Responsible Care and its relation to Global Product Strategy

1. Responsible Care and its relation to Global Product Strategy by DR. AHMED AL-HAZMI Manager, Environment and Industrial Hygiene Department Saudi Basic Industries Corporation – Headquarters June 2010

2. Outline • Why do we need to adopt Responsible Care (RC)? • Why do we need to know more about Global Product Strategy (GPS)? • What is the relationship of GPS to RC? • Do other regulation programs such as REACH etc. related to GPS? • What are SABIC’s efforts on this program? • How can we promote GPS?

3. ‘We will assess the risks associated with our products, and seek to ensure these risks are properly managed throughout the supply chain through stewardship programmes involving our customers, suppliers and distributors’…and others. - UK Chemical Industries Association What is Product Stewardship? It is a term used to describe a product-centered approach to environmental protection. It calls on those in the product life cycle – from designers, manufacturers, retailers, consumers, waste managers, and disposers – to share responsibility for reducing the environmental impacts of products.

4. What is the Value of Product Stewardship? • Known reasons include: • reducing risks of actual harm to our employees, our suppliers, customers and consumers • protecting our business from legal claims of harm • helping to avoid non-governmental organisation ‘black lists’ (chemicals to ban / restrict) • helping us comply with • product legislation e.g. EU REACH Regulation • industry commitments e.g Responsible Care / GPS • helping us identify new market opportunities

5. Approaches to Chemical Products Compliance Other legislations REACH Chemicals Management Compliance Industry standards Global Product Strategy Responsible Care SUSTAINABILITY

6. Fundamentals Highly technical Determine Product Hazards+ Exposures Assess Product Risks MANAGE PRODUCTRISKS Predict effects on people & environment Tox/Ecotox & Exposure Data Source: Stewardship Solutions

7. Global Product Strategy – Contribution to SAICM Source: ICCA

8. Sometimes Viewed as a Distinct Activity RESPONSIBLE CARE / GLOBAL PRODUCT STRATEGY Product Stewardship Pollution Prevention Distribution Process Safety Community Awareness Employees

9.  • Regulatory initiatives • EU REACH • US TSCA • Canadian DSL • Japan CSR • GHS • etc.  • Voluntary initiatives • Responsible Care • ICCA HPV • Base Set of Information • OECD / SIDS • LRI • etc.  • Cooperation • UNEP • UNIDO • OECD • NGOs • ICCA internal • etc. GPS – Leverage and Build Upon Existing Work Global Product Strategy (GPS) Globally consistent approach that accommodates national, historical, cultural and regulatory differences Source: ICCA

10. Chemical Risks…Our Operations R&D Plants Transport

11. Chemical Risks… Industry Applications

12. Chemical Applications

13. 13 SAICM • Discussed in 1992 during the U.N. Conference on Environment and Development held in Rio de Janeiro • It is an international framework on sound chemicals management • Adopted at the International Conference on Chemical Management in Dubai, United Arab Emirates, in February 2006 • One of SAICM’s key goals is to ensure that existing chemical and waste disposal-related treaties are all ratified and become subject to implementing legislation in the various nations

14. 14 Goals of SAICM • Expanding & accelerating international assessment of chemical risks • Harmonization of classification & labeling of chemicals • Information exchange on toxic chemicals & chemical risks • Strengthening of national capabilities & capacities for management of chemicals • Prevention of illegal international traffic in toxic & dangerous products

15. 15 SAICM and REACH • Clear link between REACH and SAICM • Share the same general objectives • Many of the recommendations included in SAICM will also be implemented in REACH • Many international instruments have been developed to promote sustainable chemical management

16. 16 Responsible Care Global Charter • The commitment exists by Companies under Responsible Care are as follows: • Continuously improve the environmental, health and safety knowledge and performance of their technologies, processes and products over their life cycles so as to avoid harm to people and the environment. • Use resources efficiently and minimize waste. • Report openly on performance, achievements and shortcomings. • Listen, engage and work with people to understand and address their concern and expectations. • Cooperate with governments and organizations in the development and implementation of effective regulations and standards, and to meet or go beyond them. • Provide help and advice to foster the responsible management of chemicals by all those who manage and use them along the product chain.

17. 17 Top Goals of the Responsible Care Global Charter Expand and extend the process of continuous improvement beyond manufacturing to other activities especially those associated with the safe use and handling of our products along the value chain. Address important societal issues including sustainable development and the need for the industry to work more transparently with our stakeholders than ever before. Recommending all companies, large and small, to work together to strengthen and promote the industry’s Responsible Care ethic and to continue to bring real benefit and value to the global community.

18. 18 Global Product Strategy GPS is designed to improve the global chemical industry’s product stewardship performance by recommending measures to be taken by companies, working together with their chemical associations, and in cooperation with activities of other companies and associations along the chemical value chain.

19. 19 Components of the Global Product Strategy • Guidelines for product stewardship, including ways to make relevant product stewardship information more transparent. • • A tiered process for completing risk characterization and risk management actions for chemicals in commerce. • • Product stewardship performance with a special focus on working directly with downstream customers of the chemical industry. • • Exploration of a potential partnership with an intergovernmental organization to enhance global product stewardship.

20. 20 Product Stewardship: Protecting the Environment • Reduce pollution • Reduce solid waste • Conserve resources • Reduce toxicity • Reuse and recycling are considered during design stage

21. 21 Relationship REACH SAICM RCGC GPS Product Stewardship

22. SABIC Approach

23. Thank you