Archive for February, 2008
I’ve been reading the new State of Green Business 2008 report on critical initiatives in business, published by GreenBiz.com. This report shows how organizations are changing the way they do business by changing their operational processes to reduce the amount of toxic chemicals that are used in manufacturing processes.
It’s noteworthy that several ESS clients, like DuPont, were applauded for being at the forefront of significant win-win environmental initiatives.
There is growing interest among industry leaders and other global stakeholders regarding international chemical reporting standards. The European Union already has taken an important first step with its REACH regulations. We at ESS have noted that more organizations are carefully reviewing their processes; and we’re working with our customers and partners, and regulatory bodies to ensure our clients are positioned to effectively address current or future chemical regulations with our software platform.
The report’s authors say there is insufficient data to show how companies are doing, in aggregate, to move the needle in the U.S. on issues like climate change, toxics reduction, water conservation, and resource efficiency. However, there is quite a bit of information about companies that either executed on or committed to address corporate sustainability initiatives. Change is taking place across the board, not just with high-profile global enterprises in the oil and gas, utility and mining industries.
The report examines practices from a wide range of industries. There were a few surprises: for example it notes that some personal care products have been found to contain a surprisingly high number of toxic ingredients.
Another amusing example of coming change is the iconic new car smell that we all admire. It was found to be a byproduct of bromines, lead, chlorine and heavy metals used to manufacture automobiles. Several foreign car companies make cars containing the highest numbers of these substances.
Use of toxic ingredients may pose risks to the consumer, of course; but they have an even greater impact on the companies that use them, prompted by risk-averse investors and corporate stakeholders who are demanding changes even faster than some regulators.
Tags: chemical reporting standards climate change european union greenbiz.com manufacturing reach toxic chemicals
February 27th, 2008
If you haven’t already registered, here’s a personal invitation from me to join us at ESS EXPO.08 from Sunday, April 13 - Tuesday, April 15, at Sheraton Wild Horse Pass Resort outside Phoenix, Arizona.
ESS EXPO.08 is the largest software users’ conference of the year dedicated to Environmental, Health & Safety and Crisis Management. Attendees will see the latest technology innovations from ESS – with up-close looks at new versions of our software (Essential Suite™ version 7.1 and the browser-based version of Compliance Suite™) as well as quick tips and in-depth explanations from the experts who design, develop and support those tools. In addition, our training team will offer training courses that address key regulatory compliance issues and best practices.
Participants will hear the latest news about a variety of Governance, Risk and Compliance issues and information management challenges. Sessions like “Corporate Sustainability: Helping People and Businesses Reach Their Potential” by Microsoft and “REACH – Understanding and Implementing for Compliance” by PTK, Ltd — the firm that co-authored the regulation — provide a brief sample of the topics that will be discussed at this year’s ESS EXPO.
At ESS EXPO, you can meet your peers, exchange best practices and meet keynote speakers Simon Jacobson of AMR Research and racing icon Kyle Petty. Jacobson will provide an overview of enterprise trends, while Petty, of course, plans to talk about NASCAR and business success.
Our business partners will show how they can enable ESS users to achieve even greater success with complementary solutions and services. And finally, ESS software users will benefit from sharing their own ideas and experiences while networking with other top professionals from a wide variety of vertical industries.
ESS EXPO.08 continues the tremendous success of previous EXPO events, which have attracted hundreds of EHS and Crisis Management professionals.
Tags: amr research corporate sustainability crisis management ehs ess expo governance risk compliance kyle petty reach
February 13th, 2008
Lately, there’s been a lot of discussion about the price of oil and its impact on global markets. Rising prices can, in part, be attributed to social and political instability in a growing number of oil producing nations. For example, an article recently published in the Washington Post served as a sobering reminder that consumer demand isn’t the only factor that has been driving up oil prices to record levels.
Royal Dutch Shell recently took a $716 million charge against earnings because of a major security breach near a key oil export terminal near the Forcados River in Nigeria. Insurgents initially attacked the facility in February 2006; and after several failed attempts by Shell officials to restore operations, the company was forced to shut down production. Damages during the subsequent period included thousands of barrels of crude oil, as well as the company’s 435-mile pipeline infrastructure. However, the most significant impact is the loss of an estimated 475 million barrels of oil per day that isn’t reaching the marketplace — at the same time that U.S. government officials are calling for OPEC member nations to increase production of petroleum products to keep domestic oil prices steady.
Terrorism impacts both global energy industry leaders and emerging companies on nearly every continent. For some time, executives of oil companies have been telling me that they are very concerned about the rising tide of terrorism against facilities around the world.
So is the U.S. Department of Homeland Security, which now mandates that companies have an emergency plan that is both complete, and exercised. In fact, John Gargett, ESS’ leading Crisis Management expert, has pointed out that enterprises — particularly energy companies — are becoming more vigilant because of the potential for increased attacks against their facilities. They are now conducting training exercises, often coordinating with local or regional emergency management agencies. Several of our customers have developed global crisis management programs, supported by the latest integrated information management technologies, to ensure companies can execute a robust response in case of acts of terrorism, major weather-related events or catastrophic operational incidents such as fires, workplace injuries and hazardous material spills to name a few.
While there is no way to prevent these kinds of incidents, investors aren’t jumping ship, even while energy companies’ assets are at significant risk. That’s because companies are doing more than ever to protect their interests and employees, as well as the interests of consumers worldwide.
Tags: department of homeland security emergency management homeland security nigeria oil royal dutch shell terrorism
February 12th, 2008
For companies that use chemicals as part of their operational processes and are interested in practicing product stewardship, chances are those organizations will measure their performance against standards that have been established by the American Chemistry Council (ACA).
Responsible Care® is a chemical industry performance initiative that is implemented in the United States through the ACA. U.S. companies that have implemented the Responsible Care protocol have reduced environmental releases by 78 percent, achieved an employee safety record that is significantly better than the U.S. manufacturing sector, generated improvements in reportable distribution accidents involving transportation of chemicals and reduced process safety incidents. Responsible Care is also a global initiative that is currently practiced in 52 countries.
Responsible Care helps America’s leading chemical companies go above and beyond government requirements for Environmental, Health and Safety (EHS) risk management by implementing world-class management systems, verified through independent auditors; tracking performance through established EHS and Crisis Management measures; and extending these best practices to business partners through supply chain and vendor relations management.
For example, railroads are an integral part of the supply chain for chemical companies because they transport many of the chemicals used in manufacturing processes. So it’s significant that Burlington Northern Santa Fe Railway Co. recently earned certification to implement the ACC’s Responsible Care continuous-improvement process for transporting chemicals. As a result, the company has implemented policies to enhance its processes for safe transporting of products, preventing in-transit spills and providing timely notification to local communities under right-to-know provisions.
It’s another outstanding example of industry taking the lead to assure a sustainable environment for everyone.
Tags: aca american chemistry council ehs product stewardship responsible care
February 8th, 2008
In June 2007, the Registration, Evaluation, and Authorization of Chemicals (REACH) directive, the European Union’s (EU) environmental testing law, went into effect.
REACH will change entire product lines and pricing scenarios. It will also change how companies monitor the chemicals they use at their facilities and in their supply chains. Most directly, chemical companies must now inform customers whether or not certain downstream uses should be approved or not. This places adjacent industries such as automotive, high-tech and consumer products—all of which rely on products from the chemicals industry to manufacture their products—at risk under REACH.
ESS has been tracking this initiative over the past couple of years. Our solutions enable our customers to address REACH requirements as a normal course of business.
According to an AMR Research report called “The Hidden Backbone of U.S. Manufacturing,” in the United States alone, “55 percent of the companies
surveyed indicated direct dependence on the chemicals industry for inputs to their products. Within the food, medicine and other process industries, the percentage is even higher; nearly 75 percent of firms in the process industries have a direct dependency on chemicals as manufacturing inputs. Now imagine the impact on a company’s productivity if a critical supplier discontinues a certain product. Not only must alternate supply routes be identified, but ongoing product innovation and the ability to fulfill customer demand are also put at risk.”
The AMR study indicated that 90 percent of U.S. manufacturers said replacing their current chemical supplies with alternative materials would be either too expensive or technically infeasible.
As a result, the report says, REACH will have far-reaching consequences for manufacturers, which must now account for the directive’s mandates if they want to do business in affected European markets.
Tags: amr research chemicals industry european markets european union reach risk supply chains
February 6th, 2008
