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Why Environmental Compliance Assessment is needed after Obtaining EC?

20 Jul, 2023
Environmental Compliance Assessment

A Compliance Assessment is an impartial evaluation of whether a specific project adheres to the applicable and identified criteria of environmental preservation. Environmental Compliance Assessments are performed by an external and independent professional who has no vested interest in the Assessment’s outcome, whether business, financial, or personal. If necessary, the professional collects all relevant data before and during a site visit. They then analyse the facts, compare them against the assessment criteria, draw conclusions, and report their findings. Compliance Assessments are conducted by assessing whether activities, financial transactions, and information comply with the authorities that govern the Assessment entity to a significant extent. Compliance Assessment focuses on two main aspects: Regularity, which refers to how well the subject complies with the formal criteria outlined in relevant laws, regulations, and agreements applicable to the entity, and secondly, propriety, which concerns adherence to the general principles of sound management and ethical conduct expected of public officials.

Objective of Environmental Compliance Assessment

The objective of the Compliance Assessment is as follows:

  1. Enhancing Transparency: Compliance Assessments aim to promote transparency by providing reliable reports on whether funds have been adequately managed, administration has been carried out, and the rights of citizens to due process have been respected, as required by the relevant authorities.
  2. Ensuring Accountability: Compliance Assessments play a crucial role in ensuring accountability. By reporting any deviations from and violations of authorities, these Assessments enable corrective actions to be taken and hold responsible parties accountable for their actions.
  3. Promoting Good Governance: Compliance Assessments contribute to good governance by identifying weaknesses and deviations from laws and regulations. They also assess the propriety of actions in cases where there might be insufficient or inadequate laws and regulations to guide decision-making.
  4. Addressing Fraud and Corruption: Fraud and corruption undermine transparency, accountability, and responsible management. In recognition of this, Compliance Assessments consider the risk of fraud in relation to compliance, aiming to identify and prevent fraudulent activities.

Importance of Environmental Compliance Assessment

The importance of Compliance Assessment is as follows:

  1. Identifying Regulatory Weaknesses: Compliance Assessments help identify weaknesses in regulatory compliance, enabling organisations to address and strengthen areas that are not in line with applicable regulations.
  2. Risk Reduction: By ensuring proper compliance with laws and regulations, Compliance Assessments assist in reducing risk for the organisation. Identifying non-compliance and taking corrective measures helps mitigate potential risks.
  3. Stakeholder Confidence: Conducting Compliance Assessments helps maintain the trust and confidence of stakeholders. It demonstrates the organisation’s commitment to following the law and conducting business ethically.
  4. Ensuring Legal Compliance: Compliance Assessments ensure that all laws and regulations relevant to the organisation have been followed. This helps avoid legal issues and penalties associated with non-compliance.
  5. Increased Public Trust: Through transparent reporting and demonstrating commitment to compliance, Compliance Assessments build trust with the general public, enhancing the organisation’s reputation.
  6. Transparent Reporting: Compliance Assessments ensure transparent reporting of the organisation’s activities, providing accurate and reliable information to stakeholders and the public.
  7. Cost Avoidance: By proactively addressing compliance issues, organisations can avoid potential future costs associated with legal penalties, litigation, or reputation damage.
  8. Proper Management: Compliance Assessments ensure proper management practices within the organisation, aligning processes and activities with legal requirements and best practices.

Types of Assessments

There are two primary categories of Assessments:

  1. External Environmental Compliance Assessment: The external environmental Compliance Assessment is the more extensive type of Assessment that involves evaluating the legal compliance status of a construction site or company. It is the most frequently conducted Assessment among the two types.
  2. Internal Environmental Management Assessment: Internal environmental management Assessments are carried out by the organisation or its management to assess how well they meet their own environmental performance standards and expectations.

Stages in Environmental Compliance Assessment

The following steps mentioned below state the general procedure for the Compliance Assessment –

  1. Developing an Assessment Plan: This step involves structuring a comprehensive plan for the Assessment, which includes defining the activities to be performed and outlining the responsibilities necessary for the successful execution of those activities.
  2. Reviewing Environmental Protection Policy: The Assessment process includes reviewing the Environmental Protection Policy of the applicant company and ensuring compliance with relevant regulations mandated by state and national laws.
  3. Gathering Information and Relevant Data: The Assessment collects all necessary information and data related to the company’s operations, processes, and practices. This may involve reviewing documentation, conducting interviews, and examining relevant records.
  4. Evaluating Company Performance: The Assessment assesses the company’s overall performance by comparing its activities and practices against the applicable regulations and standards. This evaluation helps determine the level of compliance and identifies any areas that require improvement.
  5. Identifying Improvement Areas: Based on the evaluation, the Assessment identifies specific areas within the company’s operations that need attention and improvement to enhance compliance. These areas may involve processes, practices, or policies that do not meet the required standards.
  6. Submitting Assessment Report: Upon completion, the Assessment prepares a comprehensive report detailing the findings, observations, and recommendations. This report is submitted to the appropriate management or stakeholders, providing them with an overview of the Assessment conducted and highlighting areas of concern or improvement.

Documents required for Environmental Compliance Assessment

The necessary documents for the Compliance Assessment include:

  1. Permits or Permit Applications
  2. Plans or Policies
  3. Production Reports
  4. Reports (related to environmental compliance)
  5. Previous Assessment Reports
  6. Documentation related to Air, Water, Waste, and Noise Control
  7. Emergency Response Procedures

Benefits of Environmental Compliance Assessment

A Compliance Assessment offers various advantages to companies, including:

  1. Environmental Safeguarding: By conducting a Compliance Assessment, companies can ensure the protection and preservation of the environment by identifying and addressing non-compliance issues.
  2. Verification of Legal Compliance: A Compliance Assessment verifies whether the company adheres to local and national laws and regulations, ensuring that it operates within the legal framework.
  3. Identification of Critical Issues: The Assessment helps identify existing or potential problems and environmental impacts that may have significant consequences for the company, enabling proactive measures to address them.
  4. Assessment of Training Programs: Through the Environmental Compliance[1] Assessment process, companies can assess the effectiveness of their environmental training programs, gaining valuable data to improve future training initiatives.
  5. Improvement of Environmental Performance: Compliance Assessments allow companies to improve their environmental performance by identifying areas where they may fall short and implementing necessary changes.
  6. Identification of Cost-Saving Opportunities: The Assessment process helps identify areas where the company can save resources, such as waste minimisation strategies, leading to cost reductions and more efficient operations.
  7. Demonstration of Commitment: By conducting a Compliance Assessment, companies can demonstrate their commitment to environmental protection to employees, the public, stakeholders, and regulatory authorities, enhancing their reputation and trustworthiness.


The Environmental Compliance Assessment helps identify existing and potential environmental issues that require attention and resolution, enabling proactive measures to mitigate damages.Compliance Assessments help identify cost-effective strategies, such as waste minimisation and carbon footprint reduction, that can lead to resource savings and operational efficiencies. It is advisable to take expert advice while conducting Compliance Assessment to ensure that all the mandatory requirements have been complied with and avoid penalties due to non-compliance.


What is a compliance assessment for an Assessment?

A compliance assessment is an internal evaluation initiated by a company to assess the current state of its compliance program. It is vital in any business organisation to ascertain adherence to company policies and liability related to employee actions.

What is required for compliance to Assessment?

Compliance Assessment focuses on evaluating the extent to which the Assessment entity adheres to rules, laws, regulations, policies, codes of conduct, or agreed-upon terms and conditions. The scope of Compliance Assessment can encompass various subject matters, ensuring that the requirements set forth by the relevant authority are being duly followed.

What are the 3 common methods of internal Assessment to determine compliance?

There are standard methods of internal Assessment Ing to determine compliance are as follows:
• System Assessments.
• Process Assessments.
• Product Assessments.

What is the purpose of Compliance Assessment?

An Environmental Compliance Assessment assesses the level of adherence of an organisation to rules, regulations, and standards, as well as internal bylaws and codes of conduct. Additionally, the Assessment may examine the effectiveness of the organisation’s internal controls as part of the evaluation process.

Are Assessments and compliance assessments the same?

The internal Assessment function is responsible for overseeing global risk management within the company, while compliance assessments specifically address three key areas of risk: reputational risk, regulatory risk, and legal risk.

Is Compliance Assessment Mandatory?

Yes, conducting Compliance Assessments are mandatory, whether performed internally or externally. It enables a company to identify deficiencies in its regulatory compliance processes and establish avenues for enhancement.

Who is responsible for Compliance Assessment?

Internal Assessments are conducted by company employees to assess the overall risks related to compliance and security, as well as to ascertain whether the company is adhering to its internal guidelines.

What are the benefits of Compliance Assessment?

Compliance Assessment plays a crucial role in promoting good governance by identifying shortcomings and deviations from laws and regulations. Additionally, it evaluates the appropriateness of actions and behaviours when laws and regulations are insufficient or inadequate.

What are the types of Assessments?

There are six common types of Assessments – financial Assessments, internal Assessments, IT Assessments, and quality Assessments, operational Assessments, Compliance Assessments.

What are the objectives of compliance?

The objectives of compliance are to guarantee that management and employees within the organisation adhere to all relevant laws, regulations, rules, and standards applicable to the company.

Read our Article: Phase I Environmental Site Assessment (ESA) & Due Diligence Audits

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