INTEGRATING ENVIRONMENTAL AUDITING INTO CORPORATE RISK MANAGEMENT: IMPLICATIONS FOR REGULATORY COMPLIANCE AND SUSTAINABILITY PERFORMANCE

Abstract

This study examines the integration of environmental auditing into corporate risk management systems, focusing on its implications for regulatory compliance and sustainability performance. As global environmental concerns continue to rise, businesses are increasingly required to align their operations with stringent environmental regulations and sustainability goals. However, many organizations still face challenges in effectively embedding environmental audits within their broader risk management strategies. Through a qualitative literature review, this research identifies key barriers, such as a lack of standardized processes, limited resources, and fragmented data integration, which hinder the effective implementation of environmental audits in corporate risk management. The findings suggest that organizations that successfully integrate environmental auditing into their risk management frameworks experience improved regulatory compliance, better sustainability outcomes, and reduced exposure to environmental risks. The study also emphasizes the need for standardized environmental audit practices and greater investment in technology and resources to enhance integration. This research contributes to a deeper understanding of the relationship between environmental auditing, corporate risk management, and sustainability, providing practical insights for businesses and policymakers seeking to improve corporate environmental performance. Recommendations for future research and practice include the development of standardized frameworks and the adoption of integrated systems that better align environmental auditing with broader business strategies.