ESS’ Greatest Asset, Our People: Maxine Orens

Maxine Orens is ESS’ Reference Program Coordinator, supporting our Solutions Management team from our Rockville, Maryland office, near Washington D.C. Maxine has nearly 30 years experience in the EHS and Crisis Management software industry. She has been with the company since 2002 when ESS acquired Essential Technologies.

This is the second installment of our series ESS’ Greatest Asset: Our People.

1 comment June 5th, 2008

Standard & Poor’s ERM Analysis Expected to Raise Profile of Corporate Risk

Standard & Poor’s (S&P) has released its long-awaited direction on how it will incorporate Enterprise Risk Management (ERM) into its business analysis and reporting. This development is going to impact all kinds of businesses, so they’re going to take it slow: S&P isn’t expected to include ERM into its ratings until Q3 2009. Still, companies should consider reviewing their GRC strategies — or consider developing one.

S&P regards ERM, as:

• An approach to assure the firm is attending to all risks;
• A set of expectations among management, shareholders and boards of directors regarding which risks the firm will and will not take;
• A set of methods for avoiding risk exposure that would be outside of the organization’s tolerance;
• A method to shift focus from “cost/benefit” to “risk/reward;”
• A way to help fulfill a fundamental responsibility of a company’s board and senior management;
• A toolkit for trimming excess risks and a system for intelligently selecting which risks need trimming; and
• A language for communicating the firm’s efforts to maintain a manageable risk profile.

S&P is expected to assure the market that companies aren’t expected to eliminate all risks. But it’s prudent to show that the enterprise’s risks are known and well managed. That’s another reason why an integrated software platform that helps managers monitor and manage risk across the enterprise is a C-suite imperative right now.

Add comment May 21st, 2008

More Companies Finding Benefits from Reducing GHG Emissions

Forward thinking companies are gaining a competitive advantage and expanded profits by leading the way in addressing climate change.

According to a recent report from Goldman Sachs, companies that are leaders in environment; and good governance policies have outperformed Morgan Stanley Capital International World Index by 25 percent. Seventy-two percent of the companies outperformed industry peers.

That’s why I was intrigued by a new report, The Economic Case for Climate Action. It maintains that companies that implement climate-protection programs can enhance their financial performance by cutting energy and materials costs in industrial processes, facilities design and management and fleet management. They can enhance core business value through sector performance leadership and first-mover advantage, gain easier access to capital, improve corporate governance, strengthen their ability to drive innovation and improve government relations. Doing this helps companies retain competitive advantage, enhance their reputation and brand equity and increase their ability to capture market share and differentiate their products. Such programs increase companies’ abilities to attract and retain the best talent; increase employee productivity and health; improve communication, creativity and morale in the workplace and achieve better stakeholder relations.

The report provided examples of companies that are using proactive climate change measures to gain a business advantage. For example:

• DuPont pledged in 1999 to reduce its greenhouse gas emissions 65 percent below its 1990 levels by 2010 and obtain 10 percent of its energy and 25 percent of its feedstocks from renewables. The company made this announcement in the name of increasing shareholder value and delivered on that promise, when, during the same period, the value of DuPont stock increased 340 percent as the company reduced global emissions 67 percent for a savings, to date, of $3 billion.
• ST Microelectronics pledged to become carbon neutral (zero net CO2 emissions) by 2010 with a forty-fold increase in production. Figuring out how to do this drove the company’s innovation, taking it from the twelfth-largest microchip manufacturer in the world to the sixth. ST gained market share, won awards, and believes it will have saved almost a billion dollars by the time it meets its goal.
• Wal-Mart the world’s largest retailer; pledged to reduce energy use at its stores by 30 percent over three years; become carbon neutral; become 100 percent powered by renewable energy; double the efficiency of its vehicle fleet; build hybrid-electric long-haul trucks and sell millions of compact fluorescent light bulbs.

These companies realize that cutting carbon emissions and other greenhouse gases is a winning strategy. Using energy more efficiently not only reduces carbon emissions, and reduces risk and costs.

Add comment May 16th, 2008

Mobile Technology Adds Speed, Efficiency to EHS Applications

ESS is currently building an enhanced mobile framework using the latest Microsoft technology and tools. Joseph Jordan, ESS’ director of Mobile Architecture, is heading up this project for us. This framework will be used to build new and enhanced workflow, data collection, data transfer, and data distribution capabilities.

What are the benefits of utilizing mobile solutions for enterprise EHS management and sustainability? For one, using mobile devices makes data collection and monitoring of critical information faster and easier. This technology also makes workers more productive by giving them the ability to respond to all types of business challenges in real time.

The new framework and architecture we are developing gives organizations real-time access to critical data and information, streamlining compliance activities and improving data integrity. Mobile technology has always made it easier for organizations to collect data from the plant or site level so it can be quickly uploaded into their EHS software databases for analysis and communicated throughout the organization. These new mobile development tools now also make preventative and predictive information including metrics, KPIs and business intelligence reports accessible to the operator’s via mobile “push” technologies to help them better manage their areas of responsibility which were previously only available through the desktop. That’s one big reason why we are excited about our plans to add these new mobile capabilities to our EHS and Crisis Management solutions for air, water, hazardous waste, fugitive emissions, chemical inventory management, auditing, incident management and industrial hygiene. You’ll see more about this in the near future.

ESS has been delivering handheld and mobile solutions for over 10 years, beginning with our Waste Management bar code and waste tracking handhelds and Jordan Systems chemical inventory mobile tools. So this technology isn’t new to us. What’s new and better is the higher quality of information available to the users as well as real time and wireless data transfer, improving oversight and decision making while freeing up more time for other important duties.

Another benefit of this new and advanced architecture platform is that it will also enable our customers to standardize on common handheld devices across the entire spectrum of integrated modules within our integrated sustainability platform. In addition to reducing the aggregate cost of hardware for mobile capability this will also result in:

• Easier and more intuitive data entry
• Enhanced data integrity and automation of compliance processes
• Improved productivity. Simpler data collection effort
• Improved field documentation of incident investigations
• Faster identification and implementation of corrective actions by site personnel

These new enhancements will speed up process management and data collection, improve accuracy for all EHS functions and help ensure regulatory compliance, production uptime and injury free workplaces.

Here’s an anecdote that shows the benefits of a mobile device. Mind you, this isn’t even a crisis — just a normal day to day activity in the life of an operator:

A manager of a waste storage facility is currently offsite, but would like to check the status of the overnight preparations for a waste shipment scheduled to take place later that morning:

The Mobile Approach: The manager is offsite and receives an alert on his PDA or smart phone, enabled with mobile technology. With an icon click, information appears on the screen indicating that there may be a problem with a hazardous waste shipment that is incorrectly labeled. The manager makes a quick call to the plant to inquire about the project status and clear up the issue with the overnight supervisor. Upon the manager’s arrival at the facility, waste drums are promptly re-labeled, loaded and ready for shipment.

Typical Desktop Approach: The same manager, without the benefit of mobile technology, drives to the facility, unaware that a problem exists. The manager logs onto a desktop computer, enters the appropriate application, which requires another login and password; uses a navigation tree to drill down to the report menu; uses a pull-down menu to choose the affected facility; and finally clicks the icon to run the report. That’s when the problem is identified.

Because many compliance activities occur away from the desktop, handheld functionality is a critical link in the compliance automation chain. Thanks to innovators like Joseph Jordan and other members of our development and product management team, you’ll see these mobile technology solutions in our offering in the near future.

Add comment May 9th, 2008

Leading Analysts Advise Organizations to Implement Integrated Solutions

I’ve been beating the drum for integrated sustainability solutions since 2000. Since then we have been building out our solution to encompass all critical environmental health and safety matters, which enables organizations to take a holistic and strategic approach to sustainability. The integrated design reduces complexity, risks and costs by leveraging critical data, information and best practices from a common database for a facility, business unit or across the enterprise.
In the past two weeks, two different industry analysts have been discussing sustainability platforms in the same terms, which tells me that the direction we are taking is the right one.

Michael Rasmussen, a well-respected industry expert and the principal of a consulting service called Corporate Integrity, has long been a proponent of platforms rather than silos. In his most recent blog post, he says that information technology risk management isn’t the be-all and end-all of risk management; it’s only one aspect. He warns that vendors who say they are in the GRC space without an integrated platform may be thrown out of meetings. There can’t be a much stronger warning than that against point solutions rather than integrated solutions.

In addition, at its GRC summit this week, the lead Gartner GRC analyst, Dan Miklovic, presented an overview of the EHS space called “Environmental, Health and Safety: “Your Applications Must be Part of an Overall GRC Process.” Gartner says that EHS information systems must become fully integrated and, when they do, they help organizations by reducing:

• number of applications
• interfaces
• support staff
• IT hardware and
• number of vendors to be managed

That advice aligns with ESS’ approach of reducing complexity to reduce risks and costs.

We are always working with our customers to make sure they get the innovative solutions they need to reach their sustainability, performance and compliance goals. One of the ways we do that is by inviting IT experts and users from some of the world’s leading companies to our user conference, ESS EXPO.08, which is a highly successful event for sharing best practices among our partners and customers. EXPO.08 is coming up April 13-17, and I hope to see you there. This year’s keynote will be AMR analyst Simon Jacobson, who will talk about laying the foundation for sustainability through environmental compliance.

1 comment March 13th, 2008

Report Shows How Manufacturers Are Changing Rules for Use of Chemicals

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.

Add comment February 27th, 2008

ESS EXPO.08 to Provide Latest Trends, Innovative Solutions for EHS Software Users

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.

Add comment February 13th, 2008

Rising Tide of Terrorism Against Energy Companies Impacts Global Markets

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.

Add comment February 12th, 2008

Chemical Industry Implements News Standards to Assure Sustainability

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.

Add comment February 8th, 2008

Manufacturers Making Changes for REACH Compliance

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.

Add comment February 6th, 2008