environmental risk management - sache risk... · © 2013 chevron u.s.a. inc. aiche/sache 2013...

© 2013 Chevron U.S.A. Inc.

AIChE/SACHE 2013 Faculty Workshop

August 21, 2013, Richmond CA

Environmental Risk

Management


Areas of Discussion

2

Diversity of Environments

and Risks

Challenges and

Opportunities

Strategy to Understand & Manage Risk


Diversity of Receptors and Receiving Environments

3


Chemicals Products

Emissions

Discharges

Wastes

Inadvertent or undetected

releases

Diversity of Hazards

4

Resource Use /

Footprint Introduced species

Clearing

Dredging

Erosion

Water use

Environmental

Condition Noise

Light

Temperature

Global environmental

change


Managing Environmental Risk

Environmental Risk is

managed by 3 key

processes at Chevron

Environmental Stewardship

Environmental Aspects

Third Party Waste

Stewardship

Retirement of Assets

Environmental Performance

Standards

Environmental Health Social

Impact Assessment

HES Risk Management

5


Application of the Risk Matrix Environmental risks are evaluated at a high level during the IHAZID

6

1 Likely 6 5 4 3 2 1

2 Occasional 7 6 5 4 3 2

3 Seldom 8 7 6 5 4 3

4 Unlikely 9 8 7 6 5 4

5 Remote 10 9 8 7 6 5

6 Rare 10 10 9 8 7 6

6 5 4 3 2 1

Incidental Minor Moderate Major Severe Catastrophic

Consequence

Indices

Decreasing Consequence/Impact

Decre

asin

g L

ikeli

ho

od

Most routine environmental

practice. Requires diligence

to ensure safeguards remain

in place. Priorities

differentiated by ES.

Sensitive

environments increase

the risk of routine

practice and require

additional safeguards

Large spills can have

severe or catastrophic

impacts and must be

managed to very low

likelihood.

Smaller spills –

typically short

term

consequence,

relatively higher

likelihood.

Without verified

safeguards,

environmental practices

can result in elevated

risk


Managing Environmental Risk in Operations

HES Risk Management frames risks at an asset group and/or business unit level and provides

governance on risk criteria and mitigation. Environmental Stewardship is the detailed process that

identifies and prioritizes environmental risks (aspects) and mitigation actions.

7

Identifies potential spill scenarios as

environmental aspects and further refines

understanding of the risk

Defines certain standard practice via

Environmental Performance Standards

(EPSs)

Prioritizes environmental aspects based on

a variety of criteria, including reputation

Stewards long term mitigation of

environmental risks

Drives sustainable risk reduction through

ES plan

Identifies potential scenarios that could

result in loss of containment and

qualitatively estimates the risk

Requires verification that routine practices

(level 6 risks) are aligned with established

standards

Highlights reputation risks using

signposting

Provides governance on closure of

environmental risk mitigations

Focuses attention on near term closure of

elevated risks

Environmental Stewardship

(routine operations focused)

HES Risk Management

(event focused)


Managing Environmental Risk in Projects

Stakeholder Engagement is a critical

component of the ESHIA process. ESHIA

allows for consultation with internal and

external stakeholders on a range of project

issues, including health, safety and

environment risks. ESHIA is also the

mechanism to fully characterize

environmental and health impacts and identify

mitigation measures

Integration is the key strength of HES RM.

The IHAZID study enables a big picture look

at health, environment, safety and reputation.

This is particularly important for projects with

significant process hazard risks such as LNG,

sour gas development and deepwater drilling.

8

HES Risk Management

Screen-

Scope

ESHIA

Management

Plan

Assess

Impact

Stakeholder Engagement

Risk

Register IHAZID

Risk

Studies

Risk

Reduction

Plan

Environmental, Health, Social

Impact Assessment (ESHIA)


Key Challenges

9

Integrating risk

perception into

decision making

Assessing and

addressing delayed

impacts and

cumulative risk

Continuing to

understand the

integrated risk

picture


Unique Tool Set and Terminology

10

Decision making on risk

priorities occurs using inputs

from many sources – each

with unique tools and

terminology

EPA defines risk to be the chance of

harmful effects to human health or

to ecological systems resulting from

an environmental stressor

A stressor is any physical, chemical

or biological entity that can induce

an adverse response


Challenges to Understanding the Risk

Multiple receptors

Consequences often

– Have effects that are

delayed in time from the

exposure

– Are multi-causal or

cumulative

– Do not result in clear

causation even with

proven exposure

Typically greater

uncertainty and more

difficult to characterize

and bound the risk

(relative to safety risk)

11


Risk Assessment Informs Risk Management

12

Risk Assessment Output

Risk Management Decision

Risk Characterization

Exposure

Assessment

Dose-Response Assessment

Hazard Identification

Political Considerations

Risk Management

Options

Economic Factors

Policy Considerations

Statutory & Legal

Considerations

Social Factors

environmental risk management - sache risk... · © 2013 chevron u.s.a. inc. aiche/sache 2013...

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