Science-based Politics or Science-sceptic Decisions ?

Dr Jacques de GerlacheToxicologist,

Corporate Sustainability CommunicationSolvay

European Responsible Care Conference 2010

Zürich 20-22 October 2010

2© 2010, SOLVAY S.A. N.V.

The context of « Corporate Social Responsability » (I)

production

"local " shareholdersor state owner

Until the seventies, the stakeholders and the perimeter of the companies responsabilities were limited :

employees/unions

Raw materials Products/service

3© 2010, SOLVAY S.A. N.V.

The context of Corporate Social Responsability (II)

productionRawmaterials

Products/service

shareholders

Employees-Unions

Nowadays, the perimeter includes the stakeholders

of the whole lifecycle of the products

clientsneighbors

End of life / recycling

Environment

NGOsauthorities,

media

consumer

Contractorssuppliers

4© 2010, SOLVAY S.A. N.V.

Evolution of public expectations towards our industries

1970’s: ““ I (have to) TRUST YOUI (have to) TRUST YOU””

1980’s: ““TELL ME TELL ME ””

1990’s: “SHOW ME !SHOW ME !””

2000’s: “EXPLAIN ME !EXPLAIN ME !””

2010 :HELP ME!HELP ME!

conf

iden

ce

time

Con

fiden

ce o

f the

pub

lic

5© 2010, SOLVAY S.A. N.V.

Cefic PES2010 7

PES 2010Trust, Acceptance and Regulations – development at EU-average

21

61

49

35

0

25

50

75

1994 1996 1998 2000 2002 2004 2006 2008 2010

deserves to betrusted

is an industryI accept

should NOT facetougher control

is an industryI would work for

% (more) agree

but !

should face thoughercontrols !

79

The evolution of the perception of the chemical industry in Europe

6© 2010, SOLVAY S.A. N.V.

Messages of the experts versus Public’s expectations: a real gap !

Public expectations ? “Experts” answers !Confidence ? Trust us !A Protection ? “tolerable” risk ! A certainty ? Uncertainty !Identification ? Justification !An emotion ? Reason !A “raison d’être” ? Competitiveness !education ? Information !Nature ? Technique !A free choice ? Collective interest !NIMBY? “fait accompli” !

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To be really sustainable, the pilars of our model of society need an ethical "headstone" …

economical

societal

ecological

financial

ethical

8© 2010, SOLVAY S.A. N.V.

We remain unable to manage inherently complex processes

reductionist

dissociative

logical

static

hiearchical

in a world which is

Non reductible

global

networked

dynamical

«chaotic»

Our classical education leads us to be :

9© 2010, SOLVAY S.A. N.V.

A dialog : to set objectives and prepare a common future

The “dialog” with the stakeholders on further objectives is essential for our industries :

To make ourselves a better balance between sustainable risks and benefits ;

To understand that other stakeholders do not necessarily share same the vision, the same values ; To be better prepared to contribute to a really more sustainable world ; To avoid the “outrage” perception and negative perceptions.

10© 2010, SOLVAY S.A. N.V.

An “educative” dialog :can start by talking about risks

The challenge is to help our stakeholders to build by themselves their own balanced opinion on the legitimacy of our "solutions".

To do so, they need to have an access to some knowledge, to understand complex issues ;

This requires pedagogy, a minimal "education"This requires pedagogy, a minimal "education"

It's our It's our responsabilityresponsability to cto careare about it.about it...

11© 2010, SOLVAY S.A. N.V.

Education: an opportunity to buildthe dialog with the stakeholders

A “dialog” build on a pedagogical approach will help each citizen to :

To avoid “outrage” ;

To better discriminate between danger, risk and safety ;

To make the balance between sustainable risks and benefits ;

To understand that to accept a risk imply to “choose” it ;To put in real perspective precaution and proportion ;

12© 2010, SOLVAY S.A. N.V.

The sustainability challenges in Solvay: seen through the prism of our stakeholders expectations

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The 5x5 Matrix : an operational framework "to make it happen" !

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Meeting expectations

Use reliable and validated sustainability assessment tools for 100% of significant planned innovations or acquisitions

Use reliable and validated environmental indicators and sustainability assessment tools for policy decisions and budgets (all the important investment plans)

Develop projects economizing or preserving naturalresources .

Support projects regarding more eco-efficient products,

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Dedicated sustainability tools

16© 2010, SOLVAY S.A. N.V.

The "Sustainable Portfolio Management" tool

Regulators, through

legislations, regulations and

taxes have a significant

potential influence on operations

conditions :Direct impact on

bottom line

Consumers are looking

for solutions to their problems. We want to be

part of the solutions they

seek:Direct impact

on top line

17© 2010, SOLVAY S.A. N.V.

Allows to redefine a portfolio of sustainable activities

• GHG emission

• Energy consumption

• Non renewable resources

Operations VulnerabilityPotential vulnerability of chemical industry operations and upstream value chain to rising costs of sustainability related issues

• Reduce GHG emissions

• Reduce harmful substances

• Reduce energy use

• Produce more fresh water

• Reduce consumption of raw materials

• Reduce consumption of scarce raw materials

• Increase renewable energy

Market AlignmentProducts and solutions that help consumers to significantly and measurably:

• Increase food/feed productivity

• Increase recycling

• Increase production of biodegradable materials

• Reduce products that are regulated or in phasing out

• Decrease waste generation

• Water consumption

• Human health impact

• Environmental impact

18© 2010, SOLVAY S.A. N.V.

Allow to Visualize monetized Ecoprofiles

0,00

0,50

1,00

1,50

2,00

2,50

3,00

2010 2020

Ope

ratio

ns V

ulne

rabi

lity

(EU

R/k

g)Ozone depletion

Photochemicaloxidation

Acidification

Eutrophication

Land-use

Materialsdepletion

Eco toxicity

Human toxicity

Water depletion

Energy

Global warming

Example

Leading themes

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SPM Methodology –Decision Tree

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example - ethylene frombioethanol : go or not go ?

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A competition with food or biodiversity ?

22© 2010, SOLVAY S.A. N.V.

23© 2010, SOLVAY S.A. N.V.

Scientifically based assessments are necessary to the whole value chain

to significantly and measurably and at all levelsReduce its GHG emissions

Reduce exposure to harmful or toxic substances

Reduce its energy and water use

Reduce its consumption of raw materials

Reduce its consumption of scarce raw materials

Increase the production of renewable energy (or make it more competitive)

Increase the productivity or yield of food/feed production

Increase recycling, in particularly of scare materials

Increase the production of biodegradable materials (or make them more competitive)

Reduce the consumption/use of products that are regulated or in phasing out

decrease waste generation and end-of-pipe solutions

24© 2010, SOLVAY S.A. N.V.

The choice from SPM : what will catalyse or drawback itsacceptance ?

Incentive or Regulation (legislation, taxes) ?Sales in assessed application can stimulated by favorable regulation, legislation or taxes or by imminent regulation and legislation that penalizes a competing solution,

Subsidies and/or ecolbels ?Subsidies or official ecolabels can be obtained to stimulate sales … or bans. These can be apply to a competing solutions to the assessed application, as this competing solution may have a better sustainability profile

scientists and NGO scrutiny ?Competing solution is object of NGO attention, therefore the assessed application has better prospects

Active marketing ?if a close alternative from a peer/competitor is based on sustainability advantages (shown e.g. through an LCA),

25© 2010, SOLVAY S.A. N.V.

but …

the consequences of these assessment need to be accepted by all stakeholders :

are oil companies really ready to reduce oilextraction/use and associated CO2 emissions ?

are consomers ready to change theirbehaviours ?

are we ready to think not only in terms of "volume production " but in terms of "service efficiency"?

is the chemical industry ready to really "care" and be fully "responsible" ?

26© 2010, SOLVAY S.A. N.V.

The Economic pilar in SPM : yes, but the GDP doesn't measure everything !

from : Vision 2050 by the WBCSD

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In sum : Business as usual is not an option

from : Vision 2050 by the WBCSD

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Time for a paradigm change !

"It is not how the things really are which is the problem and should be changed ; but the opinion that things should be seen in a certain way"

Paul Watszlawick

29© 2010, SOLVAY S.A. N.V.

Risks management besides regulations : Communication and dialogue

Three keys for a dialogue about safety and risks :

- clarity (rather an illusory "transparency" !!),

- dialogue,

- pedagogy.

30© 2010, SOLVAY S.A. N.V.

We need to create a real dialogue with the stakeholders

"We have to leave our bunkers" (F. Wientjes, DSM)democracy rely on the transparency of choices;

Stakeholders should be considered as real partners ;

=> Establishing such a partnership is a long-term process.

31© 2010, SOLVAY S.A. N.V.

The challenge of a change of anew paradigm !

“Every person owning only

a hammer sees

necessarily his problems

with a shape of spike ”

32© 2010, SOLVAY S.A. N.V.

Identify a danger

Calculate a Risk

Manage a level of safety

Perceive a decision

The pedagogy of risk management

33© 2010, SOLVAY S.A. N.V.

1. Identify Hazards

The way in which an object or a situation may cause an harm.

In practice, an Hazard may exist when a substance, an object or a situation have an intrinsic property to cause an adverse effect.

A hole in the street

A machinery not properly under control

A fire

In case of a substance : its intrisic property such as Toxicity, Ecotoxicity, Flammability, Explosivity, etc.

34© 2010, SOLVAY S.A. N.V.

2. Calculate and Manage the risk

At the difference of a intrinsically dangerous (hazardous) property, an exposure risk can be modified and reduced :

A risk can thus be managed :

acceptable exposure limits can be chosen on basis of danger identified and risk assessments;

actual (measured or calculated) or expected exposure levels are then matched against these risk thresholds ;

risk reduction measures can be proposed and applied : dilution, confinement, protection ...

35© 2010, SOLVAY S.A. N.V.

A risk can be Managed

If a hazard cannot be modified because it is an intrinsicproperty, the risk of exposure may be reduced hence it can bemanaged

Example : at the workplace the limits may be set on the basis of the hazardousproperties and therefore evaluated on the basis of the risk

The real exposure (measures and/or calculated) may becompared with the acceptable levels of risk

Therefore the risk reduction measures may be proposed and put in place : containment, dilution, protection

Extreme situation : substitution practice

36© 2010, SOLVAY S.A. N.V.

Defining an "acceptable" risk and safety level

Safety is based on a series of variable references:

- cultural or ethical

- technological performanceavailable;

- social and economical constraints;

- political or emotional choices;

- conciliation betweenadvantages and drawbacks,…

Safety is not defined in absoluteabsolute terms

37© 2010, SOLVAY S.A. N.V.

Risk perception and safety

The perception of a Risk by the public is not necessarily a function of its objective importance ;

It depends also on its understanding and acceptation :

Accepted risk : drinking alcohol, smoking , skiing ,...Tolerated risk : road accident , vaccine, ...

"Imposed" risk : food or water contamination , industrial plant , pesticide use, nuclear power , GMOs….

to make an "imposed" risk to make an "imposed" risk more"toleratedmore"tolerated" = volunteer + " = volunteer + understood decisionunderstood decision

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The risk/benefit balance is less obviousin a “modern” world or city

A benefit can be defined as the expected result from any initiative :

To ... I have to ...eat huntheat chop wood sell producekeep my health take vaccinesensure my well being sport

any (non)any (non)--activity implies a level of riskactivity implies a level of risk

39© 2010, SOLVAY S.A. N.V.

Risk perception and safety

““Whether people are 'right' is not the issue.Whether people are 'right' is not the issue.””

It is vital for risk managers in government or It is vital for risk managers in government or companies, and for risk investigators in science companies, and for risk investigators in science

and business, to accept that. and business, to accept that.

40© 2010, SOLVAY S.A. N.V.

CASE : Synthetic vs Natural

SocietySociety’’s implementation of a double standard is particularly obvious ins implementation of a double standard is particularly obvious inthe regulation of pesticidesthe regulation of pesticides

If the natural substances solanine and If the natural substances solanine and chaconinechaconine found in potatoes were found in potatoes were pesticide residues, potatoes would not be permitted on the markepesticide residues, potatoes would not be permitted on the market t because of their high content of these toxic alkaloids (20because of their high content of these toxic alkaloids (20--100 mg/Kg), and 100 mg/Kg), and also because these substances have not been adequately tested foalso because these substances have not been adequately tested for longr long--term effectsterm effects (( ))

(( )) (IPCS, 1993, Toxicological evaluation of certain food additives (IPCS, 1993, Toxicological evaluation of certain food additives and naturally occurring toxicants : and naturally occurring toxicants : SolanineSolanine and and chaconinechaconine, WHO Food Additives Series Assessment No. 30, WHO, Geneva, pp. , WHO Food Additives Series Assessment No. 30, WHO, Geneva, pp. 339339--372)372)

41© 2010, SOLVAY S.A. N.V.

CASE : Synthetic vs Natural

NATURALNATURAL

PotatoesPotatoes containcontain highhigh levellevel of of AlkaloidsAlkaloids suchsuch as Solanine (20as Solanine (20--100 100 mg/kg) mg/kg) ––toxictoxic and and alsoalso not not adequatelyadequately testedtestedfor long for long termterm effectseffects

EdibleEdible mushroomsmushrooms containcontain agaritineagaritine(hydrazine (hydrazine derivatederivate) ) thatthat induceinduce a a highhigh incidence of incidence of malignantmalignant tumourstumoursatat multiple sites in the mouse in multiple sites in the mouse in particularparticular in the in the forestomachforestomach, , bonesbonesand and lungslungs

⌦⌦ restrictions of marketing and restrictions of marketing and use ? use ? PrecautionaryPrecautionary principleprinciple

??

SYNTHETICSYNTHETIC

Strict Strict regulationregulation on pesticides, on pesticides, marginmargin of of safetysafety, , residualresidual levelslevels

⌦⌦ substances substances fullyfully testedtested

BAN of BAN of agaritineagaritineWhatWhat’’s about s about edibleedible mushroommushroom ??

(( )) ((B. B. TothToth and J. Erickson, 1986, Cancer induction in mice by feeding of tand J. Erickson, 1986, Cancer induction in mice by feeding of the uncooked cultivated mushroom of he uncooked cultivated mushroom of commerce, commerce, agaricusagaricus bisporusbisporus, Cancer Res. 46,4007, Cancer Res. 46,4007--4011)4011)

42© 2010, SOLVAY S.A. N.V.

The emotional dimension in risk perception

The perception of a risk includes an important emotional dimension ;

some types of “outrage” components:

natural , familiar, accidental, memorable, delayed, spectacular, unknowable, unfair, morally relevant, industrial, coerced, media coverage,...

“No explanation, as brilliant it can be, will calm down an outraged public : the effort to calm outrage should come first”

Peter Sandeman

43© 2010, SOLVAY S.A. N.V.

The emotional dimension in risk perception

Risk and crisis communication are thus more effective when we are able to :

- accept that feelings are an important and valid part of why people react to risks or crisis they way they do ;

- provide information about any given situation based on the psychological and emotional factors involved.

44© 2010, SOLVAY S.A. N.V.

Factors increasing the feeling of risk

TrustThe less we trust the people the more afraid we will be. The more we trust, the less fear we feel.

DreadA risk that kills you in a dreadful way evokes more fear than one that kills more benignly.

ControlDo you feel pretty safe when you drive ?

Natural or man-madeAnthropogenic risks, such as genetic modification of food, evoke more fear than 'natural' risks, such as the hybridization of species to develop new varieties.

ChoiceA risk we choose seems less dangerous than a risk that is imposed on us.

ChildrenSurvival of the species depends on survival of our progeny. Mercury traces in fish eaten by children seems dramatic.

UncertaintyThe more uncertain we feel, the more we protect ourselves with precaution and fear.

45© 2010, SOLVAY S.A. N.V.

Facing uncertainty …

some kinds of dangers resist to quantifiable risk assessment :

dioxins, BSE (“mad cow”) greenhouse effect and climate change;GMOs,endocrine modulation -pseudo-hormones,some nanomaterials …

46© 2010, SOLVAY S.A. N.V.

… the precaution.

Precautionary Principle:

“when sufficiently established elements suggest that an activity is seriously expected to potentially produce irreversible damage to health or the environment,

measures should be taken even if the definite proof or the causal link is not yet formally established with absolute certainty”

47© 2010, SOLVAY S.A. N.V.

From precaution ...

Objective of the precaution :

to “manage uncertainty” and give the means to decide and act politically when there is no expert consensus about the level of risk .

Challenge :

practically, the decisions should remain proportionalproportional to the expected although uncertain risk

48© 2010, SOLVAY S.A. N.V.

… to proportion

A Proportionality Principle is also written in the texts (ex : penalties are proportional to the offences) …

The EU guidelines on the application of the Precautionary Principle recommend explicitly to make the balance between :

PPrecaution recaution and ProportionProportion

49© 2010, SOLVAY S.A. N.V.

Risk perception and safety

Risk perception is not necessarily a function of its objective importance but also depends of its acceptation or its understanding.

Examples of

Accepted risk : drinking, smoking , skiing ,...

Tolerated risk : road accident , vaccine, ...

Imposed risk : air or water contamination , industrial plant, pesticide residues in food, nuclear power , GMOs, ….

50© 2010, SOLVAY S.A. N.V.

Identify a danger

Calculate a Risk

Manage a level of safety

Perceive a decision

the undesirable properties intrinsically dependant on the nature of a agent

In brief …

depends on the combination of the frequency of exposure and its intensity

a level of risk which is adopted as being "acceptable".

Accepted risk = volunteer + understood decision

51© 2010, SOLVAY S.A. N.V.

The challenges of risk management

Identify a danger

Calculate a Risk

Manage a level of Safety

Perceive a decision

Precaution ?

Substitution ?

Proportion !

versus added value of the product/service

52© 2010, SOLVAY S.A. N.V.

Sustainability beyondcompliance ?

Meanwhile, simple compliance to the present expectations

is not a sustainable perspective for the future …

53© 2010, SOLVAY S.A. N.V.

Communication : avoiddemagogy

Once formed a personal conviction is almost impossible to change ;

Communication isinfluence and can be a manipulation tool ;

Some use of it to deliver demagogic information or to create emotional convictions

ex : “green” marketing

54© 2010, SOLVAY S.A. N.V.

Is science a reliable reference in any societal decision ?

55© 2010, SOLVAY S.A. N.V.

12 characteristics to identify demagogic attitudes

1. Exaggerate 7. Ignore benefits

2. “cluster” abuse 8. Appeal to purity and nature

3. Make of coincidences 9. Claim false consensus “rules”(by selective facts or statements)

4. Focus on absolute 10. Sentimentalize victims

5. Deny dose effect 11. Omit the cost of actions

6. Rely on images 12. Demand the impossible

( ex : ban, “zero” risk, no regulation, etc)

(adapted from Neal & Davis)

56© 2010, SOLVAY S.A. N.V.

A key : give credibility to information sources

- under the authority of an independantscientific board ;

- More than 50 dossiers on line ;

- Contract with DG SANCO to summarizetheir experts' opinions (SCHER, SCENIHR) ;

57© 2010, SOLVAY S.A. N.V.

Presenting independantscience reports in a accessible way with 3 levels of details

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A widening audience and reputation in various languages

- Thousands of sites refer now to GreenFacts Digests

- Many Digests often ranked veryhigh in google searches

- "What else …" ?

- Now : > 4 million unique visitors/yr !

59© 2010, SOLVAY S.A. N.V.

A sustained dialog is mandatory to prepare the (our) future

Building a permanent pedagogical “dialog”, allowing each

stakholder :

To avoid “outrage” ;

To discriminate between danger, risk and safety ;

To make the balance between risks and benefits;

To understand that accepting a risk implies to “choose” it ;

To put in perspective Prevention, Precaution and Proportion.

to trust better reliable arguments and our messages the day a crisis or any debate occurs.

60© 2010, SOLVAY S.A. N.V.

The case of nanotechnologies

Nano's and sustainability, between "Science", "business" and "Politics" : threat(s) and/or opportunity(ies) ??

61© 2010, SOLVAY S.A. N.V.

Nano's : a new world of interactions !

- Physical, chemical interactions : their technological opportunities- But also : biological, physiological, environmental interactions !

62© 2010, SOLVAY S.A. N.V.

Nano's :the dialogue is oftenalready open and large

One challenge : to not repeat the asbestos and GMOs cases !

63© 2010, SOLVAY S.A. N.V.

The perception of nanotechnologies

Do you consider that nanotechnologies bringmore risks/ more benefits, equal level of risks/ benefits ?

64© 2010, SOLVAY S.A. N.V.

The debates on nanotechnologies

Widening the debate ?

why ?

what ?

who ?

when ?

how ?

with whom ?

so what ??

65© 2010, SOLVAY S.A. N.V.

More pedagogy on nano's !

Pedagogy ? including within the companies !

discriminate between nano's (avoiding the "bigbag effect" as with GMO's)

discriminate between danger(s) and risk(s)

how to define the safety limits ?

how manage the risks : prevention - protection

when a precautionary approach ?

what about ethical/cultural/personal choices ?

what about their perception ?

66© 2010, SOLVAY S.A. N.V.

But between "science" and reality …

The so-called "experts" should remain modest :

"scientific" evaluations of risks/opportunities

remains "images" and never the reality itself !

67© 2010, SOLVAY S.A. N.V.

But between "science" and reality …

The so-called "experts" should remain modest :

"scientific" evaluations of risks/opportunities

remains "images" and never the reality itself !

Never forget the lesson of René Magritte …

68© 2010, SOLVAY S.A. N.V.

Meanwhile, let's be creative and optimistic

Dialogue :

- “ There is a treasure in the house

downstreet ”

- “ But there is no house downstreet !!! ”

- “ Then, lets's build one ! ! ! "

Groucho Marx

69© 2010, SOLVAY S.A. N.V.

sustainable