Delivering Safety Results in Changing Times - Leveraging EHS Sustainability

Delivering Safety Results in Changing Times – Leveraging EHS Sustainability

Bernard L. Fontaine, Jr., CIH, CSPWindsor Consulting Group, Inc.

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Delivering Safety Results Objectives:

Economy and business factors driving greater focus toward leveraging EHS sustainability

Attitudes and factors hindering progress Relationship between sustainability and

performance Gap between personal and company caring Broad stakeholder alignment with core values Best practices for EHS business sustainability Environmental awareness and legislation

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Delivering Safety Results

Traditional Views of EHS

Cost center Defensive Risk reduction Reflection of legal, engineering, and regulatory

compliance

Delivering Safety Results Emerging Promise of Leveraging EHS

Profit center Innovative Activate other disciplines beyond

Legal, engineering, and regulatory compliance New personnel and generational job opportunities Lean Six Sigma best management principles ANSI Z10, BS 8800, OHSAS 18001 and OHSAS

18002 Standards


How Can We Leverage EHS Values

Observe – Market drivers and demands Energy, carbon footprint, globalization, climate

change, waste, air and water Design – Business model innovation Measure – Cost, operations, and metrics Communicate - Collaboration

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How Can We Leverage EHS Values

Look for innovative opportunities Understand changes in the marketplace Integrate models with CSR and brands Develop a balanced strategy – past and future Build collaborative supply chain partnerships Engage customers and employees

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Delivering Safety Results How Can We Leverage EHS Values

Introduce Life cycle impact assessment Build business metrics – platforms and

dashboards to illustrate key performance indicators for goal setting and gap analysis

Build credibility and avoid “green” washing Design communications that resonate Develop public relations and social media and

alternative community building strategies

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Delivering Safety Results Organizational Engagement

Create similar value under different rubrics Business value created in different ways

based on approach 21st century business trend EHS value part of organizational culture EHS managed as integral part of business

operation not as a separate activity

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Delivering Safety Results Organizational Challenge

Senior management Middle management Employees Research and development Products and services

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Delivering Safety Results Organizational Challenge

Customers and supply chain Investors and insurers Regulatory agencies Third-party validation, verification, and

accreditation

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Potential Business Benefits

Human resources – worker and human rights Product and services – research, marketability Risk management and loss prevention Product and process – health and safety Brand name recognition and differentiation License to operate – facility management

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Motivations

Ethical considerations Globalization and market forces Social awareness and education Laws and regulation Crises and their consequences Stakeholder priorities

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Who needs EHS Sustainability?

Enterprises that could negatively impact the environment, public, community, workers, product or service, process, society, or economy

A business that strives to achieve a triple bottom line concept of people, environment, and profit

Companies seeking greater business value through support of business growth, strengthening risk management, and achieving cost reductions.

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Examples of EHS Sustainability

Recycling glass bottles and reuse in design and manufacture of kitchen countertops

Reuse of pulp and paper waste as solid fuel source to operate industrial machinery

Recycle, reuse, and treatment of industrial wastewater for agricultural irrigation

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Delivering Safety Results Examples of EHS Sustainability

Collection and reuse of storm water for urban ecological rooftop gardens

Solar cell shingles, wind turbines, construction materials and techniques help achieve energy self-sufficiency for homes, schools, and commercial buildings

Reuse of GM’s Argonaut building as second campus for College of Creative Studies using latest “green” building knowledge and technology

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General Mills stopped paying to landfill oat hulls – now 86% hauled-off and sold a solid fuel

New breaking mechanism on trains captures energy and increases fuel efficiency by 10%

Dell recovered 40,000 tons of unwanted computer equipment

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Wal-Mart funds largest truck makers to develop first diesel-hybrid engines

Philadelphia Eagles became eco-friendly on initiatives to recycle after each game

Reduction of carbon footprint and turning CO2 management into business opportunity

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Sunoco eliminates BPA from the chemical supply chain of children food and water containers

SC Johnson eliminates PVC and chlorine bleached paperboard packaging of products

Kaiser Permanente implements policy to avoid chemicals that cause cancer or reproductive effects in their products

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Delivering Safety Results Examples of Lessons Learned

BP Texas City Explosion – Baker Report findings:

No commitment to safety Lack of leading indicators Lack of management EHS knowledge Complacency about serious risks Tolerance of deviations Decentralized management system Failed from previous learning experience

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Delivering Safety Results Examples of Lessons Learned

Toyota recall of vehicles with faulty accelerator and brake pedals

Honda recall of vehicles with faulty airbags Tylenol recall of products from packaging and

contamination issues Chinese drywall in new construction emitting

“sulfur-based” compounds into atmosphere Children’s toys coated with lead-based paint Meat-packing plants with bacterial contamination

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Education and Learning Process

Dialogue with forward thinking

Collaboration with other business partners

Collecting adequate information – past, current trends, and future

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Benchmarking and regulatory compliance

Systemic planning within the organization

Individual and collective learning - concept

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Organizational transparency through third-party verification, certification, registration, and public media

Recognition for environmental partnerships, leadership, and commitment to carbon neutral

Influencing business partners, stakeholders, and shareholders

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Motivating Factors

Provide information about challenges and achievements to employees, public, and other stakeholders

Internal commitment to occupational, environmental, and social responsibility

Marketing safety as a tool to illustrate sound principles, planning, and programs

Tracking progress toward EHS sustainability

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Motivating Factors

Develop pilot projects and take planned initiatives company-wide

Commitment to remaining competitive as a global leader in EHS sustainability

Empower employees to use their knowledge and experience to promote ideas

Explore research opportunities for betterment of humanity

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Assessing Organizational Performance

Evaluate core values to provide direction, rationale, and sincerity

Collaborate with public advocacy groups, colleagues, and researchers

Review achievements like EHS awards Conduct an independent audit and review Disseminate information for comment/action Establish social monitors and networks Use lagging/leading indicators for performance

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Delivering Safety Results Assessing Organizational Performance

Utilize consumer, supplier, employee, public, and management feedback

Evaluate impact on past, current, and future business practices

Improve method of collection and availability of performance metrics

Communicate with media, public, community, and business partners

Implement validation, verification, and test model based design to evaluate metrics

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Assessing Organizational Performance

Evaluate financial incentives for sustainable development, retrofitting, and manufacturing

Compare real world business cases for sustainable manufacturing and development initiatives

Consider current status of carbon gap and trade legislation – how it affects business and the environment

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Environmental Strategies

Energy conservation Air emissions and ambient air quality Wastewater and ambient water quality Water conservation Hazardous materials management Community noise Contaminated real estate

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Air emissions and ambient air quality

Degraded air shed or ecologically sensitive area Point sources – stack emissions Fugitive emissions – VOC, PM, ozone depleting

sources Mobile sources – Land-based (trucks, cars, rails) Greenhouse gases

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Energy conservation

Energy management and efficiency Process heat load reduction Heat distribution systems Process cooling load reduction Energy conversion Refrigeration system compression and efficiency Compressed air system load reduction

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Delivering Safety Results Environmental Strategies

Wastewater and Ambient Water Quality

Discharge to surface water Discharge to sanitary sewers Land application of treated effluent Industrial and sanitary wastewater management Emissions and residuals from treatment operation Occupational health and safety issues related to

wastewater treatment Monitoring

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Water Conservation

Water monitoring and management Process water reuse and recycling Building facility operations Heating and cooling systems

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Hazardous Materials Management

Hazard risk assessment Release prevention and control planning Occupational health and safety exposures Process knowledge and documentation Hazardous material transfer Overfill protection Chemical reaction, fire, and explosion prevention

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Hazardous Materials Management

Secondary containment Storage tank and pipe leaking detection Underground storage tank installation Emergency preparedness and response Community involvement and awareness Storage facilities meeting NFPA and NEC

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Waste Management

Planning, prevention, and reuse Treatment and disposal Storage Transportation Monitoring

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Contaminated Land

Industrial site remediation investigation action Risk screening Interim and detailed management plan Permanent reduction measures Occupational health and safety considerations

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Occupational Health and Safety

Facility Design and Operation

Integrity of workplace structure Severe weather and facility shutdown Workspace design and exits Fire precautions – static, open flame, chemical Lavatories and showers Potable water supply

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Facility Design and Operation

Clean lunchroom or eating area Adequate general or task lighting Safe means of access and egress First-aid, CPR, and AED Work environment temperature control

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Hazard Communication and Training

Occupational health and safety instruction Visitor and contractor site orientation New task employee or contractor training Area signage and hazard notification Labeling of equipment Communication of hazard codes and procedures

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Physical Hazards

Rotating or moving equipment Noise and vibration Electrical shock and arc flash Eye and face hazards Welding and hot work Line breaking Industrial vehicle driving and site traffic

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Physical Hazards

Extreme working environmental temperatures Ergonomics – repetitive motion, material handling Working heights Interior and exterior illumination levels Other non-ionizing and ionizing radiation hazards

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Delivering Safety Results Occupational Health and Safety

Chemical Hazards

Ambient indoor air quality Industrial exposure to dust, mist, fumes, gases Skin absorption and surface contaminants Fire and explosions

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Chemical Hazards

Corrosive, oxidizing, and reactive agents Carcinogens – animal and human Reproductive agents – teratogens and

mutagens Medical surveillance and biological monitoring

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Biological Hazards

Indigenous insects, plants, and animals Microbial contamination from building envelope Animal and human waste products Bacteria and viruses from infected employees

and visitors Contaminated food products or building surfaces

from improper sanitation

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Radiological Hazards

Ionizing radiation – alpha, beta, gamma, x-rays Non-ionizing radiation – UV, visible light, and

infrared light Naturally-occurring and technically enhanced or

man-made exposures (NORM and TENORM)

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Personal Protective Equipment

Eye and face protection Gloves and clothing – chemical-resistant,

welding. abrasion, and electrical Hardhats and bump caps Respirators – mechanical filter and supplied air Safety shoes and boots

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Special Hazardous Considerations

Confined space entry Hazardous energy sources Adverse weather conditions Lone and isolated workers Slippery walking or working surfaces Emergency response - containment and control Contractor safety – safe work permit Workplace violence

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Delivering Safety Results Community Health and Safety Strategies

Water quality and availability Structural safety of infrastructure Life and fire safety Traffic safety – on-site and off-site Transport of hazardous material or waste Disease prevention – communicable and vector-

borne diseases Emergency preparedness and response Recreational and off-duty activities

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Construction and Decommissioning

Environmental impact – noise, odor, vibration, soil erosion, public and traffic impedances, ambient air quality, solid waste, hazardous materials, and waste water discharges

Construction materials and surface coatings Occupational health and safety issues Community-based health and safety issues

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Product Stewardship Strategy

Product Life Cycle (PLC) or Extended Product Responsibility (EPR)

Designers Manufacturers Retailers Consumers Waste management and disposers

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Rethink products and market innovations Review relationships in the supply chain Provide customers with more value and less

environmental impact Reduce use of toxic substances – heavy metals Design reuse and recyclables Create incentives and take back programs Implement reuse, recycle, and reduction of waste

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Examples:

Collect and manage Ni-Cd batteries Remove of mercury-containing products Limit types of plastics and labeling them Return spent computer printer cartridges Utilize post-consumer materials into packaging Evaluate energy efficiency cost

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Business Value

Drive business growth Increase market valuation by leveraging EHS

stewardships Improve risk management Reduce legal liability and risk for financial disaster Uncover hidden operational risks Protect and enhance corporate and brand image

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Business Value

Gain regulatory flexibility for compliance Avoid supply chain surprises Simplify customer responses for data requests Reduce third-party assurance costs Cut annual reporting costs Improve financial performance through metrics for

quality, accuracy, timeliness, consistency, and customer satisfaction

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Business Value

Automate workflows that mirror work process Set annual achievable objectives and goals Measure and monitor all levels of performance Automatically track and respond to EHS outliers Re-evaluate objectives to minimize risks Continue to upgrade organization for sustainable

future

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Platform/Dashboard for EHS Sustainability

Internal and External Audits Verifiable trail…assures compliance reduces

management costs…simplifies audits

Compliance Manager Assures regulatory compliance…reduces

management costs…boots business performance

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Air Compliance Automates reporting…performs complex

calculations…increases data accuracy…reduces time and effort

Water Compliance Simplifies compliance process…increases report

accuracy…improves data consistency

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Waste Compliance Assures and improves compliance…increases

reporting accuracy…avoids manifest errors and shipment returns

Chemical Inventory Tracks hazardous materials…centralizes data

storage...supports enterprise best practices

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Incidence Awareness Reduces risk of future accidents…collects and

manages incident data…ranks and prioritizes threats

Industrial Hygiene Assists risk evaluation…enables exposure

monitoring…communicates monitoring results

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MSDS Management Streamlines MSDS process…accesses most

current data…standardizes content…aids OSHA compliance

Emergency Management Enables management solutions to near miss and

reportable incidents….tracks daily operation and real-time response

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EHS Goals Progress through 2008Reduce environmental incidents by 50%

Reduced by 32%

Reduce energy usage by 20% indexed to revenue

Reduced 18% indexed to revenue

Reduce green house gas emissions by 20%


Reduce total waste 30% indexed to revenue


Reduce water usage 20% indexed to revenue


Baxter Sustainability Report


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Product Stewardship Progress through 2008Apply product sustainable review (PSR) to product development process (PDP)

On target for completion in 2010

Implement electronic take-back program

Completed program for EU and launched customer “responsibility” program

Develop program to eliminate hazardous materials in products and packaging

Partner with stakeholders to incorporate requirements into new designs



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Occupational Health/Safety Progress through 2008Reduce WC cases with days lost to 0.16

Achieved 0.19 in 2008 as compared to 0.30 in 2005

Reduce work-related days lost to 3.98

Achieved 4.23 in 2008 as compared to 7.08 in 2005

Reduce recordable rate to 1.25

Achieved 1.29 in 2008, reduced from 1.52 in 2005

Implement case management review in 80% of facilities

Implemented 82% of facilities in 2008



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Industrial Hygiene Progress through 2008Ensure 95% industrial sites have IH risk assessments and monitoring plans

90% of industrial sites have IH risk assessments and monitoring plans in-place.

Evaluate hearing conservation program and reduce need for hearing protection by 25%

Evaluated hearing conservation programs by ACGIH and EU standards. Program completion by 2010

Evaluate respirators and engineering/administrative controls to reduce usage by 25%

Exposure sampling resulted in 324 employees no longer needing use of a respirator. 39% reduction



Questions ?

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