Moving from

Environmental Compliance to

Environmental Performance

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Welcome to Colorado!

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• Table stakes: can you maintain license to operate?

• Are you missing out on real business value?

• How can you drive performance?

*Leverage macro trends in Markets, Regulation, and Technology

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Non-compliance Compliance Performance

Markets Are Changing

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Industries are Transforming

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Regulations and Drivers Are Shifting

“The implications are

clear: Investments

in material sustainability

factors create value for

companies and their

shareholders.”

Environmental Performance Drives Business Value

© 2019 Sphera Source: https://www.sasb.org/jury-in-materiality-matters/

Which Industry is NOT Subject to Change?

Oil & Gas

Government

Chemicals

Power & Utilities

Pharmaceuticals

Manufacturing

Metals & Mining

CPG

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Industry Automation Progression

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Enabling the Digital Transformations of Industry 4.0

Industrial Internet of Things

Augmented Reality

Convergence of EHS

Operations and Workflows

Cloud

Mobile

Smart Sensors

Data & Analytics

Machine Learning / AI

Digital Twin

EHS, Operational Risk and Product Stewardship teams are also seeking to leverage these technologies to improve outcomes

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Where Are We on the Curve?

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Source: http://weblog.tetradian.com/2016/08/09/tech-adoption-tech-evolution-lifecycle-mgmt/

Industry 4.0 Process Flow

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Industry 4.0 Design Principles

Systems need to connect people,

machines, sensors, devices and

software through the Internet of

Things (IoT) and allow them to

communicate with one another.

Interconnection

Data collected through

interconnection needs

to be made available

for operators for

decision-making.

Information

Transparency

The ability to shift low-

value tasks from

people to cyber-

physical systems, and

for systems to provide

people with analysis

and information to

make timely and

effective decisions.

Technical

Assistance

Systems need to be

able to make their own

decisions and take

autonomous action.

Decentralized

Decisions

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• Non-digital

• Multiple formats

• Widely distributed

• Siloed, stand-alone

systems

• Manual / expensive integrations

• Limited sharing

• Intermittent analyses

• Local, functional perspectives

• Corporate compliance-

oriented

• Rearward-looking

analytics

• Laborious, manual

decisions

• Rigid workflows – people comply with systems

• Limited perspective

Key Challenges to

Transition to New

Paradigm

Digitize and secure

Break down

and integrate information silos

Shift to forward-looking

insights

Reimagine workflows for

new paradigms

• Digital

• High volume, velocity, and variety

• High security

• Integrated platforms

• APIs and common interfaces

• High security

• Automated and

continuous

• Holistic views

• Value-driving

• Predictive analytics

• Automated controls

• Artificial intelligence / Machine learning

• Prescriptive analytics

• User centric – systems support people

The Paradigm Shifts

Data Integration Insights Decisions

New Paradigm

Old Paradigm

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Industry 4.0 and Environmental Performance Benefits

• New revenue streams

• Increased operational flexibility

• Real time visibility and early

warning systems

• Greater efficiency

• Improved customer experience

Smart • Self monitoring

• Data-generating

• Contextual awareness

Connected

• End-to-end

• Multi-directional

• Non-siloed

• Real-time

Continuously

Improving

• Agile

• Adaptive

• User centric

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Sphera Perspective to Leverage Industry 4.0

INFORMATION INNOVATION INSIGHTS

Modular Applications w/

Superior U/X

Data Visualization & Analytics

Subject Matter

Expertise

Integrated Cloud Platform

w/ Mobility

Content Differentiated

Software

Industry Configured

Applications

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: Improving Enterprise-Wide Visibility

Work Activities

SOP / Work

procedures

Safe Work Limits

Transparency to risk for both plant and people

Location Time Risk Process Safety

Engineer

Operations

Supervisor

Site Env.

Engineer

Site EHS

Manager

Corporate EHS

Manager

Incidents Audits

Equipment Status

Inhibits Impairments

Deviations

Data Integration Insights Decisions

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Dynamic Real-Time View of Plant Risk Status Real Time View of Safeguarding Barrier Status Policies and procedures

Complex operating environment

Operators trying to connect the dots

Real-time capture of

risk related data

Intelligent translation

& mapping

Emerging Risk Pathways allow for early intervention

© 2019 Sphera

Operational Excellence Benchmarking Study

58% oil & gas

19% chemicals

23% Other (manufacturing, utilities, mining, engineering, consultants, hardware/software provider, etc.)

72% > 15 years’ experience

Regional breakdown

40% > 10,000 employees

42% own/operate 25+ industrial assets

[CATEGORY NAME] [PERCENTAGE]

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[CATEGORY NAME] [PERCENTAGE]

[CATEGORY NAME] [PERCENTAGE]

[CATEGORY NAME] [PERCENTAGE]

[CATEGORY NAME] [PERCENTAGE]

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Focus on Industry 4.0 Digitization

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Key Industry 4.0 Challenges Sphera Innovation Focus Areas

Digitize and secure • Continued expansion SpheraCloud HSE, ORM, MRO, and PS capabilities

• Continued security enhancements

Break down and integrate

information silos

• Expand platform and module APIs, for easy integration with devices and

other systems

• Integrate value-enhancing content from external sources

Shift to forward-looking insights

• Industry benchmarking capabilities

• Introduce predictive analytics

• “What if” scenario modeling

Reimagine workflows

for new paradigms

• Continue to enhance user interface and experience to accommodate best

practice workflows

• Introduce prescriptive algorithms into software

• Expand Industrial IoT solutions

Sphera – Addressing Key Industry 4.0 Challenges

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SaaS-Based

Solution for

Lower TCO

Modular

Applications

that Share

Data

Mobile

Extensions

that Drive

Efficiency

Secure

Solutions

Outstanding

User

Experience

Deep

Analytics for

Actionable

Insights

Easy

Integration

with Other

Systems

Data

Privacy

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How to get there: Systems, not goals

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Goals

• Linear

• Ends/means

• Expire

Systems

• Continuous

• Capabilities

• Evergreen

Elements of a Functional System

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Transparency

• Sunshine

•

Feedback Loops

Incentives

•Carrot

•Stick

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From Data to Information

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From Data to Information

© 2019 Sphera

Sphera Benchmarking Study:

Prescriptive Benchmarks

Learning Risk-driven Disciplined Engaged

NEAR MISS

RATE

PROCESS

ENGAGED

% ON TIME

ACTIONS

%

MITIGATED

% HIPO

MITIGATED

RISK DRIVEN

ACTION

MITIGATION

OF HIPO RISK

ROOT CAUSE

DISCOVERY

219.0 80.70% 87.30% 0.30% 2.00% 52.00% 57.60% 8.20%

22.3 71.70% 93.20% 50.00% 0.00%

511.0 84.30% 78.60% 4.00% 20.30% 52.20% 64.10% 28.80%

12.7 80.30% 82.70% 33.10% 74.00% 62.10% 66.10% 74.40%

345.0 74.80% 85.80% 25.30% 14.30% 93.60% 68.30% 93.10%

8.2 47.10% 77.50% 57.70% 70.10% 57.80% 58.50% 76.90%

68.7 59.50% 74.20% 2.80% 0.00%

212.0 67.80% 65.90% 31.20% 41.30% 29.20% 10.80% 61.50%

118.0 81.30% 57.70% 11.00% 13.00% 11.90% 27.70% 34.10%

45.3 66.30% 74.50% 38.00% 0.00%

22.8 47.40% 53.20% 0.30% 1.00% 9.60% 63.40% 7.80%

93.8 66.10% 75.40% 29.30% 0.00%

Shaded scores reflect areas where “process maturity” is insufficient.

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Company 12

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Augmented Reality for Real Time Awareness

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Gain Executive Commitment

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Elevates “information” to the boardroom agenda.

Architects and

formulates strategies for

building, catalyzing, or

joining an “ecosystem.”

Drives “data creation &

integration” across assets,

systems, and processes.

Develops “IoT tech stack” and institutes “data

governance” across the firm.

Assesses information payoffs by

developing an “IT balance sheet” that includes projects, hardware,

software, vendors, etc.

Drives adoption and

influences design of new

“workplace solutions.”

Develops “digital campaigns” with IT team in sensing digital

behaviors of consumers,

suppliers, and partners.

Realizing the

transformative

benefits of

Industry 4.0

technology

demands

commitment at

the company’s highest levels.

CEO/chairman

COO CFO CMO

CSO CTO CHRO

Graphic: Deloitte University Press | DUPress.com

Subhead

• Bullet

• Bullet

• Bullet

Header

Sphera: Moving You From Environmental Compliance to Environmental Performance

Enterprise Wide Data

Persona Based

Decision Point

Contextually Aware

Cloud, Mobile, Social

The right information…

…for the right people…

…at the right time…

…and place…

…and in the right form

© 2019 Sphera

We create a safer, more sustainable and productive world.

For more than 30 years we have helped

customers and individual users optimize

work-flows and navigate the complex

and dynamic global regulatory structure.

Our goal is to help customers keep their

people safe, their products sustainable

and their operations productive.

© 2019 Sphera