MEM Seminar Series 2001/2002 School of Design and Environment National University of Singapore August 25, 2001 Overcoming Barriers to EHS.

MEM Seminar Series 2001/2002School of Design and EnvironmentNational University of Singapore

August 25, 2001

Overcoming Barriersto EHS

Presentation Outline

Profile Jebsen & Jessen The First EHS Efforts Formal EHS Management Achievements and Failures “Spoon Feeding” Approach Benefits and Shortcomings Achieving Lasting Consistency The Next Chapter: Sustainability

Jebsen & Jessen SEA

A Brief Corporate Profile

ASEAN Regional Network

40 companies operating under seven activity-related divisions

Areas of operation: ASEAN

Number of employees: 2,500

Regional Coverage

Philippine

sManilaCebu

Thailand

BangkokChiengm

ai

Indonesia Jakarta

Surabaya Medan

Semarang Bandung

Ujung Pandang

Singapore

VietnamHo Chi Minh

(Saigon)Hanoi

BruneiBandar SeriBagawan

Kuala Belait

SarawakKuching

SabahKota Kinabalu

W. Malaysia

Kuala Lumpur

Penang Johore Bahru

Kuantan Ipoh

Malacca

Regional Businesses

Chemicals Communications Industrial Products Marketing Material Handling Packaging Process Technology

Chemicals

Chemicals Nutrition Metals

Communications

Corporate Network Telecommunications Broadcast

Industrial Products

Pumps Well screens Cutting Tools Special Electric Cables

Marketing

Consumer Medical & Scientific Textiles Automotive Spares

Material Handling

Cranes & Hoists Logistic Systems IPD Spares & Services

Packaging

Moulded Foam Packaging Integrated Packaging Construction

Process Engineering

Industrial Plant Marketing Industrial Plant Contracting

Group Statistical Profile

Revenue by country Revenue by regional business unit

Employees by regional business unitEmployees by country

IND 9%

SIN42%

MY27%

TH18%

PH 4%

SIN29%

PH 6%

IND18%

MY31%

TH15%

MHE 32%

HLD 7%

COM 7%

CHE9%

PRT 7%

PKG 11%

IPD 12%

MKT14%

IPD 9%

PKG 7%

PRT 7%

CHE 22 %MKT 19%

COM 12%

MHE 25%

The First EHS Efforts

Management Conference 1993

Member of Executive Committee overall in charge

Minor and random initiatives

Corporate Commitment To be a leading provider within ASEAN of quality products and

services dedicated to fulfilling customer needs with professionalism and integrity.

To maintain an environment that attracts, develops, retains, rewards and motivates talent and productivity.

To establish environmental excellence in all our business enterprises and actively promote environmentally responsible behaviour at all levels of our organisations and in customers, suppliers and principals.

To strive for an outstanding corporate and individual behaviour to maintain lasting trust and confidence of our customers, employees and suppliers.

To maintain a level of profitability that sustains growth, ensures quality and provides generous rewards to staff and an adequate return to shareholders

The Background

EHS awarenessPublic Moderate Low, growingEmployees Moderate MixedRetail customers Moderate LimitedIndustrial customers Moderate Moderate

Intrinsic mgmt interest Mixed Low

Strategic mgmt interest Mixed Low

ISO 14001 Low/Moderate Moderate

Japan/US/EU ASEAN

Regulations Strong Strong

Reg enforcement Strong Low - Moderate

Media focus Bad/shock newsGood / bad news- Pollution, injuries - Govt

influence

NGOs Large memberships Limited role

Labour unions Moderate size Limited role

Shareholders Special interests Limited interest

Japan/US/EU ASEAN

The Background

Formal EHS Management

1995

EHS as a Central Service

Executive Management

Finance & Treasury

Corporate & Legal Affairs

Human Resources

Environment, Health & Safety

Corporate Communication

Information Technology

Internal Audit & Taxation

40 Member

Companies

Providing Central Services

Providing Central Services

EHS ManagementEnvironment, Health & Safety Organisation

Executive Board

Operational Effectiveness

Director - Env.,Health & Safety

Internal AuditDepartment

Manager - Env.,Health & Safety

Regional ManagingDirectors

EHS Chairs

CompanyManagers

Joint-VentureBoards

EHS CommitteesConsultants

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Central Services Unit EHS

Central Services Unit EHS

EHS ChairEHS Chair

EHS CommitteeEHS Committee

CSU Audit

Decentralised Approach

Within overall EHS policies, each member company was expected to pursue its own initiatives

Accomplishments 1995-19971.EHS audits and understanding of weaknesses

2.Group EHS Policy

3.Network of EHS chairs and committees

4.Review of EHS laws in our 5 major countries

5.Training materials and programmes

6.Network of EHS expertise (consultants, organisations)

7.Audit checklists, facility checklists, procurement guide

8. Awareness campaign

9. Various EHS performance improvement projects

Idealism vs. Pragmatism

CFC Business TBTO Hazardous Wastes Paint Furniture Polystyrene

Hocking (1991): Hot-Drink Container LCA

Item Paper Cup Polyfoam Cup

Per CupRaw MaterialsWood/Bark (g) 33 0Petroleum (g) 4.1 3.2

Per Mg of MaterialUtilitiesSteam (kg) 9,000-12,000 5,000Power (GJ) 3.5 0.4-0.6Cooling Water (m3) 50 154



Per Mg of MaterialWater EffluentVolume (m3) 50-190 0.5-2TSS (kg) 35-60 TraceBOD (kg) 30-50 0.07Organochlorides (kg) 5-7 0Metal Salts 1-20 20



Per Mg of MaterialAir EmissionsChlorine (kg) 0.5 0Sulfides (kg) 2.0 0Particulates (kg) 5-15 0.1Pentane (kg) 0 35-50



Per Mg of MaterialRecycling / DisposalRecycling Potential Yes YesHeat Recovery (MJ/kg) 20 40Mass to Landfill (g) 10.1 1.5Biodegradable Yes No

Hub & Spoke EHS ServiceOperating in the environment prior to the RBU structure, the approach CSU EHS pursued was hub & spoke

CSU EHS

JJMM

JJDP

JJDS

JJMS

JJCM

JJCT

JJMT

MDM

MDS

MDTMDP

MDS

MDI

JJCS

JJCT

JJPS

JJPMJJHM

JJHS

JJDT

JJDI

JJIPT JJPTI JJIPSJJPTT

Customised attention to each company

Fast communication

Benefits

Huge effort required to service and monitor 40 individual clients

Confusion as to what was required

Difficult to leverage opportunities within and across: RBUs, facilities, and countries due to exclusive reliance on CSU EHS

Drawbacks

Continuous “fire drills” limit time to think and plan strategically

Little incentive for member companies to generate their own agenda

Drawbacks

1997

“Spoon Feeding” Approach

Major goals:

– Formal standards and action plans– Improve effectiveness– Mandatory minimum standards

Leveraging information and resources in 3 ways:

1. Within regional business groups2. Among facilities3. Within countries

The tool: EHS Programmes – Assign responsibilities– Provide information and tools

The tool: EHS Programmes – Assign responsibilities– Provide information and tools

“Spoon Feeding” Approach

EHS by Regional Business

Proposed RBU-Based Support

CSU EHS and RMDs

PKG Group

IPD Group

MHE Group

CHE Group

PRT GroupMKT Group

COM Group

The Group’s new regional business framework identified a need to address common issues within common businesses.

Benefits include:•EHS training for specific regional business

EHS by Type of FacilityThe regional businesses use four common types of facilities:

– 48 Offices– 5 Hazardous warehouses– 12 Factories– 13 Stores and workshops

Benefits include:•Aligns management effort to risk level •Leverages synergies across businesses

Central EHS

!

EHS by Country

The Group has up to seven business locations within each country, revealing potential opportunities for synergy.

CSU EHS and RMDs

Malaysia Group

Singapore Group

Thailand Group

Indonesia Group

Philippines Group Japan

Group

VietnamGroup

Benefits include:•Providing common EHS legal advice

•Shared local training providers•Centralised EHS procurement

Central EHS

EHS Programmes

Part 1. Compliance with EHS Laws &

Regulations

Part 2. Emergency Preparedness & Response

Part 3. Occupational Health

Part 4. Worker Safety

Part 5. Environment

Part 6. Administration

EHS Legal Compliance

An important part of the group's commitment to managing our EHS issues is our compliance with EHS laws and regulations. Some of the regulations may impact the standards that are outlined below. In such cases, the more stringent standard should apply. The EHS committee is responsible for:

•Reviewing periodically the EHS Laws & Regulations binder to maintain familiarity with the laws and regulations that apply to the company

•Reporting to CSU EHS their status of regulatory compliance by 1 May using the format suggested in Appendix A

•Co-ordinating with company management and CSU EHS to ensure that the company remains in compliance with EHS laws and regulations

Resp

on

sib

ilit

ies

Sta

nd

ard

s

Emergency Preparedness & Response

Smoke detectors Fire evacuation

drills First aid training First aid kits Fire fighting

training

Fire fighting equipment

Illuminated exit signs

Fire doors Housekeeping Sign-posting No-smoking areas

Occupational Health

Sufficient lighting Noise testing Manual lifting Ergonomics Health monitoring

Occupational Health

LUX Locations

50 Passageways

100 Storage areas

200 Welding, rough machining

300 Drilling, cutting

500 Offices, detailed inspection

750 Conference rooms

Ergonomics Diagram Lighting Recommendations

Occupational Safety

Incident/accident reporting EHS training manual Forklift training Permit-to-work programme Site security Personal protective equipment (PPE) Tools and equipment Hazardous substances training

X

X

Occupational Safety

Environment

Recycling Energy conservation Paper reuse EHS Procurement Guide Technical monitoring EHS monitoring programme Ad-hoc improvements

Administration

Budgets Monthly EHS meetings Annual EHS audits Periodic self-assessment Risk management New employee induction

I have received a copy of the Group EHS Policy I have received a copy of the booklet "Our

Commitment to Preserving the Environment" I have been informed about the date of the

next fire drill I have been informed about the location of the

First Aid Kit nearest to my workplace I have been informed about the location of fire

extinguishers and evacuation routes nearest to my workplace

Employee Signature

Administration

Enablers

Availability of Useful Guidelines Vigorous Training Nurturing Champions (e.g. Regional

Trainers) EHS in Job Descriptions (e.g. Chemicals) Incentives (e.g. EHS Pot) Quantitative Focus (e.g. Accident

Statistics) Peer Pressure (e.g. EHS Audits) Group IT Infrastructure (SAP, Lotus Notes)

Facts Talk!

1999 Number of Accidents By Category

Arm5%

Back10%

Eye5%

Foot10%

Hands44%

Heads13%

Legs3%

Property Damage

10%

2000 Number of Accidents By Category

Legs20%

Property Damage24%

Near Miss8%

Fire Smoke4%

Arm4%

Hands40%

Peer Pressure Works!

1997-2000 EHS Audit Results: Chemicals

JJDS JJDM JJDP JJDT

1997

1998

1999

A

B

C

D

F

2000

IT Infrastructure

Lotus Notes SAP

Improving EHS management in the Chemicals RBU through SAP:– Recording chemical EHS

properties: Hazard class (toxic, flammable, etc.)

Storage climate (cool, dry, etc.)

IT Infrastructure

Improving EHS management in the Chemicals RBU through SAP:– Recording regulatory

requirements: Must customers have a poisons

license to buy this product?

Which customers have a poisons license?

IT Infrastructure

Improving EHS management in the Chemicals RBU through SAP:– Emergency contact details of

vendors– MSDS distribution:

When did we last send an MSDS to the customer?

What is the current version of each product’s MSDS?

IT Infrastructure

Resource Consumption Measured in SAP:– Electricity, in kWh– Water, in cubic metres– Fuel oil, in litres– Various raw materials, by

size/weight– Waste / scrap, by size/weight

IT Infrastructure

Drivers

Image, Corporate Citizenship

Bottom-Line Drivers

Lower Risk of Legal Liability Lower Insurance Premiums Enhanced Resource & Energy

Efficiency New Market Opportunities, First

Mover Advantage Anticipation of Trends, ISO 14001 Image, Corporate Citizenship

Bottom-Line Drivers

The Cost Iceberg

1997-1998: 27% reduction1998-1999: 18% reduction1999-2000: 11% reduction

Insurance Premiums Down!

“Hidden” Costs!

Risk Reduction!

Business Opportunities?

One Failure After Another:– Allerguard / Green Cotton– Water & Wastewater Treatment– Moulded Pulp Packaging

Benefits of “Spoon Feeding”

• Facilitates synergies acrossthe group

• Facilitates synergies within RBUs

• Facilitates synergies within facility types

• Facilitates synergies within metropolitan areas

• Facilitates CSU support and monitoring of EHS programme implementation

• One EHS data collection tool• Centralised PPE

procurement

• Combining ERP training within CHE group

• One permit-to-work programme in workshops, factories, warehouses

• Haze mask ordering & distribution

• Preferred supplier lists

• EHS Audits

1. Region-wide EHS standards

2. EHS responsibilities more clearly articulated

– Improves efficiency and effectiveness of EHS committees

– Provides ready access to necessary contacts (e.g., first aid trainers)

– "No more excuses"

3. Enables CSU EHS to allocate its efforts to facilities based on level of EHS risk

– Prioritise factories and chemical warehouses

Benefits of “Spoon Feeding”

Limitations of “Spoon Feeding”

Laggards still got away Local management not always

committed “Cost-consciousness” Bottom-line benefits long-term,

indirect and “too strategic”

Achieving Lasting Consistency

2000

Management Systems

CSU EHS to provide the roadmap and structure to help build a company-driven EHS management system

Review

Planning

Implementation

Measurement & Evaluation

Management Systems

1. Planning– EHS aspects & impacts– Legal requirements– Objectives and targets– Programme

3. Measurement & evaluation

4. Review 2.Implementation

Planning

Aspect ImpactActivity, Product or Service

1. Cleaning bulk oil storage vault

Hazardousatmosphere

Temporary to severe health impact

2. Solvent cleaningoperation VOC emissions to air

Ground level ozone occupational exposure

3. Bulk acidtransportation and

storage

Accidental spillage

4. Battery chargingExploding battery

5. Office operationDocument printing

Surface water contamination

Acid burns

Consumption of renewable natural resources

Aspects & Impacts

Planning

An objective for each aspect / impact

An activity for each objective

Improve safety while installing/servicing pumps

Objective• Create work procedure• Develop service checklist• Obtain required PPE/tools• Develop checklist to maintain

PPE/tools• Train staff on procedures and

checklists• Inspect checklists to ensure they

are being used

Activity

Key Performance Indicators (KPI) are used to demonstrate progress for each activity

Improve safety while installing/servicing pumps

• Develop checklist to maintain PPE/tools

• Train staff on procedures and checklists

• Inspect checklists to ensure they are being used

Objective Activity• Checklist

• Training quiz

• Feedback to be documented in EHS minutes.

KPI

Planning

Targets are the deadlines or numbers related to the KPI



• Inspect checklists to ensure they are being used

Activity• Checklist

• Training quiz

• Feedback to be documented in EHS minutes.

KPI• May

• 80% score for all technicians - June

• 3 times

Target for 2000

Planning

Resources are the people, supplies, and funding required to meet the targets



Activity• Checklis

t

• Training quiz

KPI• May

• 80% score for all technicians - June

Target• Budi

• Material -Budi

• Trainer - Lee• Logistics -

Sam

Resources

Planning

1. Planning


4. Review2. Implementation

– Structure and responsibility

– Training, awareness, and competency

– Operational control– Emergency preparedness

& response

Management Systems

Training Plans

Training Topic Instructor J F M A M J J A S O N DParticipants

Forklift Inspection Loo TK XAll forklift

drivers

PPE Use Vincent XWrhs staff & Procurement

Noise & Hearing Conservation

Suguna XAll production

workers

1. Planning

3. Measurement & evaluation– Monitoring – Audits– (Corrective actions)– (Records)

4. Review 2.Implementation

Management Systems

New approach to capture learning:

Year 2001: Risk Auditors joined by staff within same country/region

JJPS

MDSMMDS

JJPJMJJMS

Example: Singapore/Johor

Marsh

Auditing

MDI

MDS

MDMMDSM

MDT

MDP

Example: MHE

Auditing

New approach to capture learning:

2002 and beyond: internal process performed by staff of another company within same RBU

1. Planning


2.Implementation

4. Review–Investigate process deviations

–Continuous improvement

Management Systems

EHS Monitoring

Water Consumption - Per Capita

21.448.7

18.5

102.4

471.7

0.0

100.0

200.0

300.0

400.0

500.0

CHE IPD,PRT,COM,JJSEA

MHE MKT PKG

cu

bic

me

ters

Paper Consumption – Per Capita

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0


MHE MKT PKG

ream

s

Electricity Consumption and Cost (Per capita)

0

5,000

10,000

15,000

20,000

25,00030,000

35,000


MHE MKT PKG

kw

h (

bar)

05001,0001,5002,0002,5003,0003,5004,000

S$

(d

ots

)

Energy Intensity

0

0.5

1

1.5

2

2.5

1998 1999 2000

mkWh/$100m

Office Paper Intensity

0

5

10

15

20

25

1997 1998 1999 2000

Reams / S$mturnover

Accidents

38

40

42

44

46

48

50

52

1997 1998 1999 2000

Number ofAccidentsReported

EHS Audit Scores

0

1

2

3

4

5

6

7

8

9

10

1997 I 1997 II 1998 1999 2000

Average Audit Scores

A

B-

C

A-

B+

B

C+

C-

D+

D

Chemicals, Material Handling, Packaging

Between 1999 and 2000:

Three companies improved their score

Three companies worsened

EHS Audit Scores

0

1

2

3

4

5

6

7

8

9

10

1997 I 1997 II 1998 1999 2000

Average Audit Scores

A

B-

C

A-

B+

B

C+

C-

D+

D

EHS Audit Scores

Variation = Surprises

Mean score: A- Variation: 9

Mean score: A- Variation: 0

AD AD

The Challenge

Achieving consistently high

performance, consistently across the Group

No more surprises! Self-managed EHS Committees

and Management Systems

What does this require? EHS must truly become part of business processes EHS ceases to become an afterthought Doing it right every time and all the time Greater spread of responsibility Elimination of delays in follow-up Systematic approach Formal set of performance indicators Documenting what we do and doing what we document Third-party verification Beyond CHE, MHE, PKG

==> Group-wide EHS Management Systems==> Group-wide Organisational Excellence

Group-Wide Certification

ISO 14001

(Environmental Management System)

OHSAS 18001

(Health & Safety Management System)

ISO 14001 / OHSAS 18001 EHS Management Systems Nothing new! Scope of Compliance:

– Adherence to regulatory standards– Adherence to own standards– Continual improvement

MS Components

Forming an EHS Committee and nominating an MR Establishing an EHS Policy Reviewing compliance with EHS laws and regulations Identifying EHS aspects and impacts Prioritising aspects and impacts Establishing corresponding procedures and WIs Training, creating awareness, building competence Setting objectives and targets Employee consultation & Stakeholder communication Documentation; document and data control Establishing KPI measurement and monitoring systems

CHE, IPD, MKT (Textiles), MHE,

PKG, PRE PRE: OHSAS 18001 only 31 member companies COM, MKT, HLD: Adherence to J&J

EHS standards

Scope

Roll-Out

Full implementation by

December 31, 2003

CHE IPD TXT MHE PKG PRT

CSU EHS Role

Provides full-time assistance in implementation

After 2003:– Oversees EHS Monitoring Programme– Participates in annual ISO/OHSAS Review

Meetings– Assists in annual RB target-setting– EHS policies for non-certified, low-impact

companies– Decides on future certifications

Benefits Organisational attention EHS becomes an integral part of daily work Things will get done! On time! Systematic and thorough (aspects and impacts) Impact ranking and prioritised actions More comprehensive staff awareness and engagement Immunity from personnel movements International recognition & credibility Peer pressure! Professionalism and integrity A logical extension of what we already have

==> Proven Success (JJPS)!

1993

What’s in a Decade?

Commitment Ad-Hoc Activities

International Centralised Standards Service

Management Formal Systems Programmes

1993

1995

19972000

2003

Done!

Done?

0

20

40

60

80

100

120

1980 1985 1990 1995 2000 2005 2010

Asia

US

Europe

Global SO2 Emissions

Global Forest Loss

Accumulation of Human-Made Toxins

Global Soil Degradation

Fresh Water Availability

Water Stress

High

Medium/High

Moderate

Low

CO2 Concentrations Highest Levels in 160,000 Years

Biodiversity

Sustainability

Major Impacts and Risks Remain!

Sustainability

We’re not done yet!

Sustainability

In nature, everything is cyclical

waste = food

Sustainability

Today, we live in a linear society

Two Systems

Technical cycle

Natural cycle

Waste Feedstock Waste Nutrients

Four Conditions for Sustainability

1In a sustainable society, materials from the earth’s crust must not systematically increase in nature


2In a sustainable society, man-made materials that don’t biodegrade must not systematically increase in nature


3In a sustainable society, the physical basis for the productivity and diversity of nature must not be systematically deteriorated


4A sustainable society must ensure resources are distributed fairly and efficiently

What would Sustainability Require of us?

Ensure that everything that reaches nature can be transformed into new resources

Reduce toxic and persistent chemicals

High recycling of technical products

Manage natural resource consumption to not degrade the source

Preserve biodiversity Renewable energy sources

Life-Sustaining Natural Resources

TimeToday 2050?

Earth’s capacity (“supply curve”)

Human Need (“demand curve”)

TimeToday 2050?

Earth’s capacity (“supply curve”)Earth’s capacity (“supply curve”)


Population

0246810

0 500 1000 1500 2000

Master Equation

Population + Technology =EnvironmentalDecline

Potential Conflict

TimeToday 2050?




Food

TimeToday 2050?




Fresh Water

TimeToday 2050?




TimeToday 2050?



Potential Conflict


Time

Window of Opportunity

Today 2050?



Margin for action{


Sustainability

Sustainability Defined

when society learns to create a long-term stable physical relationship with the environment

Sustainability

Strategy: Pursue businesses that meet the four system conditions

Action: Develop options on how to improve the sustainability of our businesses

Sustainability

The Natural Step

Natural Step Companies

The Natural Step

Interface, Inc.

Take:

44 million lbs face fibre10 million lbs backing

226 million lbs chemicals13 million lbs auxiliary materials

Total: 294 million lbs

8,000,000 million BTU energy

Make:

252 million lbs product covers 25 million m2

700 product lines

15 year average life

Waste:

13 million lbs solid waste

22 million gallons waste water

200,000 lbs regulated air pollutants

3.8 million lbs CO2 emissions

Interface’s Plan

1. Eliminate waste2. Benign emissions3. Renewable energy4. Close the loop5. Resource efficient transportation6. Sensitivity hook-up7. Redesign commerce

Sustainability

The Natural Step:

A never-ending to-do list

Sustainability

The Natural Step:

A truly strategic approach

Sustainability

The Natural Step:

The most meaningful EHS programme

Sustainability

The Natural Step:

The toughest challenge!

Thank You!

MEM Seminar Series 2001/2002 School of Design and Environment National University of Singapore August 25, 2001 Overcoming Barriers to EHS.

Documents

ehs slide

shareholders slide

sustainability slide

brief corporate profile

asean regional network

industrial products

asean of quality products

asean number of employees