5.19.2010

A Management of Change Boost with Organizational Learning and Systems Thinking Tools

As a living system, a company’s risk profile is continually shifting.  The growing attention on sustainability and corporate responsibility (CSR) has stretched companies as they wrestle with ways to characterize and manage their sustainability and CSR risks.

Integrated EHS, sustainability, and CSR management systems provide a robust structure to manage risks.  A key concept in an integrated management system is “the management of change” (MOC), which focuses on identifying and managing risks as operations or the operating environment change.  MOC procedures and process typically kick-in when new equipment or manufacturing lines are installed, during mergers & acquisitions, or during internal re-organizations.  On the corporate responsibility front, forward-thinking companies include the monitoring of third-party monitoring criteria in their MOC process.

Strong MOC processes are part of a company’s front line defense for risk reduction.  The MOC process should pick up most risks that arise in between formal risk assessments. Read More

4.30.2010

Building the Sustainability/CSR Department and Personnel Competencies

With the increasing need to address Sustainability and Corporate Social Responsibility (CSR) issues, organizations are faced with several options on how to proceed in developing their internal capabilities.  Beyond their sustainability and CSR strategy, there are nuts-and-bolts issues to consider, such as who will lead the effort and how to build the team or department.

A common starting place is to tap the EHS department and their personnel.  The logic for this is strong given how central EHS is to sustainability and CSR.  While the EHS function and its personnel are a good starting point, sustainability/CSR quickly encompasses areas in the organization well beyond EHS.

The C-suite needs to consider how it is going to identify and develop its people who lead and manage sustainability/CSR.  In the case of EHS professionals, those competencies and skills go beyond their solid technical foundation. Read More

4.29.2010

The Sustainability Gap

McKinsey & Company recently published findings from its February 2010 survey on “How Companies Manage Sustainability.” Nearly 2,000 executives from a wide range of industries and regions participated.  A highlight statement from the survey is that “most companies are not actively managing sustainability, even though executives think it’s important to a variety of corporate activities.”

This gap is attributed to no clear definition of what sustainability means, and as a result, only 30% or the respondents indicated that they “actively seek opportunities to invest in sustainability or embed it in their practices.”

The survey found that respondents framed sustainability in the following way:  55% as an environmental management issue; 48% as a governance issue; 41% as a societal issue; and 56% indicated they define sustainability in two or more ways.  Only 6% said that sustainability is both a C-suite priority and that it was formally and effectively embedded in its business practices. Read More

4.28.2010

The Sustainability “Megatrend”

It is common knowledge that sustainability is a big deal.  It is a multidimensional issue that impacts all sectors of society.  Companies wrestle with how they are going to respond beyond the obvious of energy conservation and waste reduction, when sustainability begins to blur with corporate social responsibility (CSR).

Some direction and insights are provided in an excellent article, “the Sustainability Imperative: Lessons for Leaders from Previous Game-Changing Megatrends,” by David Lubin and Daniel Esty.  This article frames sustainability in ways that organizations can take actionable steps to impact their sustainability efforts (Harvard Business Review, May 2010).

Many readers are familiar with Esty’s landmark book, Green to Gold and his work in the environmental policy arena.  Ideas presented in Green to Gold evolve in the Sustainability Megatrends article.  Lubin and Esty assert that the current sustainability movement can be viewed as a megatrend as popularized by John Naisbitt in 1982.  As such, there are lessons that companies can learn by examining other megatrends such as IT and quality. Read More

3.30.2010

EHS as Leaders in Corporate Responsibility

A recent publication from the Boston College Center for Corporate Citizenship contains information on the Center’s 2009 survey of 756 small, medium and large companies across the United States. The survey demonstrates the increasing importance of Corporate Citizenship, Corporate Responsibility and Corporate Social Responsibility (CC/CR/CSR) in organizations.

It is important for EHS Professions to track these issues.  I am seeing a growing number of companies where the EHS Function is being functionalized and/or marginalized by CC/CR/CSR efforts.  In these early stages of CC/CR/CSR formulation, there is the potential for diminished influence of the EHS Function.

Read More

3.26.2010

An Externalities Framework to Develop Sustainability and CSR Strategies

Since the 1987 Brundtland Report that put sustainability on the business map, the Rio Conference in 1992 and its famous declaration, and the concept of a “triple bottom line” put forth by John Elkington in 1994, issues related to sustainability have expanded as a central topic in corporate boardrooms and business strategy.  Along the way in the evolution of sustainability ideas and concepts, they have morphed into the broader area of corporate responsibility (numerous terms are used to describe this, such as corporate citizenship, corporate social responsibility, and simply social responsibility).

As an important and rapidly evolving area, there is a wild-west quality to defining, executing, and measuring sustainability and CSR initiatives.  With sustainability, concrete issues commonly identified are reduction of energy use, carbon-generation, waste, etc.  With CSR some norms have gained general acceptance, sustainability issues for sure have, as well as child-labor issues and good EHS practices.  But with CSR especially, this is still a very fluid area.  The CSR (or SR) ISO activities (ISO 26000) might help, but it will be many years for this to flesh out. Read More

3.26.2010

Is Your EHS Audit Program Hitting The Mark?

Auditing is a tough subject.  The term rarely conjures pleasant thoughts.  It’s often a dreaded event for the auditee.  For the EHS department, it is a complex endeavor that the EHS professionals often don’t feel they fully have a handle on, as issues of program validity and reliability swirl around. With internal audit programs in large companies, scheduling can be a nightmare with auditors swamped by primary-non-audit duties.  While the audit job gets done and reports are generated for the C-Suite, Board of Directors and External Third Parties, the EHS audit programs I’ve observed often miss the mark that the EHS department want to hit.

Some of the recent EHS audit program challenges I’ve observed are 1) integrating EHS management system audits with existing compliance audits, 2) developing procedures to close the gap between EHS program/system upgrades and the audit tools measuring them;, 3) training auditors how to audit the EHS management system, and, 4) identifying leading indicators that can hopefully shorten the audit process or be used in site/plant self-assessment activities. Read More

2.2.2010

Green to Gold Implications for the EHS Function: Management of Change and EHS Function Capacity

The issues and challenges presented in Green to Gold and suggested in REACH and the nanotechnology areas raise several issues. The first relates to an organization’s Management of Change structures and functions. The second relates to the EHS function’s capacity to manage and guide the organization in these areas.

Management of Change

The concept of Management of Change (MOC) is central in EHS management systems. The basic idea in MOC is that policies and procedures are established to identify and respond to new issues that can change an organization’s EHS risk profile. Typically changes in processes or production lines are currency of MOC activities. More forward thinking organizations include organizational and regulatory change issues in their MOC activities. Read More

1.30.2010

Nanotechnology – Looking Through a Green to Gold Lens

Advances in material science have taken us into the age of nanotechnology.  Nanotech issues and ideas metaphorically presented in the movie The Fantastic Voyage in 1963 are here.  Nano engineered materials are being incorporated into everyday products such as materials to make them stain or bacteria resistant, tennis rackets to make them stronger and lighter, sunscreens to make them more effective, and drug delivery vehicles for super precise delivery of a drug at a desired site.  The promise of nano materials appears to be wide, impacting many industries and products.

With the development of new nano-level technologies, there are significant EHS considerations.   Human and environmental health considerations are not well understood for many of these materials. Cutting-edge research is being conducted, but there is a general consensus in the public health field that this research is not keeping pace with materials development. Read More

1.29.2010

European Union Reach Program – Green to Gold Case Study

At the time Green to Gold was published in late 2006, the European Union promulgated a far-reaching new regulation that will have a wide impact on companies. The title of the regulation is Registration Evaluation Authroisation of Chemicals, it is referred to as the REACH regulation or program. The REACH program is very complex with many issues to consider. Some highlights are presented here, with a focus on business strategy-related issues, not so much the technical issues of things like risk assessment, exposure scenarios, and toxicology. Read More