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1 European Awards 2010 1 F. MARCENAC, Ph. GAGNAIRE, Dr B. DESPRES, O LEMARIE, A LEPLAY, M CROZIER-PATOUX Responsible Care® European Awards 2010 CMR risk.

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Presentation on theme: "1 European Awards 2010 1 F. MARCENAC, Ph. GAGNAIRE, Dr B. DESPRES, O LEMARIE, A LEPLAY, M CROZIER-PATOUX Responsible Care® European Awards 2010 CMR risk."— Presentation transcript:

1 1 European Awards F. MARCENAC, Ph. GAGNAIRE, Dr B. DESPRES, O LEMARIE, A LEPLAY, M CROZIER-PATOUX Responsible Care® European Awards 2010 CMR risk management

2 2 RHODIA IN BRIEF

3 3 ● International chemical company with leading position in all core activities ● Well-balanced presence worldwide ● Wide variety of markets served Chemistry is our world 3

4 4 ●Group which combines innovation and responsibility in business activities ● - a framework of commitments deployed throughout the Group ●Performance recognized by Rhodia's inclusion in the Responsibility is our way 4

5 55 20% turnover EBITDA(1) €487 million Sales €4.011 billion Production sites 64 Employees 13,850 Operating income €160 million New products launched in past 5 years * Following reclassification of activities which have been or are in the process of being disposed of (1) Recurring EBITDA: before restructuring costs and other operating income and expenditure Key figures for 2009* world-wide

6 6 Global presence 20% of sales 35% of sales 28% of sales 45% of sales in regions with strong potential for growth 6 North America Sales: €802 million 1,600 employees Europe Sales: €1.404 billion 6,000 employees Latin America Sales: €682 million 2,900 employees 17% of sales Asia Pacific Sales: €1.123 billion 3,100 employees

7 7 Number 3 Ranking in key business areas High-performance silicasHigh-performance silicas Rare earthsRare earths Diphenols for vanillinDiphenols for vanillin Specialty surfactants and polymersSpecialty surfactants and polymers Guar and derivativesGuar and derivatives Sulphuric acid regeneration*Sulphuric acid regeneration* CO2 emission credits (CERs)CO2 emission credits (CERs) Sources: RHODIA estimates Cellulose acetate towCellulose acetate tow Polyamide 6.6Polyamide 6.6 Engineering plastics based on polyamide 6.6Engineering plastics based on polyamide Number 1 Number 2 * USA

8 8 Responsibility rooted in Rhodia's culture Responsibility - the cornerstone of Rhodia Group culture Pioneer in commitment to Sustainable Development. Joined Responsible Care initiative back in 1985 One of the world's best records in occupational safety Rhodia Way: continuous improvement framework based on commitments to our stakeholders

9 9 Rhodia's Management Book The Management Book is designed to provide all Group employees with a framework for conducting their activities. It incorporates Rhodia's commitment to Sustainable Development and ensures compliance with the levels of corporate governance expected from a listed company. The Management Book embodies four objectives: Simplify and standardize common language and rules for the entire Group Strengthen managerial performance The Management Book describes methods which operate Group-wide. The 12 processes defined in the book are structured to maximize the effectiveness of teams by defining responsibilities and standardizing working processes. The Management Book also sets out the management rules which form the point of reference for the good practices which all managers must apply. Application of these rules strengthens discipline and aligns practices at each level of the Group's structure and is a key factor in efficiency. Provide clarity The Management Book indicates who decides what and describes the 12 key processes which underpin the Rhodia organization. Controlling risks by an effective internal control system Each individual responsible for a process must identify the risks associated with the practice of his/her activities, assess the severity of these risks and set the means in place to monitor and control them. The Management Book indicates the "Red Lines" which must be observed by all and which may incur severe penalties if they are crossed.

10 10 Management of risks associated with CMR* substances: a major concern Management Book Red Lines What Rhodia defines as a CMR substance Scope of application List and track Status in 2009 What needs to be done next * Substances classed as Carcinogenic, Mutagenic or toxic for Reproduction 10

11 11 CMR: a Management Book Red Line The red line relating to CMR substances is mandatory for all Group entities. A thorough review must be conducted within three years of the identification of a CMR substance, with the aim of eliminating the substance or controlling the risk if the substance cannot be eliminated. The CMR red line means applying the principle which operates in Europe under the REACH regulations which requires authorization and seeking to identify substitutes for CMR SVHCs (substances of very high concern) on all sites where Rhodia operates world-wide. 11

12 12 What Rhodia defines as a CMR substance Step 1: Definition of criteria which can be adopted by a Group whose products are used throughout the world. Diversity of regulations in force in the countries where the group operates => need for a single CMR reference Establish definition of a CMR at group level: Substance which meets the criteria for classification as a category 1 or 2 CMR substance as defined in Annex VI of Directive 67/548/EEC (including substances which are self-classified by Rhodia or by another supplier)., Substance which meets the criteria for classification as a Group 1 carcinogen (carcinogenic for humans) or Group 2A carcinogen (probably carcinogenic for humans) according to the IARC classification system Substance or preparation containing one or more substances classed as CMR applying the criteria indicated above at a concentration equal to or greater than the concentration limits specified in the regulations.

13 13 Control process on Rhodia sites Flowchart for assessment of risks of Control process on Rhodia sites Flowchart for assessment of risks of exposure to CMR substances exposure to CMR substances Exhaustive and rigorous procedure for the assessment and control of CMR substance risks applying the principles contained in Rhodia's integrated HIRA (Hazard Identification and Risk Assessment) management system.

14 14 Reagents used in testing and R&D laboratories Raw materials Intermediates Processing aids Wastes Marketed products R&D centres Production sites Marketing & Sales Possible presence of CMR substances in value chain

15 15 Substance type Raw material Isolated intermediate Non-isolated intermediate Finished product Waste Other products, such as solvents and reagents used in laboratories, or products used in maintenance work Activities examined Process Research and Development: Laboratory and pilot unit Quality control: laboratory Maintenance Framework procedures Management of risks associated with CMR substances Management of risks in the workplace associated with the use of CMR substances Management of risks for marketed CMR substances Scope and framework procedure for CMR risk management

16 16 Target set in 2007: 100% of dossiers produced by end December 2009, including new CMRs introduced by the 30th and 31st ATPs*. Dossiers are not closed until all stages in their preparation have been completed Number of CMR substances used Number of activities using the CMR substances Substitution or non-substitution briefing documents drafted (%) Number of risk assessments performed (%) Number of dossiers finalized (%) Management tools Inventory of all substances used and manufactured on all of the Group's sites (updated every 2 years) Quarterly report for monitoring application of red line as closely as possible This ensures that each site is kept informed of progress on the CMR dossier relating to it CMR dossier and management tools * Adaptations to Technical Progress of Directive 67/548/EEC

17 17 Out of the 1,500 substances used or marketed by Rhodia, seven marketed substances have a CMR risk associated with them. The annual volume of these substances is below 10,000 tonnes. Action taken 21 substances were identified as being CMR substances in 2007 Solutions involving substitution or halting marketing were identified for 14 substances Production of certain substances was stopped, e.g. in France (acrylonitrile line) and in China (solvent containing dimethylformamide) Products used on Rhodia sites: of the 140 CMR substances employed for less than 650 uses, 32 substances are used in quantities exceeding 100 kg/year and 10 raw materials alone account for an annual volume of almost 400,000 tonnes Action taken Diatomaceous earth (CMR substance) replaced by perlite as filter medium on many sites. Change from fuel oil (CMR substance) to gas, also bringing reduction in CO2 emissions. Discontinuation of use of certain substances which are carcinogenic by inhalation in powdered form (cobalt sulphate, bichromates) and replacement with other solutions Elimination of unused CMR substances stored in laboratories Position in December % of risk assessments completed 98% of substitution or non-substitution briefing documents drafted 97% of CMR dossiers finalized, with target of 100% for end 2009 The total figure is around 1,000 dossiers. Position at end 2009

18 18 Initiatives undertaken by multi-disciplinary teams Initiatives took the form of mini-projects with staff from the different entities concerned pooling their expertise and resources, i.e.: Health, Safety and Environment (HSE) Responsible Care Department's expertise in toxicology Responsible Care Department's regulatory intelligence Site and regional Occupational Health functions R&D Site analytical testing functions, Product Stewardship Site production and maintenance departments, Process managers, Business unit production management functions Responsible Care status reporting. Staff have conducted studies on all CMR substances concerned at Rhodia sites Finished products (<10 kt/yr) Raw materials & intermediates (≈ 400 kt/yr)

19 19 What needs to be done next Complete all action plans already decided, plus: CMR substances produced and marketed by Rhodia Employ the R&D process to challenge the use of CMR substances by initiating research into alternative processes Work with our customers to look for substitutes and examining risk control for the CMR substances they use - this approach was first adopted in 2008 Raw materials and reagents used on Rhodia SITES Use solutions at concentrations which are below the CMR classification limits for preparations. Continue investigations into substitute catalysts Contribution to reducing environmental impact (example) Remediation of brown field sites: Scheduled investment for bio-remediation of leachate on a waste site containing chromium VI using bacteria to convert this CMR substance into chromium III (a non-CMR substance)

20 20 APPENDICES

21 21 Summary of progress in creating CMR dossiers Almost 650 uses of CMR substances recorded For 140 CMR substances (1) 30th and 31st ATPs included. * (1) HEALTH & SAFETY RISK ANALYSIS (1) 2009 (1) Number of uses of CMR substances on our sites (categories CE 1, 2, IARC 1 and 2a) Number of activities concerned Substitution or non-substitution briefing documents drafted (%) -25%67%98% In-depth risk assessments performed (%)-27%68%98%99% CMR dossiers completed (%)-24%63%98%97% Current scope (2009)

22 22 Information issued to all personnel every three months and to stakeholders annually (Technical Sustainable Development report) Consolidated CMR status worldwide

23 23 By Business Unit By geographic region Effective operational control through consolidation and progress reporting

24 24 Classification of 140 CMR raw materials used by Rhodia* CMR Quantities used annually (tonnes) Number of sites where CMR substances are used 1-3 Butadiene Confidential3 Ethylene oxide Confidential8 Propylene oxide Confidential7 1.2-DichloroethaneConfidential4 FormaldehydeConfidential16 2-(2-Aminoethylamino) ethanol (new entry in 2008) Confidential1 ParaformaldehydeConfidential1 EpichlorohydrinConfidential4 Benzyl chloride Confidential3 Diethyl sulphate Confidential6 32 CMR substances are used in significant volumes (> 100 kg/ yr) 32 CMR substances are used in significant volumes (> 100 kg/ yr) Top 10 significant users account for 94% of CMR substances used Top 10 significant users account for 94% of CMR substances used * 2008 data


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