Ecological Audit

The ecological audit
by David Haenke

Part 4 of Ecological Economics and Bioregionalism, a cornerstone document for creating a regenerative economy.

The cornerstone and most powerful tool of ecologicaleconomics is the "ecological audit." The science, theory,and practice of the ecological audit is rapidly being developed,though it has a long way to go.

We know about financial audits. We have heard of theenergy audit. More fundamental and significant is theecological audit of an enterprise, or any given product orservice. It goes far beyond the "environmental audits" now being employed by some industries.

Some of the factors that the ecological audit would consider:

(note: whenever the term "full cost" is used. it means the ecologically audited cost.)

Waste, pollution, toxics (at any stage or level of business
process)

• * Amount and kind of waste control
• * Amount, kind and full cost of pollution or toxics created
• * The impact and full cost to the environment of dealing with
• waste
• * Degree and manner of waste recycling
• * Manner and impact of final disposal of wastes
• * Level of reuse of waste.
• Energy
• * Form of energy inputs
• * Efficiency of energy use
• * Full cost of using energy sources.
• Production--Resource Inputs
• * Whole impact of production on environment, ecological systems,
• species
• * Level and kind of resource use
• * Where the resource comes from
• * Method and full costs of resource extraction
• * Mode and cost of transportation of resource to point of use.
• Distribution
• Distances from production point that products are marketed,
• related to:
• Full energy and resource cost of transportation to markets,
• type of transportation

* Whole (ecologically audited) cost of packaging

Marketing

* Full cost of packaging

* Full cost of advertising

Monetary and other capital inputs

* Source, and nature of the source of investment money

* Full cost of investment money

* Whether the business is locally owned and operated

* Source and nature of business capitalization

* Where profits go and eventually end up

* Where profits and assets are invested

* What happens to money invested

* The level, nature and source of business subsidies, such as:
cheap access to natural financial resources, public tax
money, regulatory breaks, tax breaks; below-cost access to
physical resources; incentives; regulatory favors; conces-
sions; inside information; depletion allowances; below market
cost access to financial resources

Human community

The Human Economy can be seen as:

* Source of labor

* Salary and wage paid to labor relative to averages for the
same kind of work in other places

* How well the enterprise integrates, not only into the local
human community, but also into the existing natural communities

* Cost of not conforming to community and governmental standards
and regulations

* The amount of business resources put into enhancement of the
health of the local community and ecological health

* Degree and kind of social responsibility

(end of ecological audit criteria)

Hopefully the time will come soon when these factors and
dozens more will be quantified, and the numbers rigorously run
and available.

As soon as possible human societies must begin to understand
the true cost or viability of anything or any enterprise can
only be determined by the ecological audit. Passing the test of
the ecological audit will determine both the long term financial
viability of any given business, as well as its acceptability in
the community.

At the same time, eco-auditing will provide a powerful
tool for economic enterprises to evaluate their real profitabili-
ty, as well as determine the best methods for them to self-regu-
late themselves in ways not determined by government or the
arbitrary, ecologically and socially destructive forces of the
money and investment-driven marketplace.