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Overcoming Barriers to EHS

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

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Overcoming Barriers to EHS

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  1. Overcoming Barriersto EHS MEM Seminar Series 2001/2002 School of Design and Environment National University of Singapore August 25, 2001

  2. 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

  3. Jebsen & Jessen SEA A Brief Corporate Profile

  4. ASEAN Regional Network • 40 companies operating under seven activity-related divisions • Areas of operation: ASEAN • Number of employees: 2,500

  5. Regional Coverage Vietnam Ho Chi Minh (Saigon) Hanoi Thailand Bangkok Chiengmai Philippines Manila Cebu W. Malaysia Kuala Lumpur Penang Johore Bahru Kuantan Ipoh Malacca Brunei Bandar Seri Bagawan Kuala Belait Sarawak Kuching Sabah Kota Kinabalu Singapore Indonesia Jakarta Surabaya Medan Semarang Bandung Ujung Pandang

  6. Regional Businesses • Chemicals • Communications • Industrial Products • Marketing • Material Handling • Packaging • Process Technology

  7. Chemicals Chemicals Nutrition Metals

  8. Communications Corporate Network Telecommunications Broadcast

  9. Industrial Products Pumps Well screens Cutting Tools Special Electric Cables

  10. Marketing Consumer Medical & Scientific Textiles Automotive Spares

  11. Material Handling Cranes & Hoists Logistic Systems IPD Spares & Services

  12. Packaging Moulded Foam Packaging Integrated Packaging Construction

  13. Process Engineering Industrial Plant Marketing Industrial Plant Contracting

  14. IPD 12% CHE 9% SIN 29% PKG 11% MKT 14% TH 15% PH 6% PRT 7% COM 7% HLD 7% IND 18% MY 31% MHE 32% Group Statistical Profile MY 27% CHE 22 % 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 Employees by regional business unit Employees by country

  15. The First EHS Efforts • Management Conference 1993 • Member of Executive Committee overall in charge • Minor and random initiatives

  16. 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

  17. The Background Japan/US/EUASEAN EHS awarenessPublic ModerateLow, growing Employees ModerateMixed Retail customers ModerateLimited Industrial customers ModerateModerate Intrinsic mgmt interest MixedLow Strategic mgmt interest MixedLow ISO 14001 Low/ModerateModerate

  18. The Background Japan/US/EUASEAN Regulations StrongStrong Reg enforcement StrongLow -Moderate Media focus Bad/shock newsGood / bad news- Pollution, injuries- Govt influence NGOs Large membershipsLimited role Labour unions Moderate sizeLimited role Shareholders Special interestsLimited interest

  19. Formal EHS Management 1995

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

  21. EHS Management Central Services Unit EHS CSU Audit EHS Chair EHS Committee

  22. Decentralised Approach Within overall EHS policies, each member company was expected to pursue its own initiatives

  23. 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

  24. Idealism vs. Pragmatism • CFC Business • TBTO • Hazardous Wastes • Paint • Furniture • Polystyrene

  25. Hocking (1991): Hot-Drink Container LCA

  26. Hocking (1991): Hot-Drink Container LCA

  27. Hocking (1991): Hot-Drink Container LCA

  28. Hocking (1991): Hot-Drink Container LCA

  29. Hub & Spoke EHS Service Operating in the environment prior to the RBU structure, the approach CSU EHS pursued was hub & spoke

  30. Benefits • Customised attention to each company • Fast communication

  31. 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

  32. Drawbacks • Continuous “fire drills” limit time to think and plan strategically • Little incentive for member companies to generate their own agenda

  33. “Spoon Feeding” Approach 1997

  34. “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 2. Among facilities 3. Within countries The tool: EHS Programmes • Assign responsibilities • Provide information and tools

  35. 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

  36. 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

  37. EHS by Country The Group has up to seven business locations within each country, revealing potential opportunities for synergy. Thailand Group Malaysia Group Indonesia Group CSU EHS Singapore 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

  38. 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

  39. EHS Legal Compliance An important part of the group's commitment to 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 & 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 Standards Responsibilities

  40. Emergency Preparedness & Response • Smoke detectors • Fire evacuation drills • First aid training • First aid kits • Fire fighting training • Fire fighting equipment • Illuminated exit signs • Fire doors • Housekeeping • Sign-posting • No-smoking areas

  41. Occupational Health • Sufficient lighting • Noise testing • Manual lifting • Ergonomics • Health monitoring

  42. LUXLocations 50 Passageways 100 Storage areas 200 Welding, rough machining 300 Drilling, cutting 500 Offices, detailed inspection 750 Conference rooms Occupational Health Ergonomics Diagram Lighting Recommendations

  43. 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

  44. Occupational Safety

  45. Environment • Recycling • Energy conservation • Paper reuse • EHS Procurement Guide • Technical monitoring • EHS monitoring programme • Ad-hoc improvements

  46. Administration • Budgets • Monthly EHS meetings • Annual EHS audits • Periodic self-assessment • Risk management • New employee induction

  47. 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

  48. Enablers • Availability of 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 Notes)

  49. Facts Talk!

  50. Peer Pressure Works! 1997-2000 EHS Audit Results: Chemicals A B 1997 C 1998 1999 D 2000 F JJDS JJDM JJDP JJDT

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