Solution Overview Better manage environmental, occupational safety, and community health hazards by turning risk into opportunity

Transcription

1 Environment, Health and Safety We make it happen. Better. Solution Overview Better manage environmental, occupational safety, and community health hazards by turning risk into opportunity April 2014 A better business is Safe, Healthy and Clean

2 Background HCC consultants provide EHS management services that are a tailored fit with each organization s unique risk position and management priorities Most organizations are concerned about managing activities with known risks associated with environmental impacts and safety hazards particularly when those risks are regulated by governmental environmental and safety authorities. Some organizations distinguish themselves from competitors by taking a broader, more long-term view of risk. They look beyond the realm of regulated risk and recognize that their organizations are vulnerable to unregulated risks stemming from operational activities, potential incidents, or hazards which can present significant exposure. HCC consultants provide EHS management services that are a tailored fit with each organization s unique risk position and management priorities. Figure 1: Organizational Risk Position Where Are You? Currently Unknown or Not Knowable Known and Not Regulated Known and Regulated 1

3 Today s Environmental and Safety Challenges Environmental and safety standards put pressure on managers to comply while also supporting business efficiency. These standards are often complex and difficult to decipher. Our EHS practice includes technically qualified specialists who are also well-rounded management consultants. This combination of skills allows them to assist clients with fulfilling or surpassing compliance obligations while adding business value. HCC assists clients with innovating business operations to shed compliance burdens while improving efficiency and lowering costs. Whether an organization has a small missionfocused staff or decentralized worldwide operations with dedicated EHS staff, there are many challenges to sustaining compliance and realizing ongoing improvement. Despite best intentions and significant investment, requirements associated with environmental permits, plans, and reporting are often missed, or operational controls fail to prevent a release or incident. Such situations can quickly cascade to unexpected, sometimes unpredictable, outcomes, such as gross inefficiency, business disruption, or unbudgeted costs. Poorly controlled safety hazards can result in employee fatalities, injuries, or illnesses. The challenge is to enact an EHS business function that assures staff capability, capacity, and confidence; takes a systematic approach to self-identify and close program gaps; and thoughtfully integrates necessary activities into existing processes so they can be seamlessly and reliably carried out. An effective and mature EHS function appears to be almost invisible as unsafe conditions, accidents and injuries, spills and releases, violations, and fines are avoided through proactive planning and management. An efficient EHS function helps with process planning and design, resulting in significant cost savings in avoided permitting and other regulatory costs, and increased material economy. A well-managed corporate EHS team is not top-heavy because they build expertise over time at all levels through exceptional coaching and training. They anticipate change, and drive improvement and streamlining through monitoring key performance indicators (KPIs) that are relevant to the executive suite. Such an EHS function is highly valued and sought after by today s top management, and it is not easy to achieve. Solution and Approach Effective workplace safety and environmental protection requires a strong alignment between work processes and the management systems that control them, personnel with appropriate expertise, and an organizational culture that embraces environmental and safety excellence. ORGANIZATIONAL INTEGRATION Figure 2: Organizational Maturity of EHS Programs - Where Are You? Identifying and then tracking the correct KPIs and metrics is required to achieve alignment of EHS efforts with the business as a whole to ensure it is adding value rather than being primarily a cost center. Achieving such alignment is a sign of organizational maturity, and requires focused effort, dynamic internal leadership, a matrixed business organization free of silos, and a staff who embrace change. BEST PRACTICES REACTIVE Environmental Compliance Ad-Hoc Environmental Compliance Managed Environmental Management System Mission Enhancement Mission Alignment Integration and Leadership Risk Avoidance Risk Management Operational Excellence Strategic Shaping 2

4 Energy Resilience as a Strategy HCC consultants can assist you with determining the maturity level of the EHS function and offer services that are appropriate and timely to assist the organization with components of its environmental and safety programs to achieve a fully functional management system. These supportive services span four broad categories: Audits and Performance Reviews: HCC consultants are qualified to perform objective and independent audits and evaluation, and can quickly understand compliance gaps by providing a trained eye and a fresh perspective. Through our collective experience across hundreds of organizations, our auditors identify weaknesses and root causes, and define a clear path forward to resolve concerns and reduce risk in an enduring manner. Consulting and Compliance Support: Whether it is a complex regulatory requirement, a situation that requires in-depth expertise or a lack of internal capacity, problems that exceed organizational abilities are efficiently resolved with consulting and compliance support. HCC s style is to coach while doing, so existing internal staff will be enhanced and strengthened while being helped. Training and Capacity Building: Sustained compliance requires teamwork and support across an entire organization. Our proven teaching methods, grounded in adult learning principles and delivered efficiently, help trainees quickly understand their roles and responsibilities, so they are prepared to make sound decisions and take appropriate actions. Outsourced Solutions: Some clients rely on HCC consultants to manage their EHS function so they can focus on their core business. EHS regulations are complex and dynamic, requiring specialized skills and support that HCC can provide when needed. EHS project or program management can include oversight of teaming partners to achieve client mission support. Figure 3: Audits vs. Assessments More Assessments While these EHS services are well utilized, organizations that are further along in the maturation of their EHS programs are looking for a more comprehensive approach to get them to the next level. For these organizations, HCC s preferred approach is to work with clients to develop an assessment framework that encompasses people, processes, and systems and uses a series of quantitative and qualitative diagnostics to evaluate the current state of environmental and/or safety management within the organization. Organizations that are concerned more broadly about business risk are likely to benefit more from a broader performance assessment. The assessment can be customized to reflect corporate KPIs and evaluate performance that is relevant to management priorities and degree of alignment of the EHS program with corporate vision, mission, and values. Professional Judgment / Expertise Customized Assessment Driven by Selected KPIs Focused Opportunity Assessment (Waste Reduction, Material Hazards) Gap Analysis Against External Standards EHS Compliance Audit Less Audits Customized / Flexible Protocol Prescribed / Rigid 3

5 Proven EHS Service Model The HCC EHS practice follows a proven ESS service model. To begin, we assess the current organizational conditions, which often includes 1) a high-level analysis of existing systems against appropriate external standards; 2) a deeper evaluation of compliance management; and, 3) a stakeholder needs assessment to understand how key stakeholders regard current performance (perceived and actual) and to clarify their performance expectations. Based on the assessment results, we advise our clients, by providing them with a clear road map for aligning their environmental and safety management systems with corporate and stakeholder expectations to achieve better performance and add value to the business. Following the assessment, HCC follows the road map to design customized and integrated solutions for the client to adjust their approach to EHS management to achieve the position and outcomes they envision. These solutions may include better definition of organizational roles and responsibilities, leadership and coaching opportunities for management and supervisors, selection and acquisition of strategic tools and applications to more effectively monitor and manage performance, and environmental and safety management system and process enhancements. We then work collaboratively with our client (either in a hands on fashion or in a more strategic coaching role) to implement the key solutions. HCC s expertise in organizational transformation and change management help ensure enduring, sustainable results for our clients. In short the client will achieve measurable performance improvement and cost savings through this reliable approach. Technology Type and Maintenance Operating Procedures and Coordination Team Skills and Resources Proven Benefits In conducting EHS systems evaluations, HCC has assisted organizations with identifying, describing, and making actionable corporate expectations for a value-added and effective EHS function leading to defined desired outcomes. STRATEGIC PLANNING PERFORMANCE IMPROVEMENT Figure 4: HCC s Proven EHS Service Model The achievement of desired outcomes lies in the selection of KPIs that are appropriate for the organization s management priorities, culture, and the nature of its processes. KPIs can be both lagging and leading indicators. Top organizations will select a handful of KPIs representing a cross-section of desired outcomes and leading and lagging indicators to focus upon at any one time. The selection of appropriate KPIs for any given performance period allows the organization to set goals, objectives, and targets that will reliably drive performance improvement in the direction management desires. PERFORMANCE MANAGEMENT Assess HCC Assesses EHS Performance Advise HCC Advises on Strategies and Solutions Adjust Client-driven Change, with HCC Support Achieve Client Attains Cost Savings and Added Value 4

6 Selected Examples of Desired Outcomes and Related EHS KPIs and Metrics Desired Outcome Examples of EHS KPIs and Metrics Emergency preparedness (number, type, and effectiveness of emergency drills) Effective EHS training (number, type, and effectiveness of trainings) Personnel are safe. Monitoring of safe/unsafe conditions (external and internal inspection results) Accidents, illness, exposures (accident/illness and other safety-related incidence rates) Employee confidence (employee perceptions of workplace safety) Employee engagement (meaningful safety committee actions) Environmental harm (unplanned spills, chemical releases, and other environmental-related incidence rates) Community members are safe. Environmental performance (record of conformance with environmental permits and reporting requirements) Monitoring of environmentally safe/unsafe conditions (external and internal inspection results) Community confidence (community members perceptions of corporate EHS performance and transparency) Regulatory cost burden, including permits, transaction costs, and operational costs (annualized and cumulative) Cost savings from reductions in regulatory burden (annualized and cumulative) External and internal inspections (annual performance records and trends) Waste generation (rate of waste generated by type) Avoided waste generation to include waste reduced, repurposed, monetized, or recycled (annualized and cumulative quantity and cost) Rate of toxic and hazardous materials use Operational performance is improved and less costly. Annualized and cumulative number of toxics eliminated Annualized and cumulative number of environmentally preferable products introduced Rate of electricity use Annualized and cumulative electricity savings Rate of water use Annualized and cumulative water savings (through recycling, reduce, or reduction) CO2 or greenhouse gas emissions Annualized and cumulative reductions CO2 or greenhouse gas emissions Wastewater produced annually 5

7 Desired Outcome Examples of EHS KPIs and Metrics Top manager confidence and peace of mind Reduced long term disposal liability Few or zero citations, fines, and penalties Risk position is improved. Reduced potential for removal of license to operate Reduced hazardous materials footprint Reduced hazardous materials transportation hazards Reduced emissions and discharges with potential impacts to community health Operational controls in place to protect sensitive receptors Competitive advantage due to proactive EHS efforts Increased revenue due to proactive EHS efforts Opportunities are maximized. External recognition and awards due to EHS track record Positive and constructive external stakeholder relationships (including with regulatory officials) Regulatory relief (and cost savings) due to excellent performance through participation in governmental environmental excellence registries Training satisfaction Training efficiency (hours per employee and cost per training hour) and participation rates EHS support services and tools are user friendly and optimized. Annualized and cumulative employee time savings from EHS program optimization Employee understanding of their specific EHS responsibilities Employee assessment of EHS support tools and services Current, clear, and complete EHS organizational chart There is clarity and accountability in EHS roles and responsibilities Matrix of all EHS roles and responsibilities Written summaries of EHS responsibilities (including for collateral duties) Evaluation of EHS performance is integrated into HR-driven evaluation process The table above is not comprehensive, nor is it intended to be. The value of the HCC methodology is that HCC consultants support organizational management and EHS leadership in defining the most critical desired outcomes and the optimal KPIs for monitoring progress toward their achievement given their organizational mission, vision, scope, nature of operations, and culture. This is likely to be much more tangibly beneficial to the organization than taking a formulaic approach. Some examples of the results HCC has helped clients achieve include: Greater than 50 percent reduction in recordables (including contractors) driving a 63% reduction in the injury rate. One million hours without a lost time injury. 6 Reduced average number of environmental audit findings and reduced average percentage of repeat findings. Avoided fines and penalties (potentially millions of dollars) through legally-mediated audit disclosure. Improved EHS staff service capacity as demonstrated by managers evaluations.

8 Better EHS performance outcomes through turning risk into opportunity Why Hitachi Consulting HCC consultants are results driven. Through HCC services your organization will: Reduce regulatory burden, financial liabilities, and operating costs through optimized EHS management; Achieve operational efficiency that improves your bottom line by reducing upfront costs and back-end expenses; Increase environmental health and employee safety by eliminating, reducing, or safeguarding against hazards and impacts; Manage and account for materials across their entire life-cycle from initial purchase to final disposal; and Obtain long-term solutions through a reasonable investment, rather than quick-fixes that don t address underlying causes and challenges. HCC s Environmental Sustainability Solutions team is prepared to support clients in achieving excellence in EHS. Our EHS practice is mature over 15 years old. The EHS practice includes, but is not limited to a qualified internal team of 19 EHS evaluators, several with more than twenty years experience. EHS evaluators are required to meet rigorous external and internal standards and attend frequent training. We follow and are familiar with recognized standards of practice, and can recommend the appropriate standard based on each client s desired outcomes. Selected examples include: ASTM environmental regulatory compliance auditing standard (E ) ISO environmental management system standard (ISO 14001:2004) COSO Risk Framework Basic Program Elements for Federal Employee Occupational Safety and Health Programs (29 CFR 1960) Executive Order 13514, Federal Leadership in Environmental, Energy, and Economic Performance Hitachi Consulting s EHS team members have worked with diverse commercial and public sector clients. Our clients range in size and operations; from large mining companies to small biotech firms; from county programs to national programs of federal agencies. We quickly learn the unique operations and perspectives of our clients and develop approaches that will be the most beneficial to their business and mission. HCC provides EHS business management support throughout the entire United States and in several locations throughout the world (including Japan, EU, and China) to leaders at all levels of organizations. Hitachi Consulting is committed to helping clients bring their business visions to life through value added business services and solutions. We are uniquely positioned, with the agility and client-focused approach of a small firm combined with the stability and innovation that comes from being a subsidiary of Hitachi Ltd. Contact Us Hitachi Consulting Toll free info@hitachiconsulting.com Hitachi Consulting is the global management consulting and IT services business of Hitachi Ltd., a global technology leader and a catalyst of sustainable societal change. In that same spirit and building on its technology heritage Hitachi Consulting is a catalyst of positive business change, propelling companies ahead by enabling superior operational performance. Working within their existing processes and focusing on targeted functional challenges, we help our clients respond to dynamic global change with insight and agility. Our unique approach delivers measurable, sustainable business results and a better consulting experience. 7