environmental product stewardship in emerging and transitioning markets

Presented by:

Alizabeth Aramowicz Smith

Consultant

[email protected]

518-281-6330

Environmental Product Stewardship

mailto:[email protected]

Antea Group IntroductionOUR EXPERTISE

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Antea Group is a global engineering and consulting firm that delivers fit-for-purpose solutions from strategy through implementation in the fields of environment, infrastructure, urban planning and water.

By combining strategic thinking and multidisciplinary perspectives with technical expertise and pragmatic action, we do more than effectively solve client challenges; we deliver sustainable results for a better future.

Environmental Liability

Management

Operational Performance & Assurance

Sustainability & Corporate

Responsibility

Transaction Support

Health & Safety

Information Management System Supporting All Services

Global Connections Through InogenOUR EXPERTISE

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To further expand global coverage for multi-national Clients, Antea Group founded the Inogen® Environmental Alliance in 2001. This is a global corporation comprising independently operated consultancies (Associates), which includes Antea Group.

OVER

4,300Staff Worldwide

OVER

160Offices Worldwide

AMERArgentina

BrazilCanadaChile

Colombia

Costa Rica

Dominican RepublicEl SalvadorJamaica

Mexico

PanamaPeruPuerto Rico

United States

Uruguay

APACAustralia

China

IndonesiaJapan

Malaysia

Singapore

South KoreaThailand

EMEAAbu DhabiAustria

Belgium

BulgariaBurkina Faso

Chad

Egypt

FranceGeorgiaGermany

Greece

HungaryIndiaIrelandIsrael

Italy

JordanKuwaitNetherlandsNiger

Nigeria

Pakistan

PolandPortugal

Romania

EMEA continuedRussia

SerbiaSlovakiaSouth Africa

SpainTunisia

Turkey

United Kingdom

Compliance – Never a Steady State

Nixon Forms EPA

EHS Focused on Facility Compliance

Added Operational Specific (e.g., SIC code) and Chemical Specific Requirements

Globalization of Companies and the impact of other regional regulations (e.g., REACH/WEEE) -DfE regulations

Reporting environmental, social, and governance (ESG) data and Corporate social responsibility (CSR) disclosures


What is EPS?

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Environmental Product Stewardship (EPS) is an environmental management strategy that entails that whoever designs, produces, sells, or uses a product takes the responsibility for minimizing the product's environmental impact throughout all stages of the product’s life cycle, including end of life management.

The greatest responsibility typically lies with producers.

EPS DefinedEnvironmental Product Stewardship

Common Regulations Associated with Environmental Product Stewardship:

• GHS and hazard communication

• TSCA, REACH, and global inventories

• FIFRA and biocides

• Energy Efficiency

• Packaging

• WEEE

• Battery Directive

• Social responsibility

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Type of EPS RegulationsEnvironmental Product Stewardship

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Cultural

•Worker Safety

•Social Responsibility

•Governance and Human Resource requirements

Material

•Safe for humans and environment during extraction

•Non-toxic during production, use, and disposal

•Fewer and lighter: “Dematerialization”

Efficiency

•Minimal energy & water used during extraction and production

•Short, efficient transit

•Highly energy efficient during use

•Reuse of water

End of Life

•Design for long life

•Easy to upgrade, refurbish, repurpose

•Fast disassembly into resalable parts

•High-value end of life, encouraging recycling

•Producer take back

Global EPS Drivers

Global Drivers of EPSEnvironmental Product Stewardship

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Key Point – More regulations will come – and may reduce the spin of the cycle!

World Population

and Economic Growth

Natural Resource

Consumption

Economic Growth

Energy Use and Waste Generation

Economic Development Impacts

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Developed Economies

Emerging/ Developing Economies

Economies in Transition


• Saves Costs

• Increases Revenues

• Reduces Risk

• Builds Reputation

• Develops Human Capital

• Improves Access to Capital

Opportunities of EPSEnvironmental Product Stewardship

• Green technology has virtually exploded in the last few years

• Link to Internet is a Common Business Model

• Quagmire of regulatory changes

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Weak global economic conditions can cause a lack of support

Emerging economies are struggling against corruption, crime, and lack of infrastructure, and unrealistic Environmental Product Stewardship requirements can be construed as a barrier to enter a market

EPS Barriers in Emerging MarketsEnvironmental Product Stewardship

“In five years, there will be no access to international markets for companies that do not show respect for the environment. It is becoming fundamental to international trade.”

2010 - Rafael Wong, Executive VP of Reybancorp in Ecuador

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Emerging Economies and Economies in Transition

Global Spot Check

Global Spot ChecksREGSCAN CONFERENCE

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Antea Group’s Global Reach

India – Efficiency Regulations Booming


• 65% of Indian states are having limited surface water availability and 4 out of 5 river basins are stressed.

• India is suffering from a drought.

• Little to no enforcement of water regulations on the rivers

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Source: http://www.npr.org/2016/05/11/477415686/can-indias-sacred-but-dead-yamuna-river-be-saved

India – Rapidly ExpandingEnvironmental Product Stewardship

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Efficiency Mandatory recycling of grey water for toilet flushing in buildings with floor area > 20,000 m2.

Construction of check-dams and weirs.

Water tribunals and resolving the sharing disputes.

River water allocation for industrial and commercial use.

Regulating river water flows during the lean season.

Some states have implemented Zero liquid discharge (ZLD)

Some industries are regulated under ZLD scheme.

Rainwater harvesting (roof area runoff) is mandatory

All units seeking expansion and augmentation should adopt ZLD

Charter for environmental protection (maximum permissible water use and wastewater discharge

India - ExpandingEnvironmental Product Stewardship

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Other Emerging Issues & Trends

(Lack of understanding of regulations and compliance requirements)

E-Waste Hazardous Waste

South Africa – Stable/Developing


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Cultural Focused on Mining Operations

Funding of local Schools

HR Requirements of hiring a % of Local Labor

Equitable Wage Battle in the Press

Cultural Resource management requirements

Implementing Prevention and Care Health Strategies

Materials National and Multi-Stakeholder Committee on Chemicals Management.

Member of a number of international conventions, such as the Stockholm, Basel and Rotterdam conventions.

Recycling is now mandatory (along with reuse) in the NEMA: Waste Act.

GHG emissions report by country causing new requirements for industry

South Africa


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Efficiency The Energy Efficiency Accord, which is a voluntary agreement with 24 major industrial energy users and seven industrial associations, is the main measure for promoting energy savings in the sector.

End of Life

2004 e-waste initiative but no solid legislation to enforce it.

The e-Waste Association of South Africa (eWASA) was established in 2008

Life Cycle Assessment becoming the norm in all industries

Cradle to grave approach focus of National Waste Act

Indonesia- DevelopingEnvironmental Product Stewardship

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Cultural Company Social Responsibility Program required

Materials Ecolabel is implemented

Must implement SNI 19-14001/ISO 14001 and SNI 9001:2008/ISO 9001:2008

Ecolabel prohibits use of material which contains harmful/toxic chemicals

Efficiency The Ecolabel regulation covers the requirements for environmental management following UU No. 32 Tahun 2009 including waste, wastewater, emissions, etc.

End of

Life

The Ecolabel covers environmental management following UU No. 32 Tahun 2009 including waste, wastewater, emissions, etc..

Singapore - DevelopingEnvironmental Product Stewardship

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Cultural

Materials Green Labelling Scheme (SGLS) in 1992

ODS Regulations

Efficiency Energy Conservation Act – also regulates the GHG production

End of Life

The Singapore Packaging Agreement (SPA) joint initiative by government, industry and NGOs to reduce packaging waste

Ewaste (biggest area of change)

Voluntary by National Environment Agency (NEA)

China – Actively Changing

Future focus:• MEP has noted that soil, air, and water

regulations will become more prescribed. • Heavy metals in waste and discharges will

be the focus.• Chemical Safety - specifically for

warehouses.• Regional CO2 Cap and Trade:

• Hubei, as well as the cities of Beijing, Shanghai, Tianjin, Chongqing, and Shenzhenhave unique programs

• By 2020, the Chinese government plans to link those regional systems into a national carbon market.

• Link with Australia carbon markets to create an APAC Regional market.

• Incentive for cleaner technologies within facilities

• APAC product compliance – affects nonChina based facilities too.

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Mexico- DevelopingEnvironmental Product Stewardship

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Cultural Voluntary program - Socially Responsible Company (ESR) Certification

Materials Specific Chemical Restrictions (e.g., Lead, Cadmium, etc..)

ODS Phase out as part of the Montreal Protocol

Efficiency LEED Building Certification

Voluntary Energy Efficiency Excellence Rating Program

NOMs regulating the Electrical Efficiency of equipment which must be labeled

Following the Montreal Protocol. Currently must inventory and report if >25,000 Tons of Co2/year

End of Life

Peru - Developing


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Cultural Cultural Resource management requirements

Foods must be labeled with GMO notifications

Materials Working to comply with global conventions and protocols

Chemical and Pesticide Registration being developed

Efficiency Law N° 27345- promotion of the Efficient Use of Energy

Equipment must have labels regarding energy consumption /efficiency

End of Life

WEEE Resolution has yearly collection goals for EEE producers

Brazil – Developing via Partnership


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Cultural Mining Operation Focus

Materials Asbestos and Benzene prohibitions

Efficiency Tax Program

Biodegradable Packaging

End of Life

2010 National Solid Waste Policy has Take Back Program: battery, oils, pharma, tires, pesticides, lamps.

Returnable/Biodegradable Packaging

Summary –How to Manage

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Universal Truths: Compliance is Growing

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Global Environmental

Managers

Supplier Tracking

Traditional Facility

Compliance

Product Compliance

Environmental Accounting


Environmental compliance is a dynamic system impacted by:

• Natural resource limitations

• Economic strength of the country and company

• Publicity of bad offenders

• Social agendas

Universal TruthsEnvironmental Product Stewardship

Compliance areas that will continue to be the focus:

• Air Emissions

• Energy Consumption

• Soil and Water Pollution from Waste and Materials Storage and releases

• Water Reuse

• Packaging

• Toxicology

• End-of-Life Liability

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Best Management General PracticesEnvironmental Product Stewardship:

Good planning toward sustainable

and green production

tracking emerging Environmental

Product Stewardship

trends

Selection of advanced

technologies with low emissions

Consideration of cleaner

production, conservation,

including water reuse

Review suppliers and hold them to Brand established

Environmental Product

Stewardship standards

Best in Class Successful Business ModelsEnvironmental Product Stewardship

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Documenting Compliance

Reviews

Internal and External EHS

and EPS Audits

EHS/EPS Aspect and Goal

Annual Review

Root Cause Analysis and Track Corrective Action

Tracking Changes

Country Specific –

Protocols -RegScan

Targeted Support – Global Help

Desk

Periodic Review of Product

Compliance

Chemical Management

Green Chemistry/

Procurement

Training on Import and

Export Chemicals

Training on EPS Requirements

Environmental Management Involvement

Participate with Development

Teams

Supplier Selection/ EPS

and EHS Auditing

Marketing/

Labeling/ Documentation

for sales

EPS Gap AnalysisEnvironmental Product Stewardship

• Product Line Review (repeat periodically)• EHS and Environmental Product Stewardship Regulation evaluation• Financial• Supplier Conditions• Contractor review (e.g., waste sites)

• Team includes representatives from• Management• Business Development• Finance• Marketing• Toxicology & Regulatory/ Product Stewardship Specialist

• Regulatory Tracking• Link to processes for tracking changes & evaluating impact of

Environmental Product Stewardship Regulation (e.g., RegScan)

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B E T T E R B U S I N E S S , B E T T E R W O R L D℠

Antea Group Offices

USA Headquarters5910 Rice Creek Parkway, Suite 100St. Paul, MN 55126, USAUSA Toll Free: +1 800 477 7411 International: +1 651 639 9443

BelgiumPosthofbrug 102060 Antwerpen

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France11, rue de la Vanne92120 Montrouge

NetherlandsMonitorweg 291322 BK Almere

www.anteagroup.com

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