Enhesa 2016 Global EHS Regulatory Forecast Webinar

2016 ENHESA
GLOBAL EHS REGULATORY
FORECAST

3
Practical Details:
Today’s Moderator
Muting and Sound Quality
Question and Answer
• Tjeerd Hendel-Blackford, Business Development Manager EMEA at Enhesa
• Due to the number of participants, we have muted everyone to ensure good
sound quality.
• If you experience sound quality problems, please make sure you are using a wired
connection with adequate bandwidth. If the problem continues, please call into
the teleconference.
• Please submit your questions to the presenters using the question box.
• We will try and answer as many questions as possible at the end of the
presentation.
©2016 Enhesa. All rights reserved.

Compliance is our Business. Enhesa is the
market leader in global environmental, health and
safety assurance providing support to businesses
worldwide.
GLOBAL COVERAGE.
EXPERT ANALYSIS.

5
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6
Today’s Presenters
Claire Brown
EHS Regulatory
Consultant
Enhesa
Paige Davis
EHS Regulatory
Consultant
Enhesa
Ada Silakiewicz
EHS Regulatory
Consultant
Enhesa

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Today’s Webinar: 2016 Global EHS Regulatory Forecast
Today we will:
• Examine recent global EHS regulatory growth
• Discuss EHS areas that are currently the most challenging for companies
in terms of compliance
• Explore key regulatory trends in current and emerging laws, regulations,
standards and industry initiatives in each region of the world

INCREASING
REGULATION
WASTE
WATER
CARBON
EMISSIONS
GLOBAL
CHANGES
THE
STATUS OF
PENDING
LEGISLATION
CONSISTENCY
OF APPLICATIONS
REACH IDENTIFYING
APPLICABLE
REGULATIONS
SUPPLY
CHAIN REGS
NEW LAWS &
REGULATIONS
SAFE
DRINKING
WATER
GHS
WORKING
AT HEIGHTS
RISK
MANAGEMENT
- RMP
EDUCATING
STAFF ON EHS
REGULATORY
COMPLIANCE
LEVERAGING
THE DATASKILLED
RESOURCE
CHANGE IN
EUROPEAN
LEGISLATIONHAZARDOUS
WASTE
CHEMICAL
CONTROL
REGULATION
PACKAGING
(CIRCULAR
ECONOMY)
REGULATIONS
DIFFERENT
REGULATIONS
IN DIFFERENT
PARTS OF
THE WORLD
AIR
COMPLIANCE
REQUIREMENTS
MANAGEMENT
ACCOUNTABILITY
Survey Says: Biggest EHS Issues for 2016
When asked what the biggest EHS issues or challenges your company will face
in 2016, you said…

9
Global EHS & Product Regulatory Growth 2011-2015

10
EHS & Product Regulatory Distribution by Topic Globally
2011-2015

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Topics with Greatest Regulatory Growth 2011-2015

12
What’s Driving Global Regulatory Growth?
Public opinion
& pressure
Standardizing
requirements
due to
globalization
Increase in
climate
change
concerns
Limited
natural
resources
New
technologies
New evidence
from research

13
The Influence of Management System Standards
Source: http://www.iso.org/iso/home/standards/management-
standards/iso45001.htm©2016 Enhesa. All rights reserved.
• ISO new high level structure
• ISO 14001:2015 – focus on leadership and looking outside the
organization on environmental impacts
• ISO 45001 on the way and will replace OHSAS 18001

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Overview on UN Framework Convention on Climate Change (COP 21)
• Landmark agreement on 12 December 2015 in Paris,
France
• 195 participating countries
• Resulted in the Paris Agreement
• Will become binding on its members when 55 parties who produce more
than 55% of the world’s GHG have ratified the Agreement
• Every country that ratifies it must set a voluntary target for emission
reduction, also known as “nationally determined contributions” (NDCs)
• Requirement that all parties report regularly on their emissions and
implementation efforts and undergo international review
• Commits all countries to submit new NDCs every five years

2016 Global EHS
Regulatory Forecast
North America
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Geographic Spotlight:
• North America: United States and
Canada
Key Regulatory Trend:
• Climate Change
Regulatory Growth : North America: +67%
• Water Management: +85%
• Air Emissions Management: +168%
• Product Management: +209%
• Chemicals Management: +27%

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North America Overview
- Second highest GHG emissions in the world
- 6,235.10 million metric tons CO2e emitted in 2012
- Reduction Target: 26-28 % below 2005 levels by
2025
- Federally driven with some state initiatives
- Ninth highest GHG emissions in the world
- 714.12 million metric tons CO2e emitted in 2012
- Reduction Target: 30 % below 2005 levels in 2030
- “Floor, not a ceiling”
- Provincially driven, but federally coordinated

17
US Targets Biggest Sources of Emissions
2015 US Climate Initiative Impacted Industry
Adopted Clean Power Plan Electricity generation
Adopted New Source Performance Standards (NSPS)
for CO2 emissions from fossil-fuel power plants
Electricity generation
Updated Renewable Fuels Standards Fuel refiners
Proposed update to Corporate Average Fuel
Economy (CAFE) Standards for medium- and heavy-
duty vehicles
Vehicle
manufacturers
Proposed endangerment finding for emissions from
aircraft
Airplane
manufacturers
Energy efficiency standards for products
Product
manufacturers

18
State-led Climate Change Initiatives
State actions are largely voluntary commitments to reduction
of emissions
Example: Under 2 Memorandum of Understanding
• Subnational movement for states and cities to commit to greenhouse gas
emissions reductions
• 10 states have signed, including California and New Hampshire
Notable Exceptions:
• California expanded its cap-and-
trade program to cover
transportation fuels in 2015
• State-led energy efficiency and
renewable energy policies:
o Renewable Portfolio Standards
o Building energy efficiency

19
Canada’s Approach to Climate Change
• Climate change regulation is more holistic, less
industry-focused than the United States
• Already produces 80% of energy from
carbonless sources
• Provincially driven, but federally coordinated:
• Provinces are the main bodies adopting climate change laws and
regulations
• Canada federal coordinates cohesive approach:
– Set national emissions reduction target
– Develop carbon pricing schemes
• Potential expansion of federal involvement under Prime Minister
Trudeau

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Provinces at Different Stages in Development of Climate Change Laws
• Quebec: Cap-and-trade program in place since 2013
• Manitoba: Proposed comprehensive Climate Change and Green Economy Action
Plan
Expanded GHG emissions
reporting requirements
• Lowered threshold for reporting
to 10,000 tons per year from
25,000 tons
• Added new categories of sources
to the reporting requirement:
 Petroleum product suppliers,
etc.
• Optional: report mobile
equipment at facilities
Developing a cap-and-trade
program for GHGs
Will link program to existing programs
in Quebec and California under the
Western Climate Initiative (WCI)
Spotlight Ontario

21
Key Takeaways on North America Climate Change Regulations
Different approaches to regulating climate change
in the US and Canada
- Canada is moving towards holistic carbon pricing
mechanisms
- US is focusing on specific big polluting industries
Impact of controlling political party

22
Conclusions on North America
Continuing implementation of the
Globally Harmonized Standard for
the Classification of Chemicals
(GHS)
• Updates to regulations of Underground
Storage Tanks
• Ozone NAAQS lowered from 75 ppb to 70
ppb
• Hazardous waste management under RCRA
reform underway
In the United States

• Mexico, South America and Central
America
Key Regulatory Trends:
• Climate Change
• Expansion of Worker Protection
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2016 Global EHS
Regulatory Forecast
Latin America Regulatory Growth: Latin America:
+124%
• General Environment: +173%
• Air Emission Management: +157%
• Water Management: +153%

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Climate Change: Carbon Emissions
Many Latin American countries have pledged Intended Nationally
Determined Contributions (INDC)
Brazil:
• 475.41 million metric tons of GHGs emitted
in 2011
• Committed to reducing carbon emissions by
37% by 2025 and by 43% by 2030
Mexico:
• 462.29 million metric tons of GHGs emitted
in 2011
• Goal to reduce emissions by 50% less than
2000 levels by 2050
Regulation is not as robust as in North America

25
Establishing Climate Change Action Plan – Preliminary Stages
Setting strategies & goals
Costa Rica – adopted National
Energy Plan for 2015 to 2030
Collecting data
Peru – adopted legislation that
authorizes a national inventory of
GHG emissions (INFOCARBONO)

26
Establishing Climate Change Action Plan – Final Stages
Proposed laws &
regulations
Renewables incentive
programs & required use
Fiscal
incentives for
injecting energy
from renewable
sources into
distribution
network
proposed
Users
consuming
more than 300
kW would have
to obtain 20% of
energy from
renewable
sources
Adopted laws
& regulations
Mexico & Chile:
Standards for co-
generation plants
adopted
Venezuela:
Authorization &
further requirement
established to use
HFCs
Energy efficiency
standards of
products and
processes
Restrictions on
emissions and use
of HFCs/HCFCs
Argentina

27
Increasing Worker Protection
Two types of actions:
1. Protections for special classes of employees
2. Expansions of occupational health & safety
(OHS) committees

28
Certain Classes of Workers Saw Increases in Legal Protection
Mexico:
Increased minimum working age raised
from 14 to 15
Ecuador:
Restriction of activities children younger
than 17 cannot engage in dangerous work
Mexico: Disabled persons
Proposed protections for disabled workers,
including safety measures in case of an
emergency
Peru: Teleworkers
Employers are responsible for the
occupational health and safety of
teleworkers

29
Several Countries Proposed or Adopted OHS Committee Requirements
Creation of OHS committee
• Self-insured employers with
10+ employees must establish
an OHS committee
• Several proposals to expand
OHS committee requirement to
more employers
Expansion of pre-existing OHS
committee
Ecuador:
OHS committees must be registered
with the state
Mexico:
OHS committees must include
disabled employees
Peru:
Developing guidance on the
establishment and operation of an
OHS committee
Argentina

30
Conclusions on Latin America
Climate change regulation is building
Influencers:
• Paris Agreement and INDCs by individual countries
• Beginning to experience the consequences of climate
change
Focus tends to be on energy efficiency and
renewables
• Energy efficiency of processes most likely to affect industrial
companies
• Worker protection requirements are
increasing
• More countries are likely to raise minimum
working age. Ensure that young employees are
not engaged in dangerous activities
• Special groups are receiving attention

• Asia Pacific: China, India, Japan
and Australia
Key Regulatory Trends:
• Air pollution
• Water pollution2016 Global EHS
Regulatory Forecast
Asia Pacific
31
Regulatory Growth: Asia Pacific +104%
• Product Management: +19.20%
• Chemicals Management: +24%

32
China: Five Year Plan 2016-2020
Five
Year
Plan
The National
Development
and Reform
Commission
(NDRC)
National
People’s
Congress
Sets National
Policies
March 2016
Timeframe

33
The Five-Year Plan
Be a fundamental change in how economic growth and environmental protection are balanced
Be an approach to a greener, more modern economy
Include an audit system for outgoing officials that will take environmental protection into account
Promote clean production
Promote the use of new-energy vehicles
Set up a nationwide, real-time online environmental monitoring system and an emissions permit
system
Move toward a cap-and-trade system for carbon emissions
Create allocation systems for power and water use
Create a system to supervise environmental protection efforts at provincial level

34
Other Noteworthy Trends
 Climate Change
• Reduction target: 60-65% under 2005
levels by 2030
 Action Plan on Water Pollution
Prevention & Control

Five-Year Plan
Climate Change
Water Pollution Prevention and Control in
Key Areas
35
Conclusions on China
Economic slowdown

1 • Solar Mission
2 • Enhanced Energy Efficiency
3 • Water Mission
4 • Sustaining the Himalayan Ecosystem
5 • Green India
6 • Sustainable agriculture
7 • Strategic Knowledge for Climate Change
8 • Sustainable Habitat
36
India: National Action Plan on Climate Change
India’s National Missions:

37
Future Strategies Under the National Action Plan on Climate Change
• Increase use of solar and thermal technologies
• Mandate specific energy consumption with a
system for companies to trade energy-savings
certificates
• Introduce energy incentives including reduced
taxes on energy-efficient appliances
• Extend the existing Energy Conservation Building
Code
• Lay emphasis on initiatives such as urban waste
management and recycling and power production
from waste

38
India’s Approach to Climate Change
A few actions proposed to meet these plan targets include:
 Promoting of clean energy such as wind energy, solar energy, etc.
 Enhancing energy efficiency in industries
 Promoting safe, smart, and sustainable green transportation
network
 Pollution abatement
COP21: Commitment to use 40% of its electricity from renewable
sources by 2030. To achieve the proposed plan target, India has adopted
mitigation and adaptation strategies.

39
Conclusion on India
National Action Plan
Implementation underway,
may see regulations that
affect industry
Climate Change Conference
No regulatory development as of this date is
mandatory to the industry sector
• The government intends to implement the plan
to use 40% of the nation’s electricity
consumption from non-fossil fuel sources and
low carbon emission sources by 2030.
• Expected to cause significant changes in how
energy use and air emissions are regulated
and could lead to development of new
legislation on energy efficiency and carbon
emissions.

40
EHS Trends in Japan
Will undertake greenhouse
gas emission reductions
and reduce emissions by
utilizing Japan’s leading
technologies and support
for developing countries

41
Potential Climate Change Initiatives in Japan
Target: Reduce GHG emissions 26% by 2030 compared to 2013
baseline
Measures that affect industry could include:
• Promotion of compliance of energy saving standards for newly
constructed buildings
• Energy efficiency and conservation in buildings when remodeling
• Introduction of commercial-use water heater
• Introduction of highly efficient light
Implement measures targeting specific industries, including:
• Chemical
• Ceramics, stone, and clay products
• Pulp/paper/paper products manufacturing

42
Conclusions on Japan
Expected changes by 2030:
• Expand renewable and cleaner energy in the energy and
transportation sectors
• Develop offshore type wind power plants and renewable
heat power from waste heat of variety of processes
• Replace fossil fuel power plants with more energy
efficient designs and equipped with CO2 capture and
storage technology

43
Australia: Implementing National Clean Air Agreement
Range of actions over the next two years to address priority
issues of concern:
• Reviewing and strengthening air quality monitoring and reporting
standards
• Targeted measures to reduce emissions from key sources of air
pollution
• Improving access to air quality information for communities
• Fostering partnerships with industry
Established
15 December 2015

44
Australia: Next Steps Under Clean Air Agreement
Strengthened
standards for
particles
Reducing air
pollution from
wood heaters
Emission
standards for
new non-road
spark ignition
engines

45
Australia: Potential Climate Change Initiatives
Energy
Industrial processes and
product use
Waste
Target to reduce GHG emissions by 26 to 28 percent below 2005 levels
by 2030
To achieve this goal, affected sectors include:

46
Conclusions on Australia
Focus on air pollution and
climate change in the
foreseeable future
Industry could expect increased
regulations on air emissions such
as:
- Stricter emission standards
- Strengthened air quality
monitoring and reporting
standards

Geographic Scope:
• Europe (EU Member states)
Key Trend:
• Circular Economy
2016 Global EHS
Regulatory Forecast
Europe
47

48
Europe’s Circular Economy
• An economy where natural
resources are managed
efficiently and sustainably
throughout their life cycles.
• Opposition to linear take-
make-dispose model.
• Change of business model
(shared consumption)
It impacts many EHS issues:
• Products
• Waste management
• Air emissions
• Chemicals
What does circular economy mean?

49
Revised circular
economy package
released in
December 2015
Revision of
6
Directives
(e.g. WFD,
WEEE)
Main elements:
• Higher waste reduction targets
• Harmonization of producer's
responsibility obligations
• Phasing out of landfilling of waste
Proposed by the European Union

50
Trend Leaders: France and The Netherlands
"
France
• Law 2015-992 on Green Growth and Energy
Transition of August 17, 2015:
• Stringent provisions for plastic bags and
plastic cutlery
• Codification of planned obsolescence
Netherlands
• “From Waste to Raw Material" programme:
• Sustainable packaging
• Consume consciously
• Higher recycling rates per industry chain

51
Short-Term Impact of Circular Economy
New eco-design rules to
ensure durability of products
Higher targets for recycling
and re-use
Higher fees for waste
treatment
Taxes shifted from labour to
natural resources and pollution

52
Long-Term Impact of the Circular Economy
Loss of profit or risk of going out of
business:
• Companies producing low-quality non re-usable or non-recyclable
products
• Operators of landfill or incineration facilities

2016 Global EHS
Regulatory Forecast:
Middle East & Africa
Trends lack consistency within this region
due to geopolitical and economic disparities
Regulatory Growth: Middle East +147%
• Air Emissions Management: 246%
• Waste Management: +194%
Regulatory Growth: Africa +220%
• General Environmental: +732%
• Occupational Health: +773%
53

Qatar:
Restrictions to the
use of equipment
containing ozone
depleting
substances
UAE:
Prohibition on use
of chemicals
(e.g. asbestos,
HCB, PCB)
Kuwait:
New stringent
requirements on
employing female
and young workers
in certain
industries
(e.g. petrochemical
and cement
factories)
54
Noteworthy Developments in the Middle East

55
Noteworthy Developments in Africa
South Africa:
Requirement for
pollution
prevention plan for
facilities
generating
greenhouse gases
Morocco:
Registers for
hazardous waste
Algeria:
Authorization for
obtaining
hazardous
substances

56
Global Regulatory Forecast Conclusions

We hope you enjoyed today’s webinar!
Presented By:
Claire Brown, EHS Regulatory Consultant at Enhesa
Paige Davis, EHS Regulatory Consultant at Enhesa
Ada Silakiewicz, EHS Regulatory Consultant at Enhesa
Moderated By:
Tjeerd Hendel-Blackford, Business Development Manager EMEA at Enhesa

Enhesa 2016 Global EHS Regulatory Forecast Webinar

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