Latest Changes in Global Regulatory Requirements and Their Impact on SAP EHSM

[ Latest Changes in Global Regulatory [ Latest Changes in Global Regulatory Requirements and Their Impact on SAP EHSM

Jim Ferguson – NalcoConnie Prostko-Bell – 3E Company

[ Learning Points

§ The Global Compliance Landscape has been especially dynamic the past several years.

§ In order to maintain compliance and compete in a global marketplace EHS must be embedded throughout the value chain.

§ Your SAP system requires diligence from a data, technical and

Real Experience. Real Advantage. 2

§ Your SAP system requires diligence from a data, technical and functional perspective to remain relevant.

[ Return on Investment

§ Compliance through integrated processes.§ EHS no longer a siloed function at Nalco

§ Compliance embedded throughout the value chain.§ Ensure access to markets§ Minimize risk§ Speed innovation


§ Speed innovation

[ Best Practices

§ Use Standard functionality, complementary functionality and current data to maintain the relevance of your system and provide compliance assurance.


[ Nalco OverviewEssential Expertise for Water, Energy and Air

Nalco is the world’s largest sustainability services company focused on industrial water, energy and air applications. We help our customers reduce water, energy and other natural resource consumption, enhance air quality, minimize environmental releases and improve productivity and end products while boosting the bottom line.

§ Customer base is diversified across multiple industries


§ Customer base is diversified across multiple industries– Nearly 50,000 customer locations– Business is divided into two core divisions• Water and Process Services (WPS)

– Water Services– Paper Services– Air and Emissions Control Offerings

• Energy Services (Energy)

§ Provider of Chemistry, Control and Monitoring Automation and Sustainability Services. More than 9,000 chemical products available globally.

[ Diverse Global Presence

Real Experience. Real Advantage.

Countries of Operation Plants

[ Nalco Delivers Superior Sustainability PerformanceNalco Mission Statement


Our Mission is to lead the industry in creating value for customers and Nalco through differentiated services and technologies that save water and energy,

enhance production and improve air quality while reducing total costs of operation.

[

ProductProduct

MechanismsMechanisms

The 360°Business Environment


ProductProduct

PeoplePeople

Depending on the issue the perspective of the product changes. Sometimes the product is viewed through the lens of the mechanism. Product as it functions in the market, regulatory obligations related to the product, profitability of the product, production of the product. Sometimes the product is viewed through the filter of people. How do my customers use the product, is there market demand for the product, how will the media portray the product. Sometimes you consider a product through both the people and the mechanism. This is typically the perspective of the EH&S professional. How will the production of this product affect workers? How will the regulation impact customer’s use

[ The New Compliance Reality

Premise 1: Obligations are not

Premise 2: Supply

Chains are not linear

Premise 3: Risk is not


Ergo: Compliance is not linear

Obligations are not linear

Risk is not linear

[ Obligations are not Linear

Conflict Minerals

REACH

RoHS

Regulatory Obligations


RoHS

GHS

TSCA

SOx

We are going to drill down into each of the three components of compliance. First we will look at Obligations, both the kind that result from legislation and rule making by government entities and the kind that result from being part of particular industry group. Regulatory obligations for a manufacturer operating globally can be staggering. And each day it seems something new is promulgated. Add to that a dynamic product line and addressable market. Some of the areas of intense activity lately are REACH, GHS, Global Inventories and conflict minerals.

[ Obligations are not Linear

GRI

Responsible Care / ISO 1400x

Joint Industry Guide (JIG) EICC-GeSI

Extractives Work

Non-Regulatory Obligations


Work Group

GADSL

SIN List

Carbon / Water

Footprints

OHSAS 18001

GRI- Global Reporting Initiative - KPI and reporting standards for CSR reporting RCC and ISO 1400x - The ISO 14000 family addresses various aspects of environmental management. The very first two standards, ISO 14001:2004 and ISO 14004:2004 deal with environmental management systems (EMS). ISO 14001:2004 provides the requirements for an EMS and ISO 14004:2004 gives general EMS guidelines. The other standards and guidelines in the family address specific environmental aspects, including: labeling, performance evaluation, life cycle analysis, communication and auditing. RCC is Chem industry adaptation JIG Declarable Substance List of Joint Industry Guide No. JIG-101 Ed. 3.1 (Material Composition Declaration for Electrotechnical Products), amended as of 13 September 2010- Annex A of the Joint Industry Guide (JIG), established by the global electrotechnical industry, comprises a list (Table A) of relevant materials and substances subject to disclosure by suppliers when those materials and substances are present in products (including batteries) supplied to electrotechnical manufacturers in quantities exceeding the specified threshold limits (i.e., reporting levels). It does not apply to process chemicals (i.e., chemicals used and consumed during manufacture) unless those process chemicals constitute part of the finished product, nor does it apply to packaging (e.g., cardboard, plastic tray). EICC-GeSI Extractives Work Group Electronics industry Citizenship Coalition stakeholder-approved audit protocols for smelters GADSL is a single, globally harmonized list of substances used in automotive products throughout the supply chain. GADSL classifies substances as prohibited or declarable, if they exceed specified thresholds (default is 0.1g/100g). A substance may be prohibited for one use and declarable for another, in which case both classifications are given. GADSL covers only substances expected to be present in a vehicle at point of sale. Automotive industry guidance list The SIN List, which consists of chemicals identified as Substances of Very High Concern based on the criteria under REACH, was established by a group of environmental non-governmental organizations with the principal objective of putting pressure on legislators to move quickly toward substituting hazardous chemicals with safer alternatives. Carbon and water footprinting- part of many organization’s commitments to resource consumption reduction and energy use reduction. Many different protocols, many different uses of the data OHSAS- the identification of hazards, the assessment of risks and the determination of controls as required for Clause 4.3.1 of the OHSAS 18001 standard

[ SHE Mission Statement

§ Nalco SH&E mission is to "manage risk and protect the brand". This must be achieved against the backdrop of:

§ A rapidly changing regulatory environment§ The spread of copycat legislation; each with minor differences in content which require development and implementation of a regulatory compliance solution


regulatory compliance solution§ A changing business environment with the goal of increasing the number of innovative technologies launched and a trend to shorter product life cycles

§ Data intensive regulations with burden of proof on industry -manual systems are simply not sustainable

§ Internal and external Customers demanding greater proof of compliance

[ Regulatory Programs

SH&E has global programs which are regionally delivered and comprise the following elements:

Information technologyand contentprovided by


provided by SAP and 3E is critical to successful delivery

[ Hazard Communication - GHS§ One challenge has been the rapid global spread of GHS regulations, sometimes with short lead-times

Country / Region Substance / Mixture

ImplementationDate

Details SAP as primary ERP system

Japan Both 2008 GHS SDS & Label TemplatesExpert Rules

No

New Zealand Both 2008 GHS SDS & Label TemplatesExpert Rules

Yes

South Korea Both 2008 GHS SDS & Label Templates No


South Korea Both 2008 GHS SDS & Label TemplatesGHS Labels TemplatesExpert Rules

No

Taiwan Both 2008 GHS SDS & Label Templates No

China Both 2009 GHS SDS & Label Templates No

Vietnam Both 2009 GHS SDS & Label Templates Yes(Fall 2011)

Indonesia Both 2010 GHS SDS & Label Templates No

Singapore Substances Only 2010 GHS SDS & Label Templates Yes

European Union Substances Only 2010 GHS SDS & Label TemplatesExpert Rules (2011)

Yes

Brazil Substances Only 2011 GHS SDS & Label TemplatesExpert Rules (2012)BR in an SAP live country.

Yes

[

UN Purple Book (4th Revised Edition) (July 2011)§ Asia Pacific:

§ New Zealand (2001) * • Japan (2006) *§ Korea (2008) * substances • Taiwan (2008) *§ Singapore (2008) * substances • Vietnam (2008) *§ China (2009) * • Indonesia (2009) *

§ Europe§ EU (2008) * substances§ Serbia (2009) * substances (2011)

GHS legislation or standards have been passed in:


§ Serbia (2009) * substances (2011)§ Russia (2009/SDSs and 2011)*§ Switzerland (2009)

§ Middle East & Africa§ Abu Dhabi (2009)§ South Africa (2008)

§ Americas § Brazil (2009) * SDS format & substance classification (2011)§ Uruguay (2009) *§ Mexico (2011)

§ Transportation - SOLAS (International Convention for the Safety of Life at Sea) ** Indicates that GHS SDSs and classifications are already required

[

§ Draft regulations on GHS published:§ USA§ Australia§ Malaysia§ Philippines§ India (only transportation)

§ Preparation activities§ Canada – GHS compliant SDS accepted with reference to WHMIS

GHS regulations have been drafted


§ Canada – GHS compliant SDS accepted with reference to WHMIS§ MERCOSUR countries (Argentina, Brazil, Paraguay, Uruguay)– SDS standards

§ ANDEAN Community (Bolivia, Colombia, Ecuador and Peru, Ecuador) – National Plan, capacity building

§ Turkey§ Thailand § UNITAR/ILO Global GHS Capacity Building Programme: Cambodia, Gambia, Laos, Nigeria, Senegal, Zambia

EHS IT Overview SAP CRM/Portal

ECC

CustomerCHARMS

3E SDS Distribution

ECC EHS

SAP

Sales & DistributionPurchasing & LogisticsProduction

SalesOrder Delivery

StockTransferOrder

PurchaseOrder

ProcessOrder

Order EntryPPE Sheet BOL

SAP BI

SharePoint

SDS Online

SpecificationMaster

DMS

R&A

SVTDG

Material

License

Custom Reports

CustomerPortal

Mobile App

Analytics

GenerationServers

GLM

EHS IT Overview SAP CRM/Portal

ECC

CustomerCHARMS

3E SDS Distribution

ECC EHS

SAP

Sales & DistributionPurchasing & LogisticsProduction

SalesOrder Delivery

StockTransferOrder

PurchaseOrder

ProcessOrder

Order EntryPPE Sheet BOL

SAP BI

SharePoint

SDS Online

SpecificationMaster

DMS

R&A

SVTDG

Material

License

Custom Reports

CustomerPortal

Mobile App

Analytics

GenerationServers

GLM

[ Example Scenario I

§ Regulatory Content Loaded from Ariel§ GHS Classification – Data is loaded from Ariel at the List Substance level and is stored in the GHS Classification (List Data) property.



§ EHS Expert Rule Executed§ EHS Expert Rule is executed on the Real Substance to calculate the GHS Classification (EU CLP) based on the list substance data that was loaded from Ariel.



§ EHS Expert Rule Calculation§ GHS Classification (EU) property is filled with classification to EU CLP based on list substance data loaded for the components.



§ EHS Expert Rule Calculation§ Source Tab contains the reference to the EHS Expert Rule that was executed to calculate the classification.


[Global Inventories

§ New Inventories§ Taiwan§ Turkey § Malaysia

§ Changes to Existing inventories:


§ Changes to Existing inventories:§ USA. Toxic Substances Control Act (TSCA) Chemical Substances Inventory

§ China. Inventory of Existing Chemical Substances (IECSC)§ Japan. Inventory of Existing & New Chemical Substances (ENCS) and Industrial Safety & Health Law (ISHL)

[ Example Scenario II

§ Regulatory Content Loaded from Ariel§ Inventory Status – Data is loaded from Ariel at the List Substance level

§ EHS Expert Rule Executed§ EHS Expert Rule is executed on the Real Substance to calculate the Product status based on the list substance data loaded from Ariel

§ EHS Expert Rule Calculation


§ EHS Expert Rule Calculation§ Notification Status property is filled with product inventory status based on list substance data loaded for the components

§ Substance Volume Tracking (SVT)§ Date is filled to SVT tables and used to check orders

24

[ Example Scenario II

§ Compliance in Practice§ Email Alerting

Year to 8/31/2011:~ 470,000 orders ~ 800,000 items Reviewed globally


§ Order Blocking

Reviewed globally

SVT triggered:~ 5,000 email notifications

for ~ 2,000 orders

[Remaining Relevant


[ Six Elements of Content


[ 3E Ariel SAP EHS solution

MSDS Authoring Regulatory Services Impl. Services

Integrated Content & Tools

Expertise / Services


VendorSDSs

Content

Phys-ChemTox

Eco-Tox

ChemicalRegulatoryContent

ArielMultilingualPhrases

ArielRule SetsDangerous

Goods Content

Data Loading Tools – ADM EHSAP, OCC, VMSDS

Document Templates

3E Company Confidential

RulesBuilder

[

SAP EH&S

3E SAP EHSM Solution

ADM EHSAPLoading of Regulatory data

Ariel VMSDS LoaderLoading of Product data


Substances Products

Ariel Expert RulesEH&S Expert Server

Ariel STD TemplatesWWI Server

[ADM EHSAP Architecture

ADM EHSAP Ariel

Chemical

SAP EH&S (TEST)

ADM EHSAP Architecture

IT Admin Regulatory Admin Regulatory User

Web Browser client: ADM EHSAP and WebInsight

User Roles/Security:

Online ConfigurationSecure on-demand data feed via Web Services over HTTPS


ADM EHSAP on J2EE App. Server (e.g., SAP WebAS, Apache)

Chemical Regulatory Information

Server (CHRIS)

SAP Network Internet

Client Firewall

Ariel Firewall

DVD Data Loader

SAP EH&S (QUAL)

SAP EH&S (PROD)

Support for multiple SAP EHS environments

Off-Line ConfigurationData updates via DVD

Unicode LPS stores Ariel regulatory content, filters, mappings and other decision support data

Unicode Local Persistent

Storage (LPS) Ariel Chemical Regulatory Data

Warehouse

3E Company Confidential

[

[

]§ Thank you for participating.

SESSION CODE:

Please remember to complete and return your evaluation form following this session.

For ongoing education on this area of focus, visit the Year-Round Community page at www.asug.com/yrc


[ SESSION CODE: 0508

Date post:	01-Dec-2014
Category:	Documents
Upload:	annhurley
View:	71 times
Download:	1 times

Latest Changes in Global Regulatory Requirements and Their Impact on SAP EHSM

Documents