4th E Practice Guide

• releases to the environment (polluting emissions, discharges, waste production, etc.);
• changes to (degradation of) land/habitat; and/or
• use and depletion of resources.

The following is a list of major components of the environment and activities that affect the environment (and their potential effects). Within the context of your audit topic, please examine the information presented and think about how your entity's policies, programs, projects, and operational activities may affect the environment either directly (through its own operations) or indirectly, by the control or influence that the entity exerts on the activities of others.

Also consider ways that entities could avoid or minimize their impact on the environment. Some of these are described at the end of this appendix.

Air

Examples of activities:

• transportation (all modes);
• energy production, refining, and distribution;
• generation of electricity (e.g., burning of coal, natural gas);
• use of refrigerants and coolants (ozone-depleting substances);
• metal smelting and other industrial activities (e.g., pulp and paper, chemical manufacturing, and other heavy industries);
• mining of aggregates;
• application of pesticides for agriculture;
• waste incineration; and
• use of various volatile chemicals.

Potential impact of these activities:

• releases of carbon dioxide and other greenhouse gases (contributing to global warming);
• depletion of the ozone layer;
• impairment of air quality;
• smog (including particulates, ground-level ozone);
• effects on human and wildlife health (e.g., upper respiratory problems and higher rates of hospitalization);
• acidification of lakes and rivers (acid rain); and
• deposition of air pollutants on land and surface water bodies.

Water

Surface water (freshwater lakes and rivers, etc.)

Examples of activities:

• removal of shoreline vegetation;
• logging/forestry and mining;
• collection, storage and disposal of agricultural wastes;
• application of pesticides;
• sewage discharges;
• industrial and other discharges (e.g., pulp and paper, mining, chemical, food processing);
• spills and accidental releases of pollutants;
• boating/shipping (e.g., discharges of fuel, ballast water);
• waste disposal landfilling (leaching);
• refuelling activity;
• draining and removal of wetlands; and
• development of infrastructure (e.g., dams and bridges).

Potential impact of these activities:

• reduction in quality of habitat for fish and other aquatic organisms;
• increased runoff and erosion;
• depletion of fish populations;
• impairment of water quality (pollutants, pathogens, bacteria, nutrients);
• need for increased water treatment;
• increased algal growth/blooms;
• decreased biodiversity; and
• encroachment of exotic, invasive species (e.g., zebra mussels).

Groundwater

Examples of activities:

• provision of water for drinking and household uses;
• water removal / water taking for industrial activities;
• irrigation;
• manure management (e.g., collection, storage, disposal/spreading);
• fuel storage (tanks), distribution, refuelling activities;
• waste disposal (hazardous and non-hazardous); and
• urban development (removal of vegetation, increase in hard surfaces).

Potential impact of these activities:

• reduced groundwater quality (e.g., pollutants/toxins, hydrocarbons, pathogens, bacteria);
• impairment of drinking water quality;
• need for increased water treatment;
• reduced groundwater quantity;
• surface water effects (quality and quantity);
• explosions (from petroleum products, fuels).

Coastal areas / marine

Examples of activities:

• discharges of sewage/wastewater;
• commercial fisheries, dredging;
• ocean dumping;
• energy production (exploration, drilling, distribution);
• boating/shipping (e.g., releases, refuelling, ballast water exchange);
• aquaculture;
• urban development (removal of coastal vegetation, including wetlands);
• spills and accidental releases.

Potential impact of these activities:

• alteration/degradation of quality of fish and other marine habitat;
• depletion of fish populations;
• increased disease and pathogens affecting fish;
• impairment of water quality—e.g., pollutants, (including petroleum products), pathogens, bacteria, nutrients;
• exotic, invasive species;
• socio-economic effects;
• reduction of tourism activity.

Land

Examples of activities:

• creation of transportation infrastructure (roads, highways, bridges);
• urban development (tree and vegetation removal);
• forestry/logging (including access roads, herbicide spraying);
• mining activities;
• agriculture (e.g., soil tilling, livestock grazing, application of fertilizers and pesticides, intensive farming practices);
• spreading of manure and sewage sludge;
• tourism and recreational development (e.g., ski resorts, golf courses);
• oil and gas production and distribution, and oil sands development;
• storage of fuels and other hazardous materials (e.g., storage tanks);
• landfilling—disposal of waste (hazardous and non-hazardous);
• spills and accidental releases (during transportation or from stationary sources); and
• military training (use of training areas).

Potential impact of these activities:

• depletion of renewable and non-renewable resources;
• soil and groundwater contamination;
• erosion/desertification;
• reduction/removal of wildlife habitat;
• removal/reduction of wetlands;
• reduction in biodiversity (soil organisms, plants, wildlife);
• increased surface water runoff / stormwater runoff;
• mining waste (tailings); and
• opening of remote areas.

Opportunities to Avoid or Minimize Negative Environmental Effects

• consideration of environmental factors/concerns in the early stages of decision making (e.g., for projects, product development);
• reducing energy consumption and increasing use of renewable energy sources through
  • increased efficiency (e.g., enhanced fuel efficiency for vehicles, reduced electricity consumption by household appliances); and
  • building design (new buildings) or retrofitting;
• advancing, developing, and employing green technologies;
• reducing consumption of resources;
• increased reuse and recycling, thus decreasing resource consumption, and waste production and disposal;
• eco-efficiency;
• green procurement—purchasing more environmentally friendly goods and services;
• pollution prevention by
  • avoiding the use of hazardous/toxic materials;
  • using cleaner fuels;
  • using clean emissions technologies for engines; and
  • using cleaner energy sources (e.g., solar, windpower); and
• improved emergency response and preparation.