Presented By:

Brussels · Washington, DC · Tokyo · www.enhesa.com

EHS COMPLIANCE, RISK AND THE BOTTOM LINE

Thierry Dumortier, Director, Enhesa

IOSH, London, 22 June 2016

Adding Value to the Organization

Compliance is our Business. Enhesa is the

market leader in global environmental, health and

safety assurance providing support to businesses

worldwide.

Offices in Brussels, Washngton DC and Tokyo.

GLOBAL COVERAGE.

EXPERT ANALYSIS.

GLOBAL EHS REGULATIONS

Challenges of a Changing World

Getting Organized

Adding Value to the Organization

3

GLOBAL EHS REGULATIONS

Challenges of a Changing World

Getting Organized

Adding Value to the Organization

4

EHS REGULATORY DEVELOPMENTS PER YEAR

5

5000

4500

4000

3500

2500

2000

1500

1000

500

0

3000

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

over

GROWING STEADILY

SETTING THE SCENE – EHS REGULATIONS

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Increasing

Environmental

and Safety

Awareness

Increasing

Regulation and

Enforcement

WHAT’S DRIVING GLOBAL REGULATORY GROWTH?

7

02

01

04

03

05

Delocalisation

Public

opinion &

pressure

New technologies

Standardizing

requirements due to

globalization

New evidence

from research

CHEMICAL REGULATORY DEVELOPMENTS

8

2010

590

Reports

2000

11

Reports

2005

103

Reports

2015

1149

Reports

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GHS Spreads Globally

• GHS-CLP classification became compulsory in Europe and the United States for chemical mixtures

• The 6th revision of the Globally Harmonized System for Classification and Labelling of Chemicals (GHS) was published in Sep 2015

• The European Chemical Agency released data on the notified GHS classifications, revealing many data inconsistencies amongst manufacturers: http://echa.europa.eu/information-on-

chemicals/cl-inventory-database

Is your EHS Management system able to cope with the rapid change in chemical classifications and restrictions?

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NO COUNTRY CAN PRETEND TO LEAD ON ALL ISSUES

Any Country May Lead A Certain Issue,At A Certain Moment In Time

It Is Rare That A Country Maintains The Lead, Usually Others Follow And Draw Lessons From The Early Implementer

Which Country Will Start To Regulate The Next Issue Or Push An Existing Issue To The Next Level Is Hard To Predict

Never Assume The Regulations With The Same Name Have The Same Requirements, The Devil Is In The Detail

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COLLABORATION MAKES THINGS EASIERWORK WITH THE REGULATOR

GLOBAL EHS REGULATIONS

Challenges of a Changing World

Getting Organized

Adding Value to the Organization

12

Journey to Compliance

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TIANJIN HARBOR EXPLOSIONS, AUGUST 2015

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Are your operations safe, even in countries where EHSis less regulated or less enforced?

BEST IN CLASS COMPANIES HAVE CORPORATE EHS STANDARDS

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88% of respondent companies have developed unique

corporate environmental, health and safety standards

Source: Enhesa Survey 2011

Reduce Risk Reduce Cost

Avoid Regulatory

Burden

Maximize Market

Opportunities

YOUR COMPLIANCE PROGRAM SHOULD…

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17

EHS functions cut

across many other

organizational

activities…

GLOBAL EHS REGULATIONS

Challenges of aChanging World

Getting Organized

Adding Value to the Organization

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Corporate EHS performance can improve business prospects

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A NEW PARADIGM?

• Evolution of the global

economy

• New concepts of threats

• Demands of

sustainability and

corporate social

responsibility

• Greater transparency &

stakeholder pressure

• Opportunities to

demonstrate EHS value

to markets and the

financial community

• Turning a “cost of doing

business” into a

business opportunity

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HOW CAN

CORPORATE

EHS PROGRAMS

ADD VALUE?

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How EHS Helps The Bottom Line

Cost

Avoidance

Cost

Savings

Value

Added

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Regulatory Fines

• Safety Citations• Environmental Citations

•Air Permit Exceedances

•Wastewater Exceedances

•Disposal Citations

•Transportation Violations

Costs Associated With Incidents

• Environmental Cleanup

• Safety Medical Costs

• Production Interruptions

Cost

Avoidance

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Increase in Operational Efficiency

• Six Sigma approaches

• Lower accident rates > lower insurance premiums

Water Conservation

• Cost Of Water

• Cost To Treat Wastewater

Energy Conservation

• Purchase Less Energy

• Reduction In Utility Rates

Waste Disposal

• Reduced Disposal Cost

• Revenue From Recycling

• Reduce, Reuse – Lower Raw Material Costs

Cost

Savings

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Branding

Marketing

NGO/Govt

Partnerships

Socially Responsible

Investing

Talent

Management

Research &

Development

Employee

Engagement

Supply Chain

Beyond

The

Property

Line

Creating A Competitive Advantage

Across The Value Chain

Value

Added

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Enterprise Risk Management – The Role Of EHS

Audits And

Emergency

Response Planning

Accident & Spill

Prevention

Management

Of Change

EHS

Events

Positive &

Negative

Site,

Department,

Task Risk

Assessments

Corporate

Reporting Due

Diligence

Integration

of EHS Into

Operations

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Example of Corporate Manslaughter

Revised guidelines as of 1 Feb 2016 foresee

• Maximum: unlimited fine

• Offence range: £180,000 fine – £20 million fine

Recent Cases

• Dec 2015 - Baldwins Crane Hire Limited convicted of corporate

manslaughter and fined £700,000 plus costs

• July 2015 - Huntley Mount Engineering, fined £150,000 for corporate

manslaughter and company director jailed for eight months

• July 2015 - CAV Aerospace Ltd. has been found guilty of corporate

manslaughter, following the death of an employee. The firm was convicted of

two offences and fined twice; £600,000 for Corporate Manslaughter and

£400,000 for contravening the Health and Safety at Work etc. Act 1974.

• March 2015 - Pyranha Mouldings Limited, sentenced for corporate

manslaughter and fined £200,000, plus costs of £90,000. Company director

Peter Mackereth sentenced to nine months in prison, suspended for two years

and fined £25,000.

Good EHS Programs Can Keep Your Boss out of Jail

• Benchmark your EHS Program against that of your peers

• With 25 parameters covering 10 themes

http://tinyurl.com/BenchmarkEHS

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WANT TO KNOW WHERE YOU STAND ?

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YOUR PERFORMANCE COMPARED TO THE LEADERS?

• Benchmark your EHS Program against that of the leaders

http://tinyurl.com/BenchmarkEHS

• Speak The Language Of Business

• Appeal To Their Business Sense

• Use EHS To Solve Operational Issues

• Identify Common Needs

• Utilize Existing Systems

• Engage Other Stakeholders In Setting

EHS Strategic Direction And Goals

• Create Non-EHS “Disciples” For The Program

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Keys To Success In Building The Case For EHS

At the Expo visit our booth P2410 next to IOSH to:

• Get to know more about what we can do for you

• pick up the form to participate in the Benchmark Survey

www.enhesa.com

Thierry Dumortier

td@enhesa.com

https://be.linkedin.com/in/thierrydumortier