Concept and significance of environmental management (environmental audit)
Environmental management refers to the entirety of all organizational and technical measures in companies, institutions, or public entities that ensure, control, and continuously improve the environmental compatibility of business processes. The environmental audit (English: Environmental Audit) is a central tool in this context, which also fulfills legally established requirements and is employed as part of a systematic environmental management system.
Legal basis of environmental management in Germany and the EU
Environmental law framework conditions
Environmental management, and in particular the environmental audit, are regulated by a multitude of laws, ordinances, and European directives. Key provisions exist under German environmental law, but also at the European level through the EU Eco-Management and Audit Regulation (EMAS Regulation, Regulation (EC) No. 1221/2009), as well as in connection with the environmental management system under DIN EN ISO 14001.
EMAS Regulation (Eco-Management and Audit Scheme)
The EU Eco-Management and Audit Regulation, abbreviated as EMAS (Eco Management and Audit Scheme), is the central legal framework for voluntary systematic environmental management and environmental audit within the European Union. Key aspects:
- Legal nature: EMAS is an EU regulation that applies directly in all member states. It enables organizations to implement an environmental management system, to be environmentally audited by an approved environmental verifier, and to be listed in the EMAS register.
- Obligations for participants: Review and assessment of all environmentally relevant activities, publication of an environmental statement, regular repeat audits, and continuous improvement of environmental performance.
- Legal certainty: As part of an EMAS validation, compliance with environmental legal requirements is reviewed, providing legal protection for the company.
DIN EN ISO 14001 and legal requirements
The international standard DIN EN ISO 14001 outlines requirements for an environmental management system but is not legally mandatory. Companies choose voluntarily whether to become certified according to this standard. Nevertheless, ISO 14001 contains numerous references to legal requirements:
- Identification and compliance with environmental regulations: Obligation to determine and comply with relevant laws and regulations.
- Systematic documentation: Evidence of compliance with legal provisions must be demonstrated through appropriate documentation.
- Binding nature through contractual reference: In official requirements, funding conditions, or supply contracts, proof of an ISO 14001-compliant environmental management system may be required.
Other relevant laws and regulations
Other key regulations related to environmental management and environmental audit include:
- Federal Immission Control Act (BImSchG)
- Federal Soil Protection Act (BBodSchG)
- Closed Substance Cycle Waste Management Act (KrWG)
- Water Resources Act (WHG)
- Chemicals Act (ChemG)
- REACH Regulation (EC) No. 1907/2006
In addition, there are state- or industry-specific standards and requirements.
Procedure, content, and significance of the environmental audit
Procedure of the environmental audit
The environmental audit is a systematic, documented, and periodic process by which an organization evaluates compliance with legal and voluntary obligations as well as the effectiveness of its environmental management system.
Typical steps:
- Audit planning
Defining the scope of the audit, identifying relevant environmental aspects and legal requirements.
- Conducting the on-site inspection
Reviewing business processes, machinery, facilities, and the legal environmental status on site.
- Analysis and assessment of compliance
Comparison between the actual state and legal requirements as well as the requirements of the environmental management system.
- Reporting and action planning
Preparation of an environmental audit report, determination of corrective and improvement actions.
Contents of the environmental audit
- Identification of all relevant environmental legal obligations (e.g., from emissions, waste, water, or hazardous substance law)
- Assessment of compliance with these obligations within business operations
- Review of organizational arrangements for compliance with deadlines, obligations, and responsibilities
- Documentation and communication of audit results to management/supervisory bodies
Significance of the environmental audit within the legal framework
The environmental audit is a key tool for legally compliant corporate governance regarding environmental protection and is one of the essential building blocks of effective legal compliance in the environmental field. Its purposes include:
- Reducing liability risks for management and employees,
- Avoiding fines and penalties due to environmental violations,
- Implementing official requirements and provisions efficiently,
- Facilitating permitting procedures (e.g., through recognition of EMAS or ISO standard certifications),
- Improving transparency and credibility with authorities, clients, and the public.
Duties and rights in connection with environmental management and environmental audit
Obligations of companies and organizations
Although environmental management systems are generally voluntary in Germany, operators of certain facilities and companies have concrete legal environmental obligations, including those under:
- Federal Immission Control Act (BImSchG), including verification obligations for self-monitoring (§ 52a BImSchG),
- Operator duties under the Closed Substance Cycle Waste Management Act in the area of waste,
- Water protection under the Water Resources Act,
- Hazardous substance management under the Chemicals Act and relevant ordinances.
Within the scope of EMAS or ISO 14001, companies voluntarily commit to conducting comprehensive environmental audits on a regular basis and to document their results in a verifiable manner.
Rights and audit powers of authorities
Environmental authorities are authorized to carry out controls and monitoring regarding compliance with environmental legal requirements. An EMAS-validated or ISO 14001-certified environmental management system may be positively taken into account in official enforcement, such as through simplified permitting processes or reduced inspection frequency.
Sanctions and liability for lack of or inadequate environmental management
If a company does not meet or insufficiently meets environmental legal requirements, the following consequences may occur:
- Administrative offenses (fines)
- Criminal consequences (e.g., environmental offenses under § 324ff. German Criminal Code [StGB])
- Administrative measures (orders, shutdowns, requirements)
- Civil liability for damage to the environment or third parties
A functioning environmental management system with regular environmental auditing can demonstrably help prevent or reduce such risks and demonstrate the duty of care of company management in accordance with § 130 OWiG (organizational obligations).
Future relevance and development of environmental management
Due to tighter environmental legislation, rising societal expectations, and international markets, environmental management is becoming increasingly important. The environmental audit is a central element of modern corporate management, contributing not only to the fulfillment of ecological, but also legal and economic requirements.
Summary
Environmental management (in particular the environmental audit) is a key component of systematic environmental protection in companies and public institutions. It is comprehensively regulated by law—from international and European standards to national laws and ordinances. Proper performance of the environmental audit provides legal certainty, reduces liability risks, and sustainably improves environmental performance. Companies are strongly advised to establish environmental management systems and environmental audits as an integral part of their corporate responsibility.
Frequently Asked Questions
What legal requirements must be observed as part of an environmental audit?
Within the framework of an environmental audit, companies must take into account a variety of legal requirements stemming from various legal sources. In particular, the Federal Immission Control Act (BImSchG), the Closed Substance Cycle Waste Management Act (KrWG), the Water Resources Act (WHG), and the Ordinance on Emission Declarations (11th BImSchV) are of central importance. These laws require companies to comply with certain emission limits, document environmentally relevant activities and material flows, possess the necessary permits for facilities, and regularly check compliance. In addition, there are requirements from labor law and hazardous substance law (e.g., Chemicals Act, Hazardous Substances Ordinance), which require measures for hazard prevention. Furthermore, compliance with EU directives, such as the Industrial Emissions Directive (IED), must be considered if they have been transposed into national law. During the environmental audit, it is essential that all relevant environmental regulations and official requirements are thoroughly monitored and any deficiencies promptly rectified, as violations can entail significant liability risks and fines.
How is the documentation obligation for an environmental audit legally structured?
Companies are required in the course of the environmental audit to comprehensively and transparently document all environmentally relevant processes. The obligation to document arises from various environmental legal provisions, such as § 52a BImSchG or § 50 KrWG. In particular, businesses must keep records of the handling of hazardous substances, waste disposal documentation, emission logs, permits, as well as maintenance and monitoring reports, and retain them. The legally prescribed retention periods must be observed, which is generally at least five years, but in some cases (such as disposal documentation) even up to ten years. Failure to meet the documentation obligation may result in administrative sanctions and, in some cases, criminal consequences.
What legal consequences arise from violations identified during an environmental audit?
Violations identified during an environmental audit entail various legal consequences depending on their severity. Regulatory law in environmental matters provides for fines of up to several hundred thousand euros (see § 62 BImSchG, §§ 69, 70 KrWG). In cases of intentional or negligent environmental offenses, environmental criminal law (§§ 324 ff. German Criminal Code [StGB]) also provides for prison sentences of up to ten years, particularly when environmental damage of significant magnitude occurs. The competent authority can also impose operational closures, shutdown orders, or revoke permits in the case of serious violations. Furthermore, companies are liable under civil law for environmental damages, for example under the Environmental Liability Act (UmwHG).
What duties of cooperation do companies have in the context of an environmental audit?
Within the context of an environmental audit, companies are legally required to provide the auditing authorities with full information (§ 55 BImSchG, § 52 KrWG), present the necessary documents, and allow access to operational areas. Furthermore, companies must instruct their employees to provide support to the authority upon request. Active cooperation is required by law; violations of this duty are considered administrative offenses and can also be sanctioned with fines. Exceptions, such as the right to refuse information, exist only in narrowly defined cases, for example, to protect oneself from criminal prosecution.
What role do internal audits play, and how are they legally assessed?
Internal audits represent a self-imposed control measure by companies for monitoring compliance with environmental legal requirements and are mandatory in environmental management systems, such as under the EMAS Regulation (EC No. 1221/2009) or ISO 14001. Legally, they are regarded as proof of fulfilling organizational obligations. The comprehensive performance and documentation of internal audits can be beneficial during official inspections and in the event of damages (possibly reducing liability under § 130 OWiG). Companies thus have a legal obligation to self-monitor and supervise.
Are companies legally required to remedy deficiencies identified during the environmental audit?
If a deficiency is identified during the environmental audit, companies are legally required to remedy it immediately (§ 17 WHG, § 52 BImSchG, § 62 KrWG). The identified shortcomings must be documented in an action plan, including deadlines for remediation and implementation. The responsible authorities monitor compliance with deadlines and can impose enforcement actions, including penalties (§ 70 VwVG), in case of non-compliance. Violations of remediation obligations lead to severe sanctions, such as further operational restrictions or shutdowns.
