Hafeez Shafi Operational Procedure: EPG-31-02 Revision: A Page 1 of 5

Tanneries EVALUATION OF SIGNIFICANCE OF ENVIRONMENTAL

(Pvt.) Ltd. ASPECTS

Distribute with
procedure EOP-31-02, Significant Environmental Aspect

I PURPOSE

The purpose of this guide is to provide criteria and method for evaluating significance of
environmental aspects.

II APPLICATION

This guide is to be used with Procedure EOP-31-02, Significant Environmental Aspects.

III GUIDE

1. Environmental Aspect Evaluation Chart

1.1 Significance of environmental aspects is evaluated using the Environmental Aspect

Evaluation Chart enclosed at the end of this guide.

1.2 After ratings for individual attributes and the total significance rating for an aspect
are calculated, the actual significance ranking for the aspect is marked in the last column,
Aspect Significance Ranking.

2. Significance Rating

2.1 Significance rating of an aspect is determined by calculating the associated risk (R) and
combining it with ratings of other factors.

2.2 There is no threshold defined for significance rating above which an environmental aspect
would be automatically classified significant. The rating is only a tool for better
understanding issues related to the aspect. The final classification of the significance of an
environmental aspect is a decision of the evaluators and the top management.

3 Risk Rating

3.1 Every environmental aspect is first rated with regard to the risk it poses to the
environment. The risk is calculated as a product of severity of impact and probability of
occurrence.

3.2 Severity of an impact has two components: severity of impact on the environment and
severity of impact on human health and safety.
Originator: Approved by:

Date of Issue:
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Tanneries EVALUATION OF SIGNIFICANCE OF ENVIRONMENTAL
(Pvt.) Ltd. ASPECTS

3.3 Probability of occurrence is modified by a component representing the operational

controls implemented to reduce the probability of an incident. These controls may be
release detection systems, containment arrangements, filters, treatment processes,
procedures, operator training, and many other such measures. When the controls are
properly maintained they effectively reduce the probability of an incident; but when they
are neglected, the probability may increase dramatically.

Rating complexity of control ensures that dangerous aspects are classified as significant
even when the probability of an incident is very low, but could increase if the EMS does
not dedicate appropriate attention and resources to control the aspect.

3.4 The risk (R) is calculated using the following formula:

R= (A+B) x (C+D)

The following ratings are applied to determine the severity and probability of an impact:

Severity of environmental impact

A=1 No measurable impact

A=2 Minimal and immediately remediable impact
A=3 Short term reversible damage to the environment within the facility
A=4 Short term reversible damage to the environment extending outside
the facility or long term reversible damage within the facility
A=5 Long term or permanent damage to the environment extending
outside the facility

Severity of impact on humans

B=1 No risk to health or safety

B=2 Negligible or remote risk to health or safety
B=3 Possible risk to health and safety
B=4 Moderate, known risk to health or safety
B=5 Serious and immediate risk to health or safety

Probability of occurrence

C=1 Occurrence only possible as a result of severe natural disaster or

other catastrophic event
C=2 Occurrence possible as a result of serious accident or
unforeseeable failure
C=3 Occurrence possible as a result of foreseeable accident or failure,
or abnormal operating conditions
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Tanneries EVALUATION OF SIGNIFICANCE OF ENVIRONMENTAL
(Pvt.) Ltd. ASPECTS

C=4 Occurrence may be caused by minor accident, lack of training or

operator error, or inadequate maintenance of equipment
C=5 Occurs in normal conditions

Controls in place reducing probability of occurrence or severity

D=1 No controls are needed because of low effects in case of

occurrence.
D=2 Simple and obvious controls that are incorporated in routine
operational practices and/or require very little maintenance.
D=3 Controls are operational but are slightly critical because of
complexity, training requirements, written procedures, or systems
that must be periodically inspected or serviced.
D=4 Controls that are in place perform poorly because of lack of
maintenance, training or insufficient monitoring systems.
D=5 No controls are in place at all.

4. Other Factors

4.1 In addition to risk all environmental aspects are evaluated with regard to legal and
regulatory relevance, nuisance impacts, views of interested parties, policy issues, and
uncertainty as to the extent of the actual impacts.

Following ratings are applied:

Legal/Regulatory Requirements

High significance ratings are attached to regulated aspects, especially those where
regulations require special permits, reporting and control programs, or contingency
planning.

E=0 No legal or regulatory requirements, or routine operational controls

are sufficient to comply
E = 10 Implementation of special controls and/or record keeping required
E = 20 Periodical reporting of performance or operational data, operating
permits, or contingency planning are required

Nuisance

Nuisance includes noise odor, dust, traffic, unsightly surroundings, and other such
impacts on the surrounding area and community.

F=0 No nuisance for the neighboring community

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Tanneries EVALUATION OF SIGNIFICANCE OF ENVIRONMENTAL
(Pvt.) Ltd. ASPECTS

F=5 Nuisance noticeable by small groups or discriminating members of

the community
F = 10 Nuisance seriously impacting the surrounding area and community

Views of interested parties

Views of interested parties are considered in significance rating. Specific concerns and
Concerns and complaints communicated by those directly impacted by the aspect are
rated higher than views expressed by general interest groups.

G=0 No views have been communicated

G=3 General views communicated by groups that are not directly
impacted by the aspect
G=6 Specific concerns and complaints communicated by individual or
groups directly impacted by the aspect

Lack of information

Environmental impacts of some aspects may not be well understood or known because of
limited understanding of the science or lack of data. For example, this is often the case
for impacts on ecological systems or global climactic systems. To compensate for this,
the significance rating for an aspect is increased when there is uncertainty about nature
and extent of its impact.
H=0 The nature and extent of the impact is known
H=3 There may be some secondary impacts that are not well understood
H=6 There are serious uncertainties about the nature and extent of the
impact

Policy issues

Aspects are rated according to their relevance for achieving broader goals and aspirations
that may be expressed in the environmental policy or other policies of the company.
These may relate to, for example, prevention of pollution, depletion of resources, bio-
diversity, global warming and other global issues, recyclability and waste management,
and so forth.
I=0 No relationship with environmental and other policies
I=5 Indirect relationship with policies
I= 10 Direct relationship with policies
I = 15 Special relevance (only top management may award this rating)

4.2 The Significant Rating (SR) is subsequently calculated using the following formula:

SR= R + (E+F+G+H+I)
 Tanneries
(Pvt.) Ltd.
Hafeez Shafi

Aspect
CHART
ASPECT

Environmental
EVALUATION
ENVIRONMENTAL

A
Severity of impact on Environment

B
Severity of impact on humans

Review / Approve (sign, date)

C
Probability of occurrence

D
Complexity of operational controls
R
Risk: R = (A+B) x (C+D)
E

Legal/Regulatory requirements
Operational Procedure: EPG-31-02

Nuisance
ASPECTS

View s of Interested parties

H

Lack of information
I

Policy issues
Revision: A

Significance Rating: R+E+F+G+H+I

SR
X

Review / Approve (sign, date):

Aspect Significance Ranking
EVALUATION OF SIGNIFICANCE OF ENVIRONMENTAL

Form 31-01 Rev. A

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