How Environmental Obligations Get Overlooked

Environmental Law, Regs, Litigation, State & Federal

Date posted: 06/04/16

Edward Cocchiarella blogs that many mining companies are looking at ways to re-invent themselves in these challenging economic times. In reorganizations, mergers, or break-ups, environmental compliance obligations can take a back seat and critical issues might get overlooked. As an auditor and member of transition teams he has seen environmental requirements slip through the cracks. These have included legal and voluntary obligations. Even companies registered to the management system standards, like ISO 14001, may not sufficiently address these areas. Paying attention to these elements will smooth the transition, avoid violations and reassure stakeholders. In reorganizations, Cocchiarella asks if there are any existing requirements triggered or retired? Are there sufficient resources to ensure ongoing compliance? Who is monitoring changing regulations? Most importantly when environmental work is transferred to a new department or employee do they understand their new responsibilities? Are they adequately trained? Usually it is not enough to simply change an organization chart or a job description. There are cases where monitoring for new legal requirements was reassigned without adequate guidance or training which can lead to compliance problems. Cocchiarella suggests that sometimes commitments made during the environmental assessment and community engagement activities may be overlooked in transition to a new structure or new company. It is wise to assume stakeholders will be watching. How are these voluntary commitments identified and addressed in the new organization? How would the organizations reputation be affected? In preparing for organizational change, the impacts to management systems should be considered. Cocchiarella suggests that an independent review, such as a gap analysis or audit, is appropriate, which includes experienced environmental professionals on transition teams to support a successful outcome where nothing is left on table.