AMERICAN CHEMISTRY COUNCIL RESPONSIBLE CARE ® EVOLUTION GPCA Responsible Care ® Conference December 11 – 12, 2012

Responsible Care ® A commitment to: Improve EHS&S performance & chemical management Use resources efficiently Engage stakeholders Report openly & transparently Establish best-in-class community that shares ethical & operational philosophies & links suppliers and customers

Responsible Care ® in the US Key Features Responsible Care implementation is an obligation of membership. All must participate. Single approach for small, medium and large companies. Consensus building process ensures broad support. Robust mutual assistance processes. CEO involvement and oversight. 3

ACC Responsible Care ® Requirements Sign Guiding Principles Conform to Responsible Care Management System ® Third-Party Certification Performance Reporting Responsible Care Security Code ®

Responsible Care ® Partners Non- chemical manufacturers participating in ACC members’ supply chains: Truck Carriers Equipment Suppliers Railroads Warehouses 3PL’s Marine Terminals Services Must meet all ACC Responsible Care requirements. Extends Responsible Care’s brand. Strengthened EHSS relationships.

Responsible Care ® Responsible Care ® 1.0 Responsible Care ® 2.0 Responsible Care ® 4.0 Responsible Care ® 3.5 Responsible Care ® 3.0 Originates in Canada US Program launch: Codes Peer review element introduced Third-party certification & Security Code Industry-wide performance targets established Defining the future: New Product and Process Safety Codes; added focus on waste/reuse/recycling Responsible Care ® Track Record: Responding to Pressures and Opportunities

Key Elements – ’88 to ‘93 Development of Original Six Codes of Management Practices CAER, Employee Health and Safety, Pollution Prevention Process Safety, Distribution, Product Stewardship Development of Guidance Materials and Education Implementation of “Practice in Place” Methodology A Few Metrics Related to Codes in Place Minimal Data Transparency

Key Elements – ’93 to ‘03 Focus on Implementation – Move towards “Practice in Place” Metrics Gradually Increase in Transparency Trade Association Aggregate Company to Company Comparison Public Availability Management Systems Verification (Management Practices Focused) Annual Responsible Care Conference Geographically Based Leadership and Practitioner Networks

Key Elements – ’03 – ‘13 Management Systems Design (Two Technical Specification Options) Responsible Care Management System (RCMS ® ) RC14001 ® Third Party Audits of the Management System Security Code Development Enhanced Set of Metrics Association Wide Goals Set for Selected Metrics Working with Stakeholders to Recognize Value of Responsible Care

Strategic Success Factors Member Company Leadership via Responsible Care Committee Executive Level Governance Process Investing in Education / Development of Coordinators Developing Support Networks Sharing Best / Good Practices Involvement of Stakeholders Focus on Communications – Internal and External Technical Training, Workshop and Support Activities

Enhance Performance Measurement Bolster Process Safety Align Energy Efficiency Adopt Product Safety Code Goal: Connect Performance and Advocacy

Member-Driven Strategic Review Process

Responsible Care ® Strategic Review: Inclusive and Forward-looking

Federal Regulation State Regulation Local Bans Marketplace Deselection Consumer Activism Evolution of Chemical Issues

Product Safety Code Operationalizes TSCA modernization principles; serves as cornerstone for ACC’s top advocacy priority Enables prioritization, communication and demonstration of product safety & stewardship throughout value chain Complements ICCA Global Product Strategy & aligns with new OSHA Hazard Communication standard

PRODUCT SAFETY CODE Leadership commitment Accountability and management Prioritization of products Product information Risk characterization Product safety management Management of new information Product design and improvement Value chain cooperation Information sharing with the public Performance assessment and improvement

Process Safety Code and Reporting

Strengthens core concepts such as leadership, accountability, and culture Complements regulatory requirements, e.g., OSHA PSM standard and EPA Risk Management Program Designed for flexible implementation commensurate with risk Implementation verified during certification audits between 2014 and 2016 ACC process safety metric to be aligned with API RP- 754 when update is completed ( )

PROCESS SAFETY CODE Leadership and Culture Accountability Knowledge, expertise and training Understanding and prioritization of process safety risks Comprehensive process safety management system Information sharing Monitoring and improving performance

Global Responsible Care

2012 ICCA Responsible Care Status Report Shows progress over last 5 years Made available at Rio+20 and ICCM-3

Global Responsible Care Family

Association’s Progress on Key Responsible Care Elements X # associations in good standing Exceeding Milestones In Good Standing Non-Reporters (2011) Lagging BehindPersistent Non- reporters 1 Arabian Gulf 411 Denmark 9 Greece, Hong Kong, Hungary, India, Israel, Morocco, Peru, Turkey, Venezuela 3

Responsible Care ® Global Charter The global Responsible Care initiative is “an inspiring model of voluntary self-regulation for other industries to consider following.” Former UN Secretary General Kofi Annan

Fundamental Features Establish and implement a set of Guiding Principles that Member Companies sign Adopt a title and logo that are consistent with Responsible Care Implement management practices through a series of systems, codes, policies or guidance documents to assist companies to achieve better performance Develop a set of performance indicators against which improvements can be measured Communicate with interested parties inside and outside the membership Share best practices through information networks Encourage all association member companies to commit to and participate in Responsible Care Introduce and apply systematic procedures to verify implementation

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27 Contact Information Thank You! David Sandidge Director, Responsible Care ® American Chemistry Council