In many walks of life, the old Three Letter Acronym (TLA) assumes a life of its own. A TLA’s purpose is supposedly to make it easier to remember things and quicker to say than the full phrase they replace, but often they make things more complicated. However, there’s one TLA that companies operating in Victoria now need to understand quickly - that’s the GED, or the General Environmental Duty.

The GED is a cornerstone of the new Victorian Environment Protection Act which came into effect on 1 July 2021.  The Environment Protection Act is the legislation governing the operations of the Victorian Environment Protection Authority (EPA).

The GED applies to any person who is engaging in an activity in Victoria that could cause a risk to human health or the environment. This is a fundamental change which means that many businesses will now be experiencing environmental regulation for the first time.

The GED is a similar concept to the duty to provide a safe place of work under the Occupational Health & Safety Act. All of us must minimise those risks so far as “reasonably practicable”.  Controls for risks must be proportionate to the risk, so the circumstances of each company’s situation will be important.

The introduction of the GED marks a significant change from the regulatory approach which had been in place in Victoria since 1970. From 1 July this year, all companies with Victorian operations will be required to understand, document and manage the risks of harm from pollution and waste to both people and the environment caused by their activities in Victoria.

In some cases, the Regulations add an overlay of extra regulation, supplementing the GED with regulations specific to your industry. If your business undertakes any of the prescribed activities, the business must also obtain the appropriate “Permission” from the EPA. The Permission will be either a Registration, a Permit, or a Licence, depending on the activities of the business (which the EPA will assess when the business applies).

Existing businesses that now require a Permission have a transition period to develop their action plans and apply for their Permission. Any new business requiring a permission after 1 July 2021 will need to have that Permission issued before commencing operations.

Complying with the GED is about taking reasonable proactive steps and establishing good environmental work practices.

Good risk management means that you:

• Identify hazards,

• Assess risks caused by those hazards,

• Implement controls to manage those risks, and

• Check those controls and adjust as required.

This is a dynamic process which needs to be managed continually to reflect any changes which take place. Template “Action Plans” have been published on EPA’s website to help businesses comply with the new requirements.

The EPA’s role under the Act is to:

• Inform and educate,

• Set standards,

• Encourage better performance,

• Support compliance,

• Monitor compliance, and

• Enforce the law.

The enforcement provisions under the new Act are significantly stronger than they were previously, and apply to both businesses and their employees, with potential multi-million-dollar fines and criminal and civil proceedings available to the EPA in appropriate circumstances. The new regulations also empower the EPA to proactively inspect business premises, rather than just respond to incidents.

There are many excellent reasons that companies operating in Victoria should manage their environmental risks. Officially, the EPA points to:

• A better ability to identify, assess and control risks that could impact air, land, water and noise,

• Prevent harm to human health and the environment,

• Comply with environmental duties and obligations, and

• Meet community expectations.

From a commercial standpoint, managing environmental risks in a structured way:

• Supports a positive marketing image for your product or service,

• Avoids clean-up costs resulting from breaches,

• Avoids damage to your reputation if things go wrong,

• Avoids lost production and management time dealing with breaches,

• Avoids legal costs, and

• Avoids penalties, such as fines and criminal charges.

Tips to think about

• Understand the GED concept and take a proactive interest in the environmental hazards in your business,

• Ensure that you have any necessary permissions which might be required under the new regulation,

• Provide your staff with information, instruction, training and supervision about the GED and the risks to human health and the environment facing your business, and

• Ensure that you have adequate records proportionate to your business size and complexity.

Summary

As mentioned above, an understanding of the GED should be a fundamental component of every company operating in Victoria.  There’s a substantial underpinning of detail to be found in the Act and Regulations, and a lot of guidance to be found on the EPA’s website.  However, it’s easy to get lost in the detail! 

At nem we have been partnering with the Australian Industry Group and the EPA to inform companies of recent changes.  If you have queries about what the new environmental legislation and regulations mean for you, please feel free to contact us.

Maybe, on this occasion, the TLA of the GED fulfils its role to simplify the starting point for your company’s environmental journey!  

Author: Steve Lamande, Partner nem Australasia

This article is based on research and opinion available in the public domain.