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					Overcoming Barriers
      to EHS



      MEM Seminar Series 2001/2002
     School of Design and Environment
      National University of Singapore
              August 25, 2001
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
Jebsen & Jessen SEA




       A Brief Corporate Profile
ASEAN Regional
Network

   40 companies operating under seven
    activity-related divisions

   Areas of operation: ASEAN

   Number of employees: 2,500
Regional Coverage

                              Vietnam
                             Ho Chi Minh
       Thailand                (Saigon)
       Bangkok                  Hanoi
       Chiengma
           i
                                                  Philippines
                                                    Manila
                                                     Cebu
   W. Malaysia
      Kuala
     Lumpur
      Penang                                      Brunei
      Johore                                    Bandar Seri
      Bahru              Sarawak
                                                 Bagawan
     Kuantan             Kuching
                                                Kuala Belait
       Ipoh
    Malacca                                   Sabah
                                           Kota Kinabalu


        Singapore




          Indonesia
             Jakarta
            Surabaya
             Medan
           Semarang
            Bandung
         Ujung Pandang
Regional Businesses
   Chemicals
   Communications
   Industrial Products
   Marketing
   Material Handling
   Packaging
   Process Technology
Chemicals




       Chemicals   Nutrition   Metals
Communications




Corporate Network   Telecommunications   Broadcast
  Industrial Products




umps   Well screens   Cutting Tools   Special Electric Cable
Marketing




Consumer   Medical & Scientific Textiles   Automotive
                      Spares
   Material Handling




Cranes & Hoists   Logistic Systems   IPD   Spares & Service
  Packaging




oulded Foam Packaging   Integrated Packaging   Constructio
Process Engineering




Industrial Plant Marketing   Industrial Plant Contracting
Group Statistical Profile

                   MY                          CHE 22 %
                   27%                                       MKT 19%
       TH
       18%
                                      IPD 9%
   PH 4%                 IND 9%
                                                                COM 12%
                                      PKG 7%
               SIN
               42%
                                        PRT 7%            MHE 25%




       Revenue by country         Revenue by regional business unit

                                                IPD
                   SIN                          12%       CHE
                   29%                                    9%
                                       PKG
                                                                MKT
     TH                                 11%
                                                                14%
                          PH 6%
     15%
                                                                COM 7%
                                      PRT 7%
             MY          IND
             31%         18%                                        HLD 7%
                                                      MHE
                                                       32%




       Employees by country       Employees by regional business unit
The First EHS Efforts


 Management Conference     1993

 Member of   Executive Committee overall
 in charge

 Minor and   random initiatives
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
 The Background
                     Japan/US/EU   ASEAN
EHS awareness
 Public              Moderate      Low, growing
 Employees           Moderate      Mixed
 Retail customers    Moderate      Limited
 Industrial customers              Moderate
                     Moderate
Intrinsic mgmt interest            Mixed
                       Low
Strategic mgmt interest            Mixed
                      Low
 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
Formal EHS
Management




             1995
EHS as a Central Service
                 Executive Management

Finance & Treasury
Corporate & Legal Affairs
Human Resources
                               Providing
Environment, Health & Safety   Central     40 Member
                               Services
Corporate Communication                    Companies
Information Technology
Internal Audit & Taxation
EHS Management




     Central
     Services
     Unit EHS    CSU Audit


                               EHS Chair


                             EHS Committee
Decentralised Approach




Within overall EHS policies, each member
company was expected to pursue its own
initiatives
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
Idealism vs. Pragmatism


 CFC Business
 TBTO
 Hazardous Wastes
 Paint
 Furniture
 Polystyrene
Hocking (1991): Hot-
Drink Container LCA
Hocking (1991): Hot-
Drink Container LCA
Hocking (1991): Hot-
Drink Container LCA
Hocking (1991): Hot-
Drink Container LCA
Hub & Spoke EHS
Service
Operating in the environment prior to the
RBU structure, the approach CSU EHS
pursued was hub & spoke
Benefits


   Customised attention to each company

   Fast communication
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
Drawbacks


 Continuous  “fire drills” limit time to think
  and plan strategically
       incentive for member companies to
 Little
  generate their own agenda
“Spoon Feeding”
Approach




              1997
“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 tool: EHS Programmes
       The
        2.–Among facilities
            Assign responsibilities
        3.–Within information and
            Provide countries
EHS by Regional
Business
The Group’s new regional business
framework identified a need to address
common issues within common
businesses.




       Benefits include:
       • EHS training for specific regional business
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
EHS by Country

The Group has up to seven business
locations within each country, revealing
potential opportunities for synergy.
                                     Thailand
                         Malaysia     Group
                         Group                    Indonesia
                                                   Group

                     Singapore        CSU EHS
                                    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
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
EHS Legal Compliance
                   An important part of the group's commitment to
Standards


                   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 &
Responsibilities




                         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
Emergency
Preparedness &
Response
 Smoke   detectors     Fire fighting
 Fire evacuation        equipment
  drills                Illuminated exit
 First aid training     signs
 First aid kits        Fire doors

 Fire fighting         Housekeeping
  training              Sign-posting
                        No-smoking areas
Occupational Health


   Sufficient lighting
   Noise testing
   Manual lifting
   Ergonomics
   Health monitoring
Occupational Health

   Ergonomics Diagram            Lighting Recommend


                        LUX   Locations
                        50    Passageways
                        100   Storage areas
                        200   Welding, rough machining
                        300   Drilling, cutting
                        500   Offices, detailed inspection
                        750   Conference rooms
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
Occupational Safety
Environment

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

   Budgets
   Monthly EHS meetings
   Annual EHS audits
   Periodic self-assessment
   Risk management
   New employee induction
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
Enablers
 Availabilityof 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
Facts Talk!
    Peer Pressure Works!

    1997-2000 EHS Audit Results: Chemicals
A


B
                                         1997
C                                        1998
                                         1999
D                                        2000


F
      JJDS     JJDM     JJDP     JJDT
IT Infrastructure


 Lotus   Notes
 SAP
IT Infrastructure
 ImprovingEHS management in the
 Chemicals RBU through SAP:
 – Recording chemical EHS properties:
     Hazard class (toxic, flammable, etc.)

     Storage climate (cool, dry, etc.)
IT Infrastructure
 ImprovingEHS 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?
IT Infrastructure
 ImprovingEHS 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
     product’s MSDS?
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
Drivers




 Image,   Corporate Citizenship
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
Bottom-Line Drivers

           The Cost Iceberg
Insurance Premiums
Down!




   1997-1998: 27% reduction
   1998-1999: 18% reduction
   1999-2000: 11% reduction
“Hidden” Costs!
Risk Reduction!
Business Opportunities?


 One  Failure After Another:
  – Allerguard / Green Cotton
  – Water & Wastewater Treatment
  – Moulded Pulp Packaging
Benefits of “Spoon
Feeding”
 1. Region-wide EHS standards
 • Facilitates synergies        • One EHS data collection tool
   across                       • Centralised PPE procurement
   the group
                                  • Combining ERP training within
 •   Facilitates synergies within CHE group
     RBUs
                                  • One permit-to-work programme i
 •   Facilitates synergies within workshops, factories, warehouse
     facility types
                                  • Haze mask ordering & distributio
 •   Facilitates synergies within • Preferred supplier lists
     metropolitan areas
                                  • EHS Audits
 •   Facilitates CSU support
     and monitoring of EHS
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
Limitations of “Spoon
Feeding”


 Laggards still got away
 Local management not always
 committed
 “Cost-consciousness”
 Bottom-line benefits long-term, indirect
 and “too strategic”
Achieving Lasting
Consistency




               2000
Management Systems

               Planning



    Review                   Implementation


             Measurement
              & Evaluation

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

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

 4.Review                  2.
                             Implementa
                          tion
             3.Measurement
               & evaluation
Planning

 Aspects &      Impacts
   Activity, Product            Aspect                     Impact
      or Service
    1. Cleaning bulk oil   Hazardous              Temporary to severe health
       storage vault       atmosphere             impact
    2. Solvent cleaning                           Ground level ozone
       operation           VOC emissions to air
                                                  occupational exposure
    3. Bulk acid
                          Accidental spillage     Surface water contamination
       transportation and
        storage
    4. Battery charging    Exploding battery    Acid burns

    5. Office operation    Document printing Consumption of renewable
                                             natural resources
 Planning

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

Objective                Activity
Improve safety while     • Create work procedure
                         •
installing/servicing pumps Develop service checklist
                         • Obtain required PPE/tools
                         • Develop checklist to maintain
                           PPE/tools
                         • Train staff on procedures and
                           checklists
                         • Inspect checklists to ensure they are
                           being used
 Planning
  Key  Performance Indicators (KPI) are
  used to demonstrate progress for each
  activity
Objective     Activity         KPI
Improve safety       • Develop checklist to    • Checklist
while                  maintain PPE/tools
installing/servicing • Train staff on          • Training quiz
pumps                  procedures and
                       checklists              • Feedback to be
                     • Inspect checklists to     documented in
                       ensure they are being     EHS minutes.
                       used
 Planning
  Targets are  the deadlines or numbers
   related to the KPI
Activity                  KPI                Target for 2000
• Develop checklist to    • Checklist        • May
  maintain PPE/tools
• Train staff on          • Training quiz  • 80% score for
  procedures and                             all technicians -
  checklists              • Feedback to be   June
• Inspect checklists to     documented in • 3 times
  ensure they are being     EHS minutes.
  used
 Planning
  Resources are   the people, supplies, and
    funding required to meet the targets
Activity              KPI        Target       Resources
• Develop checklist   • Checklist • May       • Budi
  to maintain
  PPE/tools           • Training • 80% score • Material -Budi
• Train staff on        quiz       for all    • Trainer - Lee
  procedures and                   technician • Logistics -
  checklists                       s - June     Sam
Management Systems

           1.Planning


                  2.Implementation
4.Review                – Structure and
                          responsibility
                        – Training, awareness, and
                          competency
                        – Operational control
                        – Emergency preparedness
                          & response
             3.Measurement
               & evaluation
Training Plans



 Training Topic       Instructor Participants J F M A M J J A S O N D

                                   All forklift
Forklift Inspection    Loo TK                     X
                                    drivers
                                 Wrhs staff &
    PPE Use            Vincent                          X
                                 Procurement
Noise & Hearing                  All production
                       Suguna                                  X
 Conservation                        workers
Management Systems

            1.Planning


 4.Review                     2.
                            Implementa
                        tion
            3.Measurement &
             evaluation
              –   Monitoring
              –   Audits
              –   (Corrective actions)
              –   (Records)
Auditing
New approach to capture learning:
 Year2001: Risk Auditors joined by staff
 within same country/region

                                     JJPS
Example: Singapore/Johor
                           MDS              MDSM
                                    Marsh


                             JJMS           JJPJM
Auditing
New approach to capture learning:
 2002 andbeyond: internal process
 performed by staff of another company
 within same RBU
Example: MHE           MDI
                MDP           MDS

                MDT          MDM
                      MDSM
Management Systems


              1.Planning


4. Review                   2.
  –Investigate process
   deviations                       Implementa
  –Continuous improvement        tion

                3.Measurement
                  & evaluation
EHS Monitoring
Energy Intensity
Office Paper Intensity
Accidents
EHS Audit Scores

 D

 D+

 C-

 C

 C+

 B-

 B

 B+

 A-

 A




        Chemicals, Material Handling, Packaging
EHS Audit Scores


Between 1999 and 2000:

   Three companies improved their score
   Three companies worsened
EHS Audit Scores

 D

 D+

 C-

 C

 C+

 B-

 B

 B+

 A-

 A
Variation = Surprises




D               A       D               A
    Mean score: A-          Mean score: A-
    Variation: 0            Variation: 9
The Challenge


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


ISO 14001
 (Environmental Management System)


OHSAS 18001
 (Health & Safety Management System)
ISO 14001 / OHSAS
18001

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


 CHE, IPD, MKT (Textiles), MHE, PKG, PRE
 PRE: OHSAS 18001 only
 31 member companies
 COM, MKT, HLD: Adherence to J&J EHS
  standards
Roll-Out




  CHE   IPD   TXT MHE PKG PRT



        Full implementation by

        December 31, 2003
CSU EHS Role

         full-time assistance in
 Provides
 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
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
What’s in a Decade?
  1993
  Commitment          Ad-Hoc
  Activities               1993
         2003
  International        1995
                      Centralised
     Standards        Service


        2000            1997
  Management          Formal
  Systems             Programmes
Done!
Done?
Global SO2 Emissions
Global Forest Loss
Accumulation
of Human-Made
Toxins
Global Soil Degradation
Fresh Water
Availability

  Water Stress
     High
     Medium/High
     Moderate
     Low
CO2 Concentrations Highest
Levels in 160,000 Years
Biodiversity
Sustainability


Major Impacts and Risks Remain!
Sustainability


We’re not done yet!
Sustainability

In nature, everything is cyclical



                 waste = food
Sustainability

Today, we live in a linear society
Two Systems
   Technical cycle
                       Natural cycle




  Waste Feedstock    Waste Nutrients
Four Conditions for
Sustainability



 In a sustainable society, materials from
 the earth’s crust must not systematically
 increase in nature
Four Conditions for
Sustainability



 In a sustainable society, man-made
 materials that don’t biodegrade must not
 systematically increase in nature
Four Conditions for
Sustainability




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




 A sustainable society must ensure
 resources are distributed fairly and
 efficiently
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
Life-Sustaining Natural
Resources

     Earth’s capacity (“supply curve”)




                     Today    2050?      Time
Life-Sustaining Natural
Resources

     Earth’s capacity (“supply curve”)




     Human Need (“demand curve”)

                     Today    2050?      Time
Population
Master Equation




                        Environmental
Population + Technology =
                        Decline
Life-Sustaining Natural
Resources

     Earth’s capacity (“supply curve”)


                       Potential
                        Conflict



     Human Need (“demand curve”)

                     Today    2050?      Time
Life-Sustaining Natural
Resources

     Earth’s capacity (“supply curve”)



                         Food



     Human Need (“demand curve”)

                     Today      2050?    Time
Life-Sustaining Natural
Resources

     Earth’s capacity (“supply curve”)


                         Fresh
                         Water



     Human Need (“demand curve”)

                     Today    2050?      Time
Life-Sustaining Natural
Resources

     Earth’s capacity (“supply curve”)


                       Potential
                        Conflict




     Human Need (“demand curve”)

                     Today         2050?   Time
Life-Sustaining Natural
Resources

     Earth’s capacity (“supply curve”)


       Margin
       for action {    Window of
                       Opportunity




     Human Need (“demand curve”)

                     Today     2050?     Time
Sustainability


Sustainability Defined

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


 Strategy: Pursuebusinesses that meet
 the four system conditions

        Develop options on how to
 Action:
 improve the sustainability of our
 businesses
Sustainability




            The Natural Step
Natural Step Companies
The Natural Step


             Interface, Inc.
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
Make:


        252 million lbs product
         covers 25 million m2

          700 product lines

         15 year average life
Waste:


         13 million lbs solid waste
     22 million gallons waste water
   200,000 lbs regulated air pollutants
     3.8 million lbs CO2 emissions
Interface’s 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
Sustainability




            The Natural Step:

        A never-ending to-do list
Sustainability




            The Natural Step:

        A truly strategic approach
Sustainability




            The Natural Step:

  The most meaningful EHS programme
Sustainability




            The Natural Step:

        The toughest challenge!
Thank You!

				
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