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.
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.
7. 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)
9. Sustainability as a Responsible
Care Initiative
Sustainability is linked to
♦
Operating discipline
♦ Raw material selection
♦ Supply chain
optimization
♦ Sustainable product
development
♦ Social responsibility
commitments
10. 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
11. 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%
12. 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
13. 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
14. 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.
15. 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
16. 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
17. 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
18. 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
19. 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
20. 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
21. 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
23. 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 (www.projectsigma.com).
24. 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
25. 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
26. 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
27. 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
28. 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
29. 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
30. 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
32. 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.
http://www.rwjf.org/pr/product.jsp?id=56828.
33. 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. http://www.rwjf.org/pr/product.jsp?id=56888.
34. 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. http://www.rwjf.org/pr/product.jsp?id=56890.
35. 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 http://www.rwjf.org/pr/product.jsp?id=57010.
39. Occupational Health and
Safety as New Benefit Area
(Estimated) Average Annual Cost of Absenteeism
per Employee by Chronic Condition
40. 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
41. 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
42. 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
43. 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)…
45. More Information?
WCG
Offices located in Washington, DC and New York Metro Area
Email: windsgroup@aol.com
Tel: 1+ 732.221.5687
Websites: www.manta.com/c/mm41tzk/the-windsor-consulting-group-inc
and www.hgexperts.com/expert-witness.asp?id=49425