1 An Overview of the Auditing Roundtable and Its Collaboration With ICSR Presented to World Environment Center Sustainability Forum April 26, 2001 Constance Manders, Corporate Manager, Occidental Petroleum Corporation and Former President, The Auditing Roundtable

2 Agenda Discuss Opportunity for Collaboration Describe the Auditing Roundtable Future Perspectives

3 Opportunity January 2000 WEC meeting –WEC Development of HES auditing tools and assistance for IEF members. Concurrent and separate focus on CSR –The Auditing Roundtable Ongoing forum addressing HES auditing New focus on “SMS” verification

4 Opportunity April 2000, WEC Launched ICSR –WEC invited Auditing Roundtable to Participate –Auditing Roundtable assigned three representatives to assist ICSR Define CSR Develop verification method

5 What Is the Auditing Roundtable? The original professional organization dedicated to furthering the development and professional practice of environmental, health, and safety auditing. Founded in January 1982, when 10 Fortune 50 multinational companies met to discuss their auditing programs and practices. Approximately 800 members.

6 Who Belongs to the Auditing Roundtable?

7 Auditing Roundtable Mission To enhance the practice of environmental, health, and safety auditing worldwide by creating a forum to advance ideas, policy & standards and member interaction To represent the voice of the professional HES auditor

8 Key Focus Areas Promote best practices in HES compliance and management systems auditing domestically and internationally Establish, support and maintain EHS auditing standards Participate in agency policy setting efforts Develop and offer certification programs through the board of environmental auditor certification (BEAC)

9 Promote Best Practices in HES Compliance and Management Systems Auditing Domestically and Internationally –Active Representation and Participation US Technical Advisory Group to TC 207 for ISO IATCA (International Auditor and Training Certification Association) IEAA (International Environmental Auditing Association) WEC Others

10 Auditing Roundtable Auditing Standards –Published in 1994 –Recognized basis for the evaluation of audit programs and resources Code of Ethics for Environmental Auditors Standard for the Design and Implementation of an Environmental, Health and Safety Audit Program Standards for the Performance of Environmental, Health and Safety Audits

11 Participate in Regulatory Agency Policy Setting Efforts –EPA and State Staff are members of the Auditing Roundtable –Roundtable members work with EPA and States in developing audit policies

12 Develop and Offer Certification Programs Through the Board of Environmental Auditor Certification (BEAC) –JV with the Institute of Internal Auditors –Offers CPEA certificates in “EMS ” Health and Safety and Environmental Compliance Auditing

13 EAR Organizational Structure

14 WEC and The Auditing Roundtable Shared industry membership base Broad constituent representation –Leverage the unique aspects and strengths of each organization to address corporate social responsibility

15 WEC and The Auditing Roundtable Synergistic Aspects –WEC Relationships Country Governments and Senior Policy Leaders United Nations Financial Community –The Auditing Roundtable HES technical depth Verification and metrics expertise Auditor Certification

16 WEC and The Auditing Roundtable Results –WEC ICSR and Auditing Roundtable members participated throughout 2000 in the design and development the of CSR Verification Guidelines –Will continue to refine and adapt the Guidelines for final publication –Bridge to future relationship between organizations

17 WEC and the Auditing Roundtable Conclusion –Successful organizational experience addressing emerging issue –Opportunity for collaborative relationships in –consultancy –implementation –third party verification

18 For More Information on the Auditing Roundtable Web Site: Kathy J. Rieth, Managing Director N. Hayden Rd. Scottsdale, AZ –Telephone (480) – FAX (480) –

19 For More Information on BEAC Web Site: BEAC, 249 Maitland Avenue Altamonte Springs, FL –Telephone (407) – FAX (407) –