ExESS Chemicals Volume tracking Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

Worldwide Volume tracking ExESS is ready for : European REACH compliant Substance Volume Tracking Japanese CSCL American Chemical Data Reporting (CDR) – formerly IUR Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

ExESS PART I A European REACH Substance Volume Tracking Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

Why REACH Volume tracking REACH obligations are linked with “ tonnage bands “ for substances (not for products) : REACH Substance Volume tracking > 1 ton 1-10 ton 10 – 100 ton 100 – 1000 ton > 1000 ton REACH Volumes ≠ Substance/product trade Volumes Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

Why REACH Volume tracking REACH Substance Volume tracking and detection of SVHC are important to : be compliant with the correct REACH regulation aspects track changes monthly as production quantities and companies LE and structure are subject of change control the tonnage bands to avoid extra new registration and analysis costs Automation is required for companies with an important number of (changing) chemicals and sites. Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

REACH Volume tracking Algorithm DON’T UNDERESTIMATE THE COMPLEXITY Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

Volume tracking Algorithm Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

Volume tracking Algorithm REACH Substance Volume tracking calculation parameters : Legal Entity – general exemptions for substances – bought in EU is exempted – Origin of Product related to components - Similar substance principle (grouping) – sites and business unit production volumes – intermediate categories – exemptions can differ according to the type of composition – same substances can have REACH functions or NOT ! - Polymer/Monomer – Intermediate status - …. REACH SVHC Volume tracking calculation parameters : Article and/or product composition – conversion to ww% for SVHC’s - Similar substance principle (grouping) – knowledge of BOM and composition information, … Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

Why Volume tracking and … what's the problem then ? Knowledge of origin : Collection of data per LE is not obvious Principle of “ similar substances “ accepted in REACH Data on compositions … many companies don’t know Data on exemptions and rules Composition depending Substance role for REACH BOM not known …. Fast automated detection of SVHC DON’T UNDERESTIMATE THE COMPLEXITY Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

ExESS VOLUME TRACKING : REACH, CSCL, CDR How can IT help ? Collection of all information on : LE/Site/BU Product and composition information Exemption identification and special substance role in preparations REACH Substance identification (Inventory) RVT Calculation algorithm and reporting Detection of tonnage band approaches/alarms for SVHC : Article BOM data collection SVHC Volume tracking algorithm Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

How can IT help ? RSVT Methodology Step 1 : enter LE/Site and BU information Step 2 : define Articles, Mixtures and Substances Step 3 : enter the Mixture or Substance composition or the Article BOM (*) information Step 4 : refine exemptions, add specific details, group Reach Substances and define optional settings for RSVT calculation and reporting Step 5 : transfer commercial trade volumes Step 6 : calculate the real REACH SVT Step 7 : REACH SVT reporting (*) The Bill of Material integration in ExESS is always customized Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

RSVT step 1 : LE/Site/BU management Organisations Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

RSVT step 1 : Legal Entity and Site structure Physical Localisation of Chemicals per Legal Entity and Site, … Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

RSVT step 1 : Allocation to Business Units Allocation of Business Units Physical Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

RSVT step 1 : Link to External IT applications Information on LE, Sites , Business Units and the links to Articles and Trade products can be exchanged with ERP and External IT applications Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

RSVT step 2 : Article, Mixture & Substances Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

RSVT step 2 : Articles (Entity type if needed) Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

RSVT step 3 : Composition or BOM Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

RSVT step 3 : Link to external IT applications Composition and Article BOM information can be exchanged with ERP and External IT applications Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

RSVT step 4 : Exemptions and rules Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

RSVT step 4 : Exemptions and rules Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

RSVT step 4 : Grouping of Substances Manuel grouping of REACH substance Or automated grouping of REACH substance using the EC inventory Automatic grouping of substances is based on the use of EC inventory data :   EC no if it exists CAS no if it exists Check in EC inventory if an EC no is present that is related to that CAS no: group by that EC no if not: group by that CAS no If both EC no and CAS no don’t exist: no grouping is possible Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

RSVT step 4 : Grouping of Substances Automated grouping of REACH substance using the EC inventory Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

RSVT step 4 : Link to external IT applications Some specific information on Exemptions and parameters as imported or not, can be exchanged with ERP and External IT applications Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

SVT step 4 : Optional settings Optional settings influencing the calculation algorithms and reporting Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

SVT step 4 : Optional settings Optional settings influencing the calculation algorithms and reporting Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

ExESS VOLUME TRACKING : REACH, CSCL, CDR Summary Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

RSVT step 5 : Volume entry (tons) Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

RSVT Step 5 : Volume entry (%) Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

RSVT step 5 : Link to external IT applications In most cases, all commercial trade volumes per legal entity, site or BU are transferred between ExESS and External IT applications such as ERP or other… Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

RSVT step 6 : Effective SVT calculation Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

RSVT step 7 : RSVT reporting Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

RSVT step 7 : RSVT reporting Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

ExESS PART I B European REACH SVHC Volume Tracking Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

Why SVHC Volume tracking For Articles and Mixtures : SVHC Volume tracking Detection of SVHC’s > 0,1% in articles and mixtures Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

How can IT help ? SVHC Methodology (Same as for RSVT) Step 1 : enter LE/Site and BU information Step 2 : define Articles, Mixtures and Substances Step 3 : enter the Mixture or Substance composition or the Article BOM information (Additional for SVHC calculation) Step 1 : check upgrade the SVHC candidate list Step 2 : calculate the SVHC composition volumes Step 3 : Present / report SVHC detection volumes (*) (*) The Final reporting for SVHC detection is always customized Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

SVHC step 1 : Identification of SVHC Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

SVHC step 1 : Identification of SVHC Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

SVHC step 2 : Final article/product list + %ww Product or Article Name Detected SVHC Ww in % calculated Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

SVHC step 3 : Report : export to Excel or customized Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

SVHC calculation in General ExESS and creativity Article SVHC management is not standard implemented in ExESS. Basic functions are present in ExESS based on individual specification from customers , LISAM can customize ExESS to comply with the customers’ requirements Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

ECHA info REACH Volume tracking EU : REACH : Guidance documents ECHA Guidance on registration - May 2008 - ECHA Guidance for intermediates – February 2008 - ECHA Guidance for monomers and polymers – June 2007 - ECHA Guidance for requirements of substances in articles – May 2008 – ECHA http://guidance.echa.europa.eu/guidance_en.htm Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

ExESS PART II CSCL and CDR Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

Volume tracking around the World JAPAN : CSCL (Chemical Substances Control Law) http://www.env.go.jp/en/chemi/outline_CSCL.pdf Source : Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

Volume tracking around the World USA : IUR renamed to CDR (Inventory Update Reporting is now Chemical Data Reporting) http://www.epa.gov/iur/index.html Software tools : http://www.epa.gov/iur/tools/software.html Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

Why CDR Volume tracking Chemical Data Reporting (CDR) is mandated under the Toxic Substances Control Act (TSCA) by the US Environmental Protection Agency (EPA) to keep a current chemical substance inventory. Manufacturers and importers are required to report product volumes over 25,000 lbs* *Effective for 2016 reporting, this threshold will decrease to 2,500 lbs Additionally, process and use information must be reported for volumes over 100,000 lbs** **Effective for 2016 reporting, this threshold will decrease to 25,000 lbs As of 2012 reporting period, all submissions must be electronic using new eCDR-web (includes XML import) Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

ExESS VOLUME TRACKING : REACH, CSCL, CDR ExESS CDR reporting Consolidate Chemical volume and usage data in single system Ease of integration Single source for quality assurance prior to reporting Determine exemptions, reporting volume ceilings Finalize Confidential Business Information (CBI) decisions & supporting information Automated XML update to eCDR-web *pending finalized XML schema Ongoing tracking of annual volume data leading up to 2016 submission Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

ExESS VOLUME TRACKING : REACH, CSCL, CDR Ease of Integration Site, Product, Volume and Usage Imports Site data and technical contact imports (or manual entry) Product import, including physical form, # workers, max conc, etc. Usage data imports for products which hit volume ceilings Import CBI supporting documentation Flexible enough to handle data from various sources Link with TSCA and PMN inventory to determine exemptions Automate transmission of required data to EPA’s CDX website Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

Data Validation and Quality Assurance ExESS provides a single source of data and means to complete Quality Assurance prior to finalizing reporting Review site data using flexible Grid layouts Export data to Excel and send back to Sites for validation Ensure proper coding for Industry codes, usage, Maximum concentration, Number of Workers, etc. Confirm all data for which you wish to protect Confidentiality is flagged and has supporting documentation to include in submission Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

ExESS VOLUME TRACKING : REACH, CSCL, CDR IT Configurations Standalone IT calculation tool : Input (import) Legal entities and Sites (LE/Sites) Input (import) Trade products and relation to the LE / Sites Input (import) Trade product compositions with exemptions, including REACH information for components/ingredients when available Input (import) Trade volumes Refine manual REACH settings Calculate and report Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

ExESS VOLUME TRACKING : REACH, CSCL, CDR IT Configurations Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

ExESS VOLUME TRACKING : REACH, CSCL, CDR IT Configurations System Integrated IT calculation tool : Integrate ExESS with other IT systems to exchange : Input (import) Legal entities and Sites (LE/Sites) Input (import) Trade products and relation to the LE / Sites Input (import) Trade product compositions with exemptions, including REACH information for components/ingredients when available Input (import) Trade volumes Refine manual REACH settings Calculate and report Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

ExESS VOLUME TRACKING : REACH, CSCL, CDR Conclusion REACH SUBSTANCE VOLUME TRACKING (SVT), CSCL, CDR: More complex than sometimes estimated Important to define compliancy Automated solutions to track commercialized chemicals quantities Many parameters are difficult to quantize regular data updates can be automated SVHC VOLUME TRACKING : More complex because of lack of BOM SVHC Lists are changing  Track modifications Regular data updates can be automated The solution = ExESS, more with less Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

ExESS, more with less Americas – Asia - Europe LISAM SYSTEMS | HEMMIS Office Belgium | Vlaanderenstraat 3A - B-8501 Heule | www.lisam.com email : FransL@lisam.com Office +32 (0)56 372637 | Fax +32 (0)56 372324 | Mobile +32 (0)477 292519 Lisam America, Inc. 3131 E. 29th Street, Ste. E Bryan, Texas 77802 +1 979.595.1444 Although the information in this presentation has been presented in good faith and is believed to be correct at the time of compilation, LISAM SYSTEMS GROUP cannot assure this presentation to be free of errors or omissions and will not be responsible assuring the completeness or accuracy of the information in this presentation Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR

Extra : Topics to follow on RSVT training Sept 15, 2011 ExESS VOLUME TRACKING : REACH, CSCL, CDR