Managing EHS compliance Globally

June 2014

AGENDA

1. Adopting an EHS global system

2. Main stakes

3. Condition for success

4. Organizational models

5. Expected Return On Investment

A GOBAL EHS SYSTEM

_

Why?

MITIGATE Risks

SAVE Money

CORPORATE Image

ANTICIPATE Future changes

CORPORATE ≠

LOCAL

C O R P O R A T E G l o b a l v i s i b i l i t y

L O C A L C o m p l y w i t h l o c a l

r e g u l a t i o n

NEEDS Differ at corporate level vs local level

Exhaustive, Detailed information Focus on action plans Avoid hazards

Worldwide overview Identify main issues Strategic decisions

MULTI-LOCAL Vs International

USA Federal vs State

USA

• Federal hazardous waste rules set requirements based on the amount of waste generated; less than 100kg per month = Conditionally Exempt Small Quantity Generator; between 100kg and 1,000kg = Small Quantity Generator; greater than 1,000kg per month = Large Quantity Generator;

• In Kansas, however, a Conditionally Exempt Small Quantity Generator = less than 25kg per month; so a facility that generates 50kg per month in Kansas is a Small Quantity Generator, but a facility that generates 50kg per month in Illinois is a Conditionally Exempt Small Quantity Generator; this is important because CESQG have a reduced regulatory burden compared to SQG;

Example 1

USA

• USTs: federal regulations are listed at 40 CFR 280 (and 40 CFR 112 for petroleum products); certain states are “delegated” the authority to enforce their own standards so companies in those states just have to comply with the one set of rules; other states, such as New Jersey, have yet to receive such authority so a facility with USTs in New Jersey must meet both the federal set of rules and the state set of rules; while they are VERY similar, they do contain minor reporting and recordkeeping differences;

Example 2

USA

• California is the only state in the US with an ergonomic H&S standard; no federal OSHA requirements;

• California has more stringent Permissible Exposure Limits (PELs) for certain chemicals; for example, acetone is a common solvent; CA’s PEL is 500 parts per million (ppm), while federal OSHA’s PEL is 1,000 ppm.

Example 3

AUSTRALIA EHS is regulated almost exclusively by the states and

territories

AUSTRALIA

• Even if there is a trend towards harmonization : Model work Health and Safety Act & Commonwealth Work Health and Safety Act

• Not all states already follow federal rules right now and specificities are numerous

Few details

GERMANY National Regulations in HS completed by a set of

technical rules

GERMANY

HEALTH AND SAFETY

• General Regulations (federal) are completed by a set of technical rules : recommendations and suggestions for the compliance with regulatory requirements. They are NOT legal rules or standards by nature BUT :

– Specificity of German Statutory Accident Prevention Regulations: some, through apparently technical rules, have a dual legal character; UVV or BGV which are issued by insurers and professional associations

Few details

GERMANY

ENVIRONMENT

• Central regulations at National level but enforcement is done at Federal as well as Länder level.

Few details

CHINA

TUNISIA Need local experts to access information (not all publications are published online by governments)

CHINA

• China is a centralized political system,

• However, the principal regulations are not necessarily be found at the national level (as in France, as opposed to federal system such as the US),

• Other important regulations can be found at regional and municipal level, NOT ONLY regarding environmental questions BUT ALSO in the field of HS.

• This especially concerns industrially developed areas like Beijing, Shanghai and Guangdong.

Few details

FRANCE ICPE

FRANCE

• A particularity of the French legal system is that if you have an installation or site which is classified as “ICPE” (installation classée pour l’environnement), a special set of rules that applies (e.g. Chapter V of the French Environmental Code] .

Few details

FRANCE

Regulation hierarchy

1. Constitution / International and EU treaty;

2. Directives & Community regulations;

3. Ordinance, Law, decree

4. Circular, norms, internal rules, etc.

Few details

BRAZIL Some of the strictest environmental legislation in the world!

CONDITIONS FOR

SUCCESS

LOCAL EXPERTS

LOCAL EXPERTS

• No language barrier

• EHS regulatory framework knowledge

• Access to local information

To be hired

PROJECT MANAGEMENT

• Share objectives between sites and corporate • Define Human, Money and Technology Resources • Adaptation of the project according to company

structure – Multi sites / Multi activities – Industrials vs Facilities management / Building

• Adopt a standardized structure / information type / reporting to be shared between Corporate and Sites – Audit protocol in English

• Project animation

Conditions for success

ORGANISATIONAL MODELS

IMPLEMENTATION

• Centralized structure – HQ controls EHS

• Flexible approach – Strong rules & standards at corporate level, authority at local level

• Regional structure – Delegation of authority at local level

Different structures

IMPLEMENTATION

• EHS legal register definition – Sites pilots – Process of Rollout

• Legal watch

– Frequency – Format of information

• Compliance assessment

– Existing data – Assistance

• Action plan implementation

Internal resources vs outsourcing

IMPLEMENTATION

• EHS legal register definition

• Legal watch

• Compliance assessment

• Action plan implementation

Internal resources vs outsourcing

I N T E R N A L OUTSOURCED

TREND

• Secure regulatory processes

• Save costs

• Save time, focus on action

• Speed up roll out

Towards outsourcing the international regulatory expertise

ROI

CULTURE OF COMPLIANCE

• Reduce risks globally

• Optimize costs linked to risk management

• Save time

• Benchmark countries and implement strategy accordingly

Why reinforcing culture of compliance globally is important?

In a few words

June 2014

RED ON LINE Partner to provide HSE Solutions, Worldwide

CONSULTING

CONTENT SOFTWARE

EHS Legal

Monitoring and

Compliance

Solution

RED ON LINE Partner to provide HSE Solutions, Worldwide

45 9 Countries already

covered 9 offices in

4 continents “AAA partner”

TRC Corporation Listed Company NYSE

UTAS Malaysia

OIL RIGS Nigeria

ARIANE Kourou

METHODOLOGY For a 100% personalized service

1. EHS Legal Register production

Site visit to identify EHS impacts

Questionnaires and Interviews Integration of specific documents

Personalized legal register production – Software set up

2. EHS Legal Monitoring

Weekly * news alerts Quarterly* update of the Regulatory Registe Regulatory Assistance

3. EHS Compliance Assessment

Site audits Audits reports Compliance status recorded in the software Action plan can be initiated by the site or co-initiated with our engineers Cross countries & cross site reporting is available

* Frequency may be different in some countries

« not only a software »

RED ON LINE What’s next

1. Site visit questionnaire document query

2. Legal Register available after 3 weeks

3. Transfer of Existing Compliance status in HSE-Compliance

4. Training

5. EHS Legal Monitoring

RED ON LINE

100% of our clients succeed

THANK YOU

Offered by Red-on-line :

• Choose your country factsheets

• Ask us 3 legal questions

services