1. September 25, 2012 THE GLOBAL PRODUCT STRATEGY AND HOW IT FITS IN RESPONSIBLE CARE Christina Franz Senior Director, ACC

2. Background and History Global Charter and Global Product Strategy How Global Product Strategy Fits in Responsible Care ACC Strategic Review and Product Safety Code Agenda

3. United Nations World Summit Sustainable Development 2002 Johannesburg Progress on sustainable development disappointing since 1992 Earth Summit Johannesburg summit implementation-oriented Important new targets set 2020 goal: chemicals are used in ways that minimize significant adverse impacts on human health and the environment

4. Strategic Approach to International Chemicals Management (SAICM) 2006 UNEP policy tool Endorsed by 100+ governments, ENGOs, labor and health organizations Policy framework to promote chemical safety globally

5. Strategic Approach to International Chemicals Management (SAICM) Dubai Declaration – high- level political commitment Overarching Policy Strategy setting for the scope, needs, objectives, financial considerations, principles, and approaches

6. Strategic Approach to International Chemicals Management (SAICM) Overall Objective: Meet 2020 Goal Sound management of chemicals throughout life-cycle so that by 2020 chemicals are used in ways that minimize significant adverse impacts on human health and the environment

7. Strategic Approach to International Chemicals Management (SAICM) SAICM Global Plan of Action with activities to be implemented by stakeholders, including private sector, e.g., global chemical industry through International Council of Chemical Associations (ICCA)

8. Strategic Approach to International Chemicals Management (SAICM) ICCM, which adopted SAICM, reconvenes every 3 years to review progress of SAICM implementation ICCM-3 September 17-21 Nairobi, Kenya ICCA active engagement at ICCM Meetings

9. ICCA Responsible Care Global Charter and Global Product Strategy Industry Action Pre-WSSD ICCA Responsible Care (RC) ICCA Global Chemicals Management Policy Long-Range Research Initiative (LRI) High Production Volume (HPV) Regional communication activities

10. ICCA Responsible Care Global Charter Launched at 2006 ICCM-1 SAICM Adopted Recognition that industry practices and performance evolved since mid-1980s Shaped by consideration of recommendations of independent global stakeholders Nine key elements going beyond RC

11. ICCA Responsible Care Global Charter 9 Key Elements Adopt Global RC Core Principles Implement Fundamental Features of National RC Programs Commit to Advancing Sustainable Development Continuously Improve and Report Performance Enhance Chemical Management Globally, i.e., product stewardship

12. ICCA Responsible Care Global Charter 9 Key Elements Extend RC Along Value Chain Active Commitment to Support National and Global RC Governance Address Stakeholder Expectations about Industry Activities and Products Provide Appropriate Resources to Implement RC Effectively

13. ICCA Responsible Care Global Product Strategy (GPS) Introduced 2006 ICCM-1 SAICM Adopted A cornerstone of industry’s contribution to SAICM GPS is designed to improve global industry’s product stewardship performance by recommending measures by companies in cooperation with their associations and other participants in the chemical value chain

14. ICCA Responsible Care Global Product Strategy: Key Components Develop guidelines for product stewardship, including ways to make product stewardship information more transparent Implement a management systems approach Tiered process for completing risk characterization and risk management actions for chemicals in commerce Product stewardship performance, emphasizing working with customers and suppliers Explore partnerships with stakeholders to enhance product stewardship

15. ICCA Responsible Care Global Product Strategy: Key Components Develop guidelines for product stewardship, including ways to make product stewardship information more transparent Implement a management systems approach Tiered process for completing risk characterization and risk management actions for chemicals in commerce Product stewardship performance, emphasizing working with customers and suppliers

16. ICCA Responsible Care Global Product Strategy: No Uniform Internaional Approach Common elements and approaches to be applied across the global industry However, it provides implementation flexibility Key recognition of distinct national, historical, and cultural differences Recognition of distinct legal and regulatory requirements

17. ACC Perspective: How the Global Product Strategy Fits Within Responsible Care U.S. chemical industry began RC with Codes of Management Practices, e.g., Product Stewardship Code In 2002, ACC refreshed RC with management system approach Integrated, structured approach to drive results in seven key areas

18. ACC Responsible Care Management System RCMS Focus Areas:  Community Awareness & Emergency Response  Security  Distribution  Employee Health & Safety  Pollution Prevention  Process Safety  Product Stewardship

19. ACC Responsible Care Management System Implementation Framework  Plan – identify and evaluate risks  Do – establish, document & communicate responsibilities  Check – measure performance progress and corrective action  Act – Periodically review efficacy of management system and make necessary changes

20. ACC Responsible Care Management System The RCMS® is based on benchmarked best practices of leading private sector companies, initiatives developed through the Global Environmental Management Initiative, International Standards Organization and other bodies, and requirements of national regulatory authorities Certified by independent third- party auditor every three years RCMS or RC14001—technical specifications met

21. Where Does GPS Fit in Responsible Care? To accomplish the key elements of GPS, ACC identified each product stewardship technical specification within RCMS aligned with each strategic element of GPS Same exercise applied to the former Product Stewardship Codes Management Practice to ensure alignment with all Product Stewardship principles

22. How to Measure Progress Toward GPS Key Components? Implement a management systems approach Develop guidelines for product stewardship, including ways to make product stewardship information more transparent Tiered process for completing risk characterization and risk management actions for chemicals in commerce Product stewardship performance, emphasizing working with customers and suppliers

23. How to Measure Progress Toward GPS Key Components? Identify and report performance metrics that indicate progress toward remaining key components of GPS:  Demonstrates tiered risk characterization process employed differentiating among high- and low- risk substances  Communicating product stewardship information to the value chain and public

24. How to Measure Progress on GPS Key Strategy Components? Metrics Selected:  Documented process in place to characterize chemical risks and summary of that process is publicly available?  Company has a process in place to communicate the result of the risk characterization

25. How to Demonstrate Progress on GPS? Publicly available Product Safety Summaries Lay language—easy to understand by public Flexible in approach so each company can include what is appropriate for it Provide guidance on recommended elements of various types of product stewardship information Make them publicly available

26. Product Safety Summaries Recommended Elements  Chemical identity  Uses  Physical/chemical properties  Health effects  Environmental effects  Environmental fate  Aquatic/terrestrial toxicity  Exposure potential  Risk management recommendations

27. Product Safety Summaries Public Accessibility ICCA Portal http://www.icca- chem.org/en/Home/ICCA- initiatives/global-product- strategy/chemical- information-search/ Individual company websites Other vehicles

28. Product Safety Summaries Targets Safety summaries on all high priority substances as identified by individual companies by end of 2012 Safety summaries on all other substances in commerce by end of 2018 Advance of UN 2020 Goal

29. ACC Responsible Care Strategic Review and Product Safety Code Why Strategic Review?  10 years since last review  Political activity  Marketplace impacts  Legislative activity  Individual states within U.S.  Social media evolution

30. ACC Responsible Care Strategic Review and Product Safety Code External Advisory Panel 2010 Recommendations delivered Many recommendations adopted by ACC Board 2011-2012 staff and member recommended changes to RC Product stewardship practices pulled out of RCMS and new Product Safety Code almost completed

31. Why Product Safety Code? Significant activity past few years to revise Toxic Substances Control Act (TSCA) 2009 ACC 10 Principles TSCA Modernization External Advisory Panel recommended alignment of 10 Principles and RC Product Stewardship activities Use term “safety” Dual purpose: performance and advocacy

32. Product Safety Code Elements Leadership commitment Accountability & management Risk-based prioritization process Tiered approach to data/information gathering Risk characterization Risk management Management of new information

33. Product Safety Code Elements Product design & improvement Value chain communication, cooperation & outreach Information sharing Performance assessment & continuous improvement

34. Product Safety Code Elements & Global Product Strategy Alignment continues to exist In fact, more robust Safety summaries metric?

35. Thank You & Discussion