CELEX: 51992PC0459
Language: en
Date: 1992-11-12
Title: Proposal for a COUNCIL REGULATION (EEC) temporarily suspending the autonomous Common Customs Tariff duties on imports of certain fishery products into the Canary Islands

COMMISSION OF THE EUROPEAN COMMUNITIES
                                           COM(91) 459 final
                                           Brussels, 5 March 1992
                          Proposal for a
                     COUNCIL REGULATION (EEC)
 allowing voluntary participation by companies in the industrial
              sector in a Community ECO-audit scheme
                   (presented by the Commission)
 ---pagebreak---                                    - 2 -
                          EXPLANATORY MEMORANDUM
I   INTRODUCTION
A.  The Community policy context
1.  Article 130r of the Treaty establishing the European Economic
    Community specifies the Community's objectives as regards the
    environment and the principles on which its action in this field
    must be based.
    These objectives are to preserve, protect and improve the quality
    of the environment, to contribute towards protecting human health
    and to ensure a prudent and rational utilization of natural
    resources.
    To achieve these objectives, the Community must base its action, in
    particular, on the principles of taking preventive action, of
    giving priority to rectifying environmental damage at source and of
    ensuring that the polluter pays.
2.  These objectives and principles have been detailed in the various
    Community Action Programmes on the Environment since 1973. In
    particular, the Fourth (1987-92) Programme established by the
    Council Resolution of 19 October 1987 * stresses the need to
    develop more integrated policies promoting multi-media approaches
    to the environment and the cutting of pollution at source. It also
    states that the Community's action must focus on certain priority
    areas, such as the provision of information to, and participation
    by, the public, and proposes special measures to monitor and
     support small firms.
B. Basic objectives of this proposal
 1. Under   the   pressure   of   the    growing   number  of   regulations,
    particularly    in  the   form    of   the   Community's   environmental
     legislation, companies engaged in manufacturing activities, and
    particularly industrial activities, are assuming responsibilities
     for performing more and more complex tasks which play a decisive
     part in the environmental protection field.
 2.  These    various    responsibilities      and    obligations    include
     identification and assessment of risks and harm to the environment,
     coupled with control, limitation or possible reduction thereof.
     Furthermore, increasingly they force companies to enhance their
     public image and strengthen their legal security by implementing a
     policy of information of the public geared towards projecting
     greater transparency about their performance and their intentions
     regarding the protection of the environment, consumers and the
     population, particularly at local level.
 1  OJ No C 70, 18.3.1987, p. 1
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3.  In the face of the difficulties created by these obligations -
    which pose a genuine challenge in some cases - companies must
    exercise increasing discipline in choosing and managing their
    potentially harmful operations. Large enterprises are endeavouring
    to introduce a better organized and ever more effective system to
    supervise their environmental practices.
    Some federations and professional organizations have mobilized in
    the past few years to increase their members' awareness of these
    aspects. Programmes, codes of conduct and guiding principles have
    been prepared to encourage and help companies systematically to
    integrate environmental aspects into their policy. Awareness-
    campaigns on the use of environmental audits are amongst the
    measures taken. The aim of such audits is to ensure more thorough
    verification of compliance with the existing regulations, to
    evaluate the effectiveness of internal organization and management
    measures and to identify potential improvements in environmental
    performance, while optimizing the capital expenditure and operating
    costs necessary to protect the environment. The "Responsible Care
    Programme" by the European chemical industry is one example in this
    context.
    In some Member States, this effort has been accompanied by specific
    action by the public authorities with the aim of encouraging the
    development of similar or comparable practices.
4.  However, this new awareness is far greater in some Member States
    than in others, and the use of environmental auditing is developing
     sporadically, limited to large companies and unknown to the public
     in areas of activity where it could bring substantial benefits to
     companies and the community as a whole.
     The fundamental objectives of the approach proposed are to promote
     the spread of the best environmental management practices and to
     encourage companies fully and systematically to apply standards,
     criteria and objectives providing a high level of protection.
C. Introductory brief on the proposed approach
 1.  In response to this situation, the Commission considers          it
     particularly advisable to promote the introduction of a systematic,
     rigorous approach to environmental management by companies. This is
     the aim of this proposal for a Regulation establishing a voluntary
     "Eco-audit" scheme open to any company engaged in an industrial
     activity.
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   Companies which volunteer to participate in this scheme undertake
   to establish an "environmental protection system" for a given
   production site and to conduct a systematic, periodic evaluation of
   their environmental performance. They also undertake to provide
   the   public   with  relevant,  objective   information    on   their
   performances and intentions as regards the environment.
2. Broadly speaking, the protection system is based on an initial
   review, by the company, of the environmental impact of the
   operations conducted at the site. It includes an internal policy
   formally stated in writing (generally defined for the company as a
   whole), supplemented by a programme of measures at the site
   concerned and a management system covering the organizational
   details and working procedures needed to apply the abovementioned
   elements.
   The environmental audit constitutes the key element in this
   management   system.  This  is the    tool  used   by   the   company
   periodically to check that its management system is functioning
   properly. A special effort has been made in this proposal to define
   the criteria and procedures required to conduct this audit without
   altering its nature as a management tool or hindering its flexible
   implementation.
3. The credibility of the company's measures and commitments is
   ensured by periodically providing the public with objective,
   relevant information in the form of an environmental statement.
   This document describes the company's performances and intentions
   and is formally validated by an accredited independent auditor on
   the basis, inter alia, of the internal audit conducted and its
   results.
   In the light of its importance in this approach, the content of the
   information in the environmental statement, the conditions for its
   validation and the responsibilities and procedures for accrediting
   auditors are dealt with by appropriate provisions in this proposal.
4. In return for satisfying the conditions for participation in the
   scheme, the "Eco-audit" scheme offers participating companies the
   possibility of capitalizing on their commitment and boosting their
   public image through the use of a logo. It also provides for
   specific measures to support small firms.
5. This explanatory memorandum states the reasons for the choices made
   by the Commission and provides a detailed description of the
   proposed approach and of the scheme to be introduced.
 ---pagebreak---                                    - 5 -
II SITUATION IN THE MEMBER STATES AND IN SOME OTHER COUNTRIES
A. Situation outside the Community
USA and Canada
1.  In the USA, industry has developed a number of voluntary practices,
    including    environmental   auditing, either    in   response    to   a
    regulatory requirement or following an undertaking            given to
    shareholders. The most representative of these practices include :
         "Compliance" auditing recommended by the EPA
         The "Responsible   Care  Programme"  developed   by  the   chemical
         industry,
         Certain obligations introduced by the "Toxic Release Inventory"
         Act (SARA 5313).
2.  In 1979, due to a change of political climate and after several
    years of discussions, the Environmental Protection Agency (EPA)
    gave up the idea of introducing a mandatory independent audit
    process    aimed   at   verifying   certain   industrial    activities*
    compliance with regulatory standards on emissions into the air and
    water.
    The EPA is pursuing its efforts, however, to promote this practice
    through specific campaigns and to assist local administrations and
    industrial companies.
    In July     19 86, the EPA finally published        a general     policy
    statement^     aimed   at   encouraging    private-sector     industrial
    enterprises to make use of audit techniques, accompanied by
    information concerning methodology. This text lays down the
    circumstances in which the EPA may oblige enterprises               that
     infringe the existing regulations to carry out an audit, prior to
    the introduction by the authorities of a suitable programme
    designed to bring them up to standard. It also determines the
    principles to be observed by the EPA's inspection services to
    respond positively to the efforts of enterprises implementing such
    an audit.
    This text was supplemented in 1989^ by the publication of a
    particularly detailed compilation of principles and protocols on
     the conducting of audits at Federal industrial establishments.
     Federal Register/Vol. 51 No. 131 of 9 July 1986 - Ref : OPPE-FRL-
     3046-6(2).
     -    Environmental Audit Programme - Design Guidelines for Federal
         Agencies - EPA 130/4-89/001 - August 1989.
         Generic Protocol for Environmental Audits at Federal Facilities
         - EPA/130/4-89/002 - August 1989.
 ---pagebreak---                                 - 6 -
3. Title III of the 1986 "Superfund Amendment and Reauthorisation Act"
   (SARA) 4 imposes the obligation to report emissions of certain
   toxic substances into the environment (air, water, waste, land).
   The scope is defined by a list of about three hundred substances.
   Any enterprise operating any of the activities on the list must
   meet this obligation if it uses at least 25 000 lbs/(12t) of one of
   these   substances   as a basic product     for its manufacturing
   operations each year or at least 10 000 lbs/(5t) in related
   applications (maintenance, cleaning and so o n ) . Since 1988, close
   to 20 000 industrial establishments have been filing          annual
   statements with the administration on their direct emissions into
   the environment and their production of toxic waste.
   While Title III of SARA did not originally provide for the
   reduction of industrial emissions of toxic substances, it is
   interesting to note that, since 1988, the information gathered and
   disseminated by the administration has been used principally by the
   companies themselves. Concerned about their corporate image, they
   have spontaneously stepped up internal supervision of the worst
   polluters among their production sites. Some of them promptly
   decided to undertake investments to reduce their most noxious
   emissions.
   The authorities of individual states have also made use of this
   information and a dozen States or so have supplemented the SARA
   Regulation with specific regulations to reduce the use and
   emissions of certain toxic substances.
   Finally, at Federal level, in 1990 the EPA drew up a particularly
   interesting   summary   of the   data  gathered^    and  used  these
   statistics to justify a recent law on air quality (Clean Air Act
   1990) by demonstrating that 80% of all toxic industrial emissions
   into the air were not covered by any regulation.
4. In parallel to the above, the "Responsible Care Programme" adopted
   in 1988 by the American and Canadian chemical manufacturers'
   associations (CMA) has gained widespread acceptance in Europe,
   notably under the title of "commitment to progress".
 4  Toxic Chemical Release Inventory. Reporting package. EPA/560/4.91-
    001, January 1991.
 5  The 1988 Toxic Release Inventory National Report - EPA 560/4-90-
    017-September 1990.
 ---pagebreak---                                  - 7 -
    Under this initiative, companies are morally bound to apply a
    number of codes of practice as regards environmental management.
    The principles underlying the requirements to be observed follow
    the same lines as this proposal, but do not go quite as far on some
    aspects.
    The aim is notably to comply with existing regulations, to reduce
    risks for staff, members of the public and the environment "to an
    acceptable level", to disseminate relevant information to customers
    and the public on the attendant risks of the products marketed, to
    see to it that these products are used and disposed of under proper
    safety conditions and to take account of essential environmental
    protection requirements in the design of new products.
    In the practical recommendations on the formal management and
    supervision procedures to be introduced for the purpose of applying
    these various principles, environmental auditing ranks high in the
    "Responsible Care Programme" as an evaluation and supervisory tool.
Sweden
5.  Following work begun in 19 87, in 19 8 8 Sweden drafted a law
    providing that from 1991 about 6000 industrial establishments must
    submit an annual environmental report to the authorities on the
    conditions of compliance with the existing regulations. This report
    is kept at the public's disposal.
    The 19 88 draft proposed that the annual reports of the 6 00 largest
    establishments be checked by an independent auditor. The report and
    its audit were to provide the basis on which the authorities would
    organize their inspection programme and implement a performance
    improvement programme, if necessary. This provision was ultimately
    withdrawn because of difficulties with manufacturers and the
    inspection authorities.
    Despite the withdrawal of this clause, however, the Federation of
    Swedish Industrialists has launched a set of initiatives to promote
    the use of audits and a number of companies have responded actively
    by establishing their own voluntary environmental audit programme.
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B. Situation in certain Member States
    At the present time, no Member State has any specific law
    concerning environmental management procedures. Nevertheless, some
    Member States have established regulations to impose comparable
    practices for certain aspects or have introduced specific promotion
    and support programmes.
France
1.  About    50 000    industrial    establishments       require     préfectoral
    authorization under the Law of 19 July                 1976 on      "scheduled
    facilities for the protection of the environment".
    These authorizations are issued on a case-by-case basis following a
    public    inquiry   into   the   environmental       impact    and     accident
    prevention aspects. They are coupled with the obligation to observe
    a number of requirements concerning general organization and
    operating conditions for the protection of the environment and, in
    particular, limitation of emissions into the environment (water,
    air, land), waste management and the prevention of accidents.
    Such    requirements     are   determined        individually      for     each
    establishment, in the light, inter        alia,    of specific ministerial
    instructions. These instructions include, in particular:
         the ministerial circular of 28 March 1988, which orders the
         inspection    authorities    progressively       to    introduce     self-
         inspection procedures for emissions into the air and water from
         large   industrial    establishments,       under     the   authorities'
         supervision and statistical control.
         Over a thousand establishments are currently subject to this
         scheme. The available data are compiled by the Ministry of the
         Environment which, since 1988, has been publishing maps of the
         principal    industrial   emissions 6      which    clearly     name   the
         establishments responsible for twenty-three water pollutants
         and thirteen air pollutants and specify the average daily
         discharge.
         the ministerial circular of 2 8 March 199 0, which orders the
         same inspection authorities to oblige companies given priority
         in their sector to carry out studies on their waste management.
         On this particular aspect of waste production, disposal and
         recycling, it appears that the evaluations requested fully fit
         the description of audits.
     Ministère de l'Environnement, Direction de l'Eau, de la Prévention
     des   Pollutions    Industrielles     et     des    Risques,     Service    de
     l'Environnement     Industriel.     Cartographie        de    la     pollution
     industrielle - Principaux rejets - Décembre 1987, Mai 1989,
     Septembre 1990.
 ---pagebreak---                                    - 9 -
        The inspection authorities are under no obligation, however, to
        ensure that the results of these evaluations are published in
         any specific form.
The Netherlands
2.  In August 19 89, the government published a multiannual action
    programme    on   the   environment,    which   included    provisions^
    concerning the need for companies operating industrial activities
    with a significant environmental impact to introduce an "internal
    environmental protection system". This system must comprise an
    internal policy formally stated in writing at the highest level of
    the company; measures aimed at making essential environmental
    protection requirements an integral part of all production and
    management     activities ;   environmental    programmes     for    the
    implementation of this policy within each establishment as well as
    working procedures and organizational measures in each unit for the
    supervision of emissions; training and information of personnel;
    preparation    of   a periodic    report   for   the  authorities     and
    implementation of a programme of internal supervision through
    audits.
    These    measures,    which   apply    to   around    12 000    priority
    establishments, serve as recommendations for the time being, but
    official publications mention the possibility of resorting to
    mandatory provisions if these recommendations fail to produce
    sufficient results by the end of 1992.
    Furthermore, provision is made for a simplified internal protection
    system for smaller companies for which an operating licence is
    required under the law on the prevention of pollution           (2 50 000
    companies concerned).
United Kingdom
 3. Various    proposals   to   include   an   obligation   to   carry    out
    environmental audits have been considered during the drafting of
    new laws (Enterprise Act 1989, Environmental Protection Act 1990),
    but in the end were not adopted. The British government's position,
    however, is clearly in favour of the audit as a voluntary
     initiative and it encourages large enterprises to develop their own
     audit programmes and disseminate information on their environmental
    performances.
     Milieuzorg, Tweede Kamer, 1989-90, 20.633 No 4
 ---pagebreak---                                    10 -
Ireland
4.  A specific clause (Environmental Protection Agency Bill, 1990,
    paragraph 71) assigns a very special role in environmental auditing
    to Ireland's new Environmental Protection Agency.
    Among other things, this Agency is required to develop knowledge of
    the criteria, principles and appropriate methodologies to carry out
    audits, prepare suitable users' guides and launch awareness-raising
    and training activities targeted in particular on small firms.
OTHER MEMBER STATES
No specific activities covering all or some of the concerns covered by
this proposal for a Regulation have been noted by the Commission in the
other Member States.
 ---pagebreak---                                  - 11 -
III GENERAL COMMENTS ON THIS PROPOSAL FOR A REGULATION
A.  Opportunities unexploited by the traditional regulatory approach to
    the improvement of the environmental performance of potentially
    harmful activities
1.  A general study of the situation existing in the European Economic
    Community   showed that no Member State possesses a specific
    compulsory regulation on environmental auditing today. On the other
    hand, a large number of Member states have felt the need to
    develop, either on a regulatory basis, in the form of partnerships
    with industry, or, more informally, as part of their administrative
    practices, specific measures intended directly to encourage the
    implementation of environmental audits or geared to the direct
    objectives of this practice.
2.  These different measures, by nature, supplement the traditional
    regulatory approach followed until recent years by the Member
    States, either on their own initiative or in response to the
    tightening-up of the Community legislation to control pollution
    from industrial sources.
    The traditional approach based on the imposition of standards for
    emissions of certain pollutants into the environment has produced
    and will continue to produce tangible, pre-planned results in
    response to the problems posed by emissions of certain noxious
    substances into a given sector of the environment or has limited or
    reduced   the   impact   of  selected,  clearly-defined   industrial
    activities.
3.  However, such an approach is insufficient if the objective is also
    to promote efficient management by companies to take account of
    environmental protection requirements.
    At the moment there appears to be no general mandatory approach to
    this aspect.
 B.  Improvement of conditions governing public information      on  the
     environmental performances and intentions of companies
 4.  It must be remembered that the Community legislation contains no
     special provisions to promote public information on the conditions
     in which potential industrial polluters comply with the constraints
     placed on them by Community legislation in the course of their
     activities.
 ---pagebreak---                                  - 12 -
5.  Directive 90/313/EEC of 7 June 19908 aims at ensuring free public
    access to any information that the authorities possess regarding
    environmental protection. Consequently, it lays down important
    criteria and safeguards for the dissemination of information and
    the minimum conditions of access to information that cannot be
    directly disseminated. It is not, however, as such an instrument
    capable of generating such information.
6.  In another connection, Directive 85/337/EEC of 27 June 19859 on
    the assessment of the effects of certain public or private projects
    on the environment imposes an obligation to assess the impact of
    industrial and certain other activities that are potentially
    harmful    for  the   environment, prior     to  the   granting   of
    authorization. It provides for compulsory public access to the
    information produced in order to obtain authorization and for the
    introduction of public inquiry procedures to examine authorization
    of the most extensive projects. In practice, however, the setting
    of criteria regarding the scale or extent of the operations subject
    to these provisions is left very largely to the discretion of the
    Member States and, by nature, the Directive applies only to new
    large-scale operations.
7.  The extensive work undertaken within the Community during
    information campaigns on the risks of major industrial accidents
    revealed, however, strong public demand for general information,
    going far beyond the field of industrial safety, on measures to
    prevent pollution and nuisances and on emissions from industrial
    establishments into the environment. One example in this context is
    the initiative recently taken by France in response to the
    particularly urgent demand expressed in the industrial region of
    Fos Etang-de-Berre. It consisted of setting up, with financial
    assistance from the Commission, an information centre covering all
    the activities in the Provence-Alpes-Côte d'Azur region. This
    centre should, in particular, shortly be able to disseminate a
    summary of the information collected by the local authorities in
    the framework of the self-inspection procedures described earlier.
C.  The concept of environmental auditing
Origin
 1. The use of a limited form of environmental audit started in the
     second half of the 1970s in large chemical firms in North America,
     as a result of growing regulatory constraints following a number of
     accidents. "Compliance auditing" was carried out at the request of
     public organizations in charge of auditing companies' financial
     accounts and, hence, constituted a direct extension of the
 8   OJ No L 158, 23.6.1990, p. 56.
 9   OJ No L 175, 9.7.1985, p. 40.
 ---pagebreak---                                  - 13 -
    financial audit. The objective was to inform shareholders about the
    level of compliance with existing regulations, as an indication of
    whether the level of the company's vulnerability in relation to any
    damage it caused to the environment was acceptable.
    Industrial firms subsequently took up this practice on a voluntary
    basis as an internal management tool.
Definition
2.  In November 1988, the Executive Bureau of the International Chamber
    of Commerce published a document on environmental auditing. This
    organization's definition of the audit, which seems to correspond
    to the type of audit generally advocated, is "a management tool"
    consisting of a systematic, periodic and objective evaluation of
    the performance of the organization, the management systems and the
    equipment introduced in a given industrial establishment to limit
    and assess the environmental impact of the industrial activities.
    The aim is to facilitate supervision and at the same time gain
    information on an establishment's record as regards compliance with
    the company's internal policies and with the regulations in force.
    Since then, this definition has been widely recognized by the
    industrial world and has been adopted, almost unchanged, by the
     Irish government in the description of the tasks facing the
    Environmental Protection Agency set up in 1990 (see Chapter II.B).
    For this reason, the Commission too has chosen the definition of
    the International Chamber of Commerce in this proposal for a
    Regulation.
Meaning and scope
3.   It should be made clear here that "audit" is therefore defined as
     evaluation of the environmental management in the audited
     establishment. Naturally, assessment of the environmental impact
     of industrial activities at the establishment and the production of
     information and data specifically intended for the public are also
     essential for any meaningful evaluation of performance.
4.   To function properly, the environmental audit must consequently be
     implemented by a company that already possesses a full-scale
     management system enabling it to define, plan, supervise and check
     its environmental "behaviour". The audit then becomes a key
     component of the management system, since it is in fact the prime
     tool with which the company periodically checks that this system is
     adequate and working properly at a particular site.
 ---pagebreak---                                  - 14 -
5.  The Commission has taken care to incorporate the environmental
    audit into a system with broader aims, thereby making it possible
    to fulfill the objectives pursued in a perfectly consistent manner.
D. Opportunities offered by a voluntary scheme
1.  The Commission therefore proposes an approach based on a voluntary
    scheme, initially lasting four years.
    The proposed scheme is designed to target motivated companies
    straightaway and to improve their environmental performances by
    exercising   discipline in environmental management matters (based
    on the establishment of an internal environmental protection system
    and, within this framework, on the conducting of periodic audits)
    and by informing the public about their performances and their
    intentions regarding the environment (through regular publication
    of a special environmental report).
    The voluntary nature of the proposed approach         is perfectly
    consistent with the objectives of the Commission which wishes at
    this stage to give an impetus to improvements in the performance of
    industrial operations, irrespective of size or nature, to encourage
    companies to behave responsibly and to facilitate the flow of
    information to, and participation by, the public, as an addition to
    the traditional regulatory approach.
5.  The credibility of the voluntary scheme is guaranteed by systematic
    external verification. This verification covers on the one hand
    strict observance by the company of the methodology for carrying
    out the audit and, on the other hand, the thoroughness and
    objectivity of the information provided. This verification is
    carried out by an independent accredited auditor.
    Examples show that already some companies concerned about the
    credibility of their commitment to environmental protection have
    established environmental evaluations and had reports for the
    public on the conclusions of these evaluations validated by
    well-known, independent external organizations^.
E. Principal features of the planned system
 1.  The voluntary Eco-audit scheme is open to any company engaged in
     industrial activities at a given production site.
 10  NORSK HYDRO UK Environmental report, including LLOYD'S Register
     Statement, October 1990. Norsk Hydro UK Ltd. TWICKENHAM, Middlesex
     TWl 1EE.
 ---pagebreak---                                 - 15 -
2. Participating companies will be granted a logo for the specific
   site, which may be used on condition that the exact meaning of the
   logo, which proves nothing about the product's             intrinsic
   environmental quality, is readily understood.
3. An official list of companies participating will be drawn up in
   each Member State and must be forwarded every year to the
   Commission, which will publish all the data collected in the
   Official Journal of the EC.
4. All companies participating must satisfy the following conditions:
   -   carry out an environmental review of the site concerned,
       showing actual and potential problems caused by the activities
       operated at the site. Impact assessments carried out in the
       past under the Community legislation in particular may serve as
       the basis for this review.
       on the basis of the findings of this review, introduce an
       environmental protection system, formally stated in writing,
       comprising: a policy defined for the company as a whole, an
       implementation programme for the site concerned and a
       management system defining the organizational measures and
       working procedures required to implement and supervise the
       programme. In particular, this management system must include
       the audit programme introduced by the company specifically in
        line with the principles, criteria and methods described in
       this proposal.
       draw up, after each internal audit, an environmental statement
        intended for the public, presenting an objective, exhaustive
        report in appropriate form on the problems brought to light
        during the environmental review, figures on the site's
        performance, a summary of the policy, programme and objectives
        pursued at the site and information on the intentions and steps
        taken to achieve those objectives.
        have an accredited environmental auditor examine and validate
        the audit procedure utilized and the environmental statement
        thus drawn up.
 ---pagebreak---                             - 16 -
Each Member State will ensure that steps are taken to introduce an
accreditation system, responsible for establishing and applying
appropriate procedures for the accreditation of the environmental
auditors entrusted with the task of validating the audit process
and the environmental report. The Member States may rely on
existing bodies, but must observe the conditions and criteria
specified by this proposal in the matter of competence and
pluralism.
 ---pagebreak---                                    - 17 -
IV   PRESENTATION OF THE ARTICLES
Article 1
Article 1 establishes the Eco-audit scheme and defines its objectives.
The Eco-audit scheme is a Community framework allowing             voluntary
participation by companies in the industrial sector.
The fundamental objective of the scheme is to improve the environmental
performance    of  industrial   activities   and thereby     contribute    to
protecting the environment.
To this end, the scheme requires companies to establish environmental
protection systems, evaluate such systems and inform the public about
their environmental performance.
Article 2
This Article defines the basic terms used in the Regulation.
Only the terms used in a specific sense in this proposal are defined.
Environmental review
This    is   the  starting    point   for   the   Eco-audit   process. The
environmental review is a comprehensive study of the interaction
between the environment and activities at the production site. This
 includes identifying and analysing general problems, determining the
 environmental impact of the activities concerned and evaluating the
performance of all the measures and systems introduced.
 Unlike environmental impact assessments of projects, this type of
 environmental review analyses an existing situation, rather than
modelling a hypothetical scenario. Consequently, a different method
will be employed.
All the significant     environmental    aspects  listed  in   Annex  I  are
 reviewed.
 Environmental protection system
 This term means the package of measures taken by the company to protect
 the environment.
 These    include   the   technical     processes    and   equipment,     the
 organizational,  management, supervision and      emergency arrangements,
 etc.
 Generally, therefore, this concerns the technical facilities and the
 management system. Some of these measures have to be taken to comply
 with the relevant statutory standards, others stem from the policy and
 objectives adopted autonomously by the company.
 ---pagebreak---                                  - 18 -
Environmental policy
Environmental policy means a document from the senior management
defining the company's overall aims with respect to the environment and
the principles on which its action in this field will be based. These
aims and principles apply to all the company's activities and at all
the production sites concerned.
Such an environmental policy sometimes includes quantitative targets,
e.g. for reducing or ending use or emissions of specific substances.
Environmental management
This is the function of determining and implementing the company's
environmental policy.
Environmental management    is  one  aspect  of  the  company's  general
management tasks.
Environmental management system
Environmental management is put into action by a management system,
i.e. establishment of an organizational structure, definition of
responsibilities, practices, procedures and working methods and
allocation of the requisite resources.
Usually, the environmental management system too is an integral part of
the company's general management system.
Environmental management and the environmental management system alike
cover both the general aspects and problems specific to the site in
question.
Environmental objectives
These are the detailed goals, including target values, which the
company has set itself in the environmental protection field,
particularly at the site concerned, in the light of the policy
established by the senior management.
These objectives could include a reduction of certain impacts detected,
 improvements in the quality of the environment, measures to lower
emissions, waste generation, energy consumption, etc.
Environmental programme
This programme describes the action planned by the company in order to
 attain the objectives set for the site in question by the appointed
 time.
 Environmental audit
 The definition of "environmental audit" adopted by the International
 chamber of Commerce has been incorporated in the proposal for a
 Regulation since it reflects the most widespread practice by the
 companies which already conduct such audits and has the support of a
 broad consensus within industry.
 Such  audits  are   an environmental  management  tool  enabling senior
 ---pagebreak---                                  - 19 -
management to monitor and evaluate performance.
The fundamental features enshrined in the proposal are that the audits
must be periodic, systematic and objective.
This audit procedure includes evaluation of the organizational
arrangements, management system and equipment in comparison with the
statutory standards, the company's own standards and the technological
standards equivalent to the best available technology for reducing
pollution, as defined in Community legislation.
Environmental statement
This is the document regularly published by the companies participating
in the Eco-audit scheme to keep the public informed, in particular
about the environmental performance of each site concerned.
Industrial activity
The Regulation applies to the mining and quarrying industries,
manufacturing industry, certain branches of the energy industry and
waste management activities. The definition refers to the NACE
classification of economic activities in the European Community.
Company
The proposal for a Regulation defines "company" very broadly, as any
organization, whether publicly or privately owned, which has control
over activities at a given production site.
Site
The definition of site refers to the geographical location where the
activities are carried out, including any associated stores, equipment
and infrastructure.
Accredited environmental auditor
This is a person or organization accredited, following the procedure
introduced by the Member states to implement the Regulation, to
validate    the   environmental   statements. Validation    of   complex
activities will call for a wide range of skills which no single expert
can combine. Consequently, the accreditation will define the field in
which the expert or organization is authorized to operate.
Competent bodies
Competent bodies are the organizations designated by the Member States
 to perform the following tasks:
     to receive the first environmental statement and the information
     specified in Annex IV;
 -   to receive the subsequent statements;
     to participate in the establishment and management of the systems
     for the accreditation of environmental auditors;
     to establish, update and send the Commission the list of sites
     participating in the Eco-audit scheme;
 -   to supervise use of the logo.
 ---pagebreak---                                   - 20 -
Article 3
This Article defines the commitments made by companies which decide to
participate in the voluntary Eco-audit scheme. This scheme is open to
companies operating one or more of the industrial activities defined in
Article 2. The commitments apply to the individual production site.
The basic commitments are:
     to conduct an initial environmental review;
     to establish an environmental protection system, in the light of
     the results of the initial review;
     to carry out, or have carried out, periodic, systematic
     environmental audits of the activities concerned;
     to prepare periodic environmental statements;
     to have the statements validated by accredited environmental
     auditors ;
     to submit the statements to the competent body and keep them at the
     disposal of the public.
Participation in the scheme starts from the time of submission to the
competent body of the first statement validated by an accredited
auditor.
Article 4
Article 4 aims at standardization of the environmental management
systems which are a key component of the protection systems. This
standardization will be carried out by the appropriate European
standardization bodies on request from the Commission and on the basis
of the criteria set out in Annex I.
These standards will supplement and specify in greater detail the
EN 29 000 series of standards which will serve as the point of
reference for the establishment of the management systems from the time
of entry into force of the Regulation.
Article 5
Article 5 defines the nature and content of the periodic environmental
 statement. This statement is to be prepared under the control of
 company management on the basis, in particular, of the results of the
 audit. It will also contain data gleaned from other procedures, such
 as emission inventories.
 The statement is a non-technical document written specifically for the
 public.
 It will include, in particular, details of:
 -    the activities concerned;
      the environmental problems raised by these activities;
      an inventory of emissions, of waste generation and of energy and
      raw material consumption;
      the company's environmental policy, programme and objectives;
      environmental performance.
 ---pagebreak---                                  - 21
Article 6
Article 6 contains rules on the organization of auditing and validation
activities.
The audit will be conducted either by the company itself if it has an
appropriate system of its own or by an external body recognized to this
end by the Member State.
In both cases, the ISO 10011 standards will apply.
The accredited environmental auditors will validate the statements in
line with the criteria set out in Annex II. The auditors' activities
will be covered by the professional secrecy obligation.
The European Organization for Testing and Certification will coordinate
the procedures for validation and certification of compliance with the
standards established pursuant to Article 4.
Article 7
This Article lays down the rules on the accreditation of environmental
auditors. The    Member States will     ensure   the establishment    of
accreditation systems responsible for laying down and implementing
appropriate accreditation conditions and procedures.
To ensure Community-wide harmonization of validation  activities, these
conditions and procedures must be approved by the     Commission before
they are adopted by an accreditation system. All      parties concerned
 (competent   bodies,   industrial    confederations,   non-governmental
organizations and trade unions) will be entitled      to take part in
setting up and directing these systems.
Professional auditors will automatically be recognized as accredited
throughout the Community.
Article 8
From the national lists established by the accreditation systems in
each Member State, the Commission will compile a list of accredited
environmental auditors and publish it in the Official Journal of the
European Communities.
Article 9
The competent body in each Member State will establish a list of sites
participating in the Eco-audit scheme.
From these national lists, the Commission will establish a combined
 list which will be updated annually and published in the official
Journal of the European Communities.
Article 10
The Member States will be required to designate the competent bodies
within twelve months of the date of adoption of the Regulation.
 ---pagebreak---                                  - 22 -
Article 11
This Article defines the conditions for use of the Eco-audit logo.
This logo may not be used on products or product packages nor for
advertising products.
Also the logo must always be accompanied by a statement indicating the
sites at which the Eco-audit scheme applies.
The logo may not be used in relation to sites which fail to comply with
the Community and national environmental regulations.
The competent authorities will be empowered to supervise use of the
logo by companies.
Article 12
The Member States will be allowed to encourage companies to participate
in the Eco-audit scheme, provided the action is in compliance with
Community law. For small firms in particular, provision has been made
for establishing assistance facilities to provide the expertise and
support needed to solve specific problems which could otherwise
restrict their participation in the scheme.
The Commission will also take measures to assist small firms, in
particular to provide training, information and technical assistance.
Article 13
The Regulation will be reviewed four years after entry into     force, in
the light of the experience gained. In particular, the          voluntary
 nature and scope of the scheme will be reviewed. Provision      has been
made for the Council to adopt any amendments needed by a        qualified
majority.
Article 14
 The Regulation will enter into force the day following its publication,
 but will not apply until 18 months after it comes into force.
Annex I
 Annex I defines the criteria concerning       environmental   protection
 systems and environmental auditing.
 Inter alia, this Annex defines the standards applicable (EN 29 000 for
 equipment and ISO 10011 for the audit), the good environmental
 management practices to be observed and the issues to be covered by the
 environmental reviews and audits.
 The Annex also defines in detail the elements to be included in the
 environmental protection system.
 ---pagebreak---                                                        23 -
                     In the specific case of the audit, the Annex defines the requirements
                     applicable as regards the objectives, scope, organization and
                     resources, planning and preparation, on-site audit activities,
                     reporting and follow-up. In addition, an audit frequency of between
                     one and three years has been set, leaving company management maximum
                     room for manoeuvre to decide the frequency for each site, within this
                     range, on the basis of criteria such as the environmental impact of the
                     activities concerned.
                     Annex II
                     Annex II deals with the accreditation and role of auditors. The
                     accreditation conditions and procedures will take account of European
                     standard EN 45012.
                     Auditors will be responsible for checking that companies comply with
                     the relevant requirements of the Eco-audit scheme. Compliance with
                     these requirements is the precondition for validation of the
                     environmental statement and, hence, for inclusion or retention on the
                     list of companies participating in the Eco-audit scheme and entitled to
                     use the logo.
                     The auditor must use the appropriate methods to check compliance,
                     including a visit to the site, but avoiding unnecessary duplication of
                     the company's own internal audit. The Commission will lay down the
                     validation guidelines to be applied by auditors.
r
  *™^~-r?**l*t*''*^^
 ---pagebreak---                                           - 24 -
                                      Proposal for a
                               COUNCIL REGULATION (EEC)
     allowing voluntary participation by companies in the industrial
                   sector in a Community ECO-audit scheme
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having    regard   to   the        Treaty   establishing    the  European   Economic
Community, and in particular Article 130s thereof,
Having regard to the proposal from the Commission,
Having regard to the opinion of the European Parliament,
Having regard to the opinion of the Economic and Social Committee,
Whereas the objectives of the Community's environment policy, as set
out   in  the  Treaty    and       detailed  in  the  European  Community's    Action
                                                          1
Programmes     on   the      Environment       for   1973< ),   for    1977(^),   for
1983( 3 ) and for   19 8 7 ( 4 ) ,   are, in particular, to prevent, reduce       and
as far as possible eliminate pollution, particularly                 at source, and
ensure sound management of raw material resources, on the basis of the
polluter pays principle;
 (1) OJ No C 112, 20.12.1973, p. 1.
 (2) OJ No C 139, 13.6.1977, p. 1.
 (3) OJ No C    46, 17.2.1983, p. 1.
 (4) OJ No C    70, 18.3.1987, p. 1.
 ---pagebreak---                                     - 25 -
Whereas, in particular, the Fourth Community Action Programme on the
Environment highlights the need to develop a more integrated policy on
pollution control;
Whereas the Council declared,      in its resolution      of   19 October   19 87
concerning the Fourth Action Programme on the Environment(^), that it
was important, while observing the respective powers of the Community
and the Member States, for Community action to concentrate on certain
priority  areas, particularly     improved   access   to  information    on  the
environment; whereas the European Parliament stressed, in its opinion
on the same Action Programmed), that access to information              for all
must be made possible by a specific Community programme;
Whereas the Council adopted Directive 90/313/EEC of 7 June 199 0 on the
freedom of access to information on the environment^);
Whereas companies, in particular industrial companies, are faced with
constantly growing, far-reaching and complex tasks and responsibilities
related  to  the   assessment, control, prevention       or   reduction  of  the
environmental impact    of their activities;
Whereas   these   tasks   and   responsibilities    call    for   companies    to
establish effective environmental protection systems;
Whereas   the   application    of   environmental    protection     systems    by
companies   cannot   be separated    from  the  need   to   ensure  appropriate
participation   by workers    in the establishment     and   implementation    of
 such systems and from the need to promote greater protection of the
 safety and health of workers;
 (5) OJ No C 328, 7.12.1987, p. 1.
 (6) OJ No C 156, 15.6.1987, p. 138.
 (7) OJ No L 158, 23.6.1990, p. 56.
 ---pagebreak---                                       - 26 -
Whereas   the   use   of  environmental     auditing  techniques, within      the
framework of such environmental protection systems, is particularly
important for the        systematic, regular and objective evaluation of
environmental     performances     and    facilitates    improvement    of   such
performances ;
Whereas the establishment of environmental protection systems and the
use of environmental auditing in this context are more advanced in the
industrial sector;
Whereas the public is showing growing interest in information about the
environmental performances of companies;
Whereas   environmental     auditing,     implemented  within    an   appropriate
framework,     can   provide   both    an   effective   tool   to   improve   the
environmental performances of companies and a solid basis for company
policy on information for, and collaboration with, the public;
Whereas   the    introduction   of   a   flexible  Community    scheme   for  the
evaluation and improvement of the environmental performance of certain
 activities would also stimulate further developments in areas such as
 standardization and certification of internal environmental management
 systems;
Whereas    it   is   therefore    necessary    and  appropriate    to   encourage
 companies to introduce environmental protection systems including audit
 programmes and to promote systematic, sound information for the public
 on   companies'    environmental      policy,   programmes,    management    and
 performance and, in particular, on the link between health and the
 environment;
 Whereas   the   best means    of   achieving   this  end   is  to   establish   a
 Community scheme allowing voluntary participation by companies;
 ---pagebreak---                                    - 27 -
Whereas the aims of such a scheme should be to promote the introduction
of effective protection systems, in the light of initial comprehensive
and  detailed   environmental    reviews,   to  lay   down   the   essential
requirements for environmental auditing, within the      framework   of such
protection   systems,  and   to  inform   the  public   on  the  basis,   in
particular, of the audit findings, about the environmental performances
of companies;
whereas it is necessary to provide for independent validation, by
accredited environmental auditors, of the environmental      statements for
the    public,    in   order    to    guarantee    the    reliability    and
representativeness of such information;
Whereas it is necessary to establish the conditions and procedures for
the   accreditation   of  environmental    auditors   and   procedures   for
preventing   any distortion of     the validation   activities within    the
framework   of this Regulation;
Whereas this Regulation could need revision, particularly of its scope,
in the light of the experience gained in the           first years of its
implementation; whereas, therefore, an effective procedure is necessary
for such revision,
HAS ADOPTED THIS REGULATION:
 ---pagebreak---                                      - 28 -
                                   ARTICLE 1
The Eco-audit scheme and its objectives
1. A Community scheme allowing voluntary participation by industrial
    companies, hereinafter referred to as the "Eco-audit scheme", is
    hereby   established   for   the    evaluation   and   improvement    of  the
    environmental    performance      of   industrial    activities     and   the
    provision of the relevant information to the public.
2.   The  objective   of   the  Eco-audit      scheme   shall   be   to   promote
     improvements   in   the   environmental      performance    of   industrial
     activities by:
     (a) the   establishment      and     implementation     of    environmental
         protection systems by companies;
     (b) the  systematic,    objective     and   periodic   evaluation    of  the
         environmental performance of such systems;
     (c) the provision of information on environmental performance to
         the public.
                                   ARTICLE 2
Definitions
For the purposes of this Regulation:
 (a) "environmental review" means an initial comprehensive analysis of
     the  environmental    issues,     impact    and  performance    related   to
     activities at a site, including in particular the aspects referred
     to in Annex I;
 (b) "environmental   protection     system"    means  a   coordinated    set  of
     measures of various kinds aimed at protecting the environment;
 ---pagebreak---                                   - 29 -
(c) "environmental policy" means a statement of a company's overall
    aims and principles of action with respect to the environment;
(d) "environmental   management"   means    the   aspects   of   the   overall
    management function   that determine and implement the environmental
    policy;
(e) "environmental    management    system"     means   the    organizational
    structure, responsibilities, practices, procedures, processes and
    resources for implementing environmental management;
(f) "environmental objectives" means the detailed goals,          in terms of
    environmental performance, which a company sets itself;
(g) "environmental   programme" means a description        of the    company's
     specific objectives and activities to ensure greater protection of
     the environment at a given site, including a description of the
    measures taken to achieve such objectives and the deadlines set for
     implementation of such measures;
(h) "environmental    audit"  means    a  management    tool    comprising    a
     systematic, documented, periodic and objective evaluation of the
     performance of the organization, management system and equipment
     designed to protect the environment with the aim of:
     (i)     facilitating management control of environmental practices;
      (ii)   assessing   compliance   with    company   policies,    including
             observance of the existing regulatory requirements.
     Environmental  audit includes determination of        the   factual data
     necessary to evaluate performance;
 (i) "environmental   statement"  means    a   statement   prepared    by   the
     company in line with the requirements of this Regulation and, in
     particular, of Article 5;
 ---pagebreak---                                    - 30 -
(j) "industrial activity" means any activity listed under sections C
    and D of the classification of economic activities in the European
    Community (NACE rev. 1), as established by Council Regulation (EEC)
    No 3037/90(8), with the addition of electricity, gas, steam and
    hot water production, and the recycling, treatment, destruction or
    disposal of solid or liquid waste;
(k) "company"   means  any   organization   which  has  direct   operational
    control over activities at a given site;
(1) "site" means all land on which the industrial activities under the
    control of a company at a given location are carried out, including
     any connected or associated storage of raw materials, by-products,
     intermediate products, end-products and waste material, and any
     equipment and infrastructure involved in the activities, whether or
     not fixed;
(m) "accredited environmental auditor" means any person or organization
     who has obtained accreditation, in line with the conditions and
     procedures referred to in Article 7;
(n) "competent bodies" means the bodies designated by Member States, in
     line with Article    10, to perform the tasks mentioned         in this
     Regulation.
                                  ARTICLE 3
Participation    in  the   Eco-audit   scheme,   commitments   by  companies
participating, participation procedure
1.   Companies operating any industrial activity may participate in the
     Eco-audit scheme at any of the sites where such activities are
     performed   by  undertaking    to  comply  with   all   the  rules  and
     conditions   and to observe all the procedures        set out   in this
     Regulation at each site involved, and in particular:
 (8) OJ No L 293, 24.10.1990, p. 1.
 ---pagebreak---                                - 31 -
    to establish and implement, in the light of the results of an
    initial environmental review, in line with the criteria in
    Annex I and ensuring appropriate participation by workers and
    their   representatives,     an  environmental   protection    system
    applicable to all activities at the site;
    to carry out, or have carried out, in compliance with the
    criteria    in   Annex  I,   environmental   audits  at   the   sites
    concerned;
    to examine, at the highest management level, all the findings
    of the audit and, in the light thereof and within the framework
    of their environmental programme, set objectives and measures
    aimed    at   continuous    improvement   of   their   environmental
    performance;
    to prepare an environmental statement specific to each site
    audited with the same frequency as the environmental audit;
-    to have the environmental statement validated by accredited
    environmental auditors to confirm that the data and information
    contained therein are reliable and that all the significant
     environmental issues of relevance to the site are covered in
     sufficient detail;
-    to submit the environmental statements validated by accredited
     environmental auditors to the competent body and keep them at
     the disposal of the public.
Companies which decide to participate in the Eco-audit scheme for a
given site shall, after having carried out an initial environmental
review of the site, established an environmental protection system,
and    prepared    an  environmental    statement,   submit   the    first
environmental    statement   validated   by  an  environmental   auditor,
including the information referred to in Annex IV, to the competent
body referred to in Article 10.
 ---pagebreak---                                     - 32 -
3.  The   commitments   defined   in  this  Article   shall   apply   without
    prejudice to the     action decided upon by the Member States within
    the framework of point (a) of Article 12(1).
                                  ARTICLE 4
Standardization of environmental management systems
The Commission shall request the appropriate European standardization
bodies to develop and adopt standards for environmental management
systems based on the criteria in Annex I, taking into account the
objectives, principles and provisions of this Regulation.
                                  ARTICLE 5
Environmental statement
1.  An   environmental    statement   shall  be  prepared    for   each   site
    participating in the Eco-audit scheme, under the control of company
    management and on the basis, in particular,       of each environmental
    audit or, for the first statement, of the initial environmental
    review. It shall be written        specifically  for the public      in a
    concise, non-technical form.
2.  The   environmental    statement  shall  include,   in  particular,    the
     following contents:
         a   description    of  the   company's  activities    at   the   site
         considered;
         a detailed    assessment of all the significant        environmental
         issues of relevance to the activities concerned;
 ---pagebreak---                                     - 33 -
        a   summary   of  the   figures    on  pollutant   emissions,    waste
        generation, raw material, energy        and water   consumption    and
        other significant environmental aspects, as appropriate;
        a presentation of the company's environmental policy, programme
        and specific objectives for the site considered;
    -   an    evaluation   of  the    environmental    performance    of   the
        protection system implemented at the site considered;
        the deadline set for submission of the next statement.
    The statement shall be validated under the conditions set out in
    Annex II.
                                  ARTICLE 6
Organization of auditing and validation activities
1.  The environmental audit of a site may be conducted either by the
    company's auditors, if the company has set up its own appropriate
    system, for example within the framework of the EN 29 000 standard,
    or by external auditors accredited for this purpose by a body
    recognized by the Member State.       In both cases the audit shall be
    performed in line with the criteria set out in Annex I and, in
    particular, taking account of the ISO 10011 standards on auditors'
    qualifications (part 2) and on audit procedures (part 1).
2.  The   environmental   statements   shall   be  validated   by   accredited
    environmental    auditors, in    line with    the  criteria   set out    in
    Annex II.
    Accredited    environmental    auditors   shall   not  divulge, . without
    authorization from the company management, any information or data
    obtained in the course of their validation activities.
 ---pagebreak---                                  - 34 -
3.  The Commission shall request the European Organization for Testing
    and Certification (EOTC) to establish the conditions and procedures
    for certification of compliance with the standards mentioned in
    Article 4, based on the criteria set out in Annex II, and to ensure
    coordination of the bodies designated by the Member States within
    the framework of Article 7(1).
                               ARTICLE 7
Accreditation of environmental auditors
1.  Member states shall ensure, within 12 months of the entry into
    force of this Regulation,    that accreditation systems responsible
    for   laying  down  and  implementing   appropriate  conditions and
    procedures for the accreditation of environmental auditors and for
    supervising their activities are fully operational. To this end,
    Member states may either use existing certification institutions or
    designate or set up other appropriate bodies.
    In establishing the abovementioned conditions and procedures, the
    accreditation systems in the Member States shall take account of
    the criteria set out in Annex II. Member States shall inform the
    Commission in advance of the measures they intend to adopt on this
    subject.   These measures must be approved by the Commission before
    they can be adopted by an accreditation system.
    Member States shall adopt the rules and procedures necessary to
    enable the accreditation systems   to perform their role.
     Member States shall inform the Commission without delay of the
    measures taken within the framework of this paragraph.
 ---pagebreak---                                    - 35 -
2.  The competent bodies, the industrial confederations concerned, non-
    governmental environmental and consumer organizations        and trade
    unions    shall  be  entitled    to  participate  in  setting   up    and
    directing, in line with the rules and procedures established by the
    Member     States,  the    accreditation   systems   referred    to    in
    paragraph 1.    The Commission shall be informed of these rules and
    procedures without delay.
3.   The  accreditation   systems   shall  collaborate,  in  particular    in
     supervising   the activities of accredited environmental auditors.
     The Commission shall take appropriate action to facilitate such
     collaboration.
4.   Auditors accredited in one Member State may perform validation
     activities in any other Member State.
                                  ARTICLE 8
List of accredited environmental auditors
The accreditation systems     shall establish, update and revise a list of
accredited    environmental  auditors   in  each  Member  State   and   shall
communicate this list to the Commission.
The Commission shall publish an overall Community list in the official
Journal of the European Communities.
                                  ARTICLE 9
 List of sites participating in the Eco-audit scheme
 1.  The bodies designated for this purpose by the Member States shall
      establish a list of sites participating in the Eco-audit scheme and
      shall update this list regularly.
 ---pagebreak---                                   - 36
    If a company fails to submit the validated environmental statements
    for a site to the competent body within the deadline announced, the
    site shall be deleted from the list.
2.  The competent bodies shall communicate the lists and their updates
    to the Commission each year.
    Each year the Commission shall publish in the Official Journal of
    the European Communities a list of all the sites participating in
    the Eco-audit scheme in the Community.
                                ARTICLE 10
Competent bodies
Member States shall designate, within 12 months of the entry into force
of  this   Regulation,  the   competent  bodies   and   shall  inform   the
Commission thereof immediately.
                                ARTICLE 11
The Eco-audit logo
1.  The logo illustrated in Annex III may be used in relation to sites
    participating in the Eco-audit scheme. The logo shall always be
    accompanied by a statement of which sites are participating.
    The logo may be used:
    -    on the company's environmental statements;
    -    on   the   company's    brochures,    reports    and   information
         documentation;
    -    on the company's headed paper;
         for  the  company's   advertisements,   on  condition   that  such
         advertisements contain no reference tc specific products or
         services.
 ---pagebreak---                                     - 37 -
    The logo may not be used on products, product packages or for
    product advertisement.
    The logo shall always be accompanied by one of the phrases in Annex
    III, as appropriate.
2.  The use of the logo shall be forbidden in the case of sites which
    fail to comply with the requirements of the Community and national
    environmental regulations.
    Member States shall take the necessary measures to empower the
    competent bodies to supervise use of the logo and shall inform the
    Commission of these measures immediately.
                                  ARTICLE 12
Promotion of the Eco-audit scheme
1.  Member states may take action to promote the Eco-audit scheme,
    provided   such  action   is in compliance with        Community   law, in
    particular by:
     (a) in   the   case    of    small    and    medium-sized    enterprises,
         establishing or promoting assistance measures and, possibly,
         structures, aimed at providing such firms with the expertise
         and  support   needed    in  order    to   comply  with   the   rules,
         conditions and procedures defined by this Regulation and, in
         particular, to set up environmental protection systems, conduct
         audits and prepare and validate statements;
     (b) simplifying   and/or   reducing   the   practical   verification   and
         inspection formalities under certain conditions, in particular
         for small and medium-sized enterprises;
     (c) advertising and informing the public of the Eco-audit scheme.
     Member  States   shall   inform  the   Commission    immediately   of  the
     measures they take within the framework of this Article.
 ---pagebreak---                                     - 38 -
2.  The Commission, having consulted the two sides of industry, shall
    present proposals to the Council aiming at greater participation in
    the Eco-audit scheme by small and medium-sized          enterprises, in
    particular   by    providing    information,   training   and   technical
    assistance.
                                  ARTICLE 13
Revision
Four  years   after   the   entry   into  force  of   this  Regulation,   the
Commission   shall review the Eco-audit       scheme  in the   light of the
experience gained during its operation and shall, if necessary, propose
to the Council the appropriate amendments, particularly to the scope
and nature of the scheme.
Within the framework of this revision, the Council shall adopt the
amendments proposed by a qualified majority, as provided for by the
second paragraph of Article 130s of the Treaty.
                                  ARTICLE 14
Entry into force
This Regulation shall enter into force on 1 January 1993.
It shall apply with effect from 1 July 1994.
This   Regulation   shall    be  binding   in  its   entirety   and  directly
applicable in all Member States.
Done at Brussels,                                       For the Council
                                                         The President
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                                  ANNEX I
Issues, criteria and requirements concerning      environmental protection
systems and environmental auditing
A.  Environmental protection systems must be established taking account
    of the EN 29000 series of standards and, as soon as they are
    adopted, of any specific standards set in the future within the
    framework of the provisions of Article 4.
    Such systems will include, in particular, the following elements,
    formally stated in writing: an environmental policy, environmental
    objectives,   an   environmental    programme   and    an   environmental
    management system, including an audit programme.
    The corresponding    documents will explain how the         environmental
    policy and the environmental management system for the site relate
    to the policy and systems of the company as a whole and will
    include a statement of the environmental policy conducted by the
    company.
    The environmental    protection   system will   include    technical   and
    organizational measures and procedures aiming at generating the
    information   and   data  necessary   to  evaluate    the   environmental
    performance of activities at the site considered, with reference to
    the company's environmental policies, objectives and programmes.
B.   Issues to be covered
    The   following  issues will be covered within         the   framework  of
    environmental protection systems and environmental auditing:
         assessment,  control   and   prevention   of   the   impact   of  the
         activity concerned on the various sectors of the environment;
         energy management, savings and choice;
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       raw materials management, savings, choice and transportation;
       water management and savings;
       waste avoidance, recycling, reuse, transportation and disposal;
       selection of production processes;
       product planning   (design, packaging, transportation, use and
       disposal);
       prevention and limitation of accidents;
       staff information, training and participation on environmental
       issues;
       external   information   and   public  participation,   including
       dealing with public complaints.
C. Environmental performance will be assessed by reference to the
   Community and national standards applicable to this field and to
   the best available pollution abatement technologies, as defined
   within the framework of Community legislation.
   As regards environmental management, the following "good management
   practices" will be taken as the reference, where appropriate, for
   the   protection  systems   and  environmental  auditing   under  the
   Eco-audit scheme:
   1.   Management shall prepare and regularly review at the highest
        level  the  company's   environmental  policy,   objectives  and
        programmes. These policies, objectives and programmes shall be
        stated in writing.
   2.   Management, in cooperation with staff representatives, shall
        foster a sense of responsibility for the environment amongst
        employees at all levels.
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3.   Management shall assess in advance the environmental impact of
     all new activities, products and processes.
4.   Management   shall assess and monitor         the   impact of    current
     activities on the local environment and examine any significant
     impact of these activities on the environment in general.
5.   Management shall ensure that the environmental impact of all
     the activities is reduced to the minimum.
6.   Management   shall ensure that the         arrangements   necessary    to
     reduce   waste    generation    to   the   minimum   and   to   conserve
     resources are introduced and applied.
7.   Management    shall    take   the   necessary   measures    to   prevent
     accidental emissions of materials or energy.
8.   The company shall establish and apply verification procedures
     to check compliance with the environmental policy and, where
     these procedures require measurement and testing, to establish
     and update records of the results.
9. The company       shall establish      and  update   the procedures     and
     action   to  be    pursued   in   the  event   of   detection   of   non-
     compliance    with    its   environmental     policy,    objectives    or
     targets.
 10. Management    shall   cooperate    with  the   public   authorities    to
      establish and update contingency procedures to minimize the
      impact of any accidents that nevertheless occur.
 11. Management    shall   provide    the   public   with   the   information
      necessary to understand the potential environmental impact of
      the company's     activities   and   shall be    prepared   to   respond
      positively to expressions of public concern.
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   12. Management shall provide appropriate advice to customers on the
       prevention of accidents and pollution during the handling, use
       and disposal of the products made by the company.
   13. Management    shall   ensure  that    contractors    working     on  the
       company's  behalf   apply  environmental     standards   equivalent   to
       the company's own.
D. The issues and requirements mentioned        in paragraphs B and C will
   apply  in  so   far  as   they  are  under    the   control   of   the  site
   management.
E. Environmental auditing
   The audit method and procedure will be established in the light of
   the relevant   guidelines   in the ISO 10011      international    standards
   and   within   the    framework   of   the     specific    principles    and
   requirements of this Regulation.
   In particular:
   Objectives
   The  company's   environmental   auditing   programmes    will   define,  in
   writing,   the    specific   objectives    of    auditing    of   the   site
   considered.
   The   objectives    must   include,   in    particular,     assessing    the
   management systems in place, determining compliance with Community,
   national,  and   local  regulations   and   determining    conformity   with
   company policies.
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Scope
The overall scope of the audit must be clearly defined and must
explicitly specify the:
°    Subject areas covered.
°    Activities at the site.
°    Environmental performance standards.
°    Period covered by the audit.
Organization and resources
Environmental audits must be performed by auditors with appropriate
knowledge of the sectors and fields audited and sufficient training
and proficiency as an auditor to achieve the stated objectives. The
resources and time allocated to the audit must be commensurate to
the scope and objectives of the audit.
The top company management shall support the auditing.
The auditors shall be independent of the activities they audit.
Planning and preparation for a site audit
Each audit will be planned and prepared with the objectives, in
particular, of:
     ensuring that appropriate resources are allocated;
     ensuring  that each   individual  involved   in the  audit  process
     (including auditors, site management, staff representatives and
     other   key   personnel)   understands   his   or   her  role   and
     responsibilities.
Preparation   will   include  familiarization with   activities  on  the
 site and with the environmental protection system established there
 and review of the findings and conclusions of previous audits.
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On-site audit activities
On-site   activities will  include  discussions with   site  personnel,
inspection of operating conditions and equipment and reviewing of
records, written procedures and other relevant documentation, with
the objective of evaluating     environmental performance at the site
by determining whether the site meets the applicable standards and
whether     the   systems   in    place    to   manage    environmental
responsibilities are effective and appropriate.
The following steps, in particular, will be included in the audit
process :
8
    Understanding of the management systems.
°    Assessing strengths and weaknesses of the management systems.
°    Gathering relevant evidence.
°    Evaluating audit results.
 0
    Preparing audit conclusions.
 °   Reporting audit findings and conclusions.
Reporting audit findings and conclusions
A written audit report of the appropriate form and content will be
prepared by the auditors to ensure full, formal submission of the
findings and conclusions of the audit.
The   findings   and  conclusions   of  the   audit  must  be   formally
communicated to the top company management.
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The fundamental objective of a written audit report is:
    to document the scope of the audit;
    to   provide   management   with   factual  information  on  the
    environmental   performance  at the   site  and with the  team's
    conclusions on this performance;
    to demonstrate the need for and initiate corrective action.
Audit follow-up
The   audit   process   will   culminate   in  the  preparation  and
implementation of a plan of appropriate corrective action.
Appropriate mechanisms must be in place and in operation to ensure
that the audit results are followed up.
Criteria for establishing appropriate audit frequency
The audit will be conducted at intervals of between 1 and 3 years.
The frequency will be established by the top company management,
taking account of the potential overall environmental impact of the
activities at the site, depending, in particular, on the following
elements :
    Importance and urgency of the problems detected
    Scale and complexity of the activities
    Volume of emissions
    History of environmental problems
The normal auditing frequency in the Eco-audit scheme will be:
     1 year for activities with a high environmental impact
     2 years for activities with a moderate environmental impact
     3 years for activities with a low environmental impact
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                                  ANNEX II
Criteria and requirements concerning the accreditation of environmental
auditors and to the function of the auditor
A.  Accreditation of environmental auditors
    European   standard   EN   45012  must   be  taken    into    account,    as
    appropriate,   in  setting   up  and   implementing   the    accreditation
    procedures and conditions for environmental auditors.
B.  The function of accredited auditors
    Validation will be carried out by accredited environmental auditors
    in conformity with the professional codes of practice which will be
    established and revised by the Commission.
    The function of the auditor is to certify:
    compliance    with   all   the   requirements    of    this    Regulation,
    particularly concerning the environmental review, the environmental
    audit process and the environmental statements;
-   the technical validity of the environmental review or audit process
    and of any other method and procedure on which the information and
    data contained in the statement are based;
    the reliability of the data and information in the statement and
    whether   the   statement   adequately   covers   all    the    significant
    environmental issues of relevance to the site.
The auditor will carry out all the investigations necessary to perform
the  function  described* above   in  a  sound  professional    manner,    using
appropriate   methods   and   avoiding   unnecessary    duplication     of   the
company's activities and methods.
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The auditor will operate on the basis of a written agreement with the
company which defines the scope of the work, enables the auditor to
operate in an independent professional manner and commits the company
to providing the necessary cooperation.
The verification will involve examination of documentation, a visit to
the   site   including,    in   particular,    interviews    with    personnel,
preparation of a report to the company management and solution of the
issues raised by the report.
The documentation    to be examined    in advance of the      site visit   will
include  basic   information   about  the  site  and  activities    there,  the
description of the environmental management system in operation at the
site, details    of the previous environmental      review or audit     carried
out, the report on that review or audit and the draft             environmental
statement.
The   company   will   also   provide   the   auditor   with    the   necessary
information   on   previous    reviews  and   audits   and    details   of  any
infringements of the legislation and of any civil           suits relating   to
environmental matters in the previous five years.
The auditor's report to the company management will specify:
     (1) cases of non-compliance with the provisions of this Regulation;
     (2) technical defects in the environmental review or audit method
         or in any other relevant process;
     (3) points of disagreement with the review or audit report;
     (4) points of disagreement with the draft environmental statement,
         together   with  details   of  the  amendments    or   additions  that
         should be made to the environmental statement.
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The following cases can arise:
(a) if   the   protection     system,   the   audit   method   and   the   other
     processes used to produce the statement appear to be adequate
     and the statement proves accurate, sufficiently detailed and in
     compliance     with the requirements of the Eco-audit scheme, the
     auditor will validate the statement and certify that it gives a
     true and fair account of the environmental issues of relevance
     to activities at the site.
(b) if   the   protection     system,   the   audit   method   and   the   other
     relevant processes appear adequate but the statement needs to
     be  revised     and/or   completed,    the   auditor  will    discuss   the
     changes    needed    with   the   company    management    and   will   not
     validate     the    statement   until    the    company   has    made   the
     appropriate amendments and/or additions to the statement.
 (c) if the protection       system, the audit method        and/or   the  other
     relevant    processes    considered   appear   inadequate,    the   auditor
     will    make     appropriate    recommendations      to   the     company's
     management on the improvements needed and will not validate the
     statement    until the     shortcomings    in the processes      have  been
     corrected, the processes repeated as far as necessary, and the
     statement revised accordingly.
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                               ANNEX III
The Eco-audit logo
    Eco-audit  is a European Community   scheme  for the evaluation  and
    improvement   of  the   environmental   performance  at   industrial
    production sites
The logo illustrated above must be used in conjunction with one of the
following phrases, as appropriate:
    "All our production sites in the EC participate in the Eco-audit
    scheme."
-    "All our production sites in (name of EC Member State) participate
    in the Eco-audit scheme."
-    "The following production sites of our company participate in the
    Eco-audit scheme."
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                                  ANNEX IV
Information  to be provided     to the   competent   bodies  at  the  time  of
submission of the first environmental statement
1.  Name of company:
2.  Name and location of the site:
3.  Brief  description   of  activities   at  the  site:  (refer   to  annexed
    documents if necessary):
4.  Name  and   address   of  the  accredited    environmental   auditor   who
    validated the statement annexed
5.  Deadline   for   submission   of   the   next   validated   environmental
    statement
The following details must be annexed to the statement:
a.  A brief description of the environmental protection system.
b.  A description of the auditing programme established for the site.
c.  The initial validated environmental statement.
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                                                              COM(91) 459 final
                                                     DOCUMENTS
EN                                                                              08
                                Catalogue number : CB-CO-92-092-EN-C
                                                             ISBN 92-77-41782-X
Office for Official Publications of the European Communities
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