Best Practices in Chemical Management

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1 Webinar Agenda Best Practices in Chemical Goals of Best Practices Chemical Factors, Tools, & Techniques Case Studies Action Plan & Blueprint Q & A 1 2 Chemical Evolution Considerations for Chemical Sustainability Risk Mitigation and Competitive Advantage 1. Safety Considerations 2. Regulatory Compliance 3. Cost and Risk Reduction 4. Sustainability Initiatives & Your Hazard Footprint Safety Compliance 5. Global Competitive Advantage 3 4 Industry Safety Statistics In 2008 alone, chemicals and chemical products were the source of 15,220 non fatal occupational injuries and illnesses. In 2008, where chemicals and chemical products were the source of injury or illness in non fatal occupational injuries resulting in days away from work, 34 percent resulted in six or more days away from work, and 10 percent resulted in 31 or more days away from work. Exposure to caustic, noxious, or allergenic substances led to 216 on the job fatalities in Per the Bureau of Labor Statistics North America OSHA Hazard Standard CA Restriction of Hazardous Substances (RoHS)/ Waste Electrical and Electronic Equipment (WEEE) CA Green Chemistry CA Prop 65 U.S. Bioterrorism Act U.S. Chemical Assessment and Program (ChAMP) Toxic Substances Control Act Reform (TSCA ) Canada s Chemicals Plan (CMP) Workplace Hazardous Materials Information System (WHMIS) Regulatory Drivers - Sample Global Globally Harmonized System (GHS) (Global) International Council of Chemical Associations Global Product Strategy NGO SIN (Substitute It Now) Lists Industry Lists European Union European Community (EC) Regulation 178 EU RoHS 2007/47/EC (Phthalates) REACH Asia Pacific China RoHS) Industrial Safety and Health Law (ISHL) (Japan) Poisonous and Deleterious Substances Control Law (PDSCL) (Japan) Chemical Substances Control Law (CSCL) (Japan) Dangerous/Toxic Materials (Taiwan) Industrial Safety and Health Act (ISHA) (Korea) Toxic Release Inventory (TRI) Australian Inventory of Chemical Substances (AICS) Hazardous Substances and New Organisms (HSNO) Act (New Zealand) 5 Per SAP Product Compliance, Safety, and Stewardship for Process Industries whitepaper 6 1

2 MSDS - Safety Binder Creation & Distribution $ 6,720 - Safety Binder Updating (bi-annual MSDS Updates) $ 21,000 - MSDS Archival $ 1,200 - MSDS Total $ 28,920 Chemical Inventory & HazMat - Physical Inventory of Chemicals (Improvement) $ 4,200 - Inventory & Labelling $ 10,500 - Chemical Inventory Total $ 14,700 Regulatory Compliance & Business - Workplace Chemical Inventory $ Form R Information/ $ 3,000 - Tier 1/Tier II $ 1,500 - Chemical Inventory Total $ 5,250 - TOTAL IN-HOUSE MSDS MANAGEMENT COST $ 48,870 Risk - Workman's Comp Risk Reduction $ 17,824 - Lost Productivity Reduction $ 1,747 -OSHA Fine Risk Reduction $ 3,095 - Risk Total $ 22,667 - TOTAL RISK REDUCTION $ 22,667 8/22/2011 Globally Harmonized System 1,000,000 chemicals 5,000,000 businesses 40,000,000 workers Estimated net savings of $764 million in U.S. alone from safety and health risk reduction and productivity improvements Primary HCS Changes Per GHS MSDS MSDSs will need to be updated or re authored to meet GHS guidelines. Updated safety data sheets and labels will need to be circulated and distributed to stakeholders. Labels Labels will need to be reprocessed during transition. Standardized pictograms, signal words, hazard statements will be required. Training Employees must be trained on the new content and format of SDSs and chemical labels. * Per OSHA Facts on Aligning the Hazard Standard to the GHS 7 8 Cost & Risk Reductions Sustainability and Your Chemical Hazard Footprint MSDS and Chemical ROI Risk Regulatory Environment Physical TOTAL INTERNAL COST & RISK REDUCTION OPPORTUNITY $ 71, Competitive Advantage Factors to Consider 1. Do your customers have sustainability requirements? 2. Are you meeting global regulations for shipping and using hazardous chemicals? People 3. Does your chemical strategy protocol support lean initiatives? 4. Are you able to efficiently satisfy environmental reporting and risk monitoring initiatives? Process Technology

3 People Chemical Processes System Compatibility and Security Supplier and Inventory Control Procurement Optimization Chemical Inventory Visibility Chemical Analysis Material Approval Health Hazard Assessment Toxicology IT and Procurement Industrial Hygienists Safety Employees Environmental Risk HazCom Plans Accident Response Corporate & Government Compliance Employee/Vendor Protection Compliance Tracking Risk & Exposure Assessments Risk Mitigation Compliance Environmental Remediation Contingency Planning Community Responsibilities Chemical Inventory Material Approval Monitoring & & Training Chemical Inventory Material Approval Chemical Inventory Elements of Proper Inventory What, Where, How Much On-site vs. Procurement-based Inventory Ongoing Inventory Updates Barcoding Data Exchange-Various Systems Material Approval What are the Basic Elements of an Effective Material Approval Process? Appropriate personnel in the review cycle Trackable Easily modified as the work environment or personnel change Closed Loop Beyond Chemical Approval Hazard Profiling Chemical and Risk Assessment MSDS - The Foundational Element What data is important? What are you tracking? What are the chemicals you re dealing with? What reporting is required? Hazard Classifications Regulatory Information (components, %, don t forget section 15) Exposure Limits Handling, storage, disposal More!

4 Best Practice Benefits of Chemical Complete MSDS data indexing including: health and physical hazards physical and chemical classifications transportation classifications Regulatory cross-referencing Access to MSDS versions and archives Pre-populated labeling Integrated material approval External regulatory compliance and internal management reporting GHS-compliant data Monitoring & Monitoring & Set goals to remove specific hazard types (carcinogens, corrosives, toxic substances, aquatic hazards, etc) Determine regulatory impact of certain materials when reviewing hazard footprint (e.g. CA Prop 65) Identify certain highrisk plants, chemical areas, or job functions with greater exposure Identify alternative products that have lower hazardous footprint & Training Technology & Tools &T Training i What s required? How do we help employees understand the risks and safety procedures? How do we get employees (and management) involved in the process? What are the expected results? Electronic versus manual MSDS management Balancing time, money, risk factors What are the alternatives? What is the expected return on investment? Case Study #1 Case Study #2 PROJECT OVERVIEW PROJECT OVERVIEW Lexmark, an advocate for environmental sustainability, needed a scalable solution for chemical management spanning both corporate and manufacturing facilities. Lexmark turned to SiteHawk to implement a corporate-wide MSDS management system that replaced in-house systems and resources, resulting in a more cost-efficient and consistent approach across the organization. Reduced active MSDS count from 12,000 to 6,500 Shortened the chemical introduction process from weeks to days Gained site-level data as well as corporate view Eliminated daily chore of acquiring, updating, and maintaining MSDS Elkay is a family of companies that employ over 2,500 people in distribution facilities throughout North America and select international markets. With more than 2,100 chemicals spanning nearly 20 facilities worldwide, Elkay needed a chemical management services provider who could match their desire for simplicity, robust chemical data management applications, and superior attention to customer service Streamlined regulatory reporting for Toxic Release Inventory (TRI), etc. Wanted more than just a data warehouse of MSDSs Eased the burden of chemical tagging via automated labeling Increased worker safety and confidence

5 Best Practices Blueprint Chemical Road Map Step 1 Get an accurate view of your current chemical inventory Step 2 Gain control of chemicals entering the workplace Step 3 Utilize a system and/or service that provides access to the chemical data found on the MSDS Step 4 Realize the synergy of MSDS data/systems for integrated material approval, regulatory reporting, labeling, sustainability initiatives, as well as core safety compliance Step 5 Identify and communicate relevant information to employees, regulators, management, etc. in order to reduce risk, increase safety, and gain competitive advantage Q&A For more information, contact: Scott Williams Director of Sales, SiteHawk ,ext. 33 swilliams@sitehawk.com