This document discusses moving from a regulatory compliance approach to environmental management to an environmental management system approach focused on continuous improvement and cost savings. It outlines ideas for the future, including measuring sustainability and developing verifiable sustainability reporting. The document emphasizes that environmental, health and safety investments can provide returns like increased financial performance, cost savings, and strengthened brand value.

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