Responsible Care and its relation to Global Product Strategy

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 SABICs efforts on this program? How can we promote GPS? 2

What is Product Stewardship? 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 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. 3

What is the Value of Product Stewardship? Known reasons include: 1. reducing risks of actual harm to our employees, our suppliers, customers and consumers 2. protecting our business from legal claims of harm 3. helping to avoid non-governmental organisation black lists (chemicals to ban / restrict) 4. helping us comply with a)product legislation e.g. EU REACH Regulation b)industry commitments e.g Responsible Care / GPS 5. helping us identify new market opportunities 4

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

Fundamentals Predict effects on people & environment Tox/Ecotox & Exposure Data Highly technical Source: Stewardship Solutions 6

Global Product Strategy – Contribution to SAICM Source: ICCA 7

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

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

Chemical Risks…Our Operations R&D Plants Transport 10

Chemical Risks… Industry Applications 11

Chemical Applications 12

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 SAICMs 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 SAICM 13

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 Goals of SAICM 14

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 SAICM and REACH 15

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. Responsible Care Global Charter 16

1.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. 2.Address important societal issues including sustainable development and the need for the industry to work more transparently with our stakeholders than ever before. 3.Recommending all companies, large and small, to work together to strengthen and promote the industrys Responsible Care ethic and to continue to bring real benefit and value to the global community. Top Goals of the Responsible Care Global Charter 17

Global Product Strategy GPS is designed to improve the global chemical industrys 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. 18

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. 19

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

Relationship 21

SABIC Approach Product Steward Committee Marketing & Sales Technical Service EHS / Regulatory ManufacturingRegulatorsSuppliersTransportationLogisticsCustomers 22