Published on February 19, 2014
Delivering Safety Results in Changing Times – Leveraging EHS Sustainability Bernard L. Fontaine, Jr., CIH, CSP Windsor Consulting Group, Inc. 1
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 2
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
Delivering Safety Results 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 5
Delivering Safety Results 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 6
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 7
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 8
Delivering Safety Results Organizational Challenge Senior management Middle management Employees Research and development Products and services 9
Delivering Safety Results Organizational Challenge Customers and supply chain Investors and insurers Regulatory agencies Third-party validation, verification, and accreditation 10
Delivering Safety Results 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 11
Delivering Safety Results Motivations Ethical considerations Globalization and market forces Social awareness and education Laws and regulation Crises and their consequences Stakeholder priorities 12
Delivering Safety Results 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. 13
Delivering Safety Results 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 14
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 15
Delivering Safety Results Examples of EHS Sustainability 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 16
Delivering Safety Results Examples of EHS Sustainability 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 17
Delivering Safety Results Examples of EHS Sustainability 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 18
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 19
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 20
Delivering Safety Results Education and Learning Process Dialogue with forward thinking Collaboration with other business partners Collecting adequate information – past, current trends, and future 21
Delivering Safety Results Education and Learning Process Benchmarking and regulatory compliance Systemic planning within the organization Individual and collective learning - concept 22
Delivering Safety Results Education and Learning Process 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 23
Delivering Safety Results 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 24
Delivering Safety Results 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 25
Delivering Safety Results 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 26
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 27
Delivering Safety Results 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 28
Delivering Safety Results 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 29
Delivering Safety Results Environmental Strategies 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 30
Delivering Safety Results Environmental Strategies 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 31
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 32
Delivering Safety Results Environmental Strategies Water Conservation Water monitoring and management Process water reuse and recycling Building facility operations Heating and cooling systems 33
Delivering Safety Results Environmental Strategies 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 34
Delivering Safety Results Environmental Strategies 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 35
Delivering Safety Results Environmental Strategies Waste Management Planning, prevention, and reuse Treatment and disposal Storage Transportation Monitoring 36
Delivering Safety Results Environmental Strategies Contaminated Land Industrial site remediation investigation action Risk screening Interim and detailed management plan Permanent reduction measures Occupational health and safety considerations 37
Delivering Safety Results 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 38
Delivering Safety Results Occupational Health and Safety 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 39
Delivering Safety Results Occupational Health and Safety 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 40
Delivering Safety Results Occupational Health and Safety 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 41
Delivering Safety Results Occupational Health and Safety 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 42
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 43
Delivering Safety Results Occupational Health and Safety Chemical Hazards Corrosive, oxidizing, and reactive agents Carcinogens – animal and human Reproductive agents – teratogens and mutagens Medical surveillance and biological monitoring 44
Delivering Safety Results Occupational Health and Safety 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 45
Delivering Safety Results Occupational Health and Safety 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) 46
Delivering Safety Results Occupational Health and Safety 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 47
Delivering Safety Results Occupational Health and Safety 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 48
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 vectorborne diseases Emergency preparedness and response Recreational and off-duty activities 49
Delivering Safety Results 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 50
Delivering Safety Results Product Stewardship Strategy Product Life Cycle (PLC) or Extended Product Responsibility (EPR) Designers Manufacturers Retailers Consumers Waste management and disposers 51
Delivering Safety Results Product Stewardship Strategy 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 52
Delivering Safety Results Product Stewardship Strategy 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 53
Delivering Safety Results 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 54
Delivering Safety Results 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 55
Delivering Safety Results 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 56
Delivering Safety Results 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 57
Delivering Safety Results Platform/Dashboard for EHS Sustainability 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 58
Delivering Safety Results Platform/Dashboard for EHS Sustainability 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 59
Delivering Safety Results Platform/Dashboard for EHS Sustainability 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 60
Delivering Safety Results Platform/Dashboard for EHS Sustainability 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 61
Delivering Safety Results EHS Goals Progress through 2008 Reduce 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% Reduced 21% indexed to revenue Reduce total waste 30% indexed to revenue Reduced 11% indexed to revenue Reduce water usage 20% indexed to revenue Reduced 26% indexed to revenue Baxter Sustainability Report 62
Delivering Safety Results Product Stewardship Progress through 2008 Apply product sustainable On target for completion in review (PSR) to product 2010 development process (PDP) Implement electronic takeback 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 Baxter Sustainability Report 63
Delivering Safety Results Occupational Health/Safety Progress through 2008 Reduce 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 Implemented 82% of review in 80% of facilities facilities in 2008 Baxter Sustainability Report 64
Delivering Safety Results Industrial Hygiene Progress through 2008 Ensure 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 Baxter Sustainability Report 65
Delivering Safety Results Questions ? 66
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