diff --git a/playbooks/inventory/dynamic_inventory.py b/playbooks/inventory/dynamic_inventory.py
index 21d3e009c8..4f550fc63c 100755
--- a/playbooks/inventory/dynamic_inventory.py
+++ b/playbooks/inventory/dynamic_inventory.py
@@ -898,11 +898,29 @@ def _check_config_settings(cidr_networks, config, container_skel):
                     )
 
 
+def load_environment(config_path):
+    """Create an environment dictionary from config files
+
+    :param config_path: ``str``path where the environment files are kept
+    """
+
+    environment = dict()
+
+    # Load all YAML files found in the env.d directory
+    env_plugins = os.path.join(config_path, 'env.d')
+
+    if os.path.isdir(env_plugins):
+        _extra_config(user_defined_config=environment, base_dir=env_plugins)
+
+    return environment
+
+
 def load_user_configuration(config_path):
     """Create a user configuration dictionary from config files
 
     :param config_path: ``str`` path where the configuration files are kept
     """
+
     user_defined_config = dict()
 
     # Load the user defined configuration file
@@ -936,13 +954,7 @@ def main():
 
     user_defined_config = load_user_configuration(config_path)
 
-    environment = dict()
-
-    # Load all YAML files found in the env.d directory
-    env_plugins = os.path.join(config_path, 'env.d')
-
-    if os.path.isdir(env_plugins):
-        _extra_config(user_defined_config=environment, base_dir=env_plugins)
+    environment = load_environment(config_path)
 
     # Load existing inventory file if found
     dynamic_inventory_file = os.path.join(
diff --git a/tests/test_inventory.py b/tests/test_inventory.py
index 54bd3eb030..9c408fa7b6 100644
--- a/tests/test_inventory.py
+++ b/tests/test_inventory.py
@@ -261,6 +261,26 @@ class TestUserConfiguration(unittest.TestCase):
         self.assertIsInstance(self.loaded_user_configuration, dict)
 
 
+class TestEnvironments(unittest.TestCase):
+    def setUp(self):
+        self.longMessage = True
+        self.loaded_environment = di.load_environment(TARGET_DIR)
+
+    def test_loading_environment(self):
+        """Test that the environment can be loaded"""
+        self.assertIsInstance(self.loaded_environment, dict)
+
+    def test_envd_read(self):
+        """Test that the env.d contents are inserted into the environment"""
+        expected_keys = [
+            'component_skel',
+            'container_skel',
+            'physical_skel',
+        ]
+        for key in expected_keys:
+            self.assertIn(key, self.loaded_environment)
+
+
 class TestDuplicateIps(unittest.TestCase):
     def setUp(self):
         # Allow custom assertion errors.