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Week 1: Environment, Health, and Safety Overview

Unit 2: History and Evolution of Environment,


Health, and Safety – An Overview
History and evolution of environment, health, and safety – an overview
In this unit you will…

▪ Learn the scope of the EHS profession and how it


evolved into its current form and focus
▪ Understand the laws and regulations that govern
how companies operate to reduce environmental
impact and ensure a safe workplace
▪ Notice how key events increased public awareness
and compelled both industry and governments to act

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2


History and evolution of environment, health, and safety – an overview
Introduction

▪ The focus on safety and environmental protection is


a relatively new development in the history of
commerce and public discourse.
▪ Environmental degradation and unsafe working
conditions were considered to be an accepted cost
of doing business.
▪ EHS regulations have become more refined and in
most cases, more strict over time.
▪ Central driver for both the digital transformation and
the “green” transformation happening in the world
due to renewed focus on sustainability

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History and evolution of environment, health, and safety – an overview
Key environmental events (modern era)

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

1960 1970 1980 1990 2000 2010


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History and evolution of environment, health, and safety – an overview
Key regulatory steps

US EPA / OSHA
Endangered
Species Act CERCLA
US/North America

Safe Drinking (Superfund) Clean Air Act


FL Chemical
Water Act Amendments
National EPCRA (Right- Safety for the 21st
Energy Policy Century Act
Environmental Resource to-Know)
Act
Clean Air Act Policy Act Conservation and Oil Pollution
(NEPA) Recovery Act Act
Solid Waste (RCRA) Superfund
Disposal Act Amendments and
Reauthorization Act
Toxic Substances (SARA)
Control Act (TSCA)
Clean Water Act
Global
Kyoto
Harmonized
Protocol
System (GHS)
Environmental Montreal
ISO 45001
Global

Protection Act Protocol


(China) ISO 14001
EEC Environmental Treaty of
Amsterdam REACH
Action Programme Single
European Act

1960 1970 1980 1990 2000 2010


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History and evolution of environment, health, and safety – an overview
The evolution of the EHS profession

Risk Continuous Competitive


Compliance
Mitigation Improvement Advantage

Industrial Root-Cause
Safety Analysis Operational
Disciplines/ Hygiene Integrity
Management Audits and
Skillsets Environmental Inspections
Hazardous Materials Engineering
Management Occupational Sustainability
Waste
Health
Management

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History and evolution of environment, health, and safety – an overview
The financial value proposition of the EHS function

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.

13 days of work are lost on average for each workplace injury.

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

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 8


History and evolution of environment, health, and safety – an overview
Global regulatory framework for EHS in 2021 (key examples)

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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Thank you.
Contact information:

open@sap.com
Follow all of SAP

www.sap.com/contactsap

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