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Best Practices in

Chemical Management

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Webinar Agenda

Goals of Best Practices Chemical

Management

Factors, Tools, & Techniques

Case Studies

Action Plan & Blueprint

Q & A

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Chemical Management Evolution

Safety Compliance

Sustainability Risk Mitigationand Competitive Advantage

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Considerations for Chemical Management

1. Safety Considerations

2. Regulatory Compliance

3. Cost and Risk Reduction

4. Sustainability Initiatives & Your Hazard

Footprint

5. Global Competitive Advantage

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Industry Safety Statistics

In 2008 alone, chemicals and chemical products were the source of 15,220 non-fatal occupational injuries and illnesses.

In 2008, where chemicals and chemical products were the source of injury or illness in non-fatal occupational injuries resulting in days away from work, 34 percent resulted in six or more days away from work, and 10 percent resulted in 31 or more days away from work.

Exposure to caustic, noxious, or allergenic substances led to 216 on-the-job fatalities in 2008.

Per the Bureau of Labor Statistics

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Regulatory Drivers - Sample

North America• OSHA – Hazard

Communication Standard

• CA Restriction of Hazardous Substances (RoHS)/ Waste Electrical and Electronic Equipment (WEEE)

• CA Green Chemistry

• CA Prop 65

• U .S. Bioterrorism Act

• U .S. Chemical Assessment and Management Program (ChAMP)

• Toxic Substances Control Act Reform (TSCA )

• Canada’s Chemicals Management Plan (CMP)

• Workplace Hazardous Materials Information System (WHMIS)

Global

• European Community (EC) Regulation 178

• EU RoHS

• 2007/47/EC (Phthalates)

• REACH

Asia Pacific• China RoHS)

• Industrial Safety and Health Law (ISHL) (Japan)

• Poisonous and Deleterious Substances Control Law (PDSCL) (Japan)

• Chemical Substances Control Law (CSCL) (Japan)

• Dangerous/Toxic Materials (Taiwan)

• Industrial Safety and Health Act (ISHA) (Korea)

• Toxic Release Inventory (TRI)

• Australian Inventory of Chemical Substances (AICS)

• Hazardous Substances and New Organisms (HSNO) Act (New Zealand)

European Union

• Globally Harmonized System (GHS) (Global)

• International Council of Chemical Associations Global Product Strategy

• NGO SIN (Substitute It Now) Lists

• Industry Lists

Per SAP “Product Compliance, Safety, and Stewardship for Process Industries” whitepaper

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Globally Harmonized System

• 1,000,000 chemicals

• 5,000,000 businesses

• 40,000,000 workers

• Estimated net savings of $764 million in U.S.

alone from safety and health risk reduction and

productivity improvements

• * Per OSHA “Facts on Aligning the Hazard Communication Standard to the GHS”

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Primary HCS Changes Per GHS

MSDSMSDSs will need to be updated or re-authored to meet GHS guidelines

LabelsLabels will need to be reprocessed during transition. Standardized pictograms, signal words, hazard statements will be required.

Updated safety data sheets and labels will need to be circulated and distributed to stakeholders

TrainingEmployees must be trained on the new content and format of SDSs and chemical labels

Communication

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MSDS and Chemical Management

MSDS Management

- Safety Binder Creation & Distribution $ 6,720

- Safety Binder Updating (bi-annual MSDS Updates) $ 21,000

- MSDS Archival $ 1,200

- MSDS Management Total $ 28,920

Chemical Inventory & HazMat Management

- Physical Inventory of Chemicals (Improvement) $ 4,200

- Inventory Management & Labelling $ 10,500

- Chemical Inventory Management Total $ 14,700

Regulatory Compliance & Business Reporting

- Workplace Chemical Inventory Reporting $ 750

- Form R Information/Reporting $ 3,000

- Tier 1/Tier II Reporting $ 1,500

- Chemical Inventory Management Total $ 5,250

- TOTAL IN-HOUSE MSDS MANAGEMENT COST $ 48,870

Risk Management

Risk Management

- Workman's Comp Risk Reduction $ 17,824

- Lost Productivity Reduction $ 1,747

- OSHA Fine Risk Reduction $ 3,095

- Risk Management Total $ 22,667

- TOTAL RISK REDUCTION $ 22,667

TOTAL INTERNAL COST & RISK REDUCTION

OPPORTUNITY$ 71,537

Cost & Risk Reductions

ROI

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Sustainability and Your Chemical Hazard

Footprint

PhysicalRegulatory

Environment

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Competitive Advantage

1. Do your customers have sustainability

requirements?

2. Are you meeting global regulations for shipping

and using hazardous chemicals?

3. Does your chemical strategy protocol support

“lean” initiatives?

4. Are you able to efficiently satisfy environmental

reporting and risk monitoring initiatives?

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Factors to Consider

People

TechnologyProcess

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People

Employees

Safety Managers

Risk Managers

Environmental Managers

Industrial Hygienists

IT and Procurement

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Functional Considerations

Safety Managers

• HazCom Plans• Accident Response• Corporate & Government

Compliance• Employee/Vendor

Protection

Risk Managers

• Compliance Tracking• Risk & Exposure

Assessments• Risk Mitigation• Compliance Reporting

Environmental Managers

• Environmental Reporting• Remediation• Contingency Planning• Community

Responsibilities

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Functional Considerations

Industrial Hygienists

• Chemical Analysis• Material Approval• Health Hazard

Assessment• Toxicology

IT & Procurement

• System Compatibility and Security

• Supplier and Inventory Control

• Procurement Optimization

• Chemical Inventory Visibility

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Chemical Management Processes

Chemical Data

Management

Material

Approval

C h e m i c a l

I n v e n t o r y

M a n a g e m e n t

Communication &

Training

M o n i t o r i n g &

R e p o r t i n g

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Chemical Inventory Management

C h e m i c a l

I n v e n t o r y

M a n a g e m e n t

• Elements of Proper Inventory Management

– What, Where, How Much

– On-site vs. Procurement-based Inventory

• Ongoing Inventory Management

• Updates

• Barcoding

• Data Exchange-Various Systems

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Material Approval

Material

Approval

• What are the Basic Elements of an Effective

Material Approval Process?

• Appropriate personnel in the review cycle

• Trackable

• Easily modified as the work environment or

personnel change

• Closed Loop

• Beyond Chemical Approval

• Hazard Profiling

• Chemical and Risk Assessment

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Chemical Data Management

Chemical Data

Management

• What data is important?

• What are you tracking?

• What are the chemicals you’re dealing with?

• What reporting is required?

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MSDS - The Foundational Element

• Hazard Classifications

• Regulatory Information

(components, %, don’t

forget section 15)

• Exposure Limits

• Handling, storage,

disposal

• More!

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Benefits of Electronic Chemical Management

• Complete MSDS data indexing including: • health and physical hazards

• physical and chemical classifications

• transportation classifications

• Regulatory cross-referencing

• Access to MSDS versions and archives

• Pre-populated labeling

• Integrated material approval

• External regulatory compliance and internal

management reporting

• GHS-compliant data

Chemical Data

Management

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Monitoring & Reporting

M o n i t o r i n g &

R e p o r t i n g

• Determine regulatory impact of certain materials when reviewing hazard footprint (e.g. CA Prop 65)

• Set goals to remove specific hazard types (carcinogens, corrosives, toxic substances, aquatic hazards, etc)

• Identify certain high-risk plants, chemical areas, or job functions with greater exposure

• Identify alternative products that have lower hazardous footprint

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Communication & Training

Communication &

Training

• What’s required?

• How do we help employees understand the

risks and safety procedures?

• How do we get employees (and

management) involved in the process?

• What are the expected results?

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Technology & Tools

• Electronic versus manual MSDS

management

• Balancing time, money, risk factors

• What are the alternatives?

• What is the expected return on

investment?

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Case Study #1

PROJECT OVERVIEW

Lexmark, an advocate for

environmental sustainability,

needed a scalable solution for

chemical management

spanning both corporate and

manufacturing facilities.

Lexmark turned to SiteHawk to

implement a corporate-wide

MSDS management system

that replaced in-house systems

and resources, resulting in a

more cost-efficient and

consistent approach across the

organization.

• Reduced active MSDS count from 12,000 to

6,500

• Shortened the chemical introduction process

from weeks to days

• Gained site-level data as well as corporate

view

• Eliminated daily chore of acquiring, updating,

and maintaining MSDS

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Case Study #2

PROJECT OVERVIEW

Elkay is a family of companies

that employ over 2,500 people

in distribution facilities

throughout North America and

select international markets.

With more than 2,100 chemicals

spanning nearly 20 facilities

worldwide, Elkay needed a

chemical management services

provider who could match their

desire for simplicity, robust

chemical data management

applications, and superior

attention to customer service

• Streamlined regulatory reporting for Toxic

Release Inventory (TRI) , etc.

• Wanted “more than just a data warehouse of

MSDSs”

• Eased the burden of chemical tagging via

automated labeling

• Increased worker safety and confidence

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Best Practices Blueprint

Step 1 – Get an accurate view of your current chemical inventory

Step 2 – Gain control of chemicals entering the workplace

Step 3 – Utilize a system and/or service that provides access to the

chemical data found on the MSDS

Step 4 – Realize the synergy of MSDS data/systems for integrated

material approval, regulatory reporting, labeling,

sustainability initiatives, as well as core safety compliance

Step 5 – Identify and communicate relevant information to

employees, regulators, management, etc. in order to

reduce risk, increase safety, and gain competitive

advantage

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Q & A

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For more information, contact:

Scott Williamsswilliams@sitehawk.com

Keri-Lyn Jakubskdjakubs@complianceoptimizers.com