MEM Seminar Series 20012002

1
Overcoming Barriersto EHS

• MEM Seminar Series 2001/2002
• School of Design and Environment
• National University of Singapore
• August 25, 2001

2
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

3
Jebsen Jessen SEA

• A Brief Corporate Profile

4
ASEAN Regional Network

• 40 companies operating under seven
  activity-related divisions
• Areas of operation ASEAN
• Number of employees 2,500

5
Regional Coverage
Vietnam Ho Chi Minh (Saigon) Hanoi
Thailand Bangkok Chiengmai
Philippines Manila Cebu
W. Malaysia Kuala Lumpur Penang Johore
Bahru Kuantan Ipoh Malacca
Brunei Bandar Seri Bagawan Kuala Belait
Sarawak Kuching
Sabah Kota Kinabalu
Singapore
Indonesia Jakarta Surabaya Medan
Semarang Bandung Ujung Pandang
6
Regional Businesses

• Chemicals
• Communications
• Industrial Products
• Marketing
• Material Handling
• Packaging
• Process Technology

7
Chemicals
Chemicals Nutrition Metals
8
Communications
Corporate Network Telecommunications
Broadcast
9
Industrial Products
Pumps Well screens Cutting Tools
Special Electric Cables
10
Marketing
Consumer Medical Scientific Textiles
Automotive Spares
11
Material Handling
Cranes Hoists Logistic Systems IPD
Spares Services
12
Packaging
Moulded Foam Packaging Integrated Packaging
Construction
13
Process Engineering
Industrial Plant Marketing Industrial Plant
Contracting
14
Group Statistical Profile
MY 27
CHE 22
MKT 19
TH 18
IPD 9
IND 9
PH 4
COM 12
PKG 7
SIN 42
PRT 7
MHE 25
Revenue by country
Revenue by regional business unit
Employees by regional business unit
Employees by country
15
The First EHS Efforts

• Management Conference 1993
• Member of Executive Committee overall in charge
• Minor and random initiatives

16
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

17
The Background
Japan/US/EU ASEAN
EHS awarenessPublic Moderate Low,
growing Employees Moderate Mixed Retail
customers Moderate Limited Industrial
customers Moderate Moderate Intrinsic mgmt
interest Mixed Low Strategic mgmt
interest Mixed Low ISO 14001 Low/Moderate Moderat
e
18
The Background
Japan/US/EU ASEAN
Regulations Strong Strong Reg
enforcement Strong Low - Moderate Media
focus Bad/shock news Good / bad news -
Pollution, injuries - Govt influence NGOs Large
memberships Limited role Labour unions Moderate
size Limited role Shareholders Special
interests Limited interest
19
Formal EHS Management

• 1995

20
EHS as a Central Service
Executive Management
Finance Treasury Corporate Legal
Affairs Human Resources Environment, Health
Safety Corporate Communication Information
Technology Internal Audit Taxation
Providing Central Services
40 Member Companies
21
EHS Management
Central Services Unit EHS
CSU Audit
EHS Chair
EHS Committee
22
Decentralised Approach

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

23
Accomplishments 1995-1997

• 1. 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

24
Idealism vs. Pragmatism

• CFC Business
• TBTO
• Hazardous Wastes
• Paint
• Furniture
• Polystyrene

25
Hocking (1991) Hot-Drink Container LCA
26
Hocking (1991) Hot-Drink Container LCA
27
Hocking (1991) Hot-Drink Container LCA
28
Hocking (1991) Hot-Drink Container LCA
29
Hub Spoke EHS Service

• Operating in the environment prior to the RBU
  structure, the approach CSU EHS pursued was hub
  spoke

30
Benefits

• Customised attention to each company
• Fast communication

31
Drawbacks

• 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

32
Drawbacks

• Continuous fire drills limit time to think and
  plan strategically
• Little incentive for member companies to generate
  their own agenda

33
Spoon Feeding Approach

• 1997

34
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 groups
• 2. Among facilities
• 3. Within countries

• The tool EHS Programmes
• Assign responsibilities
• Provide information and tools

35
EHS by Regional Business
The Groups new regional business framework
identified a need to address common issues within
common businesses.

• Benefits include
• EHS training for specific regional business

36
EHS by Type of Facility

• The regional businesses use four common types of
  facilities
• 48 Offices
• 5 Hazardous warehouses
• 12 Factories
• 13 Stores and workshops

!
Central EHS

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

37
EHS by Country
The Group has up to seven business locations
within each country, revealing potential
opportunities for synergy.
Thailand
Group
Malaysia
Group
Indonesia
Group
CSU EHS
Singapore
Central EHS
and RMDs
Group
Vietnam
Group
Philippines
Japan
Group
Group

• Benefits include
• Providing common EHS legal advice
• Shared local training providers
• Centralised EHS procurement

38
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

39
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

Standards
Responsibilities
40
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

41
Occupational Health

• Sufficient lighting
• Noise testing
• Manual lifting
• Ergonomics
• Health monitoring

42
Occupational Health
Ergonomics Diagram Lighting
Recommendations
43
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

44
Occupational Safety
45
Environment

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

46
Administration

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

47
Administration
m I have received a copy of the Group EHS Policy
m I have received a copy of the booklet "Our
Commitment to Preserving the Environment" m I
have been informed about the date of the next
fire drill m I have been informed about the
location of the First Aid Kit nearest to my
workplace m I have been informed about the
location of fire extinguishers and evacuation
routes nearest to my workplace
Employee Signature
48
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)

49
Facts Talk!
50
Peer Pressure Works!
1997-2000 EHS Audit Results Chemicals
A
B
1997
C
1998
1999
D
2000
F
JJDS
JJDM
JJDP
JJDT
51
IT Infrastructure

• Lotus Notes
• SAP

52
IT Infrastructure

• Improving EHS management in the Chemicals RBU
  through SAP
• Recording chemical EHS properties
• Hazard class (toxic, flammable, etc.)
• Storage climate (cool, dry, etc.)

53
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?

54
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 products
  MSDS?

55
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

56
Drivers

• Image, Corporate Citizenship

57
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

58
Bottom-Line Drivers
The Cost Iceberg
59
Insurance Premiums Down!
1997-1998 27 reduction 1998-1999 18
reduction 1999-2000 11 reduction
60
Hidden Costs!
61
Risk Reduction!
62
Business Opportunities?

• One Failure After Another
• Allerguard / Green Cotton
• Water Wastewater Treatment
• Moulded Pulp Packaging

63
Benefits of Spoon Feeding

• Facilitates synergies across
• the group
• Facilitates synergies within RBUs
• Facilitates synergies within facility types
• Facilitates synergies within metropolitan areas
• Facilitates CSU support and monitoring of EHS
  programme implementation

1. Region-wide EHS standards

• 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

64
Benefits of Spoon Feeding

• 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

65
Limitations of Spoon Feeding

• Laggards still got away
• Local management not always committed
• Cost-consciousness
• Bottom-line benefits long-term, indirect and
  too strategic

66
Achieving Lasting Consistency

• 2000

67
Management Systems
CSU EHS to provide the roadmap and structure to
help build a company-driven EHS management system
68
Management Systems

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

• 4. Review

2. Implementation
3. Measurement evaluation
69
Planning

• Aspects Impacts

Aspect
Impact
Hazardous atmosphere
Temporary to severe health impact
2. Solvent cleaning
Ground level ozone occupational exposure
VOC emissions to air
operation
3. Bulk acid
Accidental spillage
Surface water contamination
transportation and
storage
4. Battery charging
Exploding battery
Acid burns
Consumption of renewable natural resources
5. Office operation
Document printing
70
Planning

• An objective for each aspect / impact
• An activity for each objective

71
Planning

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

72
Planning

• Targets are the deadlines or numbers related to
  the KPI

73
Planning

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

74
Management Systems
1. Planning

• 2. Implementation
• Structure and responsibility
• Training, awareness, and competency
• Operational control
• Emergency preparedness response

• 4. Review

3. Measurement evaluation
75
Training Plans
76
Management Systems
1. Planning

• 4. Review

2. Implementation

• 3. Measurement evaluation
• Monitoring
• Audits
• (Corrective actions)
• (Records)

77
Auditing

• New approach to capture learning
• Year 2001 Risk Auditors joined by staff within
  same country/region

JJPS
Example Singapore/Johor
MDSM
MDS
Marsh
JJPJM
JJMS
78
Auditing

• New approach to capture learning
• 2002 and beyond internal process performed by
  staff of another company within same RBU

Example MHE
MDI
MDS
MDP
MDM
MDT
MDSM
79
Management Systems
1. Planning

• 4. Review
• Investigate process deviations
• Continuous improvement

• 2. Implementation

3. Measurement evaluation
80
EHS Monitoring
Meanwhile, What Were The Results Telling Us?
81
Energy Intensity
82
Office Paper Intensity
83
Accidents
84
EHS Audit Scores
D
D
C-
C
C
B-
B
B
A-
A
Chemicals, Material Handling, Packaging
85
EHS Audit Scores

• Between 1999 and 2000
• Three companies improved their score
• Three companies worsened

86
EHS Audit Scores
D
D
C-
C
C
B-
B
B
A-
A
87
Variation Surprises
A
D
A
D
Mean score A- Variation 9
Mean score A- Variation 0
88
The Challenge

• Achieving consistently high performance,
  consistently across the Group
• No more surprises!
• Self-managed EHS Committees and Management Systems

89
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
• gt Group-wide EHS Management Systems
• gt Group-wide Organisational Excellence

90
Group-Wide Certification

• ISO 14001
• (Environmental Management System)
• OHSAS 18001
• (Health Safety Management System)

91
ISO 14001 / OHSAS 18001

• EHS Management Systems
• Nothing new!
• Scope of Compliance
• Adherence to regulatory standards
• Adherence to own standards
• Continual improvement

92
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

93
Scope

• CHE, IPD, MKT (Textiles), MHE, PKG, PRE
• PRE OHSAS 18001 only
• 31 member companies
• COM, MKT, HLD Adherence to JJ EHS standards

94
Roll-Out
CHE
IPD
TXT
MHE
PKG
PRT
Full implementation by December 31, 2003
95
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

96
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
• gt Proven Success (JJPS)!

97
Whats in a Decade?
1993
Commitment Ad-Hoc Activities International
Centralised Standards Service
Management Formal Systems Programme
s
1993
2003
1995
1997
2000
98
Done!
99
Done?
100
Global SO2 Emissions
101
Global Forest Loss
102
Accumulation of Human-Made Toxins
103
Global Soil Degradation
104

• Fresh Water Availability

Water Stress High Medium/High Moderate Low
105

• CO2 Concentrations Highest Levels in 160,000 Years

106
Biodiversity
107
Sustainability

• Major Impacts and Risks Remain!

108
Sustainability

• Were not done yet!

109
Sustainability

• In nature, everything is cyclical
• waste food

110
Sustainability
Today, we live in a linear society
111
Two Systems
Technical cycle
Natural cycle
Waste Feedstock
Waste Nutrients
112
Four Conditions for Sustainability
1

• In a sustainable society, materials from the
  earths crust must not systematically increase in
  nature

113
Four Conditions for Sustainability
2

• In a sustainable society, man-made materials
  that dont biodegrade must not systematically
  increase in nature

114
Four Conditions for Sustainability
3

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

115
Four Conditions for Sustainability
4

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

116
What would Sustainability Require of us?

• Reduce toxic and persistent chemicals
• High recycling of technical products
• Manage natural resource consumption to not
  degrade the source
• Preserve biodiversity
• Renewable energy sources

Ensure that everything that reaches nature can
be transformed into new resources
117
Life-Sustaining Natural Resources
Earths capacity (supply curve)
Time
Today
2050?
118
Life-Sustaining Natural Resources
Time
Today
2050?
119
Population
120
Master Equation
Environmental Decline
Population Technology
121
Life-Sustaining Natural Resources
Earths capacity (supply curve)
Potential Conflict
Human Need (demand curve)
Time
Today
2050?
122
Life-Sustaining Natural Resources
Earths capacity (supply curve)
Food
Human Need (demand curve)
Time
Today
2050?
123
Life-Sustaining Natural Resources
Earths capacity (supply curve)
Fresh Water
Human Need (demand curve)
Time
Today
2050?
124
Life-Sustaining Natural Resources
Earths capacity (supply curve)
Potential Conflict
Human Need (demand curve)
Time
Today
2050?
125
Life-Sustaining Natural Resources
Earths capacity (supply curve)
Window of Opportunity
Human Need (demand curve)
Time
Today
2050?
126
Sustainability

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

127
Sustainability

• Strategy Pursue businesses that meet the four
  system conditions
• Action Develop options on how to improve the
  sustainability of our businesses

128
Sustainability

• The Natural Step

129
Natural Step Companies
130
The Natural Step
Interface, Inc.
131
Take

• 44 million lbs face fibre
• 10 million lbs backing
• 226 million lbs chemicals
• 13 million lbs auxiliary materials
• Total 294 million lbs
• 8,000,000 million BTU energy

132
Make

• 252 million lbs product
• covers 25 million m2
• 700 product lines
• 15 year average life

133
Waste

• 13 million lbs solid waste
• 22 million gallons waste water
• 200,000 lbs regulated air pollutants
• 3.8 million lbs CO2 emissions

134
Interfaces Plan

• 1. Eliminate waste
• 2. Benign emissions
• 3. Renewable energy
• 4. Close the loop
• 5. Resource efficient transportation
• 6. Sensitivity hook-up
• 7. Redesign commerce

135
Sustainability

• The Natural Step
• A never-ending to-do list

136
Sustainability

• The Natural Step
• A truly strategic approach

137
Sustainability

• The Natural Step
• The most meaningful EHS programme

138
Sustainability

• The Natural Step
• The toughest challenge!

139

• Thank You!