GOAL AND PURPOSES:

An Environmental Audit is an independent assessment performed to ensure that businesses and organizations that engage in utilization of natural resources are complying with environmental policies. This is a purposeful process which is mandated systematic, fact-based, formal, and routine.

Conducting an environmental audit is no longer an option but a sound precaution and a proactive measure in today's heavily regulated environment. Indeed, evidence suggests that EA has a valuable role to play, encouraging systematic incorporation of environmental perspectives into many aspects of an organisation's overall operation, helping to trigger new awareness and new priorities in policies and practices.

Environmental auditing examines the amount of harm or risk of injury that may be posed by the assessed entity and determines measures to eliminate any adverse effects, damages and consequences on the environment, to improve the ecological and economic efficiency of an enterprise, business entity or organization, and to conduct production in a way that does not adversely affect the environment and human health and protect them from possible losses and risks. On the other hand, it facilitates the Specialized Inspection Agency to conduct inspection on the environmental performance of enterprises and organizations.

ENVIRONMENTAL AUDUTING TYPES:

Business entities and organizations engaged in production and services using natural resources shall conduct environmental audits every two years, obtain relevant conclusions and recommendations, and submit their reports to the aimag and capital city environmental departments within the period specified in the recommendation. Aimag and capital city Environmental Departments shall submit reports on the entities that get EA and a list of the entities to be audited the Ministry of Nature, Environment and Tourism by December 1 of each year.

Environmental audits are divided into 2 types: regular and unplanned. Regular environmental audits are mandatory every two years, while unplanned audits are conducted when a Governor or the Ministry of Environment decides to perform.

Environmental audits has into several types. These include:

1. Environmental compliance audit (environmental laws, laws, rules, regulations, standards, norms, normative)
2. Environmental performance audit (environmental impact assessment, environmental management plan)
3. Environmental Management System Audit (Corporate Environmental Management)
4.  Audit of quality management system (product quality and standards)
5. Internal environmental audit (internal control of an entity). 

BENEFITS OF AUDIT:

Environmental audit is used as a key lever to implement and environmental management systems and comply with environmental legislation. This in turn is important to strengthen the concept of sustainable development, ensure the ecological security of a nation, promote rational use and protection of natural resources and to prevent from any damages and risks caused by natural and human activities.

Environmental audits requires an organization to comply with state policies, national programs, laws, regulations, standards and implement environmental impact assessments, environmental management plans, and their requirements in the environmental management system. In other words, environmental audits are not a matter of choice in the current context, but are a comprehensive, systematic process aimed at preventing of potential impacts, risks and consequences.

AUDITING CONCLUSIONS AND RECOMMENDATIONS:

Environmental audits of an entity is carried out according to following audit criteria on the basis of evidence and makes recommendations based on the findings. These include:

1. Compliance with government policies and national programs
2.  Compliance with the environmental package laws and regulations;
3. Meeting environmental standard and norms in their activities;
4. Whether the project is operating as planned in the feasibility study;
5. Implementation of mitigation and mitigation measures recommended in DEIA
6. Implementation and performance of the environmental management plan in accordance with the EMP;
7. Obtain and validation of licensing, acts, permits and fulfillment of contracts;
8. Seeking opportunities to improve corporate environmental management and increase profitability;
9. Implementation of environmental management system;
10. Participatory action.

AUDIT PROCESS:

Business entities and organization shall get EA conducted by the authorized professional organization and make conclusion and recommendations. 

1. According to Article 10 of the Law on Environmental Protection, “Environmental audit shall be carried out every two years by a business entity or organization engaged in production and services using natural resources, and shall issue relevant conclusions and recommendations and submit the  report on regular basis to aimag and capital city environmental department”;
2. Article 4.15 of the “Environmental Impact Assessment Procedure” approved as an Appendix II by the Government Resolution No. 374 of 2013 on “Approval of the Regulation” states that “Additional amendments to DEIA for the project engaging in utilization and exploitation of natural resources shall include recommendations and reports on regular environmental audits ”;
3. Article 4.6 of the “Procedure on developing, screening and reporting of the Environmental Management Plan” approved by the Order A-5 of the Minister of Nature, Environment and Green Development on January 6, 2014 “Approval of the Regulation” states that “the Project implementer shall submit to the organization that conducted GEIA an environmental audit report on the implementation of DEIA and EMP together with the environmental management plan for the current year”;
4. “Regulation on monitoring the transaction of special account for environmental protection and rehabilitation guarantee” approved by the order A-4 of the Minister of Nature, Environment and Green Development on January 6, 2014 sets that ““Checklist for the return of funds deposited in the special account of protection and rehabilitation guarantee” must include Planned Environmental Audit Report in the list of materials to be received from the project implementer.

An environmental audit shall be performed by a professional organization authorized by the Ministry of Nature, Environment and Tourism to assess and monitor the compliance of environmental legislation, government policies, national programs and implementation of EIA and standards, issue conclusions, and provide professional advice. The stages of process include:

1. An environmental audit shall be conducted every two years by every business entity and organization engaged in production and services using natural resources.
2. A professional environmental audit organization shall establish an ecological liability agreement with particular business entity according to the Article 189.5 of the Civil Code, which regulates the rights and obligations of both parties raising with the environmental audit.
3. Business entities and organizations shall submit ecological liability agreements together with environmental audit recommendations and conclusions to aimag and capital city Environmental departments
4. Business entities and organizations shall implement relevant conclusions and recommendations on environmental audits and submit their annual environmental audit performance reports to the aimag and capital city Environmental departments within the period specified in the recommendations.
5. Aimag and capital city Environmental Departments shall submit a report on the business entities that have been audited in that year and a list of companies that are scheduled to be audited next year to the Ministry of Nature, Environment and Tourism by December 1 of each year.
6. The Environmental Assessment and Audit Department of the Ministry of Nature, Environment and Tourism shall place the reports of EA of the companies into the database.