Environmental audits as a policy of state: 10 years of experience in Mexico

The Procuraduría Federal de Protección al Ambiente or PROFEPA was created to assist in the enforcement of Mexico's environmental legislation. The agency uses two strategies to enforce legislation: command–control, which includes inspections and penalties, and voluntary environmental audits. This paper analyses data generated during the first decade of administration of the voluntary program, the National Program of Environmental Audits (PNAA). In 2764 audits, Mexican companies invested US$2.155 billon, generating important investments to control pollution, independent of macroeconomic parameters and a market related to the economic transition of Mexico. At the same time, it produced positive consequences for the environment. The PNAA lost popularity among large companies until it was restructured in 2001, providing less industrial risk, but a stronger environmental orientation. With these changes, the PNAA attracted new industries, permitted better administration, and provided opportunities for companies and the government to measure the consequences of their activities on the environment. Risks and opportunities for the PNAA are discussed. Preliminary improvements concerning environment and workers safety are given.