Promoting Occupational Safety and Health through the Supply Chain

Erika Ustailieva, MSc,

Sustainability & Chemicals Management Consultant and Business Developer, Cosanta BV/TNO Company, The Netherlands.

This presentation is based on two research papers, one for the European Agency for Safety and Health at Work (EU-OSHA) and one TNO research and my practical experience with the industry.

Outline

Supply chains in relation to OSH

OSH in suppliers’ chain

OSH in contractors’ chain

Role of the focal companies to promote OSH in supply chains

Drivers and incentives

Strategies and instruments

Conclusions

Supply chains in relation to OSH

(Seuring, 2008, adapted)

Suppliers’ chain Supply chain

Describe business relationships in which goods and services are produced,

bought and sold, and increasingly, the logistics necessary to maximise the flow

of these processes. It covers simple transactions between buyers and suppliers

as well as complex arrangements in which there may be multiple links in supply

chains (Walters, 2009)

Example: Galvanized metal supply chain of Corus ( Tata steel).

BASF produced Monoethanolamide (MEA) and supplies Quaker among others.

Quaker produces lubricants ( metalworking fluids) for the steel industry and

supplies Corus. Corus produces steel of various type and supplies Nedcar ( a car

producer) with the oiled galvanized steel sheets among other materials. SPS –

purchasing; COM – sales. Metal One is a distributor of steel sheets. Arboned

processing and producing SDSs. These are links to supply chain.

Galvanized metal supply chainof Corus ( Tata steel)

The OSH risks

Lack of knowledge and

communication about the safe use

of the products/materials and

exposure to certain hazard

Purchasers do not take into

account the safety and health

working conditions under which

the respective goods or materials

are produced

Monoethanolamide (MEA)

Metalworking fluids

Oiled galvanized steel sheets

Car producer

Remaining pieces steel sheets and waste

Purchasing

Sales SDSs

Storage/Cutting Distributor

≠Stoffenmanager, EMKG, ART

etc. ECETOC TRA

Strengthening integration REACH and CAD/CMD

Supply chains in relation to OSH

(Seuring, 2008, adapted)

Contractors’ chain

The contracting chain (Nunes, 2012)

The OSH risks

Lack of skilled and experienced

labour, by the low profile of the small

enterprises involved

Low frequency with which they are

inspected

Exposure to unknown hazards, like

biological agents, chemical products,

asbestos or noise

Supply chains in relation to OSH

(Seuring, 2008, adapted)

Focal company

Focal company/ brand company (Seuring, 2008)

Rule or govern the supply chain

Provide the direct contact to the customer

and design the product or service offered

Examples: Phillips, Unilever, Ikea, AkzoNobel

Asked to consider environmental and social (incl.OSH) standards in entire

supply chain

C&A and H&M, responsible for occupational health issues at their suppliers in India(Graafland, 2002; Volkskrant, 2010)

Labour conditions in its factories in Asia(Wilde & Haan, 2006)

DuPont has long been recognized as a safety leader within the chemical industry. Now, the company is facing heavy criticism from employee unions and government agencies after a series of high-profile accidents and deaths at plants across the USA.( Volkskrant, BBC, Delawareonline, 2016)

Drivers for a focal company to influence the members of the supply chain

CSR, Sustainability agendas

Competitive advantages, profitability and business efficiency

Legal demands - compliance with regulatory requirements such

as OSH regulations, REACH, CLP

Customers’ demands and response to stakeholders

Environmental and social pressure groups and reputational loss

OSH and Chemicals management part of Sustainability agenda

OSH is an integral component of the social dimension of sustainability and CSR

OSH is increasingly promoted and imposed by focal companies among their suppliers

Environmental and social (including OSH) issues increasingly occur on the public agenda

Triggers as well as opportunities for focal companies to include OSH in managing the supply chain.

Sustainability indicators based on CSR ladder, GRI, ISO26000 and UNEP/SETAC guideline to Social LCA (Sustainability Performance & INnovation Manager, TNO)

Examples of instruments used by companies to promote OSH in the suppliers’ chain

Purchaser-procurement system applying OSH standards for suppliers selection

Standards and management systems (SA8000, OSAHS 18001, ISO26000

Codes of conduct

International Framework Agreements (IFAs)

Industry collaboration and multi-stakeholder partnerships

Product related initiatives

(Brand) Company initiatives - social (OSH) requirements for sustainable products, Life Cycle Management

Trade and Industry Initiatives – Responsible care and Product Stewardship

Partnership (continuous improvement, support suppliers to build SMS, long term contracts)

Remediation & Capability Building (work with suppliers to resolve issues, corrective plans, provide training, recourses and support)

Assessment & Monitoring(ask suppliers for self-assessment and monitor

identified risk suppliers through on-site evaluations, audits to identify poor performance, root causes and

opportunities for improvement)

Setting Expectation (create internal commitment by setting out requirements ( SS,CoC ),

communicate sustainability expectations to suppliers, incorporate into contracts )

Deep engagement

Broadengagement

10-20% of the suppliers

100% of the suppliers

Instruments for suppliers engagement on sustainability(incl. OSH)

BSR, 2010; UNGC, 2010

Tools to measure and assess the impact of the sustainable sourcing strategy

Suppliers Risk Assessment tools

Impact Assessment tools

Field to Market (alliance)

Maplecroft

Company tools

Sedex RA tool

Scorecards

Life Cycle Assessment (LCA )

Supply Chain Mapping

OSH Exposure assessment, e.g. Stoffenmanager®

• Import chemicals data via xml files

• SDS upload

• Dashboard for reporting

• Communication via WICs and PIMEX

Oure exposure assessment and risk control tool is prepared for supply chain use

Digital Product Depo

Conclusions

1. Importance of the suppliers’ chain in relation to OSH

2. Power of the focal company to promote OSH improvements in the

supply chain

3. An emerging concept of occupational safety and health

management incorporated to the sustainability and social

responsibility strategies of the organizations. As OSH practitioners

use the momentum and put forward the OSH issues.

Erika Ustailieva, MSc

Business Developer & ConsultantAMSTELVEEN, THE NETHERLANDST: +31 (0) 6 41632168E: erika.ustailieva@cosanta.nl

http://nl.linkedin.com/in/erikaustailieva

Teşekkürler

Thank you