Managing Global EHS in a Complex World - …c.ymcdn.com/sites/ of Managing Global ... Questions on what to report or how to complete an EHS 101 can b\ directed to Deborah Briggs with

$Page 1: Managing Global EHS in a Complex World - …c.ymcdn.com/sites/ of Managing Global ... Questions on what to report or how to complete an EHS 101 can b\ directed to Deborah Briggs with$
© 2014 Cargill, Incorporated. All rights reserved. Cargill Overview CONFIDENTIAL. This document contains trade secret information. Disclosure, use or reproduction outside Cargill or inside Cargill, to or by those employees who do not have a need to know is prohibited except as authorized by Cargill in writing. © 2013 Cargill, Incorporated. All rights reserved. www.cargill.com

Managing Global EHS in a Complex World

NAEM Conference August 2014

© 2014 Cargill, Incorporated. All rights reserved. Cargill Overview

Agenda

2

• Cargill Overview

• Cargill EHS Organization

• Challenges of Managing Global Operations

• Our Approach • Basic Requirements • Enabling Activities • Global Auditing • Tracking Systems and Metrics

• Talent Management

• What’s Next – The Path Forward

© 2014 Cargill, Incorporated. All rights reserved. Cargill Overview 3

• Click icon to add picture

From formula that helps infants grow ...

Cargill touches lives in more ways than you’d imagine.


to zero-calorie sweetener in your coffee…

to icing on birthday cakes …

4

to zero-calorie sweetener in your coffee …


to eco-friendly foam in couches and mattresses.

to steaks at your favorite restaurant …

5


Cargill touches businesses – from farmers to Fortune 500 companies

6

Helping farmers optimize yields, store crops and access the best markets

Formulating better-tasting recipes for restaurants and packaged foods

Creating food ingredients that promote health

Managing risk and stabilizing pricing for farmers and corporate customers

Creating supply chains and shipping products to more than 6,000 ports worldwide


Cargill’s fiscal 2013 results

7

Net earnings $ 2.31 billion

Sales and other revenues $ 136.7 billion

Cash flow from operations $ 4.18 billion


From our modest roots in the United State’s Midwest, Cargill has grown to be a global leader in food and agriculture

8

Annual ranking of the world’s largest corporations

2013 FORTUNE Global 500 (Revenue in U.S. $billion)

1. Royal Dutch Shell 481.7

2. Wal-Mart Stores 469.2

3. Exxon Mobil 449.9

4. Sinopec Group 428.2

5. China National Petroleum 408.6

6. BP 388.3

7. State Grid 298.4

27. Valero Energy 138.3

Cargill 136.71

28. Ford Motor 134.3 1 Fiscal year ended May 31, 2013 Source: FORTUNE magazine, July 2013


Our strength is our ability to connect expertise around the world

9

Europe/Africa: 27% of gross investment 23,000 employees

142,000 employees in 67 countries. As of February 2014

Latin America: 16% of gross investment 26,000 employees

Asia/Pacific: 14% of gross investment: 40,000 employees

North America: 43% of gross investment 53,000 employees


From Argentina to Poland to Zimbabwe

10

Algeria Argentina Australia Austria Belgium Bolivia Brazil

Bulgaria Canada China

Colombia Costa Rica

Cote D’Ivoire Denmark

Dominican Republic Egypt

Finland France

Germany Ghana Greece

Guatemala Honduras Hungary

India Indonesia

Ireland Italy

Japan Jordan Kenya

Luxembourg Malaysia Mexico

Morocco Mozambique Netherlands New Zealand

Nicaragua Pakistan Paraguay

Peru Philippines

Poland Portugal Romania Russia

Singapore Slovakia

South Africa South Korea

Spain Sri Lanka Sweden

Switzerland Taiwan

Thailand Turkey Ukraine

United Arab Emirates United Kingdom

United States Uruguay

Venezuela Vietnam Zambia

Zimbabwe

February 2014


Cargill is nearly 70 businesses organized around four major segments

11

Agriculture We buy, process and distribute grain, oilseeds and other commodities to makers of food and animal nutrition products. We also provide crop and livestock producers with products and services.

Food We provide food and beverage manufacturers, foodservice companies and retailers with high-quality ingredients, meat and poultry products, and health-promoting ingredients and ingredient systems.

Financial We provide our agricultural, food, financial and energy customers around the world with risk management and financial solutions.

Industrial We serve industrial users of energy, salt, starch and steel products. We also develop and market sustainable products made from agricultural feedstocks.


Animal nutrition & feed Financial & risk management

Commodity trading & processing Food and beverage ingredients

Industrial/bioindustrial products Foodservice

Energy & fuels Health & personal care

Farmer services Salt

We provide a variety of products and services across those segments


We are committed to operating responsibly

in all of the markets we serve

13


Our corporate responsibility commitments are in four main areas

14

Operating Responsible Supply Chains

Working to Feed the World Enriching Our

Communities

Conducting Business with Integrity


Our purpose is to be the global leader in nourishing people.

Our mission is to create distinctive value.

Our approach is to be trustworthy, creative, and enterprising.

15

Cargill’s vision


Enriched communities

Profitable growth

Engaged employees

Satisfied customers

To help ensure our continued success, we focus on four performance measures


Agenda

17








Cargill Environment, Health and Safety

Environment

Health

Safety

•Compliance/Systems •Resource Efficiency •Sustainability

•Occupational Illnesses •Medical Management •Product Stewardship •Wellness •Drug and Alcohol

•Compliance/Systems •Operational Safety •Contractor Safety •Process Safety •Transportation Safety •Security

EHS within Cargill covers three broad bucket areas each with its own unique set of standards and requirements

Presenter

Presentation Notes

But


Compliance Systems: • Basic Requirements • Global Auditing • Enabling Activities • Incident Tracking / Reviews • Goals & Metrics

Scope

EHS Objective • Conduct all business activities in a manner that protects the environment and the health and safety of our employees, contractors, communities and assets.

Operating Locations

• 1400 locations • >60 Countries • 140,000 employees

EHS Resources • Corporate EHS Team - 12 • Business Unit EHS Leaders - 46 • Location EHS Resources (FT &/or PT) - ? (500)

Regulatory Resources

• Corporate Legal Team • Corporate Affairs Team • Consultants • Enhesa, JJ Kellar

Technology Platforms

• Entech web-based data management • Dakota Auditor • RCI • Yammer • Excel Spreadsheet (current) • Sharepoint

Robust forward looking EHS management systems deployed in Cargill business units designed to identify and properly manage risks and deliver sustainable results

Saf

ety

Envi

ron

men

t

Hea

lth

Cargill Environment, Health and Safety - Scope

19


Agenda

20








The further our expectations / standards / operating environments drift from standards the greater the opportunity for incidents to occur

Engineering / Asset Maintenance

Behaviors

Culture / Leadership

Requirements / Processes

Drift

Incident Opportunity

Standards C

onfo

rman

ce w

ith S

tand

ards

High

High

Low

Low

21

Challenges of Managing Global Operations - DRIFT


Injury-Free Facilities 70.3% of locations are injury free YTD Q4 FY2014. 75% 2015 goal is achievable, but results have flattened and will require strong performance in FY2015.

Injury Reduction 2.0 RIFR 2015 Goal was achieved in FY2013. Positive trend line to 1.8 RIFR in FY2014 is Cargill’s best performance ever and represents a reduction of almost 2,200 injuries from FY2005.

22

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

RIFR

2015 Goal

60%

62%

64%

66%

68%

70%

72%

74%

76%

% Locations at 0.0

2015 Goal

Challenges of Managing Global Operations – Safety


Challenges of Managing Global Operations - Compliance

Safety Health and Safety government inspections in China and improved internal reporting increased the number of inspections outside of the US in FY 2014.

Environmental Zero environmental incidents is a priority area for FY15 and BUs are encouraged to track and review all incidents to deploy corrective action.

23

218 177

67

52

60

61

48

38

0

50

100

150

200

250

300

350

400

450

FYTD 2013 FYTD 2014 Permit Non-Comformances Complaints Spills/Releases Enforcement Activity

4 3

16 11

9 10

10

4

7

6

8 28

23 19

0

10

20

30

40

50

60

70

FYTD 2013 FYTD 2013 FYTD 2014 FYTD 2014

Presenter

Presentation Notes

Speaker Notes: Environmental Compliance Reporting of environmental incidents is critical to the development of a sound environmental strategy. All locations should be reporting permit parameter non-conformances, spills / releases, enforcement notifications and fines that have been assessed to our locations. While we have more confidence in our environmental data today we still believe there is room for improvement. As we work towards developing a culture that recognizes the “e” side of EHS it is imperative that we have a solid foundation of data to build upon. Questions on what to report or how to complete an EHS 101 can be directed to Deborah Briggs with the Corporate EHS team. Safety Compliance The Chinese government is conducting H&S inspections at nearly all industrial sites as a result of several tragic and highly publicized safety events that have occurred recently in China. (Such events include 120+ people killed by fire at a poultry plant) Special emphasize programs in the US currently include Combustible Dust, Process Safety Management – Chemical/Ammonia Refrigeration, Grain Handling Operations and Temporary Worker Safety, etc.


Agenda

24




• Our Approach • Basic Requirements • Enabling Activities • Global Auditing • Goals and Metrics



25

© 2010 Cargill, Incorporated. All rights reserved.

Nourishing Ideas. Nourishing People.TM

Our Approach – EHS Basic Requirements

• Management Systems • Leadership Requirements

• General Requirements

• Mergers and Acquisitions • Contractors • Emergency Action Plans • Capital Reviews • Product Stewardship • Incident Reporting

Basic EHS requirements have been established that must be followed by all locations in order to provide assurance that Cargill is able to fulfill its commitment to protecting the environment and the health and safety of our employees, contractors, customers and the public.

• Health and Safety • Occupational Health • Operational Safety • Vehicle Safety

• Environmental Protection

• Air • Water • Waste • Storage Tanks • Asbestos • PCB’s


Enabling activities Expectations

“Focus On Life” • “Focus on Life” campaign educational materials to be reviewed with BU and

location leadership teams. • “Focus on Life” to be visibly championed at locations through use of posters and

tailored promotional materials.

“Critical 5” Process Integrity Assessments

• “Critical 5” assessments to be completed for elevated work, energy lockout, mobile equipment, confined space entry and contractor activity.

• Corrective action plans to be implemented to address gaps in layers of defense identified during assessment.

Serious Injury and Fatality (SIF) Precursor Identification and Mitigation

• SIF precursor work tasks to be identified by Business Units based upon unique risks and assessed.

• Corrective actions plans to be implemented for high priority SIF precursors to address gaps in layers of defense identified during assessments.

• Key metrics to be maintained and reported.

Pre-job Hazard Assessment (PJHA)

• Formal PJHA processes to be implemented for work tasks that are not governed by standard operating procedures.

• PJHA implementation to be routinely audited at locations to verify PJHA integrity.

BU Specific Injury and Illness Campaign

• BU specific injury and illness reduction campaigns to be developed and implemented .

Behavior-Based Safety (BBS) • BBS process to be deployed at BU locations. • Effectiveness of BBS process to be tracked through metrics and routine audits.

Our Approach – EHS Enabling Activities

Cargill Business Units are required to implement focused strategies to drive EHS incident and resource efficiency reductions.


Our Approach – Global Auditing Process • The primary goal of the CEHS Global Audit is to:

– Identify issues that create or have the potential to create at risk conditions in our work environments

– Adequately address / mitigate at risk findings in a timely manner

• CEHS Global Audits are completed based on location risk – Tier 1 sites – 2 year cycle – Tier 2 sites – 3 year cycle – Tier 3 sites – 5 year cycle – Tier 4 (other) sites – TDB

• Audit Findings Assigned Priority Rating Based on Risk – Significant Findings - 60 days to close & tracked by Corporate EHS

• Audit Resources – CEHS Global Audits shall be conducted by Auditors that have:

• Successfully completed the auditor training requirements • Are evaluated and recommended by the BU EHS Leader • Approved by CEHS

CEHS Global Audits are a Corporate Requirement within Cargill.


Our Approach – 2015 Goals and Metrics

28

GOALS

ZERO FATALITIES

REPORTABLE INJURY FREQUENCY RATE

2.0 RIFR, 75% of locations at 0.0

ZERO ENVIRONMENTAL INCIDENTS

ENERGY EFFICIENCY

5% improvement from 2010 baseline

GREENHOUSE GAS INTENSITY

5% improvement from 2010 baseline

RENEWABLE ENERGY

12.5% of Cargill’s energy portfolio

FRESH WATER EFFICIENCY

5% improvement from 2010 baseline year

Cargill Environment, Health and Safety Goals are established every 5 years and are key drivers of Cargill’s compliance and performance excellence processes.


Critical 5 Reviews 3rd annual cycle is now underway. All BUs have deployed applicable “Critical 5” reviews.

Building Human Factors Capability PJHA is embedded, Taproot investigation methodology deployed, and human factors leadership training continues.

Focus on LIFE

100% of operating business units have launched campaigns.

SIF Precursor Identification and Mitigation Launched by all operating BUs, but opportunity remains to benefit from this tool.

29

Our Approach – Goals and Metrics


Agenda

30








Future State • Talent Demand: CEHS visibility to business strategy and

impacts to talent demand globally, successfully influencing talent resource allocations. Consistent EHS competencies defined and integrated into BU EHS roles.

• Talent Supply: Targeted EHS Talent development

activities prepare future leadership successors as well as support business growth/increased EHS demand with a ready talent supply. Build technical and leadership capability that will enable the long-term EHS strategy.

•Talent Demand: Known resource gaps at the BU EHS level, most significantly in the APAC and LATAM regions due to significant business growth and new industry competition for talent.

•Talent Supply: Mixed capability of current talent supply across the organization. Limited capacity to move existing talent into challenging growth opportunities: 48% of EHS Leaders (function and embedded) assessed placed medium to high performance, low learning agility.

Current State

• Define and develop critical EHS competencies for the global organization

• Develop CEHS Audit framework

• Define competencies to be built into EHS organization (focus on overall leadership development) and subsequent role definition

• Manage stakeholder engagement: On and off-boarding of EHS talent throughout Cargill.

• Plan for transitioning current network.

Transition:

Our Strategy: Identify EHS job family skills to enable selection, development, and retention of EHS leaders to support SI2015 demands

Objective: Create a talent pool that can be deployed across the organization. This talent will 1) feed into EHS leadership roles and/or 2) bring enhanced technical knowledge to non-EHS business leadership roles.

Talent Management - Building the EHS Talent Pipeline

31


Influencing Skills LEADERSHIP Definition: Uses organizational knowledge to build relationships, exercise influence and lead change in order to meet EHS goals.

“As an EHS manager, I hardly have any hierarchical power. At the same time, I have to convince over 20 locations to follow certain programs.”

“Most of the time EHS people do not have direct authority and they have to get things done through influence. Influencing skills is a big gap – what influences one person may not influence another.”

Execute Manage Lead

1. Organizational Knowledge

1. Understands the roles, responsibilities and decision rights of key groups and functions within the facility whose cooperation is essential for implementing EHS goals.

1. Understands the roles, responsibilities and decision rights of key groups and functions within the BU whose cooperation is essential for implementing EHS goals.

2. Understands the formal and informal structure of the organization, key actors, decision-makers, and uses this understanding to gain support for EHS goals.

3. Understands the climate and culture of the organization and recognizes the unspoken organizational constraints.

1. Understands the roles, responsibilities and decision rights of key groups and functions at the company/platform level whose cooperation is essential for implementing EHS goals.

2. Understands the formal and informal structure of the organization, key actors, decision-makers, and uses this understanding to gain support for EHS goals.

3. Understands the climate and culture of the organization and recognizes the unspoken organizational constraints.

2. Influencing/ Relationship Building Skills

1. Builds employee ownership and participation when developing tools/programs (e.g., checklists, work methods).

2. Clearly articulates EHS expectations in terms of his/her factual observations, feelings about the situation, and behaviors expected of others.

3. Builds teamwork and cooperation at all levels in the facility to overcome resistance.

1. Seeks involvement in key BU initiatives and demonstrate how EHS adds value.

2. Clearly articulates EHS expectations and describe potential risks and benefits for theBU.

3. Builds constructive relationships at levels in the BU.

4. Understands how conforming to EHS requirements will affect various groups in the BU; tailors communications to acknowledge these impacts

1. Champions key corporate initiatives that demonstrate how EHS can add value to the company.

2. Clearly articulates EHS expectations and describes potential risks and benefits for the company.

3. Builds constructive relationships at all levels across platforms and geographies.

3. Change Leadership 1. Understands the Cargill Change Management Approach.

2. Is open to change – willing to learn new skills or ways of doing things.

3. Views change as an opportunity. 4. Demonstrates personal commitment to

change effort and help others overcome barriers to change.

1. Serves as an advocate for change; positions change in a positive light to others.

2. Recognizes and capitalizes on opportunities to initiate changes in the organization to reduce risk and add value to the BU.

3. Develops implements and manages a change plan.

4. Supports and holds employees accountable for change within BU.

5. Facilitates positive and smooth transitions.

1. Recognizes and capitalizes on high impact opportunities to initiate major changes to reduce risk and add value to the company.

2. Leads process improvements that apply to multiple BUs, platforms and geographies.

Illustrative


Environment Compliance/Leadership EHS JOB FAMILY SKILLS Definition: Includes planning, analyzing, and implementation efforts to operationalize Cargill’s environment, health and safety values, requirements, pollution prevention principles and support a zero incident culture.

Execute Manage Lead

1. Understands and implements requirements pertaining to pollution prevention (resource management) and environmental compliance.

2. Proactively investigates undesired condition, incidents and potential causes.

3. Ensures facility environmental statistics and other requirement-related reports are on time and accurate.

4. Analyzes environmental reports and statistics for trends and variations.

5. Understands and assists in the implementation of the permitting process.

6. Conducts routine assessments, audits and inspections to ensure environmental processes are implemented.

7. Coordinates or executes regulatory and internal requirements including management tasks for routine services such as labeling, waste management and disposal, sample collection, and analysis and environmental training.

8. Ensures that Cargill environmental expectations, requirements and processes are clearly communicated, shared and executed by contractors, visitors and other external stakeholders.

1. Translates Cargill environmental values including pollution prevention and zero incident expectations into BU- level programs and initiatives.

2. Ensures facility management and personnel are trained to maintain environmental standards and compliance.

3. Effectively coordinates and executes the BU-level environmental programs across facilities.

4. Prepares BU-level reports (emissions, chemical use, GHGs, waste generation); defines environmental risks based on facility reports and statistics and acts to propose solutions.

5. Understands and oversees the facility’s permitting processes (i.e., reviews: applicability, permit application process, permit negotiations, permit compliance systems) and represents location in difficult regulatory discussions with agencies.

6. Ensures rigorous audits of facility-level environmental programs are conducted and that facility audit performance meets expectations.

7. Coordinates and tracks Corporate goal metrics (energy, water user and waste generation).

8. Manage agency inspection procedures and oversees agency relationships.

9. Ensures adequate environmental resources are available in the BU.

1. Champions and models Cargill environmental values, requirements, pollution prevention principles and supports a zero incident culture.

2. Champions the development of common systems and BU/cross-BU best practices that achieve pollution prevention and assure compliance with requirements (internal and external).

3. Identifies, develops and implements platform/BU level compliance and proactive pollution prevention programs that align with BU/EHS corporate strategy.

4. Provides advice and counsel to BU leadership on due diligence, minimizing community impacts, and pollution prevention issues.

5. Stays abreast of emerging environmental issues in the industry and advocates Cargill issues in agency rules promulgation and discussions with industry, communities and NGOs.

6. Champions the adoption of innovative programs and common practices from internal program reviews and audit corrective actions to minimize adverse environmental impacts and to achieve continual improvement within the BU/platform.

7. Develops issue expertise in one or more horizon topic areas (e.g., energy and GHG, water, material use, air emissions, and biodiversity).

Illustrative


EHS Skills LEADERSHIP GENERAL BUSINESS EHS JOB FAMILY SKILLS

Co

mm

unica

tion

Skills

Coac

hing

and

Talen

t Dev

elopm

ent

Conc

eptu

al St

reng

th

Influ

encin

g Sk

ills

Busin

ess P

artn

erin

g

Proj

ect M

anag

emen

t

Prod

uct S

tewa

rdsh

ip

EHS

Exte

rnal

Partn

erin

g/

Nego

tiatio

n Sk

ills

Safe

ty C

ompl

iance

/ Le

ader

ship

Envir

onm

ent C

ompl

iance

/ Le

ader

ship

Healt

h Co

mpl

iance

/Lea

ders

hip

Ener

gy, C

arbo

n an

d Re

sour

ce

Lead

ersh

ip

Proc

ess S

afet

y Man

agem

ent

EHS Roles

COE/Technical Leader E E E E E L L L L L L L L

Cross-BU/Platform EHS Leader

L L L L L L M N/A L M L L M L M L M L M L M

BU EHS Leader L M L M L M L M L M M L L M M L M L M L M L M L M

Facility EHS Leader M E M E M L ME E E M E M E E M E M E M E M E M

Facility EHS Coordinator

E E E E E E E E E E E E E

Talent Management – EHS Competency Map Illustrative


Agenda

35








Valu

e (R

educ

tion

in L

abor

Hrs

spe

nt o

n A

dmin

istra

tive

task

s, R

educ

tion

in v

iola

tions

and

Pen

altie

s, I

ncre

ase

in C

omm

unic

atio

n an

d K

now

ledg

e S

harin

g

Years

Horizon I (1-2 years)

Horizon II (2-4 years)

Horizon III (4-5+ years)

Current State (In Process)

In order to continue to meet the growing needs of Cargill the EHS Job Family needs to grow its talent, expand its capabilities and deploy technical solutions that can be expanded over the next several years in multiple locations / geographies.

Building Out Cargill’s Global EHS Capabilities

• Expand Auditing Capabilities with Enhesa International Auditing Protocols (basis BU / geographic need)

• Incorporate Mobile Capabilities into Auditing and Incident Management Systems

• Establish Goals thru 2020, Identify Enabling Activities

• Deploy Human Factors and Expanded PSM Programs Globally

• Refresh Talent Management Competencies and Integrate into Business Unit Talent Plans

• Expanded EHS Talent Pool

• Robust Online EHS Management Tools Deployed

• 2015 Goals and Processes Clearly Defined, Communicated & Executed in Field

36 36


Documents

Managing Global EHS in a Complex World - …c.ymcdn.com/sites/ of Managing Global ... Questions on what to report or how to complete an EHS 101 can b\ directed to Deborah Briggs with