Environmental Assessment and Management: Aims of EIA, EIS and EMP, EIA Guidelines and Methodologies, Review of EIA, Life-Cycle and Cost-Benefit Analysis, Environmental Audit and Planning, ISO 14000, the EIA Notification 2006 and its Amendments, Eco-Labelling, and Risk Assessment

Unit VIII has three parts, assessment, law and international agreements, and this chapter takes the first. It covers the aims and objectives of environmental impact assessment, the environmental impact statement and the environmental management plan; EIA guidelines and the impact assessment methodologies, checklists, matrices, networks, overlays and the Battelle system, with an impact score worked; the procedure for reviewing the EIA of development projects; life-cycle analysis and cost-benefit analysis; guidelines for environmental audit and environmental planning; the ISO 14000 series of environmental management system standards; India's EIA Notification 2006, its categories and stages; eco-labelling schemes; and risk assessment from hazard identification to risk management, with a hazard quotient worked. The legal doctrines around EIA are taught in the law course on this platform; here the weight is on method.

1. Aims and objectives of EIA, the EIS and the EMP, and the EIA Notification 2006

Environmental impact assessment is the process of identifying, predicting, evaluating and mitigating the biophysical, social and other relevant effects of a proposed project before major decisions are taken and commitments made. Its aims are to integrate environmental considerations into decisions, to consider alternatives including the "no project" option, to minimise adverse effects and enhance benefits, to inform the public and involve affected people, and to provide a basis for monitoring. It began with the National Environmental Policy Act of the United States (1969, in force 1970). The environmental impact statement (EIS), or EIA report, is the document that records the assessment: project description, baseline environment, predicted impacts, alternatives, mitigation and monitoring. The environmental management plan (EMP) sets out how the mitigation will be delivered: specific measures, responsibilities, a monitoring programme, institutional arrangements and a budget; it is the part that binds the proponent after approval.

In India EIA was first made mandatory for listed projects by a notification of 27 January 1994 under the Environment (Protection) Act 1986, and this was replaced by the EIA Notification of 14 September 2006, which has since been amended many times. Projects in its Schedule need prior environmental clearance. Category A projects, larger or more sensitive, are appraised at the centre by an Expert Appraisal Committee of the Ministry of Environment, Forest and Climate Change; Category B projects are appraised by a State Expert Appraisal Committee and cleared by the State Environment Impact Assessment Authority. Category B projects are screened into B1, which need an EIA report and public consultation, and B2, which need neither. The Ministry has issued sector-specific EIA guidance manuals and standard terms of reference as guidelines, and a draft notification to replace the 2006 one, published in 2020, drew wide public objection.

Stage (EIA Notification 2006)What happens
ScreeningFor Category B projects only, deciding whether the project is B1 (full EIA) or B2 (no EIA report)
ScopingThe appraisal committee sets the terms of reference, the issues the EIA must study, normally within 60 days
Public consultationA public hearing at the site, conducted by the State Pollution Control Board, and written responses from others with a plausible stake; required for Category A and B1 projects, with exemptions for some categories
AppraisalThe committee scrutinises the final EIA report and public consultation outcomes and recommends grant or rejection; the regulatory authority then decides
⚠️ Screening applies to Category B only
Under the 2006 Notification, Category A projects all need a full EIA and go straight to scoping; screening is the step that sorts Category B projects into B1 and B2. An option that places "screening of Category A projects by the SEIAA" mixes up both the category and the authority.

2. Impact assessment methodologies and the review of EIA

MethodHow it worksStrengths and weaknesses
Ad hocExperts judge impacts broadly by categoryQuick, but subjective and not reproducible
ChecklistsLists of environmental parameters to be considered; simple, descriptive, scaling or weighting-scalingSystematic and easy, but do not show interactions or causal chains
MatricesA grid of project actions against environmental components; the Leopold matrix (1971) has 100 actions and 88 environmental characteristics, and each interacting cell is scored for magnitude and importance on a scale of 1 to 10Link causes to effects clearly, but count only first-order impacts and can double-count
NetworksCause-condition-effect chains traced from an action through primary to secondary and tertiary impacts, as in Sorensen's network (1971)Reveal indirect and cumulative impacts, but become complex and give no spatial picture
OverlaysTransparent maps of environmental characteristics superimposed to find suitable and sensitive areas, developed by McHarg (Design with Nature, 1969); today done in GISExcellent for siting and spatial impacts, but weak on magnitude and non-spatial impacts
Battelle Environmental Evaluation System78 parameters in four categories, ecology, environmental pollution, aesthetics and human interest, weighted by 1,000 parameter importance units (PIU) shared among them; each parameter's quality is scaled from 0 to 1 (EQ), and environmental impact units = EQ × PIU are compared with and without the projectQuantitative and comprehensive, but designed for water resource projects and demanding of data

In the Battelle system, if a parameter carries 20 PIU and its environmental quality would fall from 0.8 without the project to 0.5 with it, the impact is 20 × (0.5 − 0.8) = −6 environmental impact units, a loss of 6 EIU; summing over all 78 parameters gives the project's net environmental score and allows alternatives to be compared. Reviewing an EIA means judging whether the report is adequate for a decision: whether baseline data are sufficient (commonly at least one season of primary data outside the monsoon, and secondary data for the rest), whether impacts are predicted with appropriate models and not merely described, whether alternatives have been genuinely considered, whether the EMP is specific and funded, and whether public concerns have been addressed. Structured review packages, such as that of Lee and Colley (1990), grade each section, and in India the appraisal committee may send a report back for additional studies.

3. Life-cycle analysis and cost-benefit analysis

Life-cycle analysis (assessment) evaluates the environmental burdens of a product or service over its whole life, from the extraction of raw materials through manufacture, distribution and use to final disposal: "cradle to grave". Its narrower forms are "cradle to gate" (up to the factory gate) and its ideal is "cradle to cradle", in which materials are cycled indefinitely. ISO 14040 and 14044 define four phases: goal and scope definition, which fixes the functional unit (for example, a litre of packaged milk delivered) and the system boundary; life-cycle inventory analysis, which quantifies all inputs of energy and materials and outputs of emissions and wastes; life-cycle impact assessment, which classifies these into impact categories such as climate change, acidification, eutrophication and ozone depletion and characterises them with factors such as global warming potentials; and interpretation, which draws conclusions and checks their sensitivity. Life-cycle analysis often overturns intuition, for example about paper versus plastic bags, because the answer depends on how many times a product is reused and what the functional unit is.

Cost-benefit analysis compares the benefits of a project with its costs, all expressed in money, over its life. Because a rupee today is worth more than a rupee in the future, future values are discounted to present values: PV = FV ÷ (1 + r)^t, so a benefit of 110 received in one year at a 10% discount rate is worth 100 today. The net present value is the sum of discounted benefits minus discounted costs, and a project is worthwhile if NPV is positive or, equivalently, if the benefit-cost ratio exceeds 1. For environmental decisions the difficulties are valuing non-market goods, such as clean air, biodiversity and lives, by the travel-cost, hedonic and contingent-valuation methods, and choosing the discount rate: a high rate makes long-term harms, such as climate change felt by future generations, look almost worthless today, which is why low discount rates are argued for in environmental appraisal.

4. Environmental audit, environmental planning, ISO 14000 and eco-labelling

An environmental audit is a systematic, documented, periodic and objective evaluation of how well an organisation, its management and its equipment are performing in protecting the environment. It may be a compliance audit (against laws and consent conditions), a management-system audit (against a standard such as ISO 14001), a waste, energy or water audit (to find savings), a due-diligence or liability audit (before buying a site or company) or a post-project audit of an EIA's predictions. It proceeds in three stages: pre-audit (defining scope, gathering information, questionnaires), on-site audit (inspection, interviews, records, sampling) and post-audit (report, findings and an action plan). In India, every person carrying on an industry that needs consent under the Water or Air Act or authorisation under the hazardous waste rules must submit an environmental statement for each financial year ending on 31 March to the State Pollution Control Board by 30 September, a form of self-audit introduced into the Environment (Protection) Rules in the early 1990s. Environmental planning builds environmental considerations into decisions before projects exist: siting industries through zoning atlases and carrying-capacity studies, and strategic environmental assessment of policies, plans and programmes, which catches cumulative impacts that project-by-project EIA misses.

ISO 14000 standardSubject
ISO 14001Environmental management systems: requirements, built on the plan-do-check-act cycle; first published 1996, revised 2004 and 2015; the one standard of the family against which organisations are certified
ISO 14004General guidance on implementing an environmental management system
ISO 14020 seriesEnvironmental labels and declarations: Type I third-party multi-criteria eco-labels (14024), Type II self-declared claims (14021), Type III environmental product declarations (14025)
ISO 14031Environmental performance evaluation
ISO 14040 and 14044Life-cycle assessment: principles, framework, requirements and guidelines
ISO 14064Quantification, reporting and verification of greenhouse gas emissions
ISO 19011Guidelines for auditing management systems, which replaced the earlier environmental auditing standards ISO 14010 to 14012

Eco-labelling schemes award a label to products that are less harmful to the environment over their life cycle than others in the same category, letting consumers choose and rewarding producers. Germany's Blue Angel (1978) was the first; others include the Nordic Swan (1989), the EU Ecolabel (1992) and the United States Energy Star (1992). India's Ecomark, launched in 1991 by the Ministry of Environment and Forests and administered with the Bureau of Indian Standards, uses an earthen pot as its logo and is given to products that meet both quality standards and environmental criteria; take-up has been limited. The Bureau of Energy Efficiency's star labels for appliances (from 2006) are a widely recognised energy label.

5. Risk assessment: hazard identification, hazard accounting, exposure scenarios, risk characterisation and risk management

A hazard is something with the potential to cause harm; risk is the probability that harm will occur combined with its severity, often expressed as risk = probability × consequence. Risk assessment follows the steps the syllabus names, which match the framework of the United States National Research Council's "Red Book" (1983). Hazard identification asks what can go wrong or what harm a substance can cause, using hazard and operability studies (HAZOP), what-if analysis, checklists and failure mode and effects analysis for plants, and toxicological evidence for chemicals. Hazard accounting quantifies the inventory of hazardous substances and the credible accident sequences, using fault-tree analysis (working back from a top event to its causes) and event-tree analysis (working forward from an initiating event to its outcomes) and maximum credible accident analysis. Scenarios of exposure describe who is exposed, by which pathways and routes, to what dose, for example a toxic gas release dispersed downwind or a chemical in drinking water. Risk characterisation combines hazard and exposure into an estimate of risk and its uncertainty. Risk management decides what to do: eliminate or reduce the hazard, add safeguards, transfer risk by insurance, and prepare on-site and off-site emergency plans, as India's Manufacture, Storage and Import of Hazardous Chemical Rules 1989 require of major-accident-hazard installations.

For chemical exposures risk is characterised numerically. For non-carcinogenic effects the hazard quotient is the estimated daily dose divided by the reference dose, the dose believed to be without appreciable risk over a lifetime: HQ = exposure ÷ RfD. An HQ above 1 signals concern; if a pollutant in water gives an intake of 0.006 mg/kg/day and its RfD is 0.003 mg/kg/day, HQ = 2. For carcinogens, which are assumed to have no threshold, the excess lifetime cancer risk is the chronic daily intake multiplied by the cancer slope factor; an intake of 2 × 10⁻⁴ mg/kg/day with a slope factor of 1.5 (mg/kg/day)⁻¹ gives a risk of 3 × 10⁻⁴, three extra cancers in 10,000 people exposed for a lifetime, well above the level of about one in a million often treated as negligible. The syllabus's "Manufacture, Storage and Import of Hazardous Chemical (Amendment) Rules, 2000" amended the principal Rules of 1989, which remain in force with their later amendments.

Key takeaways

  • EIA identifies, predicts, evaluates and mitigates impacts before decisions; the EIS reports it and the EMP binds the mitigation; India's EIA Notification 2006 replaced that of 1994 and has been amended many times.
  • Category A projects go to the central Expert Appraisal Committee and Category B to the state; B is screened into B1 and B2; the stages are screening, scoping, public consultation (hearing by the SPCB) and appraisal.
  • Methods run from checklists and the Leopold matrix (100 × 88) to Sorensen networks, McHarg overlays and the Battelle system (78 parameters, 1,000 PIU, EIU = EQ × PIU).
  • LCA (ISO 14040/44) has four phases, goal and scope, inventory, impact assessment and interpretation; CBA discounts at PV = FV ÷ (1 + r)^t; ISO 14001 is the only certifiable ISO 14000 standard; Blue Angel (1978) was the first eco-label and Ecomark (1991) is India's.
  • Risk assessment runs from hazard identification and hazard accounting through exposure scenarios to risk characterisation (HQ = exposure ÷ RfD; cancer risk = intake × slope factor) and risk management.

Practice questions (10)

Attempt each one before opening the answer. Every explanation names the tempting wrong option as well as the right one, because that is where marks are lost.

  1. The Leopold matrix, used in environmental impact assessment, cross-tabulates

    1. cause-condition-effect chains of secondary impacts
    2. 78 parameters weighted by 1,000 importance units
    3. 100 project actions against 88 environmental characteristics, scoring magnitude and importance in each cell
    4. transparent maps of environmental features
    Show answer

    Answer: C — 100 project actions against 88 environmental characteristics, scoring magnitude and importance in each cell

    Leopold and colleagues (1971) built a matrix of 100 actions by 88 characteristics, each interacting cell scored 1 to 10 for magnitude and importance. The 78 parameters with 1,000 PIU describe the Battelle system, map overlays are McHarg's method, and cause-effect chains are networks.
  2. A contaminant in drinking water gives a daily intake of 0.006 mg/kg/day, and its reference dose is 0.003 mg/kg/day. What is the hazard quotient?

    Numerical answer — type the value.

    Show answer

    Answer: 2

    HQ = exposure ÷ RfD = 0.006 ÷ 0.003 = 2. Because it exceeds 1, the exposure is above the level considered safe over a lifetime and calls for action; dividing the RfD by the exposure (0.5) inverts the ratio and would wrongly suggest safety.
  3. Under the EIA Notification 2006, a Category B2 project

    1. requires a full EIA and a public hearing
    2. is appraised by the central Expert Appraisal Committee
    3. is exempt from environmental clearance altogether
    4. does not require an EIA report or public consultation
    Show answer

    Answer: D — does not require an EIA report or public consultation

    Screening sorts Category B projects into B1, which need an EIA report and public consultation, and B2, which need neither but still need clearance from the state authority on the basis of the application documents. Central appraisal is for Category A.
  4. Which of the following are stages of the prior environmental clearance process under India's EIA Notification 2006? Select all that apply.

    1. Appraisal
    2. Public consultation
    3. Environmental audit
    4. Scoping
    Show answer

    Answer: A — Appraisal; B — Public consultation; D — Scoping

    The four stages are screening (for Category B), scoping, public consultation and appraisal. Environmental audit evaluates the performance of an operating facility and is not a stage of granting prior clearance.
  5. Which standard of the ISO 14000 family is the one against which organisations are certified?

    1. ISO 14001, environmental management systems: requirements
    2. ISO 14040, life-cycle assessment principles
    3. ISO 14004, general guidance on management systems
    4. ISO 14031, environmental performance evaluation
    Show answer

    Answer: A — ISO 14001, environmental management systems: requirements

    ISO 14001 specifies requirements, built on plan-do-check-act, that an auditor can verify, so it is certifiable. The others give guidance or methods: 14004 on implementation, 14040 on LCA and 14031 on performance evaluation.
  6. Assertion (A): Network methods are better than simple matrices at identifying the secondary and indirect impacts of a project. Reason (R): Networks trace cause-condition-effect chains beyond the first-order effects of each action. Choose the correct option.

    1. Both A and R are true, and R is the correct explanation of A
    2. Both A and R are true, but R is not the correct explanation of A
    3. A is true, but R is false
    4. A is false, but R is true
    Show answer

    Answer: A — Both A and R are true, and R is the correct explanation of A

    Both are true and R explains A. A matrix cell links one action to one component directly, while a network follows how, for example, clearing vegetation increases erosion, which raises sediment in a stream, which harms fish, making indirect effects visible.
  7. India's Ecomark eco-labelling scheme, launched in 1991, uses as its logo

    1. an earthen pot
    2. a swan
    3. a blue angel
    4. a five-star rating
    Show answer

    Answer: A — an earthen pot

    The Ecomark logo is an earthen pot, symbolising a renewable, non-hazardous product. The Blue Angel is Germany's label, the swan is the Nordic label and star ratings are the Bureau of Energy Efficiency's appliance labels.
  8. Which of the following are phases of life-cycle assessment as defined in ISO 14040? Select all that apply.

    1. Discounting future costs to present value
    2. Screening into categories B1 and B2
    3. Interpretation
    4. Goal and scope definition
    Show answer

    Answer: C — Interpretation; D — Goal and scope definition

    The four LCA phases are goal and scope definition, inventory analysis, impact assessment and interpretation. Screening into B1 and B2 belongs to India's EIA process, and discounting belongs to cost-benefit analysis.
  9. In the Battelle Environmental Evaluation System a parameter carries 20 parameter importance units. Its environmental quality score would be 0.8 without the project and 0.5 with it. By how many environmental impact units does the project reduce this parameter's score?

    Numerical answer — type the value.

    Show answer

    Answer: 6

    EIU = EQ × PIU, so the score falls from 0.8 × 20 = 16 to 0.5 × 20 = 10 EIU, a reduction of 6 EIU. The quality change alone (0.3) ignores the weight the parameter carries among the 1,000 PIU.
  10. Under the Environment (Protection) Rules, an industry that requires consent under the Water or Air Act must submit its annual environmental statement to the State Pollution Control Board

    1. only once, before starting operations
    2. by 30 September, for the financial year ending on 31 March
    3. by 31 March, for the calendar year just ended
    4. every five years, with the renewal of consent
    Show answer

    Answer: B — by 30 September, for the financial year ending on 31 March

    The environmental statement, a form of self-audit covering water and raw-material consumption, pollution discharged, hazardous and solid wastes and pollution-control measures, is due each year by 30 September for the financial year ending 31 March.