NC State of Business

Industries have a history of “wrestling” with Legal regulatory requirements for environmental areas such as air quality, water quality, storage of hazardous materials and others. These mandates come from a variety of agencies ranging from Federal (US EPA) to State (NC DENR) to local (municipalities such as the City of Raleigh). When new rules are proposed, drafted, promulgated, and finalized – there is much debate, negotiations, and discussions on the rule itself as well as costs to be incurred for companies complying with the new rule.

Now there is a different scenario. Consumer based demands for Green Companies. It looks like we (consumers) are getting more environmentally savvy – and want out products to be manufactured in a “green” manner. We want
- High rates of recycling and reuse of materials
- Low levels of toxic pollutants discharged to the environment
- Small quantities of solid waste (packaging, cardboard, etc)
- High energy efficiencies
- Product design to minimize environmental impacts from usage and disposal
- Small carbon footprints
- Others

Of course the most well known example of this is Walmart’s request to suppliers – to supply information on 15 questions ranging from - What is your Green House Gas emissions (Carbon Footprint)? -To- What is your total amount of waste generated? If the federal government mandated these requirements to companies – you could bet there would be an outcry of “unfair burden to manufactures” – or – another “unfunded government mandate”. However, if the request is coming from a company’s “customer” – most suppliers will quickly comply – in order to maintain existing contracts.

The world is changing. Information availability is incredible. And Environmental Footprints for most companies – will be available on-line. Walmart Senior VP of Sustainability Matt Kistler envisions labeling all products sold at Walmart with a Sustainability Product Index (SPI) – akin to the nutritional label used for foods. Perhaps one can of tennis balls would have 5 stars on the SPI to indicate excellence in Environmental Sustainability, where as another can may only have 4 stars. Will the average Walmart shopper incorporate this information into their decision to purchase? That is left to be told – but we can expect the answer - soon.

The famous “Golden Arches” indicate the McDonald’s restaurant, regardless of the country in which you are located. The universal symbol of a cigarette with an X marked through it indicates that smoking is not allowed, regardless of the country. For chemical classification, the symbol for a toxic or flammable chemical may be different in the US than in other countries where chemicals are imported or exported. In fact, within the US we currently are charged with understanding the classification and labeling of hazardous chemicals between various regulatory agencies: Department of Transportation (DOT), Environmental Protection Agency (EPA), Occupational Safety and Health Administration (OSHA), and others.

Enter the Global Harmonization System (GHS), an internationally harmonized approach to classification and labeling of chemicals. This voluntary system provides the foundation for all countries to develop comprehensive national programs to ensure the safe use of chemicals. In other words, a chemical labeled with the words “Highly Flammable”, and a symbol of a flame, has the same meaning in the US as in Italy.

GHS introduces standard elements for chemicals:

• Hazard statement- phrases assigned to hazard categories; e.g. “Harmful if swallowed”
• Pictograms – symbol inside a diamond with a red border; e.g. a skull and crossbone
• Precautionary statement - phrases describing measures to minimize or prevent adverse effects
• Product identifier - Names or numbers used on a hazardous product label or in a safety data sheet
• Signal word - One word used to indicate the relative severity of hazard; e.g. “Warning” or “Danger”
• Supplier Identification - name, address and telephone number of the manufacturer or supplier of the substance

Keep in mind that this system is voluntary, and the US has yet to fully embrace the implementation of GHS. However, in the past week OSHA issued a proposed rule to adopt the Globally Harmonized Hazard Communication System. This is a tremendous step in aligning the OSHA Hazard Communication standard, 29 CFR 1910.1200, with the elements of GHS.

The EPA presents methods for implementation of GHS within their organization.

How does this affect you? If you manufacture, import, and/or export chemicals, you will be classifying and labeling your products according to this international system. Employees that handle or store chemicals will need updated training on the identification of hazardous chemicals in the workplace. And perhaps in the US we can enjoy regulatory agencies that align their definitions of hazardous chemicals.

Nine Eleven. 9/11. These two words, this date, will always remind me of the acts of heroes and the coming together of the American public. Today is the first officially-designated September 11 National Day of Service and Remembrance. It is marked by service projects in all 50 states as a way to honor the victims and heroes of 9/11 and to rekindle the spirit of unity and compassion that followed the attacks.

Today is a good day to remember that Tuesday eight years ago, and commit to service in your community. Many organizations pursuing sustainable strategies already recognize the triple bottom line approach of protecting people, the environment and the economy. Community involvement is a great way to engage your employees in socially responsible activities.

Where do you start? Conduct a search for volunteer opportunities in your city, remember and act!

Many companies develop an Environmental Management System (EMS) according to ISO 14001. To demonstrate adherence to these requirements – they get “certified” or “registered” by an accredited registrar. This is the best way to verify the company is meeting ISO 14001 – through the use of an external EMS audit conducted by “accredited” external auditors.

However, registration services/ audits cost a lot of money. For a small company, registration auditing services may cost $15,000-$25,000 / 3-year period, not to mention the drain on employee resources needed to answer the auditor’s questions (auditees). The less expensive solution would be for the company to “Self-Certify” / “Self-Declare” conformance to ISO 14001.

Clause 1 of ISO 14001 allows companies to demonstrate conformance to the standard by either
• Making a self-determination and self-declaration
• Seeking confirmation of its conformance by interested parties such as customers
• Seeking confirmation by external parties
• Seeking confirmation by certification/registration by external parties

The self-declaration simply implies that a company which has implemented ISO 14001 publically asserts that it conforms to the standard (without the involvement of certification bodies (registrars). So the question then becomes – how does your company self declare with credibility. Do you use external accredited RAB/QSA ISO 14001 auditors? Do you follow a protocol established for this purpose?

The US Army has done just that by developing a protocol for self-declaration audits as follows:

STEP 1: Determine Organization EMS Requirements
STEP 2: Planning the EMS Audit
STEP 3: Conducting and Documenting the EMS Audit
STEP 4: Determining Self-Declaration Status and Communicating the Results
REFERENCE - US Army Procedure for Self-Declaration on Compliance ….
This is very similar to the auditing guidance offered by ISO 19001. A step-wise procedure for managing and conducting EMS audits.

The NC State University-Industrial Extension Service (IES), could act as an external auditor – to assist companies in self-declarations. By auditing key personnel at all “functional levels” of the EMS, IES could provide the quantitative assessment to demonstrate conformance to ISO 14001. An example of a possible report format is shown below. This type of self declaration / external audit approach – especially makes sense for simple companies that have little or no – environmental issues (warehouse, office complex, etc).

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Figure 1. Example ISO 14001 Audit Report Which Could be Used for Self-Declarations

In an effort to ensure compliance with OSHA’s Hazard Communication standard – 29 CFR 1910.1200, many safety professionals have thrown up their collective hands and adopted the common philosophy that an MSDS is needed for every chemical.

On the surface this might seem like a good approach. Unfortunately, it quickly becomes cumbersome and generates questions that seem to never end. For example, is an MSDS needed for the alcohol wipes in the first aid kit? What about permanent markers, the dish detergent in the break room or the hand soap in the rest room?

In the details of 29 CFR 1910.1200, we find that the Haz Com standard does not apply to EVERY chemical. There are several exceptions that will help keep your MSDS binders a bit slimmer, including:

• Drugs
• Cosmetics packaged for consumers or intended for personal use
• Consumer products used within expected consumer limits

There are several others included in the exceptions, so while the hazardous communication standard is widespread in its application, it is not all-inclusive. The next time someone in your workplace comes to you in a panic because the big yellow book does not contain an MSDS for each item in the first aid kit or the Palmolive in the break room, don’t panic. Read the regulation and check paragraphs (b)(5) and (b)(6) before you try to find an MSDS on these items. They may very well be exempt.