auditing the extractive industry

1. AUDITING
ENVIRONMENTA
L IMPACT
ASSESSMENT
AIKINS OSEI

2. SESSION
AGENDA
Importance of Environmental
Impact Assessment (EIA)
Components of EIA Process
Auditing EIA

3. ENVIRONMENTAL IMPACT ASSESSMENT
• ENVIRONMENTAL IMPACT ASSESSMENT (EIA) • AN ANALYTICAL
PROCESS OR PROCEDURE THAT SYSTEMATICALLY EXAMINES THE
POSSIBLE ENVIRONMENTAL CONSEQUENCES OF A GIVEN ACTIVITY OR
PROJECT •
• THE AIM IS TO ENSURE THAT THE ENVIRONMENTAL IMPLICATIONS ARE
TAKEN INTO ACCOUNT BEFORE ANY DECISION IS MADE TO PROCEED
OR NOT WITH THE PROJECT

4. UNITED NATIONS DEFINITION OF EIA
• THE UNITED NATIONS ENVIRONMENT
PROGRAMME DEFINES ENVIRONMENTAL
IMPACT ASSESSMENT (EIA) AS A TOOL USED TO
IDENTIFY THE ENVIRONMENTAL, SOCIAL, AND
ECONOMIC IMPACTS OF A PROJECT PRIOR TO
DECISION MAKING.

5. 5
In EIA, the term “impacts” is
used instead of “effects of
activities.”
What is an impact?
DEFINITION OF EIA
ENVIRONMENTAL
IMPACT ASSESSMENT IS
A formal process for identifying:
•likely effects of activities or projects
on the ENVIRONMENT, and on
human health and welfare.
•means and measures to mitigate &
monitor these impacts

Environment is broadly interpreted:
Physical: Water, Air, Soil.
Biological: flora, fauna, ecosystem
Social: human health and welfare,
culture, religion, and local values
The word ‘impact’ is used in the sense of
‘influence’ and the word ‘effect’ is used in the
sense of ‘result’.
-english.stackexchange.com

6. 6
WHAT IS AN IMPACT?
THE IMPACT OF AN ACTIVITY IS A
DEVIATION (A CHANGE) FROM THE
BASELINE SITUATION THAT IS CAUSED
BY THE ACTIVITY.
To measure an impact, you
must know what the
baseline situation is.
!
The baseline situation is the existing
environmental situation or condition
in the absence of the activity.
The baseline situation is a key
concept in EIA.
More…

7. 7
THE BASELINE
SITUATION
Water Quantity, quality, reliability, accessibility
Soils Erosion, crop productivity, fallow
periods, salinity, nutrient concentrations
Flora Composition and density of natural
vegetation, productivity, key species
Fauna Populations, habitat
Special Key species
ecosystems
Env Health Disease vectors, pathogens
In characterizing the
baseline situation, many
environmental components
may be of interest
The components of interest
are those that are likely to be
affected by your activity—or
upon which your activity
depends for its success

8. either because of
environmental damages that
are likely to arise during
project implementation
or
because of modifications that
are required subsequently in
order to make the action
environmentally acceptable to
government and community.
EIA is essentially a planning tool for preventing environmental problems due to an action
It seeks to avoid costly mistake in project implementation,

9. WHY EIA Cont?
Identifies potential environmental
effects (both beneficial and adverse)
Proposes measures to mitigate adverse
environmental effects and enhance
beneficial effects
Estimates whether there will be
significant adverse environmental
effects, after mitigation measures are
implemented
Includes a follow –up program to verify
the accuracy of the environmental
assessment and effectiveness of
mitigation measures

10. EMERGING FORMS OF EIA
Cumulative
impact
assessment
Health impact
assessment
Social impact
assessment
Cultural
heritage impact
assessment

11. Cumulative impact assessment
Capture wider implications in project assessment.
Includes any cumulative environmental effects that are likely to result from a
project in combination with other physical activities that have been or will be
carried out.
The cumulative effects are the combined effects of past, present, and foreseeable
human activities, over time, on the environment, economy, and society in a
particular place.

12. Health impact assessment
• The World Health Organization defines a
health impact assessment (HIA) as “a
combination of procedures, methods and
tools by which a policy, programme or
project may be judged as to its potential
effects on the health of a population, and
the distribution of those effects within
the population.”
• While some countries, including Australia
and Canada, integrate the HIA within an
EIA, other countries, such as the United
Kingdom and Sweden, conduct an HIA as
an independent appraisal.

13. Social impact assessment
A social impact assessment includes the processes of analyzing, monitoring, and managing the intended
and unintended social consequences, both positive and negative, of planned interventions (policies,
programs, plans, and projects) and any social change processes invoked by those interventions.
Adverse social impacts can reduce the intended benefits of a proposal and can threaten its viability (as well
as its long-term sustainability) if they are severe enough.
In such cases, a social impact assessment is carried out as part of the EIA process, or sometimes as a
parallel or separate review

14. Cultural heritage impact assessment
A cultural heritage impact
assessment is the analysis of
potential impacts, negative
and positive, on the full
range of cultural resources
of an area, which may result
from proposed
development or works or
environmental trends.
The assessment includes the
design of measures to
mitigate impacts that are
unacceptable and maximize
those that are beneficial.
Cultural heritage is also
considered in EIAs within
the EU and potential
impacts on cultural heritage
of proposed developments
are examined along with the
EIA

15. Screening
Scoping
Information Collection Assessment
Prediction
Mitigation Reporting
Decision Making
Monitoring
The EIA Process

16. Project Description and Screening
Screening (usually by an EIA Authority or using published
checklists) – to decide whether an EIA is required and focus
resources on projects most likely to have significant impacts,
those where impacts are uncertain and those where
environmental management input is likely to be required.
Official EIA guidelines usually contain lists or schedules
specifying which developments require an EIA (eg always,
or in particular circumstances).

17. Scoping
Scoping –a ‘narrowing’ process usually undertaken by an ‘assessment team’ to identify the key issues of concern at
an early stage in the planning process and guide the development of terms of reference for the EIA.
Defining the spatial and temporal boundaries
Establishing baseline data -Current conditions of the environment
Scoping should involve all interested parties such as the proponent and planning or environmental agencies and
members of the public.
The results determine the scope, depth and terms of reference to be addressed within an Environmental Impact
Statement

18. Identification of Impacts and Mitigation Measures
DIFFICULT TO PREDICT AND
SPECULATIVE
HOW WILL THE PROJECT CHANGE THE
STATE OF VEC
TAKE INTO ACCOUNT THE
COMPONENTS AND PHASES OF THE
PROJECT AND THE VEC

19. Report Review and Decision Making
Report produced by the proponent is reviewed by the regulator
Report is assessed for the adequacy of information for decision making
Recommendations made to improve the report
Public input is obtained
Advice is provided to decision-maker

20. Impact Management
Plans and strategies
designed to avoid or
alleviate potential impacts
Range from project design
modifications to
compensation
Impact management
continues beyond the
project development
Impact benefit
agreements

21. Monitoring
Essential to ensure:
information is collected on
the environment to
compare with baseline data
Mitigation measures and
conditions are complied
with
undertaken by the
regulator or third parties

22. Follow-up
Essential to ensure:
The mitigation
measures and
conditions are effective;
and if not,
Adjustments or
corrective actions are
adopted during the
implementation and
operation of the project

23. Public Consultation
Level of public
participation varies
from one country to
another;
It ranges from:
Informing the public
of the proposed
project
Providing access to
full information
about the project
Requesting
commentary from
the public
Including the public
in formalized
consultation forums
or public inquiries.

24. Stakeholders in EIA

25. BENEFITS OF AUDITING EIA
Identifying problems or
gaps in the
management of EIA
process
01
Raising attention on the
EIA process and its
problems
02
Providing
recommendations to
improve management
and promote good
governance,
accountability,
transparency
03

26. EFFECTIVE EIA PROCESS
• SOLID ADMINISTRATIVE AND LEGAL FRAMEWORK
• QUALITY OF THE EIA REPORT
• POST EIA IMPLEMENTATION OF MITIGATION MEASURES
AND FOLLOW-UP

27. ISSUES WITH AUDITING EIA – SAIS’
PERSPECTIVE
• LACK OF IN-HOUSE TECHNICAL EXPERTISE
• SAMPLING APPROACH
• DOCUMENTATION CHALLENGES
• POLICY LIMITATIONS
• ACCESSING RELEVANT INFORMATION

28. CRITERIA FOR AUDITING EIA
• LEGISLATION AND REGULATIONS
• ENTITY’S POLICIES, GUIDELINES, OPERATING MANUALS
• CENTRAL AGENCIES POLICIES AND DIRECTIVES
• BEST PRACTICES AND PROFESSIONAL STANDARDS
• INTERNATIONAL AGREEMENTS AND CONVENTIONS (EG.
CBD, RAMSAR)
• REQUIREMENTS FROM FINANCIAL INSTITUTIONS

29. THANK YOU