THE CORPORATE sector in Europe has been pinned wriggling under a microscope by an increasing and militant environmental awareness. Many more companies are drawing up elaborate plans to determine precisely how environmental friendly they can get without running themselves into the ground, reports the International Herald Tribune.

At its commonest, this concern translates into hiring accounting firms to do "green audits" -- thorough on-site examinations of the effects of a company's buildings and industrial effluents on the environment. Such studies, done by technical experts sub-contracted by the accounting firm, also take into account a building's suitability for occupation, with particular reference to toxic construction materials.

Auditors believe that many companies fear a decline in their environmental standing and the consequent costs of whipping things into line. The potential of embarrassment may drive them into action. Besides, a good environment protection record earns a lot of consumer goodwill. Major British companies like British Gas and British Telecom already prepare reports with details on their environmental performance.

Last year, the European Union introduced the Eco Management and Audit Scheme, a new set of environmental guidelines. Although it is still a purely voluntary exercise, the scheme has generated a sense of serious environmental responsibility. This is where matters begin to make sense.