wanzenried, brian, gavilon, strategic planning for environmental staffing, mecc, 2016, overland park

Strategic

Planning for

Environmental Staffing How many people do you need on your environmental staff and where should your staff report within your organization.

Staffing Regulatory Drivers

Environmental Protection Agency

Environmental Auditing Policy Statement1

Incentives for Self-Policing: Discovery,

Disclosure, Correction and Prevention of

Violations2

1 “Environmental Auditing Policy Statement Notice”, Federal Register Volume 51, Number 131, July 9, 1986

2. “Incentives for Self-Policing: Discovery, Disclosure, Correction and Prevention of Violations” Federal

Register Volume 60, Number 246, December 22, 1995

Staffing Regulatory Drivers

Department of Justice

Effective Compliance and Ethics Program1

Mitigating Factors in Sentencing2

ISO 14000

Structure and Responsibility

Monitoring and Measurement

Management Review

1 “Chapter 8 – Sentencing of Organizations”, Federal Sentencing Guidelines, Part B - Remedying Harm

From Criminal Conduct, and Effective Compliance and Ethics Program , §8B2.1. Effective Compliance

and Ethics Program

2. “Report from Advisory Group on Environmental Sanctions” Memorandum Dated December 6, 1993

from Phyllis J. Newton, Staff Director , United States Sentencing Commission

Environmental

Staff/Group

Size

“More than 72 percent of

EHS professionals feel their

department is currently

understaffed”

“The State of EHS in 2016” By: Jessica Lyons Hardcastle, Environmental

Leader: http://www.environmentalleader.com/2016/01/29/the-state-of-ehs-in-2016/#ixzz41fa9YO5n

http://www.environmentalleader.com/2016/01/29/the-state-of-ehs-in-2016/











Environmental Staff/Group Size

How do you know if you are

understaffed?

What are staffing levels at other

companies?

How do you justify more staff?

Environmental Staff/Group Size

Influencing factors

Industry type

Total number of employees and sites

Company risk tolerance

Delegation of responsibilities

Personnel experience

Outsourcing of duties

EHS Today Magazines’ Companies

Celebrated as America’s Safest

Industry

Employee Ratio

(Employees/EHS

Personnel)

Site Ratio

(Sites/EHS

Personnel)

Chemical Manufacturing (4) 119 2.5

Construction (8) 228 11

Electrical Supply (1) 78 0.4

Equipment Manufacturing (15) 235 1.2

Laboratory (2) 175 2.5

Mining (1) 45 0.01

Retail (2) 1,850 150

Service (3) 319 18

Combined (36) 300 13

” 8 Companies Celebrated As America’s Safest” by Sandy Smith and Laura Walter, “EHS Today The Magazine for Environment,

Health and Safety Leaders”, November 2012 , “America’s Safety Companies 2013”, “EHS Today The Magazine for Environment,

Health and Safety Leaders”, November 2013 and “America’s Safety Companies 2014”, “EHS Today The Magazine for Environment,

Health and Safety Leaders”, November 2014

Average Staffing Benchmark

by Revenue and Risk Profile

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

$250M

to $1B

$1B to

$10B

$10B to

$25B

$25B to

$50B

More

than

$50B

High Risk

Medium Risk

Low Risk

EHS & Sustainability Staffing and Structure Benchmark Report November 2012 National Association of

Environmental Managers

Risk of Understaffing

DOJ Sentencing Guidelines for Environmental

Criminal Violations

“If the organization demonstrates … it had committed

the resources … sufficient, given its size and the nature

of its business, to achieve and maintain compliance

with environmental requirements… reduce by 3 to 8

levels.”

Department of Justice Memorandum from Phyllis J. Newton, Staff Director titled “Report from Advisory

Group on Environmental Sanctions” Dated December 6, 1993, Section 9C1.2 Mitigating Factors in

Sentencing (a) Commitment to Environmental Compliance.


Up to

25% Fine

Reduction

Up to

60% Fine

Reduction





DOJ Sentencing Guidelines for Environmental

Criminal Violations

“… personnel responsible for meeting and maintaining

compliance with environmental requirements are

competent on the basis of appropriate education,

training, and/or experience.”




Strategies

Consultants

Cost comparison

Compliance audits

Organizational

Location of Staff

Organizational Location of

Staff

Where they should be located within an

organization?

What authority level they should have?

Who should they report?

Organizational Location of

Staff

Influencing factors

Industry type

Company history

EHS Department Reporting

Legal department: 30%

Operations: 22%

Engineering: 10%

Other departments: 38%

“Organizational Benchmarking Study Results” by James Margolis, EHS Journal, March 24, 2011

EHS Audit Department

Reporting

A separate corporate EHS department:

65%

Internal audit: 15%

Legal department: 5%

Operations: 4%

Compliance: 3%

Other departments: 8%

“Organizational Benchmarking Study Results” by James Margolis, EHS Journal, March 24, 2011

Independent Environmental

Auditors

EPA Environmental Audit Policy Statement

“Auditor objectivity should not be impaired

by personal relationships, financial or other

conflicts of interest, interference with free

inquiry or judgment. or fear of potential

retribution.”

“Environmental Auditing Policy Statement: Notice”, Environmental Protection Agency, Federal Register

Volume 51, Number 131, July 9, 1986, Appendix-Elements of Effective Environmental Auditing Programs,

Section II page 25009.

Environmental Audit Staff

EPA Environmental Audit Policy Statement

“Environmental auditors should possess or

have ready access to the knowledge, skills.

and disciplines needed to accomplish audit

objectives.”

“Environmental Auditing Policy Statement: Notice”, Environmental Protection Agency, Federal Register

Volume 51, Number 131, July 9, 1986, Appendix-Elements of Effective Environmental Auditing Programs,

Section II page 25009.

Independent Environmental

Staff

Advantages

Operational goals will not over-ride

environmental requirements

Accountability

Disadvantages

Create barriers

Impede communications

Integration of EHS

“In most companies … EHS goals and

initiatives are isolated from core business

strategy and functions … EHS issues are

viewed as separate: a necessary

afterthought, an unwelcome but necessary

cost of doing business. If EHS management

systems are to become truly effective, this

distinction must dissolve.”

Brown, Howard and Timothy Larson. “Making Business Integration Work; A survival Strategy for EHS

Managers.” Environmental Quality Management. Spring 1998: 1 – 8.

Organizational

Level

Organizational Level

What organizational level should your top

environmental position hold?

What factors influence this level?

Organizational Level

Influencing Factors

Company size

Company risk tolerance

Job responsibilities

Advantages of High Level

Environmental Personnel

Protection from prosecution

“The organization has designed and

implemented, with sufficient authority,

personnel and other resources …”

“Report from Advisory Group on Environmental Sanctions” Memorandum Dated December 6, 1993 from

Phyllis J. Newton, Staff Director , United States Sentencing Commission, §9D1.1(a)(3)



Environmental personnel influence

“How influential is the EHS department or the

EHS Leader? … Is EHS able to effect change

— to establish and carry out safety or

sustainability initiatives, for example?”

“The “Right Home” for EHS” blog by the Phylmar Group, October 5, 2013.



Improved recruitment

“If you are looking at a mid-level position,

perhaps the organization’s EHS leader will be

your boss. It’s important to assess his/her

position and influence — is he/she a

manager? Director? Vice President?”

“The “Right Home” for EHS” blog by the Phylmar Group, October 5, 2013.



Improved planning and decision-making

input

“Environmental management to be more

prominent within the organization’s strategic

direction”

ISO14000: 2015 revisions, http://www.iso.org/iso/iso14001_revision



Perception with regulators

Questions?