Enterprise Risk Management
The Future of Safety
in Canada
Glyn Jones, M.A.Sc, P.Eng, CIH, CRSP
EHS Partnerships Ltd.
[email protected]
© 2015 EHS Partnerships Ltd.
Enterprise Risk Management
© 2015 EHS Partnerships Ltd.
Enterprise Risk Management
Derek Bok
© 2015 EHS Partnerships Ltd.
Enterprise Risk Management
Session Overview
Where the safety profession is:
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Technical specialists
Management systems focus
Hazard assessment and control
Forms and more forms
Where the safety profession is going:
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Shifting focus to Risk
Seeing Leadership as a tool to get there
Focus on competency to reduce reliance on forms
Integrate thinking with other operational business units
Our Final Destination:
• Operational excellence and full integration of OHS within the
Enterprise Risk Management envelope
© 2015 EHS Partnerships Ltd.
Enterprise Risk Management
Operational Excellence
© 2015 EHS Partnerships Ltd.
Enterprise Risk Management
Operational Excellence
© 2015 EHS Partnerships Ltd.
Enterprise Risk Management
Sustainability
© 2015 EHS Partnerships Ltd.
Enterprise Risk Management
Sustainability
“An approach to creating long-term
shareholder value by embracing
opportunities and managing risks deriving
from economic, environmental and social
trends and challenges.” – Dow Jones Sustainability
Index
© 2015 EHS Partnerships Ltd.
Enterprise Risk Management
Triangle
Shirtwaist
Fire
The Beginning of the
Occupational
Safety and Health Movement
in the USA
March 25, 1911
146 dead
© 2015 EHS Partnerships Ltd.
Enterprise Risk Management
High Profile Tragedies Have Highlighted the
Importance of Safety and Health in Sustainability
© 2015 EHS Partnerships Ltd.
10
Enterprise Risk Management
Four Worst Garment Factory Tragedies
Ali Enterprises, Pakistan
• Sept. 11, 2012, 262 dead
Tazreen, Bangladesh
• Nov. 24, 2012, 112 dead
Rana Plaza, Bangladesh
• April 24, 2013, 1132 dead
Triangle Shirtwaist Fire, NY, USA
• March 25, 1911, 146 dead
© 2015 EHS Partnerships Ltd.
Enterprise Risk Management
A Tale of Two Cities
Doha, Qatar
London, UK
© 2015 EHS Partnerships Ltd.
Enterprise Risk Management
A Tale of Two Cities
• Doha, Qatar
– Home of the 2022 World Cup
– At least 900 fatalities (as of March 2014)
– At least 4,000 migrants expected to die by 2022
– 2.2 million migrant workers expected to work
• London, UK
– Home of the 2012 Summer Olympic
– Safest Olympic Games in terms of construction
– 46,000 workers, 62 million hours worked,
– 0 fatalities
© 2015 EHS Partnerships Ltd.
Enterprise Risk Management
A Tale of Two More Cities
One World Trade
Center
New York
City Center, Las Vegas
© 2015 EHS Partnerships Ltd.
Enterprise Risk Management
A Tale of Two More Cities
• Las Vegas – City Center Project
– $9.2 Billion project (largest privately funded in US)
– 8,000 construction workers
– LEED Approved Green Building
– At least 12 construction fatalities
• New York – One World Trade Center
– 10,000 construction workers
– $3.9 Billion
– Complicated project/densely populated area
– 0 Fatalities
© 2015 EHS Partnerships Ltd.
Enterprise Risk Management
Rhetorical Question
If Corporations are Sustainable,
Then Why Are Workers Being Disabled?
© 2015 EHS Partnerships Ltd.
Enterprise Risk Management
NIOSH Science Blog – June 13, 2011
Safety has not been asked to the Prom!
“Environmental stewardship and occupational
safety share considerable overlap. Both are key
sustainability issues, yet the green movement
has outstripped workplace safety. What can
OSH learn from green?”
© 2015 EHS Partnerships Ltd.
Enterprise Risk Management
New Research – February 2013
Examines the
occupational health
and safety practices
of the world’s 100 top
rated sustainable
companies
(as reported by Corporate Knight’s
2011 - Global 100 Most
Sustainable Corporations in the
World)
© 2015 EHS Partnerships Ltd.
Enterprise Risk Management
Top 50 Canadian Companies Reporting
Rank
Company
Rank
Company
Rank
Company
Rank
Company
Rank
Company
1
Vancouver City
Savings Credit
Union
11
Bombardier
21
Stantec
31
Domtar
41
Sun Life Financial
32
Rogers
Communication
s
42
The Manitoba
Hydro-Electric
Board
2
Teck Resources
12
Cascades
22
Cenovus
Energy
3
Co-operators
Group
13
Canadian
National Railway
23
Enbridge
33
HSBC Bank
Canada
43
Enmax
24
Canadian
Pacific
Railway
34
BCE
44
Ontario Power
Generation
4
Barrick Gold
14
The TorontoDominion Bank
5
Mountain
Equipment Coop
15
Royal Bank of
Canada
25
Sears
Canada
35
TransCanada
45
6
Suncor Energy
16
Yamana Gold
26
HydroQuébec
36
Husky Energy
46
7
Tim Hortons
17
Talisman Energy
27
Kinross Gold
37
Canada Post
47
Loblaw
Companies
8
Mouvement des
Caisses
Desjardins
18
Intact Financial
28
IAMGOLD
38
EPCOR Utilities
48
Transcontinental
9
Agrium
19
Inmet Mining
29
Bank of
Montreal
39
Agnico-Eagle
Mines
49
Encana
10
TELUS
20
TransAlta
30
Capital
Power
40
TMX Group
50
Catalyst Paper
© 2015 EHS Partnerships Ltd.
Canadian Imperial
Bank of
Commerce
Potash Corp of
Saskatchewan
Enterprise Risk Management
Who Cares?
Shareholders Do!
© 2015 EHS Partnerships Ltd.
Enterprise Risk Management
Who Cares?
Shareholders Do!
© 2015 EHS Partnerships Ltd.
Enterprise Risk Management
Who Cares?
Shareholders Do!
© 2015 EHS Partnerships Ltd.
Enterprise Risk Management
Pathways Linking EHS to Shareholder Value
Product & process
innovation
Reduce waste &
emissions
Tangible
Outcomes
Increased
Profitability
Efficient use of resources
Improved capital
utilization
Occupational health &
safety
Customer satisfaction
Stakeholder engagement
Intangible
Assets
Employee satisfaction
Environmental protection
Community quality of life
© 2015 EHS Partnerships Ltd.
Intellectual capital
License to operate
Shareholder Value
Adapted from Global Environment Management Initiatives p. 5, 2004
Reputation & brand
image
Reduced risk
Enterprise Risk Management
A Current Model for OE
© 2015 EHS Partnerships Ltd.
Enterprise Risk Management
Operational Excellence
© 2015 EHS Partnerships Ltd.
Enterprise Risk Management
Business Process Agility
© 2015 EHS Partnerships Ltd.
Enterprise Risk Management
Environmental Stewardship
© 2015 EHS Partnerships Ltd.
Enterprise Risk Management
Cost Optimization
© 2015 EHS Partnerships Ltd.
Enterprise Risk Management
Capacity for Scale Up or Down
© 2015 EHS Partnerships Ltd.
Enterprise Risk Management
OHS Performance
© 2015 EHS Partnerships Ltd.
Enterprise Risk Management
Sustainable Operations
© 2015 EHS Partnerships Ltd.
Enterprise Risk Management
There are pieces missing?
What is missing?
© 2015 EHS Partnerships Ltd.
Enterprise Risk Management
Regulatory Framework
© 2015 EHS Partnerships Ltd.
Enterprise Risk Management
Corporate Governance
© 2015 EHS Partnerships Ltd.
Enterprise Risk Management
Strategic Planning
© 2015 EHS Partnerships Ltd.
Enterprise Risk Management
Enterprise Risk Management
© 2015 EHS Partnerships Ltd.
Enterprise Risk Management
© 2015 EHS Partnerships Ltd.
Enterprise Risk Management
© 2015 EHS Partnerships Ltd.
Enterprise Risk Management
© 2015 EHS Partnerships Ltd.
Enterprise Risk Management
Enterprise Risk Management
© 2015 EHS Partnerships Ltd.
Enterprise Risk Management
What we need to Accomplish?
Raise the bar for safety and health globally
– Influence how safety and health is viewed by key stakeholders
Influence the way safety and health performance is measured and
reported
– Improve the quality and comprehensiveness of reporting
– Promote value of leading indicators
– Simplify reporting through promotion and use of global consensus
standard index
Get ahead of the curve for standardized safety and health reporting to
stakeholders
– Improve and standardize external safety and health rating systems
– Influence GRI, Investment community, NGO’s, Governments, other
stakeholders, etc.
© 2015 EHS Partnerships Ltd.
Enterprise Risk Management
Materiality Graph
Importance to Company
© 2015 EHS Partnerships Ltd.
Enterprise Risk Management
© 2015 EHS Partnerships Ltd.
Enterprise Risk Management
Questions?? Please feel free to contact me directly
Need a speaker for an upcoming conference, course or safety
meeting? Give me a call. I’d be pleased to participate.
© 2015 EHS Partnerships Ltd.
Enterprise Risk Management