Best practices in chemical management webinar

Best Practices in Chemical Management 1

Webinar Agenda  Goals of Best Practices Chemical Management  Factors, Tools, & Techniques  Case Studies  Action Plan & Blueprint  Q&A 2

Chemical Management Evolution Sustainability Risk Mitigation and Competitive Advantage Safety Compliance 3

Considerations for Chemical Management 1. Safety Considerations 2. Regulatory Compliance 3. Cost and Risk Reduction 4. Sustainability Initiatives & Your Hazard Footprint 5. Global Competitive Advantage 4

Industry Safety Statistics In 2008 alone, chemicals and chemical products were the source of 15,220 non-fatal occupational injuries and illnesses. In 2008, where chemicals and chemical products were the source of injury or illness in non-fatal occupational injuries resulting in days away from work, 34 percent resulted in six or more days away from work, and 10 percent resulted in 31 or more days away from work. Exposure to caustic, noxious, or allergenic substances led to 216 on-the-job fatalities in 2008. Per the Bureau of Labor Statistics 5

Regulatory Drivers - Sample North America Global Asia Pacific • OSHA – Hazard • Globally Harmonized • China RoHS) Communication Standard System (GHS) (Global) • Industrial Safety and Health • CA Restriction of Hazardous • International Council of Law (ISHL) (Japan) Substances (RoHS)/ Waste Chemical Associations • Poisonous and Deleterious Electrical and Electronic Global Product Strategy Substances Control Law Equipment (WEEE) • NGO SIN (Substitute It (PDSCL) (Japan) • CA Green Chemistry Now) Lists • Chemical Substances • CA Prop 65 • Industry Lists Control Law (CSCL) (Japan) • U .S. Bioterrorism Act • Dangerous/Toxic Materials • U .S. Chemical Assessment European Union (Taiwan) and Management Program • Industrial Safety and Health (ChAMP) • European Community (EC) Act (ISHA) (Korea) • Toxic Substances Control Regulation 178 • Toxic Release Inventory Act Reform (TSCA ) • EU RoHS (TRI) • Canada’s Chemicals • 2007/47/EC (Phthalates) • Australian Inventory of Management Plan (CMP) • REACH Chemical Substances (AICS) • Workplace Hazardous • Hazardous Substances and Materials Information New Organisms (HSNO) Act System (WHMIS) (New Zealand) Per SAP “Product Compliance, Safety, and Stewardship for Process Industries” whitepaper 6

Globally Harmonized System • 1,000,000 chemicals • 5,000,000 businesses • 40,000,000 workers • Estimated net savings of $764 million in U.S. alone from safety and health risk reduction and productivity improvements • * Per OSHA “Facts on Aligning the Hazard Communication Standard to the GHS” 7

Primary HCS Changes Per GHS   MSDS Labels MSDSs will need to be updated Labels will need to be or re-authored to meet GHS reprocessed during transition. guidelines Standardized pictograms, signal words, hazard statements will be required.   Communication Training Updated safety data sheets and Employees must be trained on labels will need to be circulated the new content and format of and distributed to stakeholders SDSs and chemical labels 8

Cost & Risk Reductions MSDS and Chemical Management MSDS Management - Safety Binder Creation & Distribution $ 6,720 - Safety Binder Updating (bi-annual MSDS Updates) $ 21,000 - MSDS Archival $ 1,200 - MSDS Management Total $ 28,920 ROI Chemical Inventory & HazMat Management - Physical Inventory of Chemicals (Improvement) $ 4,200 - Inventory Management & Labelling $ 10,500 - Chemical Inventory Management Total $ 14,700 Regulatory Compliance & Business Reporting - Workplace Chemical Inventory Reporting $ 750 - Form R Information/Reporting $ 3,000 - Tier 1/Tier II Reporting $ 1,500 - Chemical Inventory Management Total $ 5,250 - TOTAL IN-HOUSE MSDS MANAGEMENT COST $ 48,870 Risk Management Risk Management - Workman's Comp Risk Reduction $ 17,824 - Lost Productivity Reduction $ 1,747 - OSHA Fine Risk Reduction $ 3,095 - Risk Management Total $ 22,667 - TOTAL RISK REDUCTION $ 22,667 TOTAL INTERNAL COST & RISK REDUCTION $ 71,537 OPPORTUNITY 9

Sustainability and Your Chemical Hazard Footprint Regulatory Physical Environment 10

Competitive Advantage 1. Do your customers have sustainability requirements? 2. Are you meeting global regulations for shipping and using hazardous chemicals? 3. Does your chemical strategy protocol support “lean” initiatives? 4. Are you able to efficiently satisfy environmental reporting and risk monitoring initiatives? 11

Factors to Consider People Process Technology 12

People Safety Managers IT and Risk Procurement Managers Employees Industrial Environmental Hygienists Managers 13

Functional Considerations Safety Managers Environmental Managers • HazCom Plans • Environmental Reporting • Accident Response • Remediation • Corporate & Government • Contingency Planning Compliance • Community • Employee/Vendor Responsibilities Protection Risk Managers • Compliance Tracking • Risk & Exposure Assessments • Risk Mitigation • Compliance Reporting 14

Functional Considerations Industrial Hygienists IT & Procurement • Chemical Analysis • System Compatibility and • Material Approval Security • Health Hazard • Supplier and Inventory Assessment Control • Toxicology • Procurement Optimization • Chemical Inventory Visibility 15

Chemical Management Processes Chemical Material Chemical Data M o n i t o r i n g & Communication & Inventory Approval Management Reporting Training Management 16

Chemical Inventory Management • Elements of Proper Inventory Management – What, Where, How Much – On-site vs. Procurement-based Inventory Chemical Inventory • Ongoing Inventory Management Management • Updates • Barcoding • Data Exchange-Various Systems 17

Material Approval • What are the Basic Elements of an Effective Material Approval Process? • Appropriate personnel in the review cycle • Trackable Material • Easily modified as the work environment or Approval personnel change • Closed Loop • Beyond Chemical Approval • Hazard Profiling • Chemical and Risk Assessment 18

Chemical Data Management • What data is important? • What are you tracking? • What are the chemicals you’re dealing with? • What reporting is required? Chemical Data Management 19

MSDS - The Foundational Element • Hazard Classifications • Regulatory Information (components, %, don’t forget section 15) • Exposure Limits • Handling, storage, disposal • More! 20

Benefits of Electronic Chemical Management • Complete MSDS data indexing including: • health and physical hazards • physical and chemical classifications • transportation classifications • Regulatory cross-referencing Chemical Data • Access to MSDS versions and archives Management • Pre-populated labeling • Integrated material approval • External regulatory compliance and internal management reporting • GHS-compliant data 21

Monitoring & Reporting   • Set goals to remove • Identify certain high- specific hazard types risk plants, chemical (carcinogens, areas, or job functions corrosives, toxic with greater exposure substances, aquatic Monitoring & hazards, etc) Reporting   • Determine regulatory • Identify alternative impact of certain products that have materials when lower hazardous reviewing hazard footprint footprint (e.g. CA Prop 65) 22

Communication & Training • What’s required? • How do we help employees understand the risks and safety procedures? Communication & • How do we get employees (and Training management) involved in the process? • What are the expected results? 23

Technology & Tools • Electronic versus manual MSDS management • Balancing time, money, risk factors • What are the alternatives? • What is the expected return on investment? 24

Case Study #1 PROJECT OVERVIEW Lexmark, an advocate for • Reduced active MSDS count from 12,000 to environmental sustainability, needed a scalable solution for 6,500 chemical management spanning both corporate and • Shortened the chemical introduction process manufacturing facilities. from weeks to days Lexmark turned to SiteHawk to • Gained site-level data as well as corporate implement a corporate-wide view MSDS management system that replaced in-house systems • Eliminated daily chore of acquiring, updating, and resources, resulting in a and maintaining MSDS more cost-efficient and consistent approach across the organization. 25

Case Study #2 PROJECT OVERVIEW Elkay is a family of companies that employ over 2,500 people • Streamlined regulatory reporting for Toxic in distribution facilities Release Inventory (TRI) , etc. throughout North America and select international markets. • Wanted “more than just a data warehouse of MSDSs” With more than 2,100 chemicals spanning nearly 20 facilities • Eased the burden of chemical tagging via worldwide, Elkay needed a automated labeling chemical management services provider who could match their • Increased worker safety and confidence desire for simplicity, robust chemical data management applications, and superior attention to customer service 26

Best Practices Blueprint Step 1 – Get an accurate view of your current chemical inventory Step 2 – Gain control of chemicals entering the workplace Step 3 – Utilize a system and/or service that provides access to the chemical data found on the MSDS Step 4 – Realize the synergy of MSDS data/systems for integrated material approval, regulatory reporting, labeling, sustainability initiatives, as well as core safety compliance Step 5 – Identify and communicate relevant information to employees, regulators, management, etc. in order to reduce risk, increase safety, and gain competitive advantage 27

Q&A 28

For more information, contact: Scott Williams swilliams@sitehawk.com Keri-Lyn Jakubs kdjakubs@complianceoptimizers.com 29

Best practices in chemical management webinar

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