1. 1 Responsible Care Responsible Care ® Our Commitment to Sustainability Moscow, 27-28 June 2013 Sjoerd Looijs, Cefic Responsible Care Manager

2. FUNDAMENTAL FEATURES Responsible Care Global Charter 2

3. Global Chemicals Market Share 3

4. How is ICCA Structured ICCA Home-page http://www.icca-chem.org/ 4

5. Challenges and how to address them In today’s world of globalized product flows, problems related to product safety are no longer restricted to their country of origin. Our world is drawing closer together, not just economically but also on political and environmental issues. As a response, the chemical industry has expanded and intensified its voluntary programs for demonstrating responsible handling and marketing of all chemical substances. We are convinced that a balanced combination of regulations and voluntary industry programs is the best way to achieve safe management of chemicals. 5

6. Our Commitment to Sustainability 6

7. At ICCM-1 (Dubai, 2006) ICCA introduced two voluntary initiatives, Responsible Care Global Charter (RCGC) and Global Product Strategy (GPS) The goal is to improve the sound management of chemicals globally All major chemical companies accepted the obligation to put GPS into practice First positive feedback by United Nations (letter of commendation by Kofi Annan) External review process through ICCM (2009 / 2012 / 2015 / 2018) SAICM: Strategic Approach to International Chemicals Management ICCM: International Conference on Chemicals Management 7 ICCA contribution to SAICM: RC & GPS

8. Responsible Care ® Global Charter Improvement of existing RC-program Emphasis on social aspects like: consumer concerns about health and safety aspects of (chemicals in) finished products New issues: sustainability transparency emphasis on product stewardship harmonization national programs 2006 8 55+ National Associations ”An inspiring model of self-regulation that other industries should consider following.” (K. Annan, 2006)

9. CEO Support for Charter 150+ companies signed onto Charter Representing 86% of eligible top 115 global companies 9

10. Responsible Care “basics” 10  Global Initiative for the continuous improvement in the chemical industry  Involves everybody from top management to plant worker  Core Principles: 1.Improve the safety, health and environmental performance (processes & products) 2.Use resources efficiently and minimize waste 3.Report openly on achievements and difficulties 4.Listen, engage in dialogue with stakeholders, in particular with the local communities who live and work around our sites 5.Cooperate with regulators, set standards that go beyond regulation 6.Provide help and advice to foster the responsible management of chemicals throughout the value chain

11. An ethical initiative (1) 11 “ OTHER ” ETHICS RESPONSIBLE CARE ETHICS Meet the lawExceed letter & spirit of law - do the right thing Low profileBe seen to do the right (and wrong) thing We know what ’ s best We operate with public consent Public is who we think are the public Public are those affected or think they ’ re affected Manage risks to level we feel is safeManage risks to level acceptable to those affected Risk to people = risk of deathRisk includes well being Advise public about our decisionsConsult with public before deciding Inform if we think public need to knowPublic right to know hazards, benefits and risks Silence is assentSeek informed consent

12. An ethical initiative (2) 12 “ OTHER ” ETHICS RESPONSIBLE CARE ETHICS Downplay public concernsSeek out, understand and address public concerns Assume products and processes are safePrecautionary principle guides risk management React to challenges about chemical impactsBe our own whistle-blowers Every company for themselvesMutual aid and peer pressure to improve Employees know only company programsEmployees link programs to Responsible Care Limit product obligationsLife cycle stewardship Defensive approach to regulationsBe positive contributor to public policy Ignore or fight advocates Seek advocates ’ input Set standards for where “ the bar ” is Continuous improvement to meet public expectations Decisions by laws of science, economics, gov ’ t Decisions involve all the above

13. Ukraine started in 2011 China started in 2011 6 Golf countries joined RCLG in 2010 Reinforcing India Russia started in 2007 Interest in Egypt Myanmar joined RCLG in 2012 Sri Lanka joined RCLG in 2012 13 Global interest

14. 14  Egyptian Chamber of Chemical Industries  MoU signed with Cefic in 4/2011  Egyptian RC Board established 8/2011 Cefic DG Mandery with Sherif Al Gabaly, Chair of ECCI Start of Responsible Care in Egypt

15. RC Progress report 2002-2012 15 The RCLG developed a summary report shared at RIO+20 and ICCM 3. This report highlights RCLG achievements over the past 10 years. http://www.cefic.org/Responsible- Care/Awards/Awards-2012/ Cefic awards 2012:

16. 16 Core principles Set of commitments between companies and associations 1 Provide resources to implement RC 9 Fundamental features Features common to every national RC programme 2 Commit to sustainable development 3 Improve and report performance 4 Product Stewardship/ GPS 5 Extension of RC along the value chain 6 Address stakeholder expectations 8 Support national RC governance processes 7 : National Association : company Elements of the RC Global Charter 2006

17. Fundamental features of national programmes 17 NAcompany NA 1 Establish and implement a set of Guiding Principles that member companies sign NA2Adopt a title and logo that are consistent with Responsible Care NA3 Implement management practices through a series of systems, codes, policies or guidance documents tot assist companies to achieve better performance NA4 Develop a set of performance indicators against which improvements can be measured NA5Communicate with interested parties inside and outside the membership NA6Share best practices through information networks NA7 Encourage all association member companies to commit and participate in Responsible Care NA8 Introduce and apply systematic procedures to verify the implementation of the measurable elements of Responsible Care by member companies responsibility of association 2

18. Fundamental features are the foundational elements of any national/regional initiative. They are mandatory, but associations can tailor their implementation to meet the specific national/regional culture and needs. Key milestones should generally be achieved upon application to the RCLG for program recognition, and after five and ten years of Responsible Care implementation. The RCLG will monitor progress of associations against these milestones through the annual electronic key performance indicator (KPI) reporting process, as well as peer reviews at five and ten year implementation marks. 18 Fundamental features of national programmes

19. 19 1 st Fundamental feature Establish and implement a set of Guiding Principles that member companies sign Guiding Principles represent the commitments endorsed by the association members. Common core: Stewardship Stakeholder right-to-know Momentum to go beyond laws and regulations Hazard and risk assessment Communication  More or less, all the NAs have adopted similar GP  Flexibility is allowed to take account of the local particularities Expectations and criteria: Growth of number of signatories, connection with SD, green chemistry, energy policy, etc.

20. 20 2 nd Fundamental feature Adopt a title and logo that are consistent with Responsible Care Responsible Care ® is a registered mark. Its use is ruled by a charter. or The NAs have to license the use of the logo Flexibility for the national name of Responsible Care, even if ICCA recommends to use English Flexibility for the tagline No flexibility for the logo, except the color, but green is recommended Expectations and criteria: Brand & logo rules adopted, communicated and enforced, partnerships with IGO/NGOs, etc

21. 21 3 rd Fundamental feature Implement management practices through a series of systems, codes, policies or guidance documents to assist companies to achieve better performance Codes, guidance books, or management systems Responsible Care Management Framework published by Cefic Use of existing standards is recommended (ISO 14001, ISO 9000, ISO 26000, OHSAS 18001, etc.)  Responsible Care is a good way to promote (integrated) management systems Expectations and criteria : Codes, guidance, training sessions, sharing of experiences & best practices, etc.

22. 22 4 th Fundamental feature Develop a set of performance indicators to achieve better performance “You do not improve what you do not measure” That’s why we use the KPIs. Important and sometimes difficult issue

23. 23 5 th Fundamental feature Communicate with interested parties inside and outside the membership Commitment to take account the stakeholders’ concerns Targets: government, unions, consumers, environmental organizations, communities, customers & suppliers, etc. Topics: environmental impacts, occupational health and safety, transportation, environmental health, safe storage and handling, development of regulations, employment, depletion of natural resources, toxic use reduction, performance of the industry, performance of individual companies, community rights Promotes our industry Improves our image Shows the progress Expectations and criteria: Special consideration to local community concerns, regular feedback from stakeholders, information provided by web-based tools, Annual Responsible Care report, RC advisory panel

24. 24 6 th Fundamental feature Share best practices through information networks Sharing of lessons learnt from good and bad experiences Technical guidance and recommendations are in the DNA of the NAs! Process: Board: Ideally, the Responsible Care initiative should be guided by a committee at the board level of the association, or by the board itself. This will ensure adequate senior leadership commitment and policy direction for the initiative. Committees: Both policy and working level committees should be established to develop codes, guidance and systems and coordinate the development of common processes and tools. Cross-linkage or integration with other association committees is important to ensure their activities are consistent with Responsible Care. Inter-Company: One of the most important factors in the success of Responsible Care is the organization of workshops, conferences, and events where companies can come together to share their progress and challenges in Responsible Care. These events can be organized regionally, nationally or in conjunction with other association events. Responsible Care Coordinators (Contacts): Associations should establish the practice of each participating company to designate a Responsible Care contact, sometime called the ―Responsible Care Coordinator. It is important for these people to meet and share experiences, tools, frustrations and successes. These meetings can be structured as seminars or more formal information exchanges. Documents: Brochures, pamphlets, videos, webinars, and newsletters are also used to share information and experiences. Expectations and criteria : process formulated, national forums, issuing of best practices documents, etc.

25. 25 7 th Fundamental feature Encourage all association member companies to commit to and participate in Responsible Care How to encourage the members to sign up to Responsible Care? Incentives : Use of Responsible Care logo and references to the initiative are reserved for fully participating companies; Awards programs and other recognition of individuals and companies demonstrating outstanding contributions to Responsible Care Procedures for revoking membership in the association for companies which are not living up to the Responsible Care commitment. Advertising to the general public which identifies the committed Responsible Care members Responsible Care forums reserved for participating members, where they can freely share experiences in implementing Responsible Care Make Responsible Care mandatory as soon as it is endorsed by the NA (should be stated from the beginning!) Expectations and criteria: governance structures, encouragement/sanctions, mentoring of signatories, commitment required before membership, etc.

26. 26 8 th Fundamental feature Introduce and apply systematic procedures to verify the implementation of the measurable elements of Responsible Care by members companies Brings credibility Flexibility : Two kinds of verification processes: Companies: Each company, member of the NA, is verified (or audited) and gets a verification document or a certification (eg: ACC, UIC) National association: The association orders a verification process of the implementation process of its guiding principles, mainly the collection of KPIs (eg: VCI, VNCI) Expectations and criteria: self-assessment, process established, communication of verification results, connection with other relevant protocols of verification, etc.

27. ICCA governance of national RC programmes 27 ICCA RCLG is working to improve & enhance RC implementation by reviewing the adherence to the RC Fundamental Features in each RC national association New Implementation Guide including baseline criteria for new ICCA and RCLG members Baseline criteria plus 5-year and 10-year achievement milestones to monitor progress over time Important criteria include regular reporting against KPIs and external verification process ICCA and Cefic provide support to national associations to meet requirements

28. 28 National Associations role Implements the governance bodies to manage and support the Responsible Care programme Manages Responsible Care on behalf of industry within its country/region Develops the RC initiative within its country/region, consistent with the principles, procedures and fundamental features of the Global Charter Reflects the national/regional culture, legal system and other expectations of national, regional and local stakeholders Communicates about the benefits and the added value of Responsible Care

29. 29 Members role Commit themselves to make Responsible Care active and visible Participate in the governance bodies of Responsible Care Meet the commitments of the national Guiding Principles Grant the necessary resources to their NA Never look Responsible Care as a constraint but an opportunity No gaps between NA and its members!

30. KEY PERFORANCE INDICATORS reporting 30

31. ICCA KPI webtool 31 Access for National RC managers only!

32. Mandatory KPIs (1) 32 Include ICCA/Cefic KPI document

33. Mandatory KPIs (1) 33 Include ICCA/Cefic KPI document

34. Mandatory KPIs (2) 34

35. Forms of RC verification, Cefic vs. CEO 35 approx. 1/4 of the associations beyond “self assessment” approx. 1/3 of the associations -> “no info” Global Charter: go beyond self-assessment CEO = Central and Eastern Europe

36. Implementing Process safety, Cefic vs. CEO 36 33% CEO associations implemented RC process safety tools (62% Cefic)

37. Implementing security, Cefic vs. CEO 37 17% CEO associations implemented RC security tools (42% Cefic)

38. RC performance improvement 2002-2012 38

39. 39 Many Thanks for Your Attention! Questions? (contact: slo@cefic.be)