentalAudit Objectives...........................................................................................................-----.. 44 3. How the Audit Was Conducted..................................................................................................................... 45 4. W hat Did the Audit Find? ......................................................................................................................---.. 47 5. What HappenedAfter

Load more