1. Greg Lemke, CSP, CHMM

2.  Introductions
 Old vs New (Compliance vs. EMS)
 Ideas for the future
30,000 foot i
30 000 f t view

3.  Command and Control
◦ Regulatory compliance emphasis
◦ Enforcement
◦ Not always cost effective
◦ Reliance on:
 Environmental Policy
 Environmental Audits

4.  Environmental Management Systems
Approach
◦ Continuous Improvement
◦ Cost Saving Focused
◦ Corporate Social Responsibility

5. 1. The pace of the global economy
◦ Competitiveness
◦ instantaneous knowledge
2.
2 The sharp increase in energy costs
3. The more recent and ramped-up attention
of global climate change.

6. Are your operations, organizational structure,
core products and/or services, and stakeholder
engagements sustainable?
◦ Third-party verifiable sustainability
◦ Corporate social responsibility reporting
◦ I t
International standards f environment and h lth
ti l t d d for i t d health
and safety

7.  In business, ROI is most often thought of as
dollars made or saved in relation to dollars
invested
◦ baseline operations
◦ implement programs with specific metrics
◦ work to achieve those goals
 The return on investments need to well-
documented, and sustainable operations
need to be beneficial to the traditional
bottom line

8. 95% of business executives report that workplace
safety has a positive impact on a company‘s financial
performance.
93% of executives surveyed see a relationship
between:
◦ Direct costs, or payments to injured employees and their medical care
providers, and
◦ Indirect costs, such as lost productivity, overtime costs
Source: The Executive Survey of Workplace Safety by the Liberty Mutual Group

9. Workers Compensation Premiums
$300,000.00
$265,052.72
$250,000.00
$235,602.42
$209,424.38
$200,000.00
$196,821.33
$186,155.00
$174,952.29
$162,849.00
$155,513.15
$150,000.00 Possible EMR .75
$144,509.00
Current EMR 1.0
$100,000.00
$50 000 00
$50,000.00
$0.00
2005-06
2005 06 2006-07
2006 07 2007-08
2007 08 2008-09
2008 09 2009-10
2009 10 2010-11
2010 11

10.  Investment  Return
◦ Employee training ◦ More satisfied &
professional workers
◦ Improved ◦ More efficient and
management systems repeatable business
practices
◦ Increased ◦ Engage with the
transparency and stakeholders of the
public relations organization

11.  All of these investments will provide
◦ Strength,
◦ Stability,
◦ Sustainability to the organization
organization,
◦ Increase the value of the company or the brand

12.  Cost Savings
 Regulatory Compliance
 Minimize Environmental Liability
 Demonstrated ROI
◦ Increase Shareholder Value

15.  Top Management Support
◦ Commitment
C i
◦ Demonstrated Action
◦ Strategic Planning
 Goals
◦ Prioritize
◦ Available Technology
 Celebrate Successes
◦ Motivates stakeholders
 Training
◦ Integrate EMS Philosophy throughout organization

16.  Generally accepted and understood that there
is a significant and growing correlation
between companies' investment in their
environmental programs and their overall
competitiveness and financial performance.
◦ Firms investing in environmental management
g g
posted accumulated returns over 48.8% higher than
environmental laggards over a 3-year period, and
6% higher returns over 1-year.
1 year.
Source: Innovest Strategic Value Advisors, in an annual investment research report on the Global Auto Parts
market

17.  In the electric utility industry: portfolio
managers who screen out companies with
h t i ith
poor environmental records can outperform
others by more than 7% annually.
y y
 The top environmental performers in the
computer sector have outperformed their
industry rivals financially by 25% since the
beginning of 1998.
Source(s): Innovest Strategic Value Advisors and The Computer Industry -- Hidden Risks and Value Potential for
Strategic Investors

18.  Green to Gold, 2006 by Daniel Esty & Andrew Winston
 Numerous benefits of a sound environmental
policy:
1. Boosting brand value l di
1 B ti b d l leading t i to increased
d
customer loyalty and retention
2. Increased staff morale leading to higher
productivity and lower employee turnover
3. Greater creativity and
4 An edge in recruiting talented staff
4. staff.

19.  The Green to Gold authors argue that the
reason companies complain of little visible
i l i f littl i ibl
ROI from environmental policies is because
they don’t count the right things:
y g g
 Cost of retaining an existing client vs. obtaining a new
one.
(customer loyalty)
 Benefit of obtaining new clients primarily due to your
g p y y
corporate responsibility position
(usually not measured)

20. (for energy usage)
(for global climate change)

21. (Used for raw material metrics or Chemical Emissions Metrics)

22.  Tracking of chemical releases to the air, land,
and water are common as part of SARA Title
III requirements.
◦ Use this data to develop metrics for calculating
chemical emissions reductions.
(for chemical release metrics)

24.  Electricity Conservation
◦ Electricity conversation or reduced use of energy
 Green Energy
◦ Switching to greener or renewable energy sources
 Fuel Substitution
◦ Reduced fuel use, substitution to greener fuels
 Greening Chemistry
◦ Reduced use of or substitutions of high global-warming-
global warming
potential (GWP) chemicals
 Water Conservation
◦ Reduced water use
 Materials Management
◦ Reductions from life-cycle analysis and extending the life of
secondary materials
y

25.  Work to increase awareness of sustainability among staff
and management.
◦ This will provide a common language and keep everyone thinking
about the impact y have during the course of our daily tasks.
p you g y
 Take an inventory of current efforts that make progress
toward sustainability and be frank about areas that need
improvement.
◦ Enhance your current efforts and identify additional improvements.
 Formulate vision of what sustainability means to you
◦ Identify long-term goals necessary to achieve that vision.

26.  Incorporate the awareness and terminology of sustainability
into your budget decisions, program administration and
project development.

27.  Does this help move us toward sustainability
 Even if incrementally?
 Will elements of this project serve as a potential stepping
stone toward other changes or initiatives?
 Will increased implementation costs yield savings in the
long-run or provide a social or environmental return on
g p
investment?

28.  In a corporate climate that embraces the
adage that "what matters gets measured"
 The ability to measure and evaluate
environmental performance allows
environmental staff to demonstrate the value
of its programs and gain equal footing with
f f
other business objectives

29.  Goals stated:
"Execute this process well"
vs.
"Don't perform this process badly."

30.  Goals should be precise and measurable so
that progress toward them can be tracked
and evaluated to determine the relative
success of environmental performance
performance.
◦ “Maintain regulatory compliance and identify cost saving
opportunities…
opportunities ”
vs
◦ Reduce hazardous waste by 25% by 2011
◦ Reduce SARA reportable releases by 35% by 2010
◦ Recycle 50% of alcohol solvent in 2010

31. Miljömålen
Renewables Natural
Capitalism
Ecoliteracy
Cleaner
Factor 10 Production RMA

32.  Comparing environmental performance
against its return on investment (ROI) is a
bottom line-oriented approach.
 Illustrate that environmental, healthy, and
safety (EH&S) programs have a positive effect
on company financials.

33. 1. Recognition and commitment from senior leadership;
2. Build a business case based on benchmarking against sector
standards and trends, and baseline your existing programs,
activities, and services;
3. Defining sustainability, based on sector-type, culture, brand,
existence of programs, and longer-term goals;
4. Implement sustainability initiatives including specific actions,
roles/responsibilities, and implementation schedule; and
5. Measure and report processes to measure progress against specific
metrics and use this data to report to management, shareholders,
customers, employees, and/or other stakeholders.

34. Thank You
QUESTIONS?
Greg Lemke, CSP, CHMM
Director, L
Di t Loss P
Prevention
ti
glemke@occutec.com
OCCU TEC I
OCCU-TEC, Inc.
Kansas City, Missouri