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EMS adding value

EMS adding value. IEMA regional workshop 07/07/10 Matthew Payne Environmental Improvement Manager. Overview. About Rolls-Royce Reasons for having an EMS History of EMS in Rolls-Royce Experience of benefits from having an EMS. Our four markets. Rolls-Royce proprietary information.

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EMS adding value

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  1. EMS adding value IEMA regional workshop 07/07/10 Matthew Payne Environmental Improvement Manager

  2. Overview About Rolls-Royce Reasons for having an EMS History of EMS in Rolls-Royce Experience of benefits from having an EMS

  3. Our four markets Rolls-Royce proprietary information

  4. Key statistics Rolls-Royce proprietary information

  5. Why have an “EMS”? • “Tick in the box?” • “Badge on the wall?” • Adding value to the business?

  6. Benefits of an effective EMS • Assists in the protection of the environment • Helps in reducing potential business risks • Turn potential business threats resulting from environmental concerns into business opportunities

  7. Areas an EMS can add value Public Relations Finance Insurance Cost Saving Reputation Competition Customers Liability Avoidance

  8. History of EMS in Rolls-Royce 1994 HS&E Manual (mainly H&S) 1997 Main Board commitment to achieve ISO 14001 certification 1998–1999 EMS implementation programme 1999 Businesses certified to ISO 14001 2000 onwards - new businesses mandated to achieve certification 2009 Move to global certification contract

  9. Our environment strategy Rolls-Royce proprietary information

  10. Scope of our EMS includes… • Activities • Manufacturing • Product test • Purchasing – supply chain management • Facilities management • Offices & support functions • Products • Design • Materials • R&D • Services • Field service

  11. Governance • EMS has assisted with governance • Focus on what is important (key risks) • Exec level responsibility • Management review • Supporting meeting structure • Communication • E.g public reporting • Independent assurance • Management systems • Performance data

  12. Stakeholders & company reputation • EMS benefits • Customers • Increasingly requiring formal EMS • Ability to respond to technical questions • Assurance • Regulators • Maintain compliance, robust emergency arrangements • Public • Responsible and responsive neighbour • Benchmarking via indexes (BiTC, DJSI etc)

  13. Efficiencies from integration of EMS • Combined HS&E management system • Synergies with • Management System documentation • O&T setting and tracking • Management review • Etc • Incorporated into QMS • Synergies with: • Audit process • Document & record control

  14. EMS & maintaining legal compliance • Environmental law still developing • Licence to operate • E.g. Env. Permitting Regs • Keeping ahead • Maintain access to markets • Manage business continuity risks • E.g. REACH, RoHS etc • Maintain/enhance reputation • CRC – league tables • Negative publicity for incidents/ breaches of regulation

  15. Continual improvement - performance

  16. Waste reduction & product quality • EMS target to reduce waste • Foundry sand a dominant waste stream • Thermal reclamation plant installed at Bergen foundry ~ 2006 • Benefits • Less raw materials needed • ~ 50% reduction in landfilled sand • ~ £350k savings/year • Improvements to casting quality

  17. Recycling & resource efficiency • EMS target to increase recycling • Metal recycling • Manufacturing and scrap product • Segregation – better financial return • Move to closed loop recycling • Sustainability of limited resources • maintain continuity of access to specific materials • Feedstock back into product

  18. Energy saving & productivity • Ceramic core manufacture • Change from conventional electric to microwave drying oven • 90% reduction in energy use • 33% reduction in drying cycle

  19. Using EMS to influence behaviour • Energy saving (turn it off campaign) • Cost saving • Waste segregation • Easier to recycle • Lower disposal costs

  20. EMS and influencing supply chain • Increasing stakeholder expectations • Journey – part of long term continual improvement • Benefits • Increased awareness of environmental issues • Risk management (e.g. REACH) • Business requirements • HS&E policy for suppliers • Technical issues • e.g. hazardous substance management • e.g. packaging requirements • Support • Supplier environmental workshops • Awareness materials

  21. Questions • Further information • www.rolls-royce.com/cr

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