What is the purpose of an environmental audit in an organization?

An environmental audit is not merely a compliance procedure — it is a management tool that allows a company to proactively identify environmental violations, avoid regulatory penalties, and make informed decisions. The need for conducting an environmental audit is established in Russian legislation, including Article 33 of Federal Law No. 7-FZ of January 10, 2002, “On Environmental Protection”.

What does an environmental audit provide in practice?

• Legal risk mitigation.
  
  An audit identifies potential violations before they are discovered by regulatory authorities. This helps the company avoid liability under the Russian Code of Administrative Offenses (KoAP), including Article 8.1 (non-compliance with environmental requirements during design and operation) and Article 8.2 (violation of rules for environmental protection in handling waste or other hazardous substances).
• Compliance assessment.
  
  Russian environmental regulations are extensive: air, water, soil protection, waste management, and emissions. An audit reveals which legal requirements are unmet, which documents are missing, and what needs to be corrected — particularly important when commissioning new facilities or changing production processes.
• Preparation for inspections by Rosprirodnadzor.
  
  Under Federal Law No. 248-FZ “On State Control…”, scheduled inspections may cover various areas such as emissions, discharges, waste management, and environmental payments. An environmental audit serves as internal due diligence and helps rectify issues before regulators arrive.
• Cost optimization in environmental payments.
  
  Audits often uncover overpayments or underpayments in fees for negative environmental impact (NEI). Underreporting can lead to retroactive charges, fines, and penalties. A well-conducted audit ensures accurate NEI calculations and prevents financial losses.
• A foundation for project and investment decisions.
  
  For significant projects with environmental impact, the law requires Environmental Impact Assessment (EIA). Preliminary environmental audits provide reliable data for design and planning, reducing errors during regulatory approval. This is especially relevant for projects of environmental hazard categories I and II under Order No. 999 of the Ministry of Natural Resources (December 1, 2020).
• Enhancing reputation and ESG standing.
  
  A voluntary environmental audit demonstrates the company’s responsible environmental approach. This is increasingly important for investors, clients, and public sector partners — especially those evaluating ESG performance or offering green financing and government subsidies.

Conclusion

An environmental audit is not just a box-ticking exercise. It is a strategic tool that:

• ensures legal compliance,
• minimizes risks and costs,
• supports proactive and sustainable environmental management.

For companies whose operations impact the environment, audits are not optional — they are a necessity for legal stability, financial health, and corporate responsibility.