Warming up to environmental regulation risk SOPAC March 2016
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This presentation was made to the Institute of Internal Auditors SOPAC Conference in March 2016.
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Warming up to environmental regulation risk SOPAC March 2016
- 1. Warming up to environmental regulation risk.… A whirlwind view of changes taking place in environmental regulation. The fine print….this one takes more than 5 slides. MARCH 2016
- 2. What internal auditors need to know about: • Changes in environmental management practice • Changes in regulatory practice • Changes in the environment • Changes in our communities Lets start down in the weeds…… WHAT I WILL COVER. MARCH 2016
- 4. Industry standards are getting better, so internal auditors need to understand the ‘new’ best practice expectations. • ISO 14001:2015 makes more sense than ever before. • The paperwork makes more sense. • The use of internal audit makes more sense. • But environmental management is still one of the first cuts when times get tough. WHAT IS HAPPENING WITH ENV MGT. MARCH 2016
- 6. Regulators are getting smarter, so internal auditors need to at least keep pace. (Full disclosure – this is my life’s work) • More regulators get involved. • Audit is being used more. • Communication has to be faster and looser. • Regulators have greater access inside your gate. • But natural resource regulators are also one of the first budget cuts when times get tough. WHAT IS HAPPENING WITH REG MGT. MARCH 2016
- 8. Planet Earth is getting smaller so new classes of environmental regulation are being put in place to deal with this. • Global impacts like climate pollution, require local action. • There are less places to hide, or dump waste. • More cumulative effects are being felt. • Regulators are inheriting the earth And recent disaster events show that continuity risks are becoming much greater. WHAT IS HAPPENING WITH EARTH. MARCH 2016
- 10. Our communities are thinking more broadly, so internal audit should recognise new risks that are emerging. • New land-use conflicts are occurring, as rural becomes peri-urban or rural industrial. • New community lines are being drawn, requiring separate management of local communities and other communities. WHAT ABOUT OUR COMMUNITIES. MARCH 2016
- 11. What internal auditors need to know about: • Changes in environmental management practice • Changes in regulatory practice • Changes in the environment • Changes in our communities WHAT I HAVE COVERED. MARCH 2016
- 13. • Don’t be late. • Environmental regulation is going to become a bigger risk management issue. • Business risk management can help avoid surprises. • It will become easier to fit into IA plans. The comments on these slides are the views of Tim Kirby, Sydney. You should always do your own homework before putting your reputation or any money on the line. WHAT DOES IT MEAN. Tim Kirby, Sydney CA, CIA, LA-EMS au.linkedin.com/in/timkirbysydney MARCH 2016
Editor's Notes
- (2 mins) I will talk about these topics, basing my comments on audit reports, cherry-picking items that reflect my experience of what is happening.
- Weeds
- (10 mins) Industry standards are getting better, so internal auditors need to understand the ‘new’ best practice expectations. ISO 14001:2015 makes more sense than ever before. (The update is welcome relief. Talk about the update exam). The paperwork makes more sense. (You should not see EMS audit comments about a need to have a huge EMS manual. This will drive a change in how some auditors work.) The use of internal audit makes more sense. (You should now find that an integrated audit universe is easier to achieve. Clause 9.2. It is critical that this is now within the internal audit sphere, as it maintains the responsibility/accountability for appropriate environmental management with the organisation.) But there are two things that continue to drive environmental management and compliance risk: a) environmental management is still one of the first cuts when times get tough, and b) there is still no unified professional body, supporting development of standards and benefits of good environmental management.
- Communication is getting looser. This meme is well known. Vin vs movies Trump vs politics Brisbane Courier vs news
- (20 mins) Regulators are getting smarter, so internal auditors need to at least keep pace. (Full disclosure – this is my life’s work) More regulators get involved, which has risks. (Talk about QAO 2014 Bushfire audit – not playing together, and QAO 2014 Environmental Regn audit – co regulation not working) Audit is being used more. (Talk about NGER audit program – Register and Audited data) Communication has to be faster and looser. (Talk about NZAO 2014 Public Sector Readiness report) Information will get easier to access (Talk about VAGO 2015 Access to PSI report –this is hard but GIS data is good) Regulators are still geared toward reaction, rather than planning. (Talk about BC 2014 Catastrophic Earthquake Report – plan for yourself, and QAO 2014 Bushfire report – all response, no planning or prevention) Regulators have greater access inside your gate. (Talk about NSW 2014 NV Report – use of SPOT5 radar) Regulation is always reforming (Talk about carbon tax – on again, off again). But natural resource regulators are also one of the first budget cuts when times get tough. (Talk about WA 2014 Pest Mgt Report – 99% fall in compliance notices)
- There are less places to dump waste.
- (5 mins) Planet Earth is getting smaller so new classes of environmental regulation are being put in place to deal with this. Global impacts like carbon pollution, require local action. (Talk about QLD 2014 LG Risk Report – building codes and mapping – IA should be involved) There are less places to hide, or dump waste. (Talk about Google Earth – we can see a lot more) Regulators are inheriting the earth (but not like the meek – Talk about the UK 2015 Sellafield Report – until 2134, and QAO 2014 Env Reg – 15,000 abandoned mines) More cumulative effects are being felt. (BC Report May 2015) And recent disaster events show that continuity risks are becoming much greater. (Talk about Christchurch – insurance company impact, DA process impact, human resource impact).
- Communities are thinking globally.
- (5 mins) Our communities are thinking more broadly, so internal audit should recognise new risks that are emerging. New land-use conflicts are occurring, as rural becomes peri-urban or rural industrial. (Talk about NSW 2012 Hunter Valley Catchment Action Plan report – development up the valley from Newcastle). New community lines are being drawn, requiring separate management of local communities and other communities. (Talk about Bylong exhibition process – locals, ex-locals, mtn bikers, Dutch).
- (2 mins) I have talked about these topics. I hope some of it resonated with what you are all seeing happen.
- A bit late.
- (2 mins) Don’t be late. Environmental regulation is becoming a bigger risk management issue. Business risk management can help avoid surprises. It will become easier to fit into IA plans.