September 25, 2012THE GLOBAL PRODUCT STRATEGY AND HOW IT FITS IN RESPONSIBLE CARE

Christina FranzSenior Director, ACC

Background and History

Global Charter and Global Product Strategy

How Global Product Strategy Fits in Responsible Care

ACC Strategic Review and Product Safety Code

Agenda

United NationsWorld

SummitSustainable Developmen

t2002

Johannesburg

• Progress on sustainable development disappointing since 1992 Earth Summit

• Johannesburg summit implementation-oriented

• Important new targets set

• 2020 goal: chemicals are used in ways that minimize significant adverse impacts on human health and the environment

Strategic Approach to International Chemicals Managemen

t(SAICM)

• 2006 UNEP policy tool

• Endorsed by 100+ governments, ENGOs, labor and health organizations

• Policy framework to promote chemical safety globally

Strategic Approach to International Chemicals Managemen

t(SAICM)

• Dubai Declaration – high-level political commitment

• Overarching Policy Strategy setting for the scope, needs, objectives, financial considerations, principles, and approaches

Strategic Approach to International Chemicals Managemen

t(SAICM)

Overall Objective: Meet 2020 Goal

• Sound management of chemicals throughout life-cycle so that by 2020 chemicals are used in ways that minimize significant adverse impacts on human health and the environment

Strategic Approach to International Chemicals Managemen

t(SAICM)

• SAICM Global Plan of Action with activities to be implemented by stakeholders, including private sector, e.g., global chemical industry through International Council of Chemical Associations (ICCA)

Strategic Approach to International Chemicals Managemen

t(SAICM)

• ICCM, which adopted SAICM, reconvenes every 3 years to review progress of SAICM implementation

• ICCM-3 September 17-21 Nairobi, Kenya

• ICCA active engagement at ICCM Meetings

ICCA Responsible Care Global Charter and

Global Product

Strategy

Industry Action Pre-WSSD

•ICCA Responsible Care (RC)

• ICCA Global Chemicals Management Policy

• Long-Range Research Initiative (LRI)

• High Production Volume (HPV)

• Regional communication activities

ICCA Responsible Care Global

CharterLaunched at 2006 ICCM-1

SAICM Adopted

• Recognition that industry practices and performance evolved since mid-1980s

• Shaped by consideration of recommendations of independent global stakeholders

• Nine key elements going beyond RC

ICCA Responsible Care Global

Charter9 Key

Elements

• Adopt Global RC Core Principles

• Implement Fundamental Features of National RC Programs

• Commit to Advancing Sustainable Development

• Continuously Improve and Report Performance

• Enhance Chemical Management Globally, i.e., product stewardship

ICCA Responsible Care Global

Charter9 Key

Elements

• Extend RC Along Value Chain

• Active Commitment to Support National and Global RC Governance

• Address Stakeholder Expectations about Industry Activities and Products

• Provide Appropriate Resources to Implement RC Effectively

ICCA Responsible Care Global

Product Strategy (GPS)

Introduced 2006 ICCM-1

SAICM Adopted

• A cornerstone of industry’s contribution to SAICM

• GPS is designed to improve global industry’s product stewardship performance by recommending measures by companies in cooperation with their associations and other participants in the chemical value chain

ICCA Responsible Care Global

Product Strategy:

Key Components

• Develop guidelines for product stewardship, including ways to make product stewardship information more transparent

• Implement a management systems approach

• Tiered process for completing risk characterization and risk management actions for chemicals in commerce

• Product stewardship performance, emphasizing working with customers and suppliers

• Explore partnerships with stakeholders to enhance product stewardship

ICCA Responsible Care Global

Product Strategy:

Key Components

• Develop guidelines for product stewardship, including ways to make product stewardship information more transparent

• Implement a management systems approach

• Tiered process for completing risk characterization and risk management actions for chemicals in commerce

• Product stewardship performance, emphasizing working with customers and suppliers

ICCA Responsible Care Global

Product Strategy:

No Uniform Internaional

Approach

• Common elements and approaches to be applied across the global industry

• However, it provides implementation flexibility

• Key recognition of distinct national, historical, and cultural differences

• Recognition of distinct legal and regulatory requirements

ACC Perspective:

How the Global Product

Strategy Fits Within

Responsible Care

• U.S. chemical industry began RC with Codes of Management Practices, e.g., Product Stewardship Code

• In 2002, ACC refreshed RC with management system approach

• Integrated, structured approach to drive results in seven key areas

ACC Responsible

Care Managemen

t System

RCMS Focus Areas:

Community Awareness & Emergency Response

Security

Distribution

Employee Health & Safety

Pollution Prevention

Process Safety

Product Stewardship

ACC Responsible

Care Managemen

t System

Implementation Framework

Plan – identify and evaluate risks

Do – establish, document & communicate responsibilities

Check – measure performance progress and corrective action

Act – Periodically review efficacy of management system and make necessary changes

ACC Responsible

Care Managemen

t System

• The RCMS® is based on benchmarked best practices of leading private sector companies, initiatives developed through the Global Environmental Management Initiative, International Standards Organization and other bodies, and requirements of national regulatory authorities

• Certified by independent third-party auditor every three years

• RCMS or RC14001—technical specifications met

Where Does GPS Fit in

Responsible Care?

• To accomplish the key elements of GPS, ACC identified each product stewardship technical specification within RCMS aligned with each strategic element of GPS

• Same exercise applied to the former Product Stewardship Codes Management Practice to ensure alignment with all Product Stewardship principles

How to Measure Progress

Toward GPS Key

Components?

Implement a management systems approach

• Develop guidelines for product stewardship, including ways to make product stewardship information more transparent

• Tiered process for completing risk characterization and risk management actions for chemicals in commerce

• Product stewardship performance, emphasizing working with customers and suppliers

How to Measure Progress

Toward GPS Key

Components?

Identify and report performance metrics that indicate progress toward remaining key components of GPS:

Demonstrates tiered risk characterization process employed differentiating among high- and low-risk substances

Communicating product stewardship information to the value chain and public

How to Measure

Progress on GPS Key Strategy

Components?

Metrics Selected:

Documented process in place to characterize chemical risks and summary of that process is publicly available?

Company has a process in place to communicate the result of the risk characterization

How to Demonstrate Progress on GPS?

• Publicly available Product Safety Summaries

• Lay language—easy to understand by public

• Flexible in approach so each company can include what is appropriate for it

• Provide guidance on recommended elements of various types of product stewardship information

• Make them publicly available

Product Safety

Summaries

Recommended Elements

Chemical identity

Uses

Physical/chemical properties

Health effects

Environmental effects

Environmental fate

Aquatic/terrestrial toxicity

Exposure potential

Risk management recommendations

Product Safety

SummariesPublic

Accessibility

• ICCA Portal

http://www.icca-chem.org/en/Home/ICCA-initiatives/global-product-strategy/chemical-information-search/

• Individual company websites

• Other vehicles

Product Safety

SummariesTargets

• Safety summaries on all high priority substances as identified by individual companies by end of 2012

• Safety summaries on all other substances in commerce by end of 2018

• Advance of UN 2020 Goal

ACC Responsible

Care Strategic

Review and Product

Safety Code

Why Strategic Review?

10 years since last review

Political activity

Marketplace impacts

Legislative activity

Individual states within U.S.

Social media evolution

ACC Responsible

Care Strategic

Review and Product

Safety Code

•External Advisory Panel 2010

•Recommendations delivered

• Many recommendations adopted by ACC Board

• 2011-2012 staff and member recommended changes to RC

• Product stewardship practices pulled out of RCMS and new Product Safety Code almost completed

Why Product

Safety Code?

• Significant activity past few years to revise Toxic Substances Control Act (TSCA)

• 2009 ACC 10 Principles TSCA Modernization

• External Advisory Panel recommended alignment of 10 Principles and RC Product Stewardship activities

• Use term “safety”

• Dual purpose: performance and advocacy

Product Safety Code

Elements

• Leadership commitment

• Accountability & management

• Risk-based prioritization process

• Tiered approach to data/information gathering

• Risk characterization

• Risk management

• Management of new information

Product Safety Code

Elements

• Product design & improvement

• Value chain communication, cooperation & outreach

• Information sharing

• Performance assessment & continuous improvement

Product Safety Code

Elements&

Global Product Strategy

• Alignment continues to exist

• In fact, more robust

• Safety summaries metric?

Thank You &

Discussion