Latest Changes in Global Regulatory Requirements and Their Impact on SAP EHSM

[ Latest Changes in Global Regulatory
Requirements and Their Impact on SAP EHSM
Jim Ferguson – Nalco
Connie Prostko-Bell – 3E Company

[ Learning Points
The Global Compliance Landscape has been especially dynamic
the past several years.
In order to maintain compliance and compete in a global
marketplace EHS must be embedded throughout the value
chain.
Your SAP system requires diligence from a data, technical and
functional perspective to remain relevant.

Real Experience. Real Advantage. 2

[ Return on Investment
Compliance through integrated processes.
EHS no longer a siloed function at Nalco
Compliance embedded throughout the value chain.
Ensure access to markets
Minimize risk
Speed innovation


[ Best Practices
Use Standard functionality, complementary functionality and
current data to maintain the relevance of your system and
provide compliance assurance.


[ Nalco Overview
Essential Expertise for Water, Energy and Air

Nalco is the world’s largest sustainability services company
focused on industrial water, energy and air applications. We
help our customers reduce water, energy and other natural
resource consumption, enhance air quality, minimize
environmental releases and improve productivity and end
products while boosting the bottom line.

Customer base is diversified across multiple industries
– Nearly 50,000 customer locations
– Business is divided into two core divisions
• Water and Process Services (WPS)
– Water Services
– Paper Services
– Air and Emissions Control Offerings
• Energy Services (Energy)

Provider of Chemistry, Control and Monitoring
Automation and Sustainability Services. More than 9,000
chemical products available globally.


[ Diverse Global Presence

Countries of Operation Plants

Real Experience. Real Advantage.

[ Nalco Delivers Superior Sustainability Performance
Nalco Mission Statement

Our Mission is to lead the industry in creating value for customers and Nalco
through differentiated services and technologies that save water and energy,
enhance production and improve air quality while reducing total costs of operation.


[ The 360°Business Environment

Mechanisms

Product
People


[ The New Compliance Reality
Premise 2:
Supply
Chains are
not linear
Premise 1:
Premise 3:
Obligations
Risk is not
are not
linear
linear

Ergo:
Compliance
is not linear


[ Obligations are not Linear
Regulatory Obligations
Conflict
Minerals

REACH

RoHS

GHS

TSCA

SOx


[ Obligations are not Linear
Non-Regulatory Obligations
GRI

Responsible
Care / ISO
1400x

Joint
Industry
Guide (JIG) EICC-GeSI
Extractives
Work
Group

GADSL

SIN List

Carbon /
Water
Footprints

OHSAS
18001


[ SHE Mission Statement
Nalco SH&E mission is to "manage risk and protect the brand". This
must be achieved against the backdrop of:

A rapidly changing regulatory environment
The spread of copycat legislation; each with minor differences in
content which require development and implementation of a
regulatory compliance solution
A changing business environment with the goal of increasing the
number of innovative technologies launched and a trend to
shorter product life cycles
Data intensive regulations with burden of proof on industry -
manual systems are simply not sustainable
Internal and external Customers demanding greater proof of
compliance


[ Regulatory Programs
SH&E has global programs which are regionally delivered and comprise the
following elements:

Information technology
and content
provided by
SAP and 3E
is critical to
successful delivery


[ Hazard Communication - GHS
One challenge has been the rapid global spread of GHS
regulations, sometimes with short lead-times
Country / Region Substance / Implementation Details SAP as primary ERP
Mixture Date system
Japan Both 2008 GHS SDS & Label Templates No
Expert Rules
New Zealand Both 2008 GHS SDS & Label Templates Yes
Expert Rules
South Korea Both 2008 GHS SDS & Label Templates No
GHS Labels Templates
Expert Rules
Taiwan Both 2008 GHS SDS & Label Templates No

China Both 2009 GHS SDS & Label Templates No

Vietnam Both 2009 GHS SDS & Label Templates Yes
(Fall 2011)
Indonesia Both 2010 GHS SDS & Label Templates No

Singapore Substances Only 2010 GHS SDS & Label Templates Yes

European Union Substances Only 2010 GHS SDS & Label Templates Yes
Expert Rules (2011)
Brazil Substances Only 2011 GHS SDS & Label Templates Yes
Expert Rules (2012)
BR in an SAP live country.

[GHS legislation or standards have been passed in:
UN Purple Book (4th Revised Edition) (July 2011)
Asia Pacific:
New Zealand (2001) * • Japan (2006) *
Korea (2008) * substances • Taiwan (2008) *
Singapore (2008) * substances • Vietnam (2008) *
China (2009) * • Indonesia (2009) *
Europe
EU (2008) * substances
Serbia (2009) * substances (2011)
Russia (2009/SDSs and 2011)*
Switzerland (2009)
Middle East & Africa
Abu Dhabi (2009)
South Africa (2008)
Americas
Brazil (2009) * SDS format & substance classification (2011)
Uruguay (2009) *
Mexico (2011)
Transportation - SOLAS (International Convention for the Safety of Life at Sea) *
* Indicates that GHS SDSs and classifications are already required

[GHS regulations have been drafted
Draft regulations on GHS published:
USA
Australia
Malaysia
Philippines
India (only transportation)
Preparation activities
Canada – GHS compliant SDS accepted with reference to WHMIS
MERCOSUR countries (Argentina, Brazil, Paraguay, Uruguay)– SDS standards
ANDEAN Community (Bolivia, Colombia, Ecuador and Peru, Ecuador) – National
Plan, capacity building
Turkey
Thailand
UNITAR/ILO Global GHS Capacity Building Programme: Cambodia, Gambia, Laos,
Nigeria, Senegal, Zambia


EHS IT Overview SAP CRM/Portal

Order Entry BOL
PPE Sheet

ECC
SDS Distribution
3E
Production Purchasing & Logistics Sales & Distribution

Stock
Process Purchase Sales
Transfer Delivery
Order Order Order
Order
SAP

ECC EHS
CHARMS Customer

SVT Material SDS Online
DG Mobile App

SharePoint
License

R&A Customer
Portal

DMS
SAP BI Generation
Servers
Specification
Master
Analytics
GLM
Custom Reports

[ Example Scenario I
Regulatory Content Loaded from Ariel
GHS Classification – Data is loaded from Ariel at the List
Substance level and is stored in the GHS Classification (List
Data) property.


EHS Expert Rule Executed
EHS Expert Rule is executed on the Real Substance to
calculate the GHS Classification (EU CLP) based on the list
substance data that was loaded from Ariel.


EHS Expert Rule Calculation
GHS Classification (EU) property is filled with classification
to EU CLP based on list substance data loaded for the
components.


Source Tab contains the reference to the EHS Expert Rule
that was executed to calculate the classification.


[Global Inventories
New Inventories
Taiwan
Turkey
Malaysia
Changes to Existing inventories:
USA. Toxic Substances Control Act (TSCA) Chemical
Substances Inventory
China. Inventory of Existing Chemical Substances (IECSC)
Japan. Inventory of Existing & New Chemical Substances
(ENCS) and Industrial Safety & Health Law (ISHL)


[ Example Scenario II
Regulatory Content Loaded from Ariel
Inventory Status – Data is loaded from Ariel at the List Substance level
EHS Expert Rule Executed
EHS Expert Rule is executed on the Real Substance to calculate the
Product status based on the list substance data loaded from Ariel
Notification Status property is filled with product inventory status based
on list substance data loaded for the components
Substance Volume Tracking (SVT)
Date is filled to SVT tables and used to check orders


[ Example Scenario II
Compliance in Practice
Email Alerting
Year to 8/31/2011:
~ 470,000 orders
~ 800,000 items
Reviewed globally

SVT triggered:
~ 5,000 email notifications
Order Blocking for ~ 2,000 orders


[Remaining Relevant


[ Six Elements of Content


[ 3E Ariel SAP EHS solution

Expertise / Services
MSDS Authoring Regulatory Services Impl. Services

Integrated Content & Tools
Data Loading Tools – ADM EHSAP, OCC, VMSDS

Ariel Ariel Vendor
Chemical Dangerous Phys-Chem Rule Sets
Multilingual SDSs
Regulatory Goods Tox
Phrases Rules Content
Content Content Eco-Tox
Builder

Document Templates

Real Experience. Real Advantage. 3E Company Confidential

[ 3E SAP EHSM Solution
ADM EHSAP Ariel VMSDS Loader
Loading of Regulatory data Loading of Product data

SAP EH&S

Substances Products

Ariel Expert Rules Ariel STD Templates
EH&S Expert Server WWI Server


[ADM EHSAP Architecture
ADM EHSAP Architecture

Web Browser client: ADM EHSAP and WebInsight
User Roles/Security: IT Admin Regulatory Admin Regulatory User

Online Configuration
Secure on-demand data feed
via Web Services over HTTPS
SAP
EH&S
(TEST) Ariel
ADM EHSAP
Chemical
SAP on J2EE App.
SAP Client Ariel Regulatory
EH&S Server (e.g., Internet
Network Firewall Firewall Information
(QUAL) SAP WebAS,
Server
Apache)
SAP (CHRIS)
EH&S
(PROD)
Support for multiple
Unicode Local
Persistent DVD Data Ariel Chemical
SAP EHS
Storage (LPS) Loader Regulatory Data
environments
Warehouse

Unicode LPS stores Ariel
regulatory content, filters, Off-Line Configuration
mappings and other Data updates via DVD
decision support data

Real Experience. Real Advantage. 3E Company Confidential

[
Thank you for participating.
Please remember to complete and return your
evaluation form following this session.
For ongoing education on this area of focus, visit the Year-Round
Community page at www.asug.com/yrc
]
[ SESSION CODE:
0508


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