8 Reasons Why Your Business Needs an EHS Audit - and How to Get Started

What is an EHS Audit?

An Environmental, Health, and Safety (EHS) audit is a structured evaluation of your organization’s operations, policies, and procedures to identify risks, ensure compliance, and uncover opportunities for improvement. Regular audits not only safeguard employees and the environment—they also build trust with investors, regulators, and the community.

The Growing Significance of EHS Management in Business

The role that Environmental, Health, and Safety (EHS) management plays in business has come into greater focus as governments and citizens around the world demand greater transparency and accountability from corporations. Today’s EHS professionals are tasked with a wide range of responsibilities, including regulatory compliance, training, and risk management. Their work can lead to significant cost-savings within organizations.

A proactive EHS audit helps organizations:

• Ensure regulatory compliance and avoid costly penalties
• Strengthen workplace safety culture
• Demonstrate ESG and sustainability performance
• Identify operational efficiencies and reduce costs

This article explores how EHS audits can help organizations achieve these important outcomes.

EHS Audit Program Objectives

The goal of your organization’s EHS program is typically two-fold:

1. Ensuring regulatory compliance with government and industry regulations.
2. Ensuring the safety and well-being of employees and the surrounding community.

An EHS program aims to protect employees and maintain regulatory compliance. To do this, the EHS team conducts an audit—internal or external—to assess current practices and impacts. Audit results guide compliance, highlight improvement areas, and support better processes.

8 Key Reasons to Conduct Regular EHS Audits

Proactive EHS audits of organizational behaviors and protocols should be conducted periodically to ensure ongoing compliance with regulations and industry standards. In sectors involving hazardous materials or machinery, more frequent audits may be necessary. 

The following are key benefits why EHS audits are essential and beneficial for businesses:
 

1. Local Compliance

Compliance with local regulations is  fundamental to operating a business or facility within any country. 

The complexity of regulations across various jurisdictions can make it challenging for businesses with multiple facilities to keep up. Organizations must either maintain their own regulatory information or work with EHS audit service providers who manage regulatory databases. 

For practical guidance, refer to the blog "How to Build an Effective EHS Audit Checklist"

Maintaining compliance through proactive EHS audits to ensure you’re in compliance with local regulations can save you from costly fines and work interruptions.

2. Certification Requirement

Certain certifications are necessary for securing operational licenses, joining industry organizations, and building investor confidence. Routine EHS audits help organizations meet regulatory requirements for certifications. For instance, companies certified or seeking certification with systems like the International Organization for Standardization (ISO) should include these checks in their annual strategy. 

Such certifications can set a business apart when supply chain evaluations or ESG investment ratings are considered.

3. Financing Requirement

Expanding a business, especially into new markets, requires financial capital. Some banking authorities may mandate EHS compliance as part of the financing application process. For example, the World Bank Group’s International Finance Corporation (IFC) requires adherence to specific EHS guidelines to maintain good standing with their financial institutions.

4. Risk Prevention

EHS audits are crucial for identifying hazards and managing incident prevention. 

By uncovering areas of concern, organizations can take proactive steps to mitigate risks before they result in serious issues. Involving different personnel in audits can provide fresh perspectives and help identify new risks.

5. Validating Risk Assessment Tools

EHS safeguards and protocols often rely on tools that need periodic validation, such as risk assessments. Audits help evaluate the effectiveness of these tools and provide opportunities to calibrate and validate them, ensuring they function as intended.

6. Improved Workforce Culture

When employees see their organization taking active measures to ensure their health and safety, productivity tends to increase. A study by KPA and EHS Today found that improving worker safety and culture were the top reasons organizations conducted EHS audits.

7. Increased Profitability

Organizations with exemplary EHS records have several financial advantages:

• Stronger Recruitment: Employees are more likely to join companies with robust safety standards and a commitment to environmental accountability.
• Fewer Assessments and Claims: Maintaining compliance and a claim-free status leads to substantial savings by avoiding costs associated with assessments and insurance claims.
• Increased Productivity: A safe and valued workforce performs better, and regular equipment assessments and maintenance promote operational efficiency and reduce breakdowns.
• More Attractive to Investors: A spotless EHS performance record enhances credibility and appeal when seeking investment.

8. Continuous Improvement

EHS audits are not just about finding faults but also about identifying opportunities for improvement. This can involve updating equipment, revising procedures, or enhancing safety measures to create a safer and more efficient workplace.

By prioritizing EHS audits, corporations demonstrate their commitment to sustainability, social responsibility, and the well-being of their workforce, ultimately leading to long-term business success and resilience.

Getting Started with EHS Audits

Whether your organization operates one facility or a global network, the best audit programs are tailored, repeatable, and data-driven. Partnering with an experienced EHS auditor ensures you meet all regulatory obligations while uncovering opportunities for improvement.

Frequently Asked Questions (FAQ)

1. What is included in an EHS audit?
Typical EHS audits assess regulatory compliance, permits, waste management, emissions, worker safety, training, and documentation of corrective actions.

2. How often should we perform an EHS audit?
Most organizations conduct audits annually, though high-risk industries may need quarterly or semiannual reviews. Major operational or regulatory changes should also trigger an audit.

3. Should we use internal or external auditors?
Internal teams know your operations best, but third-party auditors bring impartial insight and benchmarking against industry standards.

4. What are common EHS audit findings?
Frequent findings include missing documentation, outdated procedures, incomplete training, or weak corrective-action tracking.

5. What happens after an audit?
You’ll receive a report summarizing findings, priorities, and recommendations. The next step is implementing corrective actions and tracking progress to closure.

Learn more about our EHS audit and inspection services.

To understand how audit needs are evolving globally, especially in fast-growing regions, listen to our podcast The Rising Demand for EHS Audits in the Asia Pacific Region.

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