In the past several years, EPA and its state counterparts have dramatically increased enforcement of environmental laws. As a result, many companies are implementing environmental auditing programs to assess environmental compliance in an effort to reduce the risk of individual or corporate liability. This article highlights the concerns surrounding the confidentiality protection of environmental audit reports in the business community. It discusses the current state of the “environmental audit privilege, “ under which the results of internal environmental audits are insulated from discovery, are inadmissible in legal proceedings, and may be immune from civil penalties for companies that voluntarily identify, disclose, and correct violations. It reviews EPA's newly issued environmental audit policy and describes the use of common law privileges to attain confidentiality protection. Finally, it discusses the growing focus on state and federal legislation designed to assure a greater degree of confidentiality protection.