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Product Stewardship:
Putting It into Practice
GCWellon, Manager, Responsible CareMethanex Corporation
June 2010
Product Stewardship Definitions
American Chemistry Council(ACC)
Product Stewardship is the shared responsibility for understanding, managing and communicating the
impacts to human health and the environment through the life cycle of chemical products. This life cycle
involves the development, production, use, distribution and end-of-life management of products.
Product Stewardship Definitions
International Councilof Chemical Associations
(ICCA)
Product Stewardship is the industry’s management of the health, safety and environmental performance of chemical products throughout their entire life cycle.
Product stewardship is a shared responsibility requiring close cooperation with suppliers and downstream users.
Product Stewardship Definitions
Kodak
Product Stewardship is an integrated business process for identifying, managing and minimizing the health, safety
and environmental risks throughout all stages of a product's life in the best interest of society and our key stakeholders; customers, employees and shareholders.
Product Stewardship Practices
• Product Stewardship Code outlines principles that companies should address
• Each company has flexibility to develop and implement practices that fit that company
• PS Code: “Each company must exercise independent judgment and discretion to successfully apply the code to its products, customers and business.”
Product Stewardship Practices
PS Principles Ensure affected people know and understand the
hazards & risks of the company’s products
Methanex Practices Technical Info & Safe Handling Guide, MSDS, MI Safe
Handling Manual, safety videos, & more – developed and available to all stakeholders through Methanex web site
Letter to customers, other stakeholders describing info on web site and how to access
FAQ database including chemical properties developed, on company intranet and shared with all employees
Product Stewardship Practices
PS Principles Prohibit sale of product unless there is reasonable
assurance of customer’s ability to manage it properly
Methanex Practices Assessments of customer’s product handling areas;
improvement opportunities identified; recommendations
Product Stewardship Practices
PS Principles Establish selection criteria for suppliers and evaluate
performance
Methanex Practices Risk-based approach to selection of logistics services
providers; implementation of assessment program; improvement action plans in place; completion of actions
For example, CDI-T inspections of terminals and chemical product storage & handling areas
[Chemical Distribution Institute – Terminals = independent, 3rd-party assessments by trained, certified inspectors]
Product Stewardship Practices
PS Principles Extend Responsible Care ethic to business partners
Provide information to customers / downstream users on safe storage, handling, use & disposal of products
Methanex Practices Responsible Care clauses in all contracts – customers,
logistics services
Outreach to customers and logistics service providers – Safety Seminars & presentations, quarterly newsletter, response to queries
Product Stewardship Practices
PS Principles Understand how customers are managing risks with your
product
Methanex Practices Learn more about downstream users and uses; learn
about downstream management of product storage and handling; learn about downstream selection of carriers
Product Stewardship Practices
PS Principles Seek feedback on customer use or misuse of products
Be alert to customer comments; respond to product-related concerns
Methanex Practices Customers participate in reporting of incidents involving
our product
Methanex process in place for addressing these concerns
Incident management system, Customer Complaint process, root cause analysis, corrective actions
Product Stewardship Practices
PS Principles Product security risk management – security plan to
protect stakeholders from deliberate misuse of products
Methanex Practices Sell only to contracted customers with whom a
relationship has been built, whose business we are familiar with, whose end products we understand
Have a Corporate Crisis Management Plan with regular exercises
Product Stewardship Practices
PS Principles Employee education – trained and knowledgeable on
proper handling, use, recycling and disposal of products
Methanex Practices Employees trained; understand product hazards; know
proper handling procedures; involve customers and suppliers in incident management; established service provider guidelines; respond to customers’ product-related issues / concerns
Product Stewardship Practices
PS Principles Public issues & concerns – involvement in industry
associations (leadership, technical committees) and public forums to give and receive benefits of experience
Methanex Practices Active involvement with:
o American Chemistry Councilo Chemistry Industry Association of Canadao Methanol Instituteo IMPCA Technical Committeeo Formaldehyde Councilo GPCA Product Stewardship Workshop !
Product Stewardship Practices
PS Principles PS Key performance Indicators – tracked on regular basis
Methanex Practices Established for our Supply Chain:
o # of customer complaintso # of customer complaints open > 30 / 60 / 90 dayso # of significant incidents / 100,000 tonnes shippedo # of minor incidents / 100,000 tonnes shippedo closure rate of incidents / completion of corrective actionso # of railcar leaks / 100,000 tonnes shipped by railo # of barge leaks / 100,000 shipped by bargeo % completion of railcar Preventive Maintenance Programo # of Safety Seminars given with breakdown by Industry Sector &
number of participants