The Windsor Consulting Group Center for OSH Sustainability


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The Center for OSH Sustainability was launched in 2012 as a means to show stakeholders how occupational health and safety initiatives support sustainability. The business model defines how risk governane can be applied to identify, assess and evaluate, commmunicate, manage, and control occupational health and safety hazards in the workplace and off-the-job during recreational and sporting activities. The 24/7 approach to safety and health provides a better culture, performance, and productiivty in the lives of workers and their families. The support within the organization is transformed outside the organization so workers return home and back to work safely and healthy.

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The Windsor Consulting Group Center for OSH Sustainability

  1. 1. The Windsor Consulting Group, Inc. Occupational Health and Safety Sustainability Global Business Strategies
  2. 2. Mainstream Media / Awakened Public
  3. 3. Mainstream Media / Awakened Public
  4. 4. Sustainability “3-Legged Stool”
  5. 5. Morale Imperative Approach The World’s Problems - poverty - loss of biodiversity - lack of basic freedoms - climate change - hunger - resource depletion - environmental degradation - inequity Corporate Sustainability - companies are essential to solving these problems Social Responsibility - society can withhold their license to operate if they don’t TBL reporting Employees I R S Happens to be Good for Business - statistical correlations - case studies of select companies Consumers Go v
  6. 6. Banks and Investors Taking Action • Citigroup: largest U.S. bank; (Jan 06) will reduce GHGs from its 13,000 properties by 10% by 2011 • Bank of America: second largest U.S. bank; (Apr 05) $3K rebates on employee hybrids; (Mar 07) $20B over 10 years to support growth in environmentally friendly activities and reduce global warming; reduced mortgage rates on energy efficient homes • Goldman Sachs: (Nov 06) first major investment bank to adopt a comprehensive environmental policy; investing $1B in clean energy projects • JP Morgan Chase: (Apr 05) adopted Equator Principles • 348 shareholder resolutions on ESG issues 2005 (up 16% from 2003); 177 social resolutions reached a vote (up 22% from 2003)
  7. 7. Risk Governance X We Cannot Avoid Business Continuity Management X Not Effective Limited Insurance Coverage
  8. 8. Sustainability as a Responsible Care Initiative Sustainability is linked to ♦ Operating discipline ♦ Raw material selection ♦ Supply chain optimization ♦ Sustainable product development ♦ Social responsibility commitments
  9. 9. Sustainability “Old and New Models” Old Model ♦ Environmental Water & Air Pollution ♦ Occupational Injuries/Illness & Disease ♦ Unsafe/Unhealthful Work Environment ♦ Untrained workforce in health & safety ♦ Unsafe/healthful product for consumer ♦ Hazardous raw materials New Model ♦ Reduced air and water pollution ♦ Written SOPs and business rules ♦ Integrated safety management plan ♦ Application of risk governance ♦ Engagement of all stakeholders ♦ Product stewardship and lifecycle
  10. 10. Workplace Fatalities: 2.3M Deaths/Yr. Other Fatalities 2% Accidents & Violence 16% Communicable Diseases 27% Circulatory System Diseases 22% Malignant Neoplasms 27% Respiratory System Diseases 6%
  11. 11. Keys for Success in Sustainable Development Maintain the balance between economic growth, environment, occupational health and safety, and social aspects by: ♦ An integrated approach for business operations; ♦ Partnerships and collaboration among all stakeholders; ♦ A cross-disciplinary approach using OESH professionals; ♦ Control all risks and develop a business continuity plan Natural resources and environment Planet Occupational health and safety equity People Profit
  12. 12. Roles and Responsibilities VALDEZ 1948: 1961: 1970s: 1980s: 2002: 2010: 2011: Declaration of human rights WWF, Amnesty International Environmental movements in air, water, and land pollution 1984: Bhopal; 1986: Chernobyl; 1989: Exxon Valdez… Enron, WorldCom… BP Deep Water Horizon, mine explosions in Chile, WV, and China Fukushima Daiichi nuclear plant, Conoco/Phillips oil spill in China
  13. 13. Global Framework and Initiatives SarbOx The search for solutions is happening on a global scale and is being led by both public institutions and as part of private initiatives. Solutions include new legislation, stakeholder partnerships, voluntary agreements, codes of conduct, multilateral agreements, interdependent actions, etc.
  14. 14. Environmental Health and Safety as New Benefit Area Global Warming Ozone Depletion Water, Air, & Land Pollution Reduction of Biodiversity Resource Depletion Population Increase & Economic Growth
  15. 15. Business Continuity Recovery Model Success, recovery or failure? Fully tested effective BCM A B ss en s ubf ol ev eL i No BCM – lucky escape C Critical recovery point No BCM – usual outcome
  16. 16. Land and Water Pollution Agriculture + industrial activities + waste generation - Intensive use of chemical fertilizers storm water runoff - Intensive land and water exploitation Global Consumption of Fertilizers Ktons of NPK nutrient 160000 120000 80000 40000 0 1960 1970 1980 Year 1990 2000 Fertilizer consumed
  17. 17. Air Pollution Main environmental threat to human health -SO2 and NO2 emissions  Acid rain - Carbon monoxide and Carbon dioxide  Global climate change - Particulates  Respiratory disease CITY PARTICLES SO2 NO2 (μg/m3) [1995] (μg/m3) [1998] (μg/m3) [1998] WHO STANDARDS < 90 < 50 < 50 PARIS 14 14 57 NEW YORK .. 26 79 BEIJING 377 90 122 BOMBAY 240 33 39 TOKYO 49 18 68 STOCKHOLM 9 3 20
  18. 18. Environmental and Occupational Health and Safety Market Segments ♦ Building and Construction ♦ Aerospace and Aviation ♦ Chemicals ♦ Energy and Utilities ♦ Food and Beverage ♦ Hospitality ♦ Manufacturing ♦ Mining and Metals Processing ♦ Oil and Gas ♦ Pulp and Paper ♦ Transportation
  19. 19. Roadmap Path Forward Key Capabilities / Core Competencies Risk Governance Use sustainability principles to drive project experience toward risk communication, risk assessment, risk management, and risk planning Use sustainability in modeling and decision support tools to include root cause analysis related to occupational safety and health and environmental issues Use sustainability to enhance product line to analysis of natural disaster likelihood and impacts of climate change (supports flood /drought damage, tornados/hurricanes, and consequence of business interruption) Independent Verification and Validation and Alternatives (VV&A) Analysis Use sustainability to evaluate business investment / acquisition cost and performance models in situations of uncertainty, product stewardship, workforce development, and lifecycle analysis Use sustainability in economic risk modeling applications involving both occupational and environmental health and safety
  20. 20. Roadmap Path Forward Key Capabilities / Core Competencies Quality Management and Certification can use sustainability to: ♦Expand role of professional certified auditors for ISO standards through quality evaluations ♦Meet business requirements of ISO 9000, 14000, and 26000 ♦Synchronize and innovate offerings for training, and education while promoting other business-related services New Occupational and Environmental Health and Safety (OEHS) Consulting Products and Services can use sustainability to: ♦Develop as a center of excellence to support business development and diverse growth into other market segments ♦Promote risk governance principles to manage risk ♦Align GRI index to include all aspects of OEHS BLUF: Sustainability is an innovative index of excellence
  21. 21. Roadmap Path Forward
  22. 22. Implementing Sustainable Development Assess the situation Measure success Develop a strategy Implement a strategy Has your company taken any SD initiatives? Can you identify any gaps? What can you do as an individual, as a team, function or company, to contribute to limit use of energy, water and other resources? What resources will enable you to achieve this? Can you identify any barriers? Alternative model: The Sigma Guidelines provide a systematic model of sustainability management (
  23. 23. 5 Stages and Emerging Drivers 5. Purpose / R ea ct Iv e P ro ac tI ve Passion • Strong Leadership • Innovative Planning • Business Opportunities – “Carrots” 4. Integrated Strategy • Risk Management – “Sticks” • Beyond Compliance 3.Eco-Efficiencies • Regulatory/Litigious Threat • Public Relation Crisis • Compliance 2.Regulatory Pressure / Enforcement • NGO Social/Political Pressure 1. Pre-Compliance
  24. 24. The Sea of Demanding Stakeholders Financials Shareholders & Investors NGOs / Civil Society Employees Mainstream Media Awakened Public Non-financials / Reputation Global Markets / EU Customers Company Value Competitors Governments at all levels Banks & Insurers Economists Scientists
  25. 25. Mega-Issues + Stakeholders = New Market Forces Pollution & Pollution & Health Health Climate Climate Climate Climate Crisis … Crisis … Other Crisis Other Crisis Climate Climate Crisis Crisis Water Water Crisis Crisis Energy Energy Crisis Crisis Pandemics Pandemics Erosion Erosion of Trust of Trust Financials NGOs / Civil Society Mainstream Media Awakened Public Customers Competitors Employees Shareholders & Investors Non-financials Global Markets / EU Company Value Governments at all levels Banks & Insurers Economists Scientists
  26. 26. Two-part Business Case Financials Shareholders & Investors NGOs / Civil Society Employees Mainstream Media Awakened Public Non-financials / Reputation Global Markets / EU Customers Company Value Competitors Governments at all levels Banks & Insurers Economists Scientists
  27. 27. The Catch 1. Standardize senior leadership approach  Include SD in vision / mission / strategies  Reinforce it as a business strategy rather than a compliance requirement or philanthropy issue  Avoid “green-washing” hype  Visible support: speeches, questions, actions 2. Engage, empower, and innovate entire company  Solicit ideas from the workforce  Provide cross training and education of science and business 3. Align and synchronize performance metrics  Develop measurement / management systems  Integrate into recognition / reward systems
  28. 28. The Business Case for Sustainable – Example: Cleaner Production Efficient use of water, energy, raw materials Starting “at the source” (not end-of-pipe)  Cost savings on water, energy, raw materials, directly add to bottom-line result  Improved efficiency = reduced waste/leakage  Technology leadership  Contribution to solve environmental issues  Positive company reputation and brand name
  29. 29. The Business Case for Sustainable – Example: Eco-Efficient Products More efficient and eco-friendly products Example: Energy Star products (the US) Blue Angel (Germany)  Preferred by consumers = lower running cost of equipments & tax breaks = lower cost in the life cycle = company can place a price premium = higher profits  Technology leadership and brand recognition  Contribution to solve environmental issues  Less concern for the waste if using less toxic materials = more appealing products
  30. 30. Occupational Health and Safety as New Benefit Area
  31. 31. Occupational Health and Safety as New Benefit Area Projected Prevalence of Chronic Conditions Number of People With Chronic Conditions (in millions) • Between 2000 and 2030 the number of Americans with chronic conditions will increase by 37 percent, to over half of the population, an increase of 46 million people. Source: Wu, S. and Green, A. (2000). Projection of Chronic Illness Prevalence and Cost Inflation. RAND Corporation in Anderson, G. (2010) . Chronic Care: Making the Case for Ongoing Care. Robert Wood Johnson Foundation.
  32. 32. Occupational Health and Safety as New Benefit Area The Prevalence of Multiple Chronic Conditions • In 2006, 22 percent of all Americans had at least one chronic condition and 28 percent had two or more chronic conditions. Percentage of All Americans • Thus, 50% of the population was affected by a chronic condition. • As the population ages, these percentages will increase. Source: Medical Expenditure Panel Survey, 2006 in Anderson, G. (2010). Chronic Care: Making the Case for Ongoing Care. Robert Wood Johnson Foundation.
  33. 33. Occupational Health and Safety as New Benefit Area Prevalence of Multiple Chronic Conditions Increases with Age Percentage of Population With Chronic Conditions • Prevalence of chronic conditions increases at all ages. • 73% of people age 65 and older have multiple chronic conditions. Source: Medical Expenditure Panel Survey, 2006 in Anderson, G. (2010). Chronic Care: Making the Case for Ongoing Care. Robert Wood Johnson Foundation.
  34. 34. Occupational Health and Safety as New Benefit Area Healthcare Spending Almost Doubles with People Who Have Chronic Disease Average Annual Health Care Expense Per Person Source: Medical Expenditure Panel Survey, 2006 in Anderson, G. (2010). Chronic Care: Making the Case for Ongoing Care. Robert Wood Johnson Foundation
  35. 35. Occupational Health and Safety as New Benefit Area Lost Productivity and Chronic Diseases
  36. 36. Occupational Health and Safety as New Benefit Area Productivity Losses and Selected Chronic Conditions
  37. 37. Occupational Health and Safety as New Benefit Area Chronic Conditions and Average Annual Days Lost by Age of Worker
  38. 38. Occupational Health and Safety as New Benefit Area (Estimated) Average Annual Cost of Absenteeism per Employee by Chronic Condition
  39. 39. Occupational Health and Safety as New Benefit Area Why Should Employers Be Interested in Addressing Chronic Diseases at Work? • Workforce is aging – chronic disease burden growing! Preventable illness makes up 70% of the total burden of disease and their associated costs 10 modifiable risk factors account for approximately 25% of all healthcare expenditures (Anderson, 2000) Employer medical costs average $7910 per employee annually (O’Donnell, 2010); as RFs increase, so do costs Effective worksite health promotion programs have demonstrated a positive impact on employee morale, employee health and risk behaviors, productivity, health care costs and ROI range between $3-$5 to $1
  40. 40. Occupational Health and Safety as New Benefit Area Healthy People 2020 Worksite Health Promotion-Related Objectives • Increase the proportion of worksites that offer an employee health promotion program to their employees. • Increase the proportion of worksites that offer nutrition or weight management classes or counseling. • Increase the number of employed adults that have access to and participate in employer-based exercise facilities and exercise programs • Reduce the rate of illness and injury cases involving days away from work due to overexertion or repetitive motion. • Reduce occupational skin diseases or disorders among full-time workers • Reduce new cases of work-related, noise-induced hearing loss
  41. 41. The Business Case for Sustainable – Example: Health and Safety Healthier and happy workforce, better neighbors, healthier and safer products, lower risks, and reduced impact on the environment  Reduced medical costs for employees  Fewer restricted or lost working days  Increase in productivity and quality of life  More efficient/productive workforce  Happy, health/safety conscious consumers  Positive company reputation/brand name  Access to highly qualified human capital
  42. 42. What would success look like?.... ♦ A widely-shared synchronized understanding of the role of occupational and environmental sustainability ♦ Clear alignment behind key strategic objectives ♦ Strong and effective global investment capacity for shareholders ♦ Unification, standardization, and alignment of all stakeholders ♦ Effective internal and external collaboration and innovation of products and services ♦ An emphasis on continual learning (from both success and failure)…
  43. 43. Questions?
  44. 44. More Information? WCG Offices located in Washington, DC and New York Metro Area Email: Tel: 1+ 732.221.5687 Websites: and