International trends in EHS regulation and how companies manage compliance in different ways
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1 International trends in EHS regulation and how companies manage compliance in different ways Tjeerd Hendel-Blackford Project Manager, Business Development Enhesa Heather Beach Business Development Manager Barbour Environment, Health & Safety March 2011
2 Heather Beach Business Development Manager Barbour Environment, Health & Safety Responsible for Barbour s products and services including our webinar series and consulting services Involved in health and safety information and service provision for 20 years
3 Housekeeping Online presentation Sound quality sometimes better on the phone rather than computer sound card and speakers Ask your questions at any time over the chat box For technical issues report them in the chat box or call
4 Agenda for today s webinar Introduction - Heather Beach Presentation: Tjeerd Hendel-Blackford International trends in EHS regulation & how companies manage compliance in different ways Enhesa Services Tjeerd Hendel-Blackford Questions and Answers
5 Introduction - Barbour Information Services International information within the Barbour service Guides to doing business in 6 countries Access to 36 international publisher s including American Industrial Hygiene Association, WHO, European Food Safety Authority Access to documents in languages other than English (15 languages)
6
7 Today s webinar Current recent international trends in EHS laws and policies; looking at how companies are going about managing compliance with different budgets and approaches. The webinar draws on the outcomes of Enhesa s 2010 regulatory trends forecast and a study of how companies seek to ensure regulatory compliance.
8 Tjeerd Hendel-Blackford Tjeerd is a multilingual EHS policy, regulatory and management consultant with ENHESA More than 10 years of experience in tracking and analysing environmental, health and safety legislation, and the regulatory aspects of environmental management systems for multinational companies with operations all over the world.
9 International trends in EHS regulation and how companies manage compliance in different ways Tjeerd Hendel-Blackford Project Manager, Business Development Enhesa March 2011
10 Enhesa leaders in EHS compliance assurance Founded in 1989 Headquartered in Brussels and Washington, DC Core team of over 60 EHS regulatory experts A network of 300 consultants worldwide Coverage of more than 150 countries & regions Key services include Verification services: Audit Protocols, Scorecards, Audits Information Services: Country Profiles, Regulatory Monitoring, Regulatory Registers Consulting Services: Helpline, Product Stewardship, Management Systems, Strategic Management Support Enhesa March 2011
11 International trends in EHS regulation and how companies manage compliance in different ways Forecast methodology Chemicals Climate change Products Corporate responsibility Client Case Studies
12 Forecast methodology Regulatory review Analyse regulatory trends identified by the Enhesa Regulatory Monitoring Service. Oct Dec 2010 Surveys Analyse business concerns about new regulatory trends. Nov 2010 Analysis Distil the top trends for 2011 that will keep most of you busy Dec 2010 The forecasting methodology has been used and refined by Enhesa over the past 15 years. It is also used by Enhesa on assignments to help clients focus their resources on the main issues.
13 Geographic Scope of Study
14 Thematic Scope of Study Harmonised scope A logical framework of over 250 themes allows a consistent comparison worldwide
15 Regulatory Pressure 12,000 During 2010, Enhesa kept track of EHS regulatory and policy developments in 90 countries and 68 regional jurisdictions. 10,000 In 2010, Enhesa identified just under 11,000 developments relevant to business. An 18% increase compared to 2009, 50% more than in 2008 and 72% more than in ,000 6,000 4,000 Africa Global Asia-Pacific America Europe Brazil, Russia, India and China are amongst the countries undergoing most regulatory changes. 2,
16 Future Regulation Enhesa counted over 3460 outstanding regulatory proposals and initiatives that are likely to result in new regulatory obligations for business in the coming years. Product requirements, air emissions(incl. energy efficiency), waste & chemicals management are the areas where most new legislation and policy is being developed Proposals Pending on 1 January 2011
17 Live Poll... Has your business been impacted by a failure to comply with a regulatory development that you were not prepared for? Yes No Don t know
18 Overview Forecast methodology Chemicals Climate change Products Corporate Responsibility Client Case Studies
19 Three major developments 1. The European REACH, the US EPA Chemical Management Program, and similar smaller initiatives in Asia are triggering massive chemical testing. 2. The Globally Harmonised System will facilitate communication and comparison of chemical risk data between all global players. 3. The 2006 United Nations Strategic Approach to International Chemicals Management encouraging the spread of chemical regulations in developing countries.
20 Chemical restrictions Chemical testing is likely to trigger many more restrictions in the coming years. EU Substances of Very High Concern The Danish Government list of 1404 unwanted substances gives an indication of what to expect in the near future. Nanoparticles and suspected endocrine disrupting chemicals are two new issues of concern that add on to this.
21 Chemical regulations and you GHS will require: Reclassification of chemical substances and mixtures Re-labelling of all dangerous chemicals on site Harmonised (material) safety data sheets Re-assessment and adaptation of facility chemical inventories Training of the workers on the new classification and pictograms Testing will be required from: Chemical producers and importers EU scheme also impacts down-stream users Test results will trigger rapid changes in chemical classifications and many more chemical restrictions This may impact: permit conditions (if you have any of these substances present) major hazard facility classification and permitting This may trigger the need for re-assessment of: production processes, worker exposure pollutant releases product design
22 Overview Forecast methodology Chemicals Climate change Products Corporate Responsibility Client Case Studies
23 The Cancun Agreement not legally binding Kyoto Protocol expires in Cancun reached agreement, but not binding. Renewed impetus following Copenhagen. Working towards global goal for reducing GHG emissions by 2050 and a timeframe. Establishment of a Green Climate Fund to help developing countries mitigate and adapt to climate change. New international mechanism to help accelerate deployment of low-emission technologies worldwide.
24 No current target Countries with mandatory targets under Kyoto Protocol Impacts of climate change agreement for businesses? EU Russia Japan UK Australia US Businesses will need to adapt business models to suit a global low-carbon economy. Businesses will face emissions reporting requirements (if they don t already). Businesses that are large emitters will face obligations to reduce emissions: Carbon Reduction Commitment First in the world Continued focus on energy efficiency. Energy efficiency is a no regrets option for all businesses. Growing public pressure for carbon labelling and low-carbon or carbon neutral products and services. Brazil China India Growing focus on energy efficiency and technological improvement. Products exported to developed countries will need to meet energy efficiency standards. Opportunities to participate in emissions reduction projects through Clean Development Mechanism.
25 Climate change policies will impact most businesses Voluntary Voluntary action Industry agreements Mandatory energy efficiency standards and audits Carbon taxes and emissions trading Mandatory
26 Overview Forecast methodology Chemicals Climate change Products Corporate Responsibility Client Case Studies
27 Product Regulations Boom Product Regulations Boom Rapid increase in number of product-related regulations adopted each year, around the world
28 How are products regulated? Product regulations are usually focussed on: Restrictions on use of chemicals (RoHS-like) Safety design requirements Energy-efficiency requirements (EuP, Energy Star) Restrictions on emissions during product use End-of-life/disposal requirements They often involve market instruments: Taxes or charges Labelling requirements Liability for unsafe products They tend to spread worldwide in many variations: Often imposed through the supply chain by customers Enforced by consumer action groups
29 2010 Regulatory Developments - EU Machinery Directive - Revised Machinery Directive 2006/42/EC commenced 29 December Applicable to new categories of products (e.g. hoists, portable cartridge-operated devices). - EU Directive on Restriction of Hazardous Substances (RoHS) - Likely to be extended to medical devices, monitoring and control instruments but also to all types of EEE including cables, consumables, and accessories. - EN Standards - European Standardization Bodies CEN-CENELEC and ETSI issued harmonized standards for mobile phone chargers in December Brazil - New version of Regulatory Norm 12 (NR-12) Machinery and Equipment. - Taiwan - Taiwan is the first government to promote carbon footprint labels on products.
30 Overview Forecast methodology Chemicals Climate change Products Corporate Responsibility Client Case Studies
31 Live Poll... Do you see the international compliance aspect of your role increasing over the next few years? Yes No Don t know
32 EHS Performance more public than ever Increased Boardroom Pressure to Perform Corporate responsibility legislation (UK, France, Peru...) Operating permits accessible to the public: Mexico, UK, France Regular and Increased highlighting of health and safety enforcement cases (Singapore, US, UK, Ireland) British Standards Institution (BSI) launched BS ISO in November This new standard contains international guidelines for corporate social responsibility and top level information on health and safety Increasing role of NGOs: work in collaboration with big corporations to achieve local sustainable resource exploitation, environmental product issues
33 EHS Performance more public than ever European Pollution Release and Transfer Register
34 Sustainability reporting becoming a legal requirement Some examples: Who? What? EU Large European listed companies Environmental and employee information UK France Denmark China All large companies and publicly listed companies Companies listed on the French stock exchange 1100 biggest companies in Denmark, listed companies, state-owned companies and institutional investors Foreign investment companies This requirement is currently in a demonstration phase Environmental and employee information All sites (French and global): Environmental and health and safety information Information on human rights, social, environmental and climate conditions, corruption, company policies and performance Data on environment protection measures
35 Overview Forecast methodology Chemicals Climate change Products Corporate Responsibility Client Case Studies
36 Client Case Studies Enhesa Services Country Profiles Regulatory Registers Audit Protocols & ScoreCards Audits Identify and understand applicable requirements Assess compliance Helpline Consulting Service Ongoing consulting support when needed Stay up to date as requirements change Monitoring Service Enhesa Update
37 Enhesa Client Case Studies 1. Entering new markets Company X was looking to launch a new range of non-cosmetic products 2. Time to verify compliance Mature EHS management in place, Company Y needed verification assistance at corporate level 3. Management support Company Z had little or no international EHS structure following expansion needed baseline assessment and ongoing management support
38 Client Case Studies Company X Large global personal care products manufacturer Developed new range of perfumed candles and airfresheners Enhesa: Obtained all relevant chemical and testing data Used data to ascertain applicable regulations in countries of concern Reported on packaging, labelling and other marketing requirements in all countries of concern Provide monthly regulatory monitoring on product related issues in a number of countries.
39 Client Case Studies Company Y Major international bank Offices in many countries. Comprehensive health and safety management structure in place, including certification on many sites Desire to further enhance structure through verification of regulatory compliance Enhesa: Provided EHS Regulatory Audit Tool to allow client to conduct audit in English and Local language against standardised themes Provided different levels of training, support or lead auditing Enhesa worked with client s 3 year audit schedule to make sure they were always auditing against the most up to date requirements.
40 Client Case Studies Company Z US Bio-pharmaceutical company had rapidly expanded sales offices into European and Asia Required benchmarking of EHS management structures and procedures in place (if any) Needed ongoing consulting, training and local support Enhesa: Conducted site assessment visits to identify gaps Developed strategic plan to address needs Provided UK head office and offices in each country with Enhesa Country Profiles and Regulatory Monitoring as resource to identify requirements Made return site visits where necessary and conducted annual review
41 Conclusions Huge volume of constantly changing regulatory information Action that was voluntary quickly becomes mandatory. Companies must be proactive to prepare for new regulatory measures. Public availability of information emphasises the need for companies to protect their EHS reputations.
42 Any questions? Thank you for listening Tjeerd Hendel-Blackford Visit for further information or subscribe for free to the Enhesa Flash newsletter Question & Answer session Contact Enhesa Experts at:
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