Article 81. Types of, and Basis for, Environmental Audit

1. There shall be the following types of the environmental audit: mandatory and initiative.

2. The following shall serve as the basis for the mandatory environmental audit of individuals and legal entities:

1) documentary-proven significant environmental damage caused by business or other activities carried out by an individual or legal entity;

2) reorganisation of a legal entity, which is a nature user, that carries out environmentally-hazardous business or other activities, by way of a merger, split-up or spin-off; and

3) bankruptcy of a legal entity, which is a nature user, that carries out environmentally-hazardous business or other activities.

3. The initiative environmental audit may be conducted on the initiative of an audited entity or its participant, subject to specific tasks, terms and scope of the environmental audit as may be provided for in the environmental audit agreement concluded between the initiator and environmental auditor or environmental audit firm.

4. A concerned individual and/or legal entity, insurance companies, investors, environment protection authority and other government agencies may act as environmental audit customers.

Article 82. Environmental Audit

1. The environmental audit shall be conducted in accordance with the environmental audit plan, which shall be made by an environmental auditor based on the requirements set out in paragraph 2 of this Article, and shall be approved by a customer and an audited entity. When planning the environmental audit, the parties shall be guided by the model environmental audit plan as approved by the chamber of environmental auditors, and which serves for guidance.

2. There shall be the following stages in the environmental audit:

1) preliminary study of the authority entity;

2) development of the audit plan;

3) gathering and systematisation of the necessary information;

4) visual inspection of the audited entity and interviewing its employees;

5) determining the scope of special studies;

6) conducting special studies;

7) identifying environmental risks;

8) developing proposals to enhance the level of environmental safety; and

9) preparing an environmental audit report.

3. For the purpose of development of an environmental audit plan, the environmental auditor may get acquainted in advance with the specifics of the operation of an audited entity.

4. Necessary information shall be gathered and systematised in the audited entity or in other entities. Such information shall include:

1) requirements of laws and regulations on the environmental protection-related matters which apply to the activities of the audited entity;

2) map of the location area and layout map of the audited entity;

3) data of an air photographic survey (if any);

4) organisational management chart of the audited entity;

5) regulations concerning the environmental protection department at the audited entity (if any);

6) environmental permit;

7) reports of the audited entity in respect of the environmental protection for the last five years;

8) reports regarding the production environmental control;

9) copies of inspection reports by the environment protection authority for the last three years;

10) environmental protection programme of the audited entity (if any);

11) emergency prevention and response plan;

12) environmental impact assessment by the audited entity (with amendments approved);

13) emission and discharge inventory report for the current period;

14) applicable draft standards of maximum permissible emissions and discharge, waste placement;

15) information regarding environmental and business aspects of the activities of the audited entity;

16) copies of previous environmental audit reports;

17) information regarding the state environmental monitoring in the area of impact of the audited entity; and

18) management of inquiries received from individuals and public associations in regards to the activities of the audited entity.

5. Visual inspection of the audited entity and interview of employees shall be conducted in order to assess whether the documentation correctly reflects the actual status of affairs at the audited entity, to determine the qualification of employees of the audited entity, and to develop proposals for enhancement of the performance of the audited entity.

6. During visual inspection there shall be established:

1) whether the audited entity corresponds to the layout chart and general process description;

2) whether all the sources of environmental impact have been reflected in the documentation of the audited entity;

3) what is the condition of the area of likely impact of the audited entity;

4) whether that are any circumstances which are not reflected in the documents, but which are likely to result in the environmental impact;

5) whether accounting and other necessary documentation in respect of the production facilities are available and complete;

6) whether the technical environmental requirements are complied with in the course of the operation of the facility; and

7) whether the requirements to the production environmental control are complied.

7. In the course of interviews of employees of the audited entity, there shall be established:

1) level of qualification of employees in respect of the issues, which are material for the environmental protection;

2) information required to prove the reliability of the accounting documents;

3) information about violations of the requirements of environmental protection laws and regulations, and their prevention practices;

4) likelihood of the violation of the environmental requirements during the future business and other activities of the audited entity; and

5) any engineering proposals as to improvement of the environmental protection.

8. Special studies shall be conducted by environmental auditors and environmental audit firms, if:

1) it is necessary to confirm the production environmental control reports;

2) sources of environmental impact not reflected in the documents have been identified; and

3) there are evidence of negative impact caused by the activities of the audited entity on the environment and human health.

9. If necessary, the studies may include:

1) measurements at the sources of emissions (discharge), waste sample examination;

2) measurements of the pollution level within the area of potential impact of the audited entity; and

3) study of the conditions of plants, wildlife, ecosystems and health of the population within the area of potential impact of the audited entity.

10. Only certified laboratories may be engaged for the conduct of special studies to assess the state of the environment.

11. Environmental risks of the audited entity shall be identified by way of:

1) analysis of whether the documents and reports reliably reflect the current state;

2) assessment of the effect that the activities carried out by the audited entity are likely to have on plants, wildlife, ecosystems and human health, including analysis of diseases and death caused by defects in the environmental quality; and

3) determination of whether accidents or other deviations from the process regulation at the audited entity, which would result in negative effect on the environment, are likely to occur.

12. Proposals to enhance the level of the environmental safety at the audited entity shall be developed based on the study of:

1) the best available technologies for similar facilities;

2) possible actions to improve the environmental management system;

3) methods to improve the production environmental control; and

4) proposals to revise the environmental requirements and standards.