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Unit 1: Environment, Health, and Safety - The Basis For Operational Sustainability
Unit 1: Environment, Health, and Safety - The Basis For Operational Sustainability
Impact
Medium Low Medium High
Likelihood
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US EPA / OSHA
DDT Ban
Love Canal
Pollution
Cuyahoga Chernobyl
River Nuclear Deepwater
Publication Seveso Exxon
Burning Accident Earth Texas City Horizon
of Silent Chemical Valdez
Summit Explosion Offshore
Spring Explosion Oil Spill
Earth Bhopal Disaster
Day UN Disaster
Conference
on Human
Environment
US EPA / OSHA
Endangered
Species Act CERCLA
US/North America
Industrial Root-Cause
Safety Analysis Operational
Disciplines/ Hygiene Integrity
Management Audits and
Skillsets Environmental Inspections
Hazardous Materials Engineering
Management Occupational Sustainability
Waste
Health
Management
In the US, companies spend about $171 billion per year on direct and indirect costs related to workplace
injuries. Studies show that deploying EHS systems that drive preventative actions are proven to reduce these
costs.
The National Safety Council estimates that the average cost of a medically-consulted injury approaches
$42,000 when all direct and indirect costs are included.
In 2017, companies in the US were made to pay $2.98 billion in environmental non-compliance fines and
violations.
EHS practices and associated CSR (Corporate Social Responsibility) practices help to preserve brand and
reputation.
https://injuryfacts.nsc.org/work/costs/work-injury-costs/
© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 7
History and evolution of environment, health, and safety – an overview
Current challenges in EHS
▪ COVID-19
▪ Digital transformation
▪ Data privacy
▪ Political impact on regulations
▪ Climate risk disclosure and CSR
REACH
TFEU Article 11
CEPA TFEU Article 191
CERCLA OSHA TFEU Article 192 China Standards 2035
MRR EPA TFEU Article 193 Environmental Protection Act
CalOSHA RCRA
CIPA
PPRA National
Environmental
PCMSO Management Act
Regulation and policies EPBC Act
for EHS topics are set
at global, regional, and
local levels
GHS
© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 9
History and evolution of environment, health, and safety – an overview
Summary
The modern topic of EHS has evolved from a basic The current situation is one
environment, health, and safety cost-centric function of ensuring where a matrix of partially-
was born out of industrial regulatory compliance to one harmonized regulations at
disasters and growing public that drives business continuity, global, regional, and local levels
awareness of risks to the natural brand preservation, and govern the EHS function. New
environment and human health. possibly competitive advantage. challenges like climate change
and digital transformation are
starting to show influence.
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EHS Management
▪ Disconnected stakeholders
▪ Lack of safety culture and lack of safety leadership
▪ Evolving workforce
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Advanced and automated Drone use cases Augmented reality to Virtual reality Leveraging Big Data for
hazard identification e.g. emergency response publish EHS information e.g. trainings predictive analytics
Awareness
Analytics
Process
Situational
Data
Awareness
Business value
Autonomy
Continuous
Improvement
Why?
▪ EHS needs to keep up with digital transformation within the enterprise
▪ Moving beyond the safety performance plateau
▪ Allow EHS staff to focus on the situation rather than the transaction
How?
▪ Always up-to-date and one step ahead – answer questions before they are asked and prevent issues
▪ Take full advantage of the context and truth from an integrated ERP platform
▪ Leverage the latest technologies for user experience, analytics, ubiquitous computing, loT, and machine
learning
What?
▪ Live, dynamic solution that enables seamless, proactive interaction between all organizational levels and
stakeholders within the enterprise (from shop floor to top floor)
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SAP S/4HANA
Intelligent EHS
Renovation
Fiori UX
IoT Integration
Content
Embedded Analytics
Native Mobile Apps
Incident Management
Chemical Mgmt
Incident Management Risk Assessment/IH
Chemical Mgmt Occupational Health
Incident Safety
Management of
Management of Change
Change
EHS Management
Corporate
Insight
EHS Practitioner
Analysis
Decision
Engage the workforce and Improve EHS performance by Protect asset integrity and
identify and act on hazards before incorporating risk management optimize production by reducing
they have a negative impact. into daily operations. unplanned downtime and outages.
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