Accident / Incident Investigation

Accident / Incident Investigation

vercoming Barriers to EHS MEM Seminar Series 2001/2002 School of Design and Environment National University of Singapore August 25, 2001 Presentation Outline Profile Jebsen & Jessen The First EHS Efforts Formal EHS Management Achievements and Failures Spoon Feeding Approach Benefits and Shortcomings

Achieving Lasting Consistency The Next Chapter: Sustainability Jebsen & Jessen SEA A Brief Corporate Profile ASEAN Regional Network 40 companies operating under seven activity-related divisions Areas of operation: ASEAN

Number of employees: 2,500 Regional Coverage Thailan d Bangkok Chiengm ai W. Malaysia Kuala Lumpur Penang

Johore Bahru Kuantan Ipoh Malacca Singapore Indonesia Jakarta Surabaya Medan Semarang Bandung Ujung Pandang Vietnam Ho Chi

Minh (Saigon) Hanoi Philippine s Manila Cebu Sarawak Kuching Brunei Bandar Seri Bagawan Kuala Belait Sabah Kota Kinabalu

Regional Businesses Chemicals Communications Industrial Products Marketing Material Handling Packaging Process Technology

Chemicals Chemicals Nutrition Metals Communications orporate Network Telecommunications Broadcas

Industrial Products Well screens Cutting Tools Special Electric Marketing Consumer Medical & Scientific Automotive Spares Textiles

Material Handling s & Hoists Logistic Systems IPD Spares & Se Packaging ed Foam Packaging Integrated Packaging Constr

Process Engineering dustrial Plant Marketing Industrial Plant Contractin Group Statistical Profile MY 27% TH 18% PH 4% CHE 22 %

IND 9% IPD 9% COM 12% PKG 7% SIN 42% PRT 7% Revenue by country PH 6%

MHE 25% Revenue by regional business unit IPD 12% SIN 29% TH 15% MKT 19% PKG 11%

CHE 9% MKT 14% COM 7% MY 31% IND 18% Employees by country PRT 7% MHE 32%

HLD 7% Employees by regional business unit The First EHS Efforts Management Conference 1993 Member of Executive Committee overall in charge Minor

and random initiatives Corporate Commitment To be a leading provider within ASEAN of quality products and services dedicated to fulfilling customer needs with professionalism and integrity. To maintain an environment that attracts, develops, retains, rewards and motivates talent and productivity.

To establish environmental excellence in all our business enterprises and actively promote environmentally responsible behaviour at all levels of our organisations and in customers, suppliers and principals. To strive for an outstanding corporate and individual behaviour to maintain lasting trust and confidence of our customers, employees and suppliers. To maintain a level of profitability that sustains growth, ensures quality and provides generous rewards to staff and an adequate return to shareholders The Background

Japan/US/EU ASEAN EHS awareness Public Moderate Employees Moderate Retail customers Limited Industrial customers Moderate Low, growing Mixed Moderate Moderate Intrinsic mgmt interest

Mixed Low Strategic mgmt interest Mixed Low ISO 14001 Low/Moderate Moderate

The Background Japan/US/EU Regulations Strong Reg enforcement Moderate Media focus ASEAN Strong Strong Low - Bad/shock news Good / bad news

- Pollution, injuries - Govt influence NGOs Large memberships Limited role Labour unions Moderate size Limited role Shareholders interest Special interests Limited Formal EHS Management

1995 EHS as a Central Service Executive Management Finance & Treasury Corporate & Legal Affairs Human Resources Environment, Health & Providing Providing

SafetyCentral Central Services Services Corporate Communication Information Technology Internal Audit & Taxation 40 Member Companie s EHS Management

Environment, Health & Safety Organisation Executive Board Operational Effectiveness ---| | | | | | | | | | | | |

| | | | | | | | | | | | | | | ----

Regional Managing Directors Director - Env., Health & Safety Central Central Services Services Manager - Env., Unit EHS Health & Safety

Unit EHS | | | | | | ---- Joint-Venture Boards Company Managers

Internal Audit CSU Audit Department ---------------------------------------------------------------- Consultants EHS Chair EHS Chairs EHS Chair EHS EHSCommittee Committees

EHS Committee Decentralised Approach Within overall EHS policies, each member company was expected to pursue its own initiatives Accomplishments 1995-1997 1.EHS audits and understanding of weaknesses 2.Group EHS Policy 3.Network of EHS chairs and committees 4.Review of EHS laws in our 5 major countries 5.Training materials and programmes

6.Network of EHS expertise (consultants, organisations) 7.Audit checklists, facility checklists, procurement guide 8. Awareness campaign 9. Various EHS performance improvement projects Idealism vs. Pragmatism CFC Business

TBTO Hazardous Wastes Paint Furniture Polystyrene Hocking (1991): HotDrink Container LCA Item Paper Cup Polyfoam Cup Per Cup Raw Materials Wood/Bark (g) Petroleum (g) 33

4.1 0 3.2 Per Mg of Material Utilities Steam (kg) Power (GJ) Cooling Water (m3) 9,000-12,000 3.5 50 5,000 0.4-0.6

154 Hocking (1991): HotDrink Container LCA Item Paper Cup Polyfoam Cup Per Mg of Material Water Effluent Volume (m3) TSS (kg) BOD (kg) Organochlorides (kg) Metal Salts 50-190 35-60

30-50 5-7 1-20 0.5-2 Trace 0.07 0 20 Hocking (1991): HotDrink Container LCA Item Paper Cup Polyfoam Cup Per Mg of Material Air Emissions

Chlorine (kg) Sulfides (kg) Particulates (kg) Pentane (kg) 0.5 2.0 5-15 0 0 0 0.1 35-50 Hocking (1991): HotDrink Container LCA Item

Paper Cup Polyfoam Cup Per Mg of Material Recycling / Disposal Recycling Potential Heat Recovery (MJ/kg) Mass to Landfill (g) Biodegradable Yes 20 10.1 Yes Yes 40

1.5 No Hub & Spoke EHS Service Operating in the environment prior to the RBU structure, the approach CSU EHS pursuedJJMS was hub & spoke MDPJJHM JJCS JJMM JJPM MDTJJHS JJMT

MDS JJDT JJCT MDS JJDP MDI JJPS JJDS CSU EHS MDM JJCM JJDI JJCT

JJIPT JJPTI JJIPS JJPTT Benefits Customised attention to each company Fast communication Drawbacks

Huge effort required to service and monitor 40 individual clients Confusion as to what was required Difficult to leverage opportunities within and across: RBUs, facilities, and countries due to exclusive reliance on CSU EHS Drawbacks Continuous

fire drills limit time to think and plan strategically Little incentive for member companies to generate their own agenda Spoon Feeding Approach 1997 Spoon Feeding Approach

Major goals: Formal standards and action plans Improve effectiveness Mandatory minimum standards Leveraging information and resources in 3 ways: 1. Within regional business groups 2. Among facilities 3. Within countries The The tool: tool: EHS EHS Programmes Programmes Assign Assign responsibilities

responsibilities Provide Provide information information EHS by Regional Business The Groups new regional business framework identified a need to address common issues within common businesses. Proposed RBU-Based Support MHE Group PKG Group IPD Group CHE Group

CSU EHS andRMDs COM Group PRT Group MKT Group Benefits include: EHS training for specific regional business EHS by Type of Facility The regional businesses use four common types of facilities:

48 Offices 5 Hazardous warehouses 12 Factories 13 Stores and workshops ! Central EHS Benefits include: Aligns management effort to risk level Leverages synergies across businesses EHS by Country The Group has up to seven business locations within each

country, revealing potential opportunities for synergy. Thailand Malaysia Group Group Indonesia Group Singapore Group CSU EHS Central EHS and RMDs Philippines Group

Vietnam Group Japan Group Benefits include: Providing common EHS legal advice Shared local training providers EHS Programmes Part 1. Compliance with EHS Laws & Regulations Part 2. Emergency Preparedness & Response Part 3. Occupational Health

Part 4. Worker Safety Part 5. Environment Part 6. Administration Responsibilities Standards EHS Legal Compliance An important part of the group's commitment to managing our EHS issues is our compliance with EHS laws and regulations. Some of the regulations may impact the standards that are outlined below. In such cases, the more stringent standard should apply. The EHS committee is responsible for:

Reviewing periodically the EHS Laws & Regulations binder to maintain familiarity with the laws and regulations that apply to the company Reporting to CSU EHS their status of regulatory compliance by 1 May using the format suggested in Appendix A Co-ordinating with company management and CSU EHS to ensure that the company remains in compliance with EHS laws and Emergency Preparedness & Response Smoke detectors

Fire evacuation drills First aid training First aid kits Fire fighting training Fire fighting equipment Illuminated exit signs Fire doors Housekeeping Sign-posting No-smoking areas

Occupational Health Sufficient lighting Noise testing Manual lifting Ergonomics Health monitoring Occupational Health rgonomics Diagram

Lighting Recommendati LUX Locations 50 Passageways 100 Storage areas 200 Welding, rough machining

300 Drilling, cutting 500 Offices, detailed inspection 750 Conference rooms Occupational Safety

Incident/accident reporting EHS training manual Forklift training Permit-to-work programme Site security Personal protective equipment (PPE) Tools and equipment Hazardous substances training Occupational Safety X

X Environment Recycling

Energy conservation Paper reuse EHS Procurement Guide Technical monitoring EHS monitoring programme Ad-hoc improvements Administration Budgets Monthly EHS meetings

Annual EHS audits Periodic self-assessment Risk management New employee induction Administration I have received a copy of the Group EHS Policy I have received a copy of the booklet "Our Commitment to Preserving the Environment" I have been informed about the date of the next fire drill I have been informed about the location of the First Aid Kit nearest to my workplace I have been informed about the location of fire extinguishers and evacuation routes nearest to my workplace

Employee Signature Enablers Availability of Useful Guidelines Vigorous Training Nurturing Champions (e.g. Regional Trainers) EHS in Job Descriptions (e.g. Chemicals) Incentives (e.g. EHS Pot) Quantitative Focus (e.g. Accident Statistics) Peer Pressure (e.g. EHS Audits) Group IT Infrastructure (SAP, Lotus Notes) Facts Talk!

1999 Number of Accidents By Category Hands 44% 2000 Number of Accidents By Category Hands 40% Arm 4% Heads 13% Legs 3% Foot

10% Eye 5% Back 10% Arm 5% Property Damage 10% Fire Smoke 4%

Legs 20% Near Miss 8% Property Damage 24% Peer Pressure Works! 97-2000 EHS Audit Results: Chemicals A B 1997 1998 1999

2000 C D F JJDS JJDM JJDP JJDT IT Infrastructure Lotus SAP

Notes IT Infrastructure Improving EHS management in the Chemicals RBU through SAP: Recording chemical EHS properties: Hazard class (toxic, flammable, etc.) Storage climate (cool, dry, etc.) IT Infrastructure Improving

EHS management in the Chemicals RBU through SAP: Recording regulatory requirements: Must customers have a poisons license to buy this product? Which customers have a poisons license? IT Infrastructure Improving EHS management in the Chemicals RBU through SAP:

Emergency contact details of vendors MSDS distribution: When did we last send an MSDS to the customer? What is the current version of each products MSDS? IT Infrastructure Resource Consumption Measured in SAP: Electricity, in kWh Water, in cubic metres Fuel oil, in litres

Various raw materials, by size/weight Waste / scrap, by size/weight Drivers Image, Corporate Citizenship Bottom-Line Drivers Lower Risk of Legal Liability Lower Insurance Premiums Enhanced Resource & Energy Efficiency

New Market Opportunities, First Mover Advantage Anticipation of Trends, ISO 14001 Image, Corporate Citizenship Bottom-Line Drivers The Cost Iceberg Insurance Premiums Down! 1997-1998: 27% reduction 1998-1999: 18% reduction 1999-2000: 11% reduction Hidden Costs!

Risk Reduction! Business Opportunities? One Failure After Another: Allerguard / Green Cotton Water & Wastewater Treatment Moulded Pulp Packaging Benefits of Spoon Feeding 1. Region-wide EHS standards Facilitates synergies across the group

One EHS data collection too Centralised PPE Facilitates synergies within procurement RBUs Facilitates synergies within facility types Combining ERP training within CHE group Facilitates synergies within metropolitan areas One permit-to-work

Facilitates CSU support and programme in workshops, factories, warehouses monitoring of EHS programme implementation Haze mask ordering & distribution Preferred supplier lists Benefits of Spoon Feeding 2. EHS responsibilities more clearly articulated Improves efficiency and effectiveness of EHS committees Provides ready access to necessary contacts (e.g., first aid trainers)

"No more excuses" 3. Enables CSU EHS to allocate its efforts to facilities based on level of EHS risk Prioritise factories and chemical warehouses Limitations of Spoon Feeding Laggards still got away Local management not always committed Cost-consciousness Bottom-line benefits long-term, indirect and too strategic Achieving Lasting

Consistency 2000 Management Systems Planning Review Implementation Measurement & Evaluation CSU EHS to provide the roadmap and structure to help build a companydriven EHS management system

Management Systems 1. 4. Planning EHS aspects & impacts Legal requirements Objectives and targets Programme

Review 2. Implementation 3. Measurement & evaluation Planning Aspects & Impacts Activity, Product or Service Aspect

1. Cleaning bulk oil Hazardous atmosphere storage vault Impact Temporary to severe health impact 2. Solvent cleaning Ground level ozone VOC emissions to air operation occupational

exposure 3. Bulk acid Surface water contamination Accidental spillage transportation and storage 4. Battery charging Exploding battery Acid burns Consumption of renewable 5. Office operation Document printing natural resources Planning An objective for each aspect /

impact An activity for each objective Objective Activity Improve safety while Create work procedure Develop service checklist installing/servicing pumps Obtain required PPE/tools Develop checklist to maintain PPE/tools Train staff on procedures and checklists Inspect checklists to ensure they are being used Planning Key

Performance Indicators (KPI) are used to demonstrate progressActivity for each activity Objective KPI Improve safety Develop checklist to Checklist while maintain PPE/tools Training quiz installing/servici Train staff on ng pumps procedures and Feedback to checklists Inspect checklists to

be ensure they are documented being used in EHS minutes. Planning Targets are the deadlines or numbers related to the KPI Activity KPI

Develop checklist to Checklist maintain PPE/tools Train staff on Training quiz procedures and Feedback to checklists Inspect checklists to be ensure they are documented being used in EHS minutes. Target for 200 May

80% score for all technicians - June 3 times Planning Resources are the people, supplies, and funding required to meet the targets Activity KPI Target

Develop Checklis checklist to t maintain Training PPE/tools Train staff on quiz procedures and checklists Resources May

Budi 80% score for all technicia ns - June Material Budi Trainer - Lee Logistics Sam Management Systems 1.

Planning 2. 4. Review Implementation Structure and responsibility Training, awareness, and competency Operational control Emergency preparedness & response

3. Measurement & evaluation Training Plans Training Topic Instructor ParticipantsJ F M A M J J A S O N D Forklift Inspection Loo TK All forklift drivers PPE Use Vincent

Wrhs staff & Procurement Noise & Hearing Conservation Suguna All production workers X X X Management

Systems 1. 4. Planning Review 2. Implementation 3. Measurement & evaluation

Monitoring Audits (Corrective actions) (Records) Auditing New approach to capture learning: Year 2001: Risk Auditors joined by staff within same country/region JJPS Example: Singapore/Johor MDS

JJMS Marsh MDSM JJPJM Auditing New approach to capture learning: 2002 and beyond: internal process performed by staff of another company within same RBU Example: MHE

MDI MDP MDS MDT MDM MDSM Management Systems 1. 4. Review

Planning Investigate process deviations Continuous improvement 2. Implementation 3. Measurement & evaluation EHS Monitoring Water Consumption - Per Capita 471.7

400.0 300.0 0.0 21.4 6.0 5.0 Paper Consumption Per Capita 102.4 48.7 18.5 CHE 4.0 IPD,PRT,CO 3.0 M,JJSEA

MHE MKT 1.0 35,000 0.0 CHE PKG Electricity Consumption and Cost (Per capita)

2.0 kwh (bar) 100.0 7.0 30,000 IPD,PRT,COM 25,000 ,JJSEA 20,000 15,000 MHE

MKT IPD,PRT,CO M,JJSEA MHE PKG 10,000 5,000 0 CHE MKT PKG

4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 S$ (dots) 200.0 reams

cubic meters 500.0 Energy Intensity 2.5 2 1.5 mkWh/$100m 1 0.5 0 1998 1999

2000 Office Paper Intensity 25 20 15 Reams / S$m turnover 10 5 0 1997

1998 1999 2000 Accidents 52 50 48 46 Number of Accidents Reported 44

42 40 38 1997 1998 1999 2000 EHS Audit Scores D 10

D+ 9 C8 C 7 C+ 6 B5 B Average Audit Scores

4 B+ 3 A2 A 1 0 1997 I 1997 II

1998 1999 2000 Chemicals, Material Handling, Packaging EHS Audit Scores Between 1999 and 2000: Three companies improved their score Three companies worsened EHS Audit Scores

D 10 D+ 9 C8 C 7 C+ 6 B5

Average Audit Scores B 4 B+ 3 A2 A 1 0

1997 I 1997 II 1998 1999 2000 Variation = Surprises D A

Mean score: AVariation: 0 D A Mean score: AVariation: 9 The Challenge Achieving consistently high performance, consistently across the Group No more surprises! Self-managed EHS Committees and Management Systems

What does this require? EHS must truly become part of business processes EHS ceases to become an afterthought

Doing it right every time and all the time Greater spread of responsibility Elimination of delays in follow-up Systematic approach Formal set of performance indicators Documenting what we do and doing what we document Third-party verification Beyond CHE, MHE, PKG ==> ==> Group-wide EHS Management Systems Group-wide Organisational Excellence Group-Wide Certification

ISO 14001 (Environmental Management System) OHSAS 18001 (Health & Safety Management System) ISO 14001 / OHSAS 18001 EHS Management Systems Nothing new! Scope of Compliance: Adherence to regulatory standards

Adherence to own standards Continual improvement MS Components Forming an EHS Committee and nominating an MR

Establishing an EHS Policy Reviewing compliance with EHS laws and regulations Identifying EHS aspects and impacts Prioritising aspects and impacts Establishing corresponding procedures and WIs Training, creating awareness, building competence Setting objectives and targets Employee consultation & Stakeholder communication Documentation; document and data control Establishing KPI measurement and monitoring system Scope CHE, IPD, MKT (Textiles), MHE, PKG, PRE PRE: OHSAS 18001 only

31 member companies COM, MKT, HLD: Adherence to J&J EHS standards Roll-Out CHE IPD TXT MHE PKG PRT Full implementation by December 31, 2003 CSU EHS Role Provides full-time assistance in implementation

After 2003: Oversees EHS Monitoring Programme Participates in annual ISO/OHSAS Review Meetings Assists in annual RB target-setting EHS policies for non-certified, low-impact companies Decides on future certifications Benefits

Organisational attention EHS becomes an integral part of daily work Things will get done! On time! Systematic and thorough (aspects and impacts) Impact ranking and prioritised actions More comprehensive staff awareness and engagemen Immunity from personnel movements International recognition & credibility

Peer pressure! Professionalism and integrity A logical extension of what we already have ==> Proven Success (JJPS)! Whats in a Decade? 1993 Commitment Ad-Hoc Activities 1993 2003

International Centralised Standards Service 1995 Management Formal 2000 Systems Programmes 1997 Done! Done? Global SO2 Emissions 120 100

80 Asia 60 US 40 Europe 20 0 1980 1985 1990 1995 2000 2005 2010 Global Forest Loss

Accumulatio n of HumanMade Toxins Global Soil Degradation Fresh Water Availability Water Stress High Medium/High Moderate Low CO2 Concentrations Highest Levels in

160,000 Years Biodiversity Sustainability Major Impacts and Risks Remain! Sustainability Were not done yet! Sustainability In nature, everything is cyclical waste = food Sustainability Today, we live in a linear society

Two Systems Technical cycle Natural cycle Waste Feedstock Waste Nutrients Four Conditions for Sustainability 1 In a sustainable society, materials from the earths crust must not systematically increase in nature

Four Conditions for Sustainability 2 In a sustainable society, manmade materials that dont biodegrade must not systematically increase in nature Four Conditions for Sustainability 3 In a sustainable society, the physical basis for the productivity

and diversity of nature must not be systematically deteriorated Four Conditions for Sustainability 4 A sustainable society must ensure resources are distributed fairly and efficiently What would Sustainability Require of us? Reduce

toxic and persistent chemicals High recycling of technical products Manage natural resource consumption to not degrade the source Preserve biodiversity that everything that reaches nature Ensure Renewable energy sources can be transformed into new resources Life-Sustaining Natural Resources Earths capacity (supply curve) Today

2050? Time Life-Sustaining Natural Resources Earths Earths capacity capacity (supply (supply curve) curve) Human Need (demand curve) Today 2050?

Time Population 10 8 6 4 2 0 0 500 1000 1500 2000

Master Equation Environmental Population + Technology = Decline Life-Sustaining Natural Resources Earths capacity (supply curve) Potential Conflict Human Need (demand curve) Today

2050? Time Life-Sustaining Natural Resources Earths capacity (supply curve) Food Human Need (demand curve) Today 2050? Time

Life-Sustaining Natural Resources Earths capacity (supply curve) Fresh Water Human Need (demand curve) Today 2050? Time Life-Sustaining Natural Resources Earths capacity (supply curve)

Potential Conflict Human Need (demand curve) Today 2050? Time Life-Sustaining Natural Resources Earths capacity (supply curve) {

Margin for action Window of Opportunity Human Need (demand curve) Today 2050? Time Sustainability Sustainability Defined when society learns to create a long-term stable physical

relationship with the environment Sustainability Strategy: Pursue businesses that meet the four system conditions Action: Develop options on how to improve the sustainability of our businesses Sustainability The Natural Step

Natural Step Companies The Natural Step Interface, Inc. Take: 44 million lbs face fibre 10 million lbs backing 226 million lbs chemicals 13 million lbs auxiliary materials Total: 294 million lbs 8,000,000 million BTU energy Make: 252 million lbs product

covers 25 million m2 700 product lines 15 year average life Waste: 13 million lbs solid waste 22 million gallons waste water 200,000 lbs regulated air pollutants 3.8 million lbs CO2 emissions Interfaces Plan 1. 2. 3. 4. 5. 6.

7. Eliminate waste Benign emissions Renewable energy Close the loop Resource efficient transportation Sensitivity hook-up Redesign commerce Sustainability The Natural Step: A never-ending to-do list Sustainability

The Natural Step: A truly strategic approach Sustainability The Natural Step: The most meaningful EHS programme Sustainability The Natural Step: The toughest challenge! Thank You!

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