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: [email protected]
http://nl.linkedin.com/in/erikaustailieva
Teşekkürler
Thank you