Overview Environment, Health & Safety (EHS) Programs

Transcription

1 Overview Environment, Health & Safety (EHS) Programs Environment, health and safety has historically been a core competency for GE. Wherever GE operates around the globe, we apply the same environment, health and safety expectations. We use best-in-class tools and training, and establish clear operational accountability to deliver results. Sustaining and improving EHS performance requires commitment at all levels of the company, execution of performance expectations, measurement, and rigorous accountability processes. It also requires program innovation so we can plan to manage risks as the company grows its service and software presence in markets across the world. Our EHS programs include core requirements and key differentiators that have been identified as innovative approaches. GE s EHS policy includes clear goals for all our operations around the world: Expect 100% compliance everywhere GE operates or sells products Eliminate hazards and provide a safe working place Minimize the use and release of hazardous materials Assess all new activities and products for environment, health and safety impacts Implement the GE EHS management system in all locations To make these goals a reality, the EHS management system contains four key building blocks: Operational responsibility and accountability for performance Environment, health and safety programs applicable to GE s global operations Effective training and tools for GE operations Metrics EHS Program Management and Oversight GE has a broad network of experts across the globe to support Environment, Health and Safety (EHS) functions. GE operates 10 task forces on topics such as industrial hygiene, air, water and ergonomics with cross-business participation. GE also operates 16 geographically focused, cross-business EHS networks for our EHS professionals in places where GE has a significant presence, including Mexico, Southeast Asia, China, Middle East, Russia and Europe. In addition, working groups are established to tackle challenging cross-business issues, such as process safety management and management of change. Ultimate responsibility for EHS performance resides with business leaders, including plant managers and service operations leaders who are supported by more than 1,000 GE EHS professionals. GE has several processes that ensure that the EHS programs have breadth and depth across the globe. Reviews Session E is a review forum in which the operating leader of a facility, service team or other GE entity reports on his or her EHS performance, challenges and path forward to GE s VP, EHS. This process drives a deep understanding of, and responsibility for, EHS excellence to the decisionmakers; those people who fund, approve and set the tone and culture for our operations. EHS professionals are expected to support and guide the implementation of the EHS program, but EHS leadership is driven by GE s operating managers. In 2012, several aspects of the Session E processes are being updated to emphasize risk management throughout the process. In the past, Session E was held nearly annually with each operating business. In the future, businesses that operate in more challenging regions or environments will have more frequent reviews by the corporate team. In addition, in 2012 we have identified a number of leading indicators to improve our prevention focus. In addition to sessions that are held with GE s operating businesses, cross-business sessions are held in global regions to foster business collaboration and best practice sharing. GE holds regional Session Es in the Middle East, Russia, Mexico, Europe, Latin America and Canada general electric company 1

2 Training GE works to ensure that operations leaders are enabled to lead EHS by offering Operations Managers EHS Training (OMT) sessions. In 2011, GE conducted more than 30 sessions, nearly two-thirds of which were conducted outside the U.S. The content is a two-day interactive course where attendees learn about GE s EHS expectations and how to demonstrate leadership and excel in performance. The content focuses on EHS compliance and risk, which is integrated with leading-edge tools and table-top examples driven from real-world experiences. Most important, employees interact with their peers and develop action plans to lead EHS in their organizations. In addition, there are more than 800 EHS training courses, translated into 24 languages. Guidelines GE has developed EHS Frameworks consisting of 27 elements, more than 680 questions and guide notes providing the roadmap to drive compliance with GE and applicable legal requirements, as well as global consistency. These tools have been incorporated into Gensuite, a Web-based EHS data management system developed by GE and translated into 12 languages. To facilitate compliance with the multitude of global EHS laws and regulations, GE provides modules for legal requirements in 74 jurisdictions. GE has instituted an acquisition/disposition due diligence process to ensure that risks of remedial and other EHS liabilities are factored into the transaction. At the corporate level, a team of EHS professionals provides support on significant transactions, such as developing remedial plans, and integration plans for acquired operations to implement GE s EHS management systems. GE also has an active global Waste Site Qualification Program wherever GE operates; waste transfers are reviewed as part of this program. GE uses several other mechanisms, in addition to those mentioned above, to ensure compliance in meeting GE global EHS expectations: Self-assessments to identify and resolve compliance issues. A companywide database tracks issues to closure and alerts management of any findings not timely addressed. Internal business-level audits that provide oversight and confirmation of compliance with law and implementation of GE best practices and programs A requirement that 90% of compliance findings be closed within 30 days and 100% within 180 days Third-party audits each year to qualify specific environmental management systems for certification by the International Standards Organization and GE s new Environmental Excellence program Monitoring of results by operations and EHS leadership through digital cockpits Global recognition programs for the best sites: VPP/Global Star and Environmental Excellence Soliciting Feedback GE requires its sites to complete a periodic EHS Perception Survey as part of the Session E process. The survey contains a set of questions answered anonymously by all employees in an operation. This helps the EHS teams understand the level of employee engagement, strength of programs and gives insight into the employees views of leadership s commitment to EHS. This survey highlights the degree to which EHS performance is based on a partnership between employees and the organizational leadership; performance is predicated on the degree of trust and commitment among all members of the workforce. This survey is a key discussion topic of Session E; operating leaders are encouraged to use the EHS Perception Survey results to engage in a dialogue with their employees to forge common solutions to EHS issues in their operations. Measurement Through Gensuite, real-time performance metrics are available to EHS teams and operating leaders across the globe. The metrics are aggregated on a quarterly basis and distributed to GE s senior leaders; EHS leadership carefully reviews these results and uses them to set performance trends, best practices and potential program improvements. In 2012, GE modified the metrics to illustrate progress to our internal leaders. Working with internal and external EHS stakeholders, customers and suppliers, we have identified several metrics that have been predictive of EHS performance. Our experience has been that by focusing on these EHS indicators, the behaviors, activities and processes that drive EHS performance can be a sustained over a longer period. The EHS team will continue to examine other leading indicators, both in EHS and other disciplines, to analyze continued impact. Learn more about GE s remedial EHS activities general electric company 2

3 Metrics EHS Injury & Illness Areas (a) Recordable Rate Lost-Time Rate (b) Total VPP Sites Air & Wastewater Exceedances Air Wastewater GE U.S. Toxic Release Inventory (TRI) On-Site Data (c) TRI On-Site Releases (in millions of pounds) Water Use (In Billions Of Gallons) (d) Total Once-Through Cooling Water Waste Generation (d) Hazardous Waste (in metric tons) 41, ,100 Non-Hazardous Waste (in metric tons) 211, ,000 Recycled Metals (in metric tons) (e) - 112, ,000 GE Greenhouse Gas Emissions and Energy (d) GE Operational GHG Emissions (million metric tons of CO 2 -equivalent emissions) GE Operational GHG Intensity (metric tons per $ million revenue) GE Operational Energy Intensity (MMBtu per $ million revenue) GE Operational Energy Use (million MMBtu) Additional Metrics Global Penalties Paid (in $ thousands) Training Units Completed (millions of units) U.S Training Units Completed (millions of units) Non-U.S Agency Inspections U.S Agency Inspections Non-U.S Spills & Releases (a) Rates are based on 100 employees working 200,000 hours annually. (b) Lost-Time rate uses the OSHA calculation for days-away-from-work cases (transfer or restricted cases are excluded). (c) This data will always lag by a year, since U.S. TRI data for the prior year is not submitted until July 1 as a matter of law. (d) For GHG and energy-related metrics, each year GE adjusts its 2004 baseline inventory to account for divestments and acquisitions. For , GHG and energy-related data were not collected for new acquisitions. As a result, adjusted results for are not available. For water and waste-related metrics, each year GE adjusts its 2006 baseline inventory to account for divestments and acquisitions. For , water and waste-related data were not collected for new acquisitions. As a result, adjusted results for are not available. Complete water and waste data were not collected before (e) Recycled metals first reported in For recycled metals metrics, each year GE adjusts its 2009 baseline inventory to account for divestments and acquisitions. In early 2011, GE divested its controlling interest in NBCUniversal, and now has a minority ownership stake in the company. Our 2010 data includes NBCU but, in accordance with the WRI/WBSCD GHG Accounting Protocol followed by GE, we will not include NBCU data for 2011 and subsequent years and our baseline will be adjusted accordingly. For comparison purposes, if NBCU s 2010 data were excluded, our overall GHG and energy use performance improves by approximately 1% while energy intensity stays relatively flat general electric company 3

4 Our Suppliers GE sets expectations for its suppliers regarding environment, health, safety, human rights and employment, and security practices, and conducts on-site inspections of many suppliers, mostly in emerging markets. Established under our integrity program, the inspections evaluate suppliers for environment, health and safety, labor, security and human rights issues. Under this program, GE has required thousands of suppliers to improve their environmental performance, uphold sound labor practices and obtain permits to come into compliance with local law and GE standards. In 2011, GE conducted initial qualification reviews and repeat assessments of more than 2,600 suppliers, identifying almost 16,000 findings. Suppliers have closed more than 95% of findings since While most suppliers meet expectations, GE terminated over 200 suppliers in 2011 for poor performance in our assessment program. In addition to requiring suppliers to address deficiencies identified through on-site assessments, we are working to provide training to suppliers and have identified capacity-building projects in places where GE has a significant supplier base. Supply Chain Due Diligence Compliance with our Supplier Program is mandatory under GE s Integrity program and is a precondition to receiving an order from GE. GE generally obtains contractual commitments from goods suppliers to comply with GE s supplier expectations, including audit and termination rights. GE conducts on-site inspections of many suppliers, mostly in the developing world, prior to placing orders and periodically thereafter. Third-party firms conduct some inspections. In the six-year period spanning , assessments have been conducted in 67 countries. In addition to focusing on corrective action for issues identified during on-site assessments, GE follows an eyes always open process to investigate issues identified from other sources, such as press reports and ombudsperson complaints, and requires corrective action where appropriate. GE verifies the execution of the Supplier Program with spot checks, conducted by teams from the corporate audit staff, other businesses and/or Corporate Environmental Programs, of a sample of suppliers that were previously assessed by the business teams. GE Teams GE s supplier review program relies on active participation by many functions within the company. Each business global sourcing leader has primary responsibility for execution of supplier reviews and enforcement of the program, including tracking and reporting metrics. GE s EHS, Legal and Human Resources teams provide training, interpretation of local regulatory requirements, and assistance with developing and reviewing corrective action plans. Since 2008, more than 4,900 personnel globally have taken the awareness training, and more than 500 have received detailed training on how to conduct audits. Awareness training for the sourcing community involves an online training course covering GE s expectations for suppliers in environment, health, safety and employment practices; human rights; our on-site due diligence requirements; and functional roles and responsibilities. Auditor training provides detailed instruction on using GE s on-site assessment questionnaire; inspecting facilities; reviewing documents and conducting interviews to identify substandard EHS conditions; recognizing human rights issues and noncompliance with minimum wage, minimum age and maximum-hour requirements; and encouraging suppliers to implement corrective actions. GE continues to improve the company s auditor training and audit-closure tracking to emphasize obtaining sufficient, objective evidence of finding closure. In addition, the GE corporate EHS team reviews all findings open more than 180 days general electric company 4

5 Supplier Expectations GE suppliers are expected to: Comply with laws and regulations protecting the environment, continuously improve their resource efficiency and not adversely affect the local community Provide workers a safe and healthy workplace Employ workers above the applicable minimum-age requirement or the age of 16, whichever is higher Comply with laws and regulations governing wages, hours, days of service and overtime payment for workers Not utilize forced, prison, or indentured labor, or subject workers to any form of compulsion or coercion Allow their workers to freely choose whether or not to organize or join associations for the purpose of collective bargaining as provided by local law Prohibit physical, sexual or psychological harassment or coercion Assure that workers are hired, paid and otherwise subject to terms and conditions of employment based on their ability to do the job, not on the basis of their personal characteristics such as race, national origin, sex, religion, ethnicity, disability, maternity, age and other characteristics protected by local law (This does not bar compliance with affirmative preferences that may be required by local law.) Maintain and enforce a company policy requiring adherence to ethical business practices, including a prohibition on bribery of government officials Respect the intellectual property of others Adopt policies and establish systems to procure tantalum, tin, tungsten or gold from sources that have been verified as conflict-free, and provide supporting data on their supply chains for tantalum, tin, tungsten or gold to GE when requested, on a platform to be designated by GE Maintain security measures consistent with international standards for the protection of their operations and facilities against exploitation by criminal or terrorist individuals and organizations Expect their suppliers to conform to similar standards Supplier Metrics Assessments by Region China 48% 46% 43% Latin America 21% 21% 21% India 14% 12% 13% Europe, Middle East & Africa 8% 13% 13% Rest of Asia 8% 8% 10% North America 1% 0% 0% Findings by Category Health & Safety 37% 42% 39% Environment 26% 28% 29% Emergency Preparedness 20% 16% 18% Labor 16% 13% 12% Dormitory 1% 1% 2% Findings by Region China 58% 60% 64% Latin America 17% 15% 13% India 17% 13% 9% Europe, Middle East & Africa 4% 7% 5% Rest of Asia 4% 5% 9% North America 0% 0% 0% 2012 general electric company 5

6 Performance Against Commitments 2011 Commitments Progress 2012 Commitment Continue efforts to decrease U.S. health-related absence Develop pilot programs to reduce healthrelated absence outside the U.S. Strive to limit the annual increase in U.S. healthcare cost Reduced related absences by 2% (U.S.) Health-related absence programs piloted in 8 countries Since 2008, GE has managed U.S. healthcare costs to under 3% average growth a year Continue to reduce U.S. health-related absence Operationalize international health-related absence program; launch in 14 countries in 2012 Strive to limit the annual increase in U.S. healthcare cost 15% reduction in recordable injuries and illnesses Reduced GE s injury and illness rates by 26% 15% reduction in recordable illness and injuries 15% reduction in lost-time cases Reduced GE s lost time by 19% 15% reduction in lost-time cases Plans for 2011 include more extensive training and follow-up with the businesses that are piloting human and organizational performance techniques, as well as integrating these concepts into our existing management systems Trained multiple business Environmental, Health & Safety (EHS) teams and continued to benchmark on human performance inside and outside of GE Explore opportunities to integrate human and operational performance (HOP) thinking into EHS practices by hosting a multi-company summit on human performance and EHS processes. Begin using risk maps to deepen focus on risk prioritization. Zero work-related fatalities One fatality Zero work-related fatalities Add 20 new VPP/Global Star sites GE ended the year with 119 facilities recognized in the OSHA VPP process and 125 facilities recognized in other safety excellence programs globally. GE continues to be the leader in the OSHA VPP program, with the most number of recognized general industry facilities. GE now has facilities that have been recognized in safety excellence programs in 33 countries. CEP Health and Safety programs and our VPP processes were audited by a team of four OSHA program managers for recertification into the OSHA VPP corporate program. There were no recommendations for changes or additions to any of the GE programs. The VPP Evaluation Team found the GE Corporation s overall best practice is our cross-functional approach to safety, and re-certified GE s corporate program. Continue to drive safety and environmental excellence programs at sites globally Perform the first year of Phase 2 of the Hudson River Dredging project In 2011, despite delays caused by large floods, safely removed and disposed of over 350,000 cubic yards of sediment Continue to improve project productivity and safely remove and dispose of over 350,000 cubic yards of sediment 2012 general electric company 6

7 Performance Against Commitments 2011 Commitments Progress 2012 Commitment GE continues to work toward identifying the root cause of air and water exceedances and implementing robust corrective actions to prevent recurrence. In 2011, GE will reduce wastewater and air exceedances by implementing programs focused on reducing sanitary wastewater exceedances and enhancing environmental framework execution. Wastewater and air exceedances were reduced by 45% and 37%, respectively. Reportable spills increased to 56, the majority of which were associated with construction, demolition and remediation projects that were taking place in jurisdictions with requirements for reporting very small quantities of any spilled material. Reduce wastewater and air exceedances by implementing focused programs and enhancing the technical knowledge of GE s EHS professionals. Reduce combined wastewater and air exceedances and spills by 30%. Continue to implement professional development programs in GE's growth regions: China, Brazil, India and the Middle East. Support established programs in Mexico and host a cross-business professional development event in the United States. Hosted EHS forums in the U.S. and China based on delivering both EHS and leadership training to GE s EHS community and engaging various stakeholders, including government officials, on current trends and advancements in the discipline Explore opportunities to continue to enhance the development of GE s EHS professionals by cross-business benchmarking and best practice sharing of onboarding and careerpath programs, including early-career leadership programs Engage business leaders in driving GHG and energy intensity reductions. Implement an ecomagination scorecard for GE's internal environmental footprint, against which activities that drive the goals will be measured. Established process for engaging business leaders; developed and launched an ecomagination scorecard (ecoframework) Measure business and site performance against the ecoframework and develop new approaches for measuring relevant efficiency improvements across the value chain Implement water Kaizen Blitz events at GE's top water-use locations. Drive the use of GE's measurement and treatment technology in water-use operations. GE implemented water Kaizen Blitz activities, which in part resulted in GE s freshwater use being reduced by 35% from the 2006 baseline Implement water Kaizen Blitz events and Energy Treasure Hunts at GE's top water-use locations. Drive the use of GE technology and continue to drive a culture change in GE s use of resources. Zero fines 25 actions seeking penalties totaling $210,000 during were settled for a total of $38,000. Zero fines 100% completion of regulatoryrequired training GE completed 99% of its required EHS training. GE also hosted 34 EHS leadership training courses for its operational management, 11 of which were specifically for newly acquired businesses. During 2011, 804 people attended the course. 100% completion of regulatory-required training. In 2012, we will be developing a course specifically tailored to Services operations leaders and leaders engaged in product stewardship and compliance activities general electric company 7

8 Performance Against Commitments 2011 Commitments Progress 2012 Commitment By 2015, GE will improve the energy intensity of its operations by 50% and will reduce its absolute GHG emissions by 25% (both using the 2004 baseline) In 2011, energy use was lowered to million MMBtu, a reduction of 19% from the adjusted 2004 baseline and a 4% reduction from In addition, GHG emissions were lowered to 5.09 MT of CO 2 equivalent, a reduction of 29% from the adjusted 2004 baseline. By 2015, GE will improve the energy intensity of its operations by 50%, and will reduce its absolute GHG emissions by 25% (both using the 2004 baseline) GE has found that improvements in the EHS and labor practices of our suppliers were most sustainable when they had management systems in place to monitor, measure and improve performance. In response to challenges in encouraging adoption of such systems, we are developing a new management-systems approach focused on select suppliers to encourage improvements in their programs. This approach will be piloted in We developed a new approach that is designed to measure the improvement in management systems. GE s new Key Performance Indicator (KPI) Management Systems Tool now gauges supplier performance and management systems from year to year with a transparent scoring system and lays out building blocks for long-term improvement. Begin piloting this program with our suppliers at the beginning of the year and continue to do so throughout We will use the data collected through the KPI tool to create a baseline of our suppliers performance, so we can more easily measure progress. Launch Supplier Partnership Program to engage with specific suppliers on targeted capacity-building efforts Recognizing that building supplier capacity requires time and involvement of multiple stakeholders, GE leveraged the on-site assessment process and other existing venues for interaction to provide targeted assistance to suppliers: train-the-trainer sessions have been delivered during on-site assessment processes, compliance and EHS training has been added to conference agendas, and individual GE businesses have established relationships with key suppliers to provide advice and access to outside trainings. Continue execution of Supplier Partnership Program to engage with specific suppliers on targeted improvement programs Continue capacity-building efforts and look for additional opportunities to partner locally to improve supplier capacity We continued our efforts underway with the Institute for Sustainable Communities (ISC) and Guangdong EHS Academy. The GE Foundation and other donors provided additional funding to ISC to expand the program to the Shanghai area. In Mexico, GE has continued its work with PROFEPA, the country s environmental enforcement agency and its Clean Industries (CI) program to encourage suppliers to adopt environmental management and compliance systems. Although the program is at an early stage, 12 GE suppliers have already been certified through the CI program. Continue capacity-building efforts with the Institute for Sustainable Communities (ISC) in China and PROFEPA in Mexico, including encouraging more suppliers to obtain Clean Industry Certificates through the CI program. We will also look for additional opportunities to partner locally to improve supplier environmental-management capacity general electric company 8