Wanzenried, Brian, Gavilon, Strategic Planning for Environmental Staffing, MECC, 2016, Overland Park

1. Strategic
Planning for
Environmental
Staffing
How many people do you
need on your environmental
staff and where should your
staff report within your
organization.

3. Staffing Regulatory Drivers
 Environmental Protection Agency
 Environmental Auditing Policy Statement1
 Incentives for Self-Policing: Discovery,
Disclosure, Correction and Prevention of
Violations2
1 “Environmental Auditing Policy Statement Notice”, Federal Register Volume 51, Number 131, July 9, 1986
2. “Incentives for Self-Policing: Discovery, Disclosure, Correction and Prevention of Violations” Federal
Register Volume 60, Number 246, December 22, 1995

4. Staffing Regulatory Drivers
 Department of Justice
 Effective Compliance and Ethics Program1
 Mitigating Factors in Sentencing2
 ISO 14000
 Structure and Responsibility
 Monitoring and Measurement
 Management Review
1 “Chapter 8 – Sentencing of Organizations”, Federal Sentencing Guidelines, Part B - Remedying Harm
From Criminal Conduct, and Effective Compliance and Ethics Program , §8B2.1. Effective Compliance
and Ethics Program
2. “Report from Advisory Group on Environmental Sanctions” Memorandum Dated December 6, 1993
from Phyllis J. Newton, Staff Director , United States Sentencing Commission

5. Environmental
Staff/Group
Size

6. “More than 72 percent of
EHS professionals feel their
department is currently
understaffed”
“The State of EHS in 2016” By: Jessica Lyons Hardcastle, Environmental
Leader: http://www.environmentalleader.com/2016/01/29/the-state-of-ehs-in-2016/#ixzz41fa9YO5n

7. Environmental Staff/Group Size
 How do you know if you are
understaffed?
 What are staffing levels at other
companies?
 How do you justify more staff?

8. Environmental Staff/Group Size
 Influencing factors
 Industry type
 Total number of employees and sites
 Company risk tolerance
 Delegation of responsibilities
 Personnel experience
 Outsourcing of duties

9. EHS Today Magazines’ Companies
Celebrated as America’s Safest
Industry
Employee Ratio
(Employees/EHS
Personnel)
Site Ratio
(Sites/EHS
Personnel)
Chemical Manufacturing (4) 119 2.5
Construction (8) 228 11
Electrical Supply (1) 78 0.4
Equipment Manufacturing (15) 235 1.2
Laboratory (2) 175 2.5
Mining (1) 45 0.01
Retail (2) 1,850 150
Service (3) 319 18
Combined (36) 300 13
” 8 Companies Celebrated As America’s Safest” by Sandy Smith and Laura Walter, “EHS Today The Magazine for Environment,
Health and Safety Leaders”, November 2012 , “America’s Safety Companies 2013”, “EHS Today The Magazine for Environment,
Health and Safety Leaders”, November 2013 and “America’s Safety Companies 2014”, “EHS Today The Magazine for Environment,
Health and Safety Leaders”, November 2014

10. Average Staffing Benchmark
by Revenue and Risk Profile
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
$250M
to $1B
$1B to
$10B
$10B to
$25B
$25B to
$50B
More
than
$50B
High Risk
Medium Risk
Low Risk
EHS & Sustainability Staffing and Structure Benchmark Report November 2012 National Association of
Environmental Managers

11. Risk of Understaffing
 DOJ Sentencing Guidelines for Environmental
Criminal Violations
“If the organization demonstrates … it had committed
the resources … sufficient, given its size and the nature
of its business, to achieve and maintain compliance
with environmental requirements… reduce by 3 to 8
levels.”
Department of Justice Memorandum from Phyllis J. Newton, Staff Director titled “Report from Advisory
Group on Environmental Sanctions” Dated December 6, 1993, Section 9C1.2 Mitigating Factors in
Sentencing (a) Commitment to Environmental Compliance.

12. Risk of Understaffing
Up to
25% Fine
Reduction
Up to
60% Fine
Reduction
Department of Justice Memorandum from Phyllis J. Newton, Staff Director titled “Report from Advisory
Group on Environmental Sanctions” Dated December 6, 1993, Section 9C1.2 Mitigating Factors in
Sentencing (a) Commitment to Environmental Compliance.

13. Risk of Understaffing
 DOJ Sentencing Guidelines for Environmental
Criminal Violations
“… personnel responsible for meeting and maintaining
compliance with environmental requirements are
competent on the basis of appropriate education,
training, and/or experience.”
Department of Justice Memorandum from Phyllis J. Newton, Staff Director titled “Report from Advisory
Group on Environmental Sanctions” Dated December 6, 1993, Section 9C1.2 Mitigating Factors in
Sentencing (a) Commitment to Environmental Compliance.

14. Strategies
 Consultants
 Cost comparison
 Compliance audits

15. Organizational
Location of Staff

16. Organizational Location of
Staff
 Where they should be located within an
organization?
 What authority level they should have?
 Who should they report?

17. Organizational Location of
Staff
 Influencing factors
 Industry type
 Company history

18. EHS Department Reporting
 Legal department: 30%
 Operations: 22%
 Engineering: 10%
 Other departments: 38%
“Organizational Benchmarking Study Results” by James Margolis, EHS Journal, March 24, 2011

19. EHS Audit Department
Reporting
 A separate corporate EHS department:
65%
 Internal audit: 15%
 Legal department: 5%
 Operations: 4%
 Compliance: 3%
 Other departments: 8%
“Organizational Benchmarking Study Results” by James Margolis, EHS Journal, March 24, 2011

20. Independent Environmental
Auditors
 EPA Environmental Audit Policy Statement
“Auditor objectivity should not be impaired
by personal relationships, financial or other
conflicts of interest, interference with free
inquiry or judgment. or fear of potential
retribution.”
“Environmental Auditing Policy Statement: Notice”, Environmental Protection Agency, Federal Register
Volume 51, Number 131, July 9, 1986, Appendix-Elements of Effective Environmental Auditing Programs,
Section II page 25009.

21. Environmental Audit Staff
 EPA Environmental Audit Policy Statement
“Environmental auditors should possess or
have ready access to the knowledge, skills.
and disciplines needed to accomplish audit
objectives.”
“Environmental Auditing Policy Statement: Notice”, Environmental Protection Agency, Federal Register
Volume 51, Number 131, July 9, 1986, Appendix-Elements of Effective Environmental Auditing Programs,
Section II page 25009.

22. Independent Environmental
Staff
 Advantages
 Operational goals will not over-ride
environmental requirements
 Accountability
 Disadvantages
 Create barriers
 Impede communications

23. Integration of EHS
“In most companies … EHS goals and
initiatives are isolated from core business
strategy and functions … EHS issues are
viewed as separate: a necessary
afterthought, an unwelcome but necessary
cost of doing business. If EHS management
systems are to become truly effective, this
distinction must dissolve.”
Brown, Howard and Timothy Larson. “Making Business Integration Work; A survival Strategy for EHS
Managers.” Environmental Quality Management. Spring 1998: 1 – 8.

24. Organizational
Level

25. Organizational Level
 What organizational level should your top
environmental position hold?
 What factors influence this level?

26. Organizational Level
 Influencing Factors
 Company size
 Company risk tolerance
 Job responsibilities

27. Advantages of High Level
Environmental Personnel
 Protection from prosecution
“The organization has designed and
implemented, with sufficient authority,
personnel and other resources …”
“Report from Advisory Group on Environmental Sanctions” Memorandum Dated December 6, 1993 from
Phyllis J. Newton, Staff Director , United States Sentencing Commission, §9D1.1(a)(3)

28. Advantages of High Level
Environmental Personnel
 Environmental personnel influence
“How influential is the EHS department or the
EHS Leader? … Is EHS able to effect change
— to establish and carry out safety or
sustainability initiatives, for example?”
“The “Right Home” for EHS” blog by the Phylmar Group, October 5, 2013.

29. Advantages of High Level
Environmental Personnel
 Improved recruitment
“If you are looking at a mid-level position,
perhaps the organization’s EHS leader will be
your boss. It’s important to assess his/her
position and influence — is he/she a
manager? Director? Vice President?”
“The “Right Home” for EHS” blog by the Phylmar Group, October 5, 2013.

30. Advantages of High Level
Environmental Personnel
 Improved planning and decision-making
input
“Environmental management to be more
prominent within the organization’s strategic
direction”
ISO14000: 2015 revisions, http://www.iso.org/iso/iso14001_revision

31. Advantages of High Level
Environmental Personnel
 Perception with regulators

32. Questions?