COVER STORY
NEIGHBORLY Huntsman operates its Rozenberg, the Netherlands, plant in coexistence with the natural environment.
SUSTAINABILITY TAKES CENTER STAGE T h e chemical industry faces a host of economic, social, and environmental challenges at upcoming summit in Johannesburg KAREN J. WATKINS, C&EN NORTHEAST NEWS BUREAU
T
H E C H E M I C A L I N D U S T R Y HAS BEEN SERIOUS ABOUT
sustainable development for the better part of a decade. Now the industry is gearing up for the World Summit on Sustainable Development (WSSD), to be held Sept. 2-11 in Johannesburg, South Africa. The chemical industry which will be represented at W S S D by the
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nongovernmental organization International Council of Chemical Associations (ICCA), hopes b o t h to showcase progress it has made toward sustainable growth and to influence the assessment of progress made since the Earth Summit held in Rio de Janeiro in 1992. It was at that 1992 meeting, formally the United Nations Conference on Environment & Development (UNCED), that the U N proclaimed sustainable developC&EN / APRIL
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COVER STORY m e n t to be the central organizing princic o n c e p t as i n h e r e n t in t h e i r corporate ple for worldwide economic development. positioning. I n its r e p o r t o n t h e c o n f e r e n c e , n o w Part of t h e reason for t h e industry's known as 'Agenda 21," the U N stated that progress has been the Responsible Care all humans "are entitled to a healthy and program. Responsible Care, a codified set productive life in harmony with nature" of standards for the chemical industry to and p u t forth 27 principles designed to follow, is not the same as sustainable dereach that lofty goal. velopment. T h e chemical industry's comWSSD's principal purpose is to assess progress toward attaining t h e goals of Agenda 21, to set priorities for farther action, and to strengthen the commitment of all parties to the program. It specifically will not open Agenda 21 for revision. Sustainability according to Agenda 21, implies that "the right to development must be fulfilled so as to equitably m e e t developmental and environmental needs of present and future g e n e r a t i o n s . " I n o r d e r t o achieve sustainable d e v e l o p m e n t , "environmental protection shall constitute an integral part of the development process and cannot be considered in isolation from it." And, of great significance, "all states and all people shall cooperate in the essential task of eradicating poverty as an indispensable requirement for sustainable development." Sustainable development "is still a c o n c e p t w h e r e we n e e d to learn a great deal from each other, one which is ideally suited toward working in partnership with other people," says Terry F. Ifosie, vice president for Re- B R A N C H I N G OUT Employees at Ciba's s p o n s i b l e C a r e for t h e A m e r i c a n Mississauga, Ontario, site volunteer for the Chemistry Council. A C C is a mem- company's annual tree planting. ber of I C C A . But sustainable development is not just m i t m e n t to Responsible Care, however, a concept—it is a tangible c o m m i t m e n t h a s p a v e d t h e way for p r o g r e s s o n and a reality, in which the concerned parsustainability ties learn w h a t works and what doesn't Take DuPont, for example. T h e comwork. "Sustainable development is a way pany's website quotes D u P o n t Chairman to help c o m p a n i e s b e c o m e global and and Chief Executive Officer Charles O. more competitive," Ybsie says. HollidayJr. on sustainability: 'As a socieT h e chemical industry is not the only ty, and particularly for business, the closindustry or group t h a t has b e e n active ing decades of t h e 2 0 t h c e n t u r y w e r e since the 1992 Earth Summit in Rio. But m a r k e d b y significant e n v i r o n m e n t a l perhaps more than almost any other inprogress. We responded constructively to dustry, the chemical industry has made the environmental crises of the 1970s and enough progress that its representatives 1980s, and in the 1990s we turned our atseem eager to talk a b o u t it. Instead of tention to t h e ultimate challenge — susbeing a mere wish list, sustainable develtainable growth. At D u P o n t we are proud opment now is the mantra of many chemof a decade of reducing our environmenical firms—among t h e m D o w Chemical, tal footprint. W e have come a long way, DuPont, BASF, and Bayer—that see the certainly in reductions of waste and emis-
sions, but also in recognizing the impact of our operations on global issues like climate change. "However, t h e r e are still e n o r m o u s c h a l l e n g e s . E x t r a p o l a t i o n of c u r r e n t trends paints a picture of an unsustainable world: an increasing gap between the rich and the poor; billions of people w h o do not have access to clean water, p r o p er sanitation, adequate food, shelter, and health care; and t h e steady decline in key global ecosystems. 'As a c o m p a n y t h a t is owned by thousands of investors, our challenge is to address these issues in away that makes business sense. W e define this direction as sustainable growth—the creation of shareholder and society value while decreasing our environm e n t a l f o o t p r i n t along t h e value chains in which we operate." Eastman Chemical is an example of another company that takes pride in its commitment to sustainable dev e l o p m e n t and its t r a c k record of t u r n i n g c o n c e p t s i n t o reality. I t s h e a l t h , safety, and e n v i r o n m e n t a l achievements "don't come from onet i m e slogans or p r o g r a m s of t h e month," says Garland S. Williamson, the firm's chief health, safety, and environmental officer. "They are based on the consistent, proper behaviors of everyone in our company W e have incorporated the basic belief of working safely and minimizing waste into who we are." At W S S D , chemical c o m p a n i e s will seek more exposure and an opp o r t u n i t y to show w h a t t h e y have done so far in reducing their footprint and in advancing social programs. T h e y also would like to use the power of W S S D to "go above and beyond the ability of the chemical industry to spread Responsible Care," according to Brian Wastle, vice president for Responsible Care for t h e Canadian Chemical Producers Association (CCPA), another m e m b e r of I C C A . I C C A will m o u n t an exhibit at W S S D centering on Responsible Care efforts to bring together the industry's stakeholders and address issues g e r m a n e t o t h e chemical industry T h e chemical industry coalition will seek opportunities to work proactively with governments instead of fighting t h e m by lobbying against regulations, according to Wastle.
"Sustainable development is much bigger, tougher, and more diffuse [than Responsible Care]/' 16
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"Had there not been Responsible Care, we would see a lot more criticism about our industry at the conference," % s i e says. "In fact, t h e desired output of the Johannesburg conference is to decide {on ways} to carry the Rio summit's Agenda 21 into t h e next century. W h a t we also expect from Johannesburg is an opportunity for the global chemical industry to tell its story: what it's done since 1992 and h o w it can c o n t r i b u t e t o environmental, economic, and social progress." OF COURSE, the terrorist attacks of Sept. 11,2001, in t h e U.S., and t h e explosion 10 days later at t h e Grande Paroisse fertilizer plant in Toulouse, France—the cause of which remains unknown—have brought safety and security issues into t h e limelight for all chemical companies. Companies are scrambling to reduce, if not eliminate, the possibility that such events ever occur again. W S S D will undoubtedly reflect these events, b u t observers expect that more emphasis will be placed o n economic issues than on the environment. " I C C A has encouraged us to be frank in identifying global challenges, n o t just
guarantees continued global deterioration. making a report on how well we have done Nevertheless, "some of our members to date with the intention of persuading are quite conversant with sustainable dethe conference to leave us alone," Wastle velopment," says R. Garrity Baker, senior says. "We have a good agenda for global acdirector of international affairs tion in sustainability" for A C C . Even those members Yosie says t h e chemical inthat have n o t given a lot of spedustry probably is ahead of govcific thought to it, he says, "in e r n m e n t and public expectapractice do things that sustaint i o n s in p u t t i n g i n t o p l a c e able development expects, such elements of sustainable operaas community outreach efforts tion. Many chemical companies and safety programs." have committed themselves to Wastle says many chief execthe principle of corporate social utive officers act responsibly, responsibility, w h i c h goes b e RESPONSIBLE w h e t h e r or n o t it helps t h e m yond donations and public gesCARE with credibility or reduced lititures to include addressing t h e gation, because it's t h e right problems of local populations. thing t o do. For m o s t companies, "Re"We have to identify areas in the T h i r d sponsible Care is our way of being socialWorld where t h e chemical industry can ly r e s p o n s i b l e , d o i n g t h e r i g h t t h i n g do some good stuff and be recognized for w h e t h e r or n o t it i m p a c t s t h e b o t t o m doing it," Wastle says. line," he says. It also helps employees take N o t every company thinks that the inpride in t h e company they work for. dustry should worry about sustainable deT h e terms "Responsible Care" and "susvelopment, observers say It is n o t a given tainable development" are often used inthat t h e goals of a for-profit corporation terchangeably, and there is some confushould include ensuring t h a t n e w sussion as to h o w Responsible Care differs tainable technologies replace existing from sustainable development. ones, even if failure to make such changes
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COVER STORY
SEVENTH
CODE
Responsible Care Evolves To Address Terrorist Threat And Security Concerns
R
esponsible Care has undergone a metamorphosis. Since Sept. 11, 2001; the focus of the code of behavior for chemical companies has rapidly changed from stewardship of products and the environment to development of plans to handle terrorist attacks. Companies have developed specific site plans and overall management principles to address the new security concerns. "Sept. 11 created a new reality for us
adds Tom Grumbles, manager of product safety and occupational health in North America for Sasol, which became a U.S. chemical producer in March 2001 after it acquired Condea. "We never would have imagined this kind of thing happening—a terrorist with a load of explosives trying to get into the plant." "Sept. 11 has had a huge impact on DuPont in a lot of ways," says Dawn Rittenhouse, DuPont's director of sustain-
W E L L T R A I N E D Chemical w o r k e r s learn about the practices of their transportation partners. and for everyone," says John Polhemus, director of safety and industrial hygiene for Bayer Corp. "It has changed the way we view security: Operations are safe against a known risk, but now addressing terrorism and sabotage are at the top of our list." "This is an opportunity to do what we should have done all along," says Brian Wastle, vice president for Responsible Care for the Canadian Chemical Producers' Association (CCPA). Especially in light of recent events, he says, "Responsible Care is almost a religion." The events of Sept. 11 "absolutely changed Responsible Care, causing everybody to look at security differently,"
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able development. "DuPont is concerned about the possibility of terrorism affecting its plants and the consequent effect on the local community." The company is looking at its security code to determine how to put in place good management systems, as it has done for safety and the environment for years. Executives say that dealing with plant security concerns has been more straightforward because Responsible Care is in place. Many of the issues and practices developed for safety, the environment, and product stewardship have been adaptable to security planning, says Terry F. Yosie, vice president for Responsible Care at the American Chemistry
Council (ACC). To this end, companies have gone to their community advisory panels for rapid feedback about what changes in operation might be appropriate at individual facilities, Yosie says. Companies are also working closely with federal, state, and local law enforcement to provide further assurances to the community and have brought in the Coast Guard and other disaster response teams to test their security systems. Responsible Care has become the formula that practically all chemical companies have followed in recent years to ensure safety of human health and the environment. In its initial form, dating from the 1980s and promulgated by CCPA and ACC, it encompassed six codes of management practice. Now, in light of recent events, a seventh Responsible Care code—one dealing with security—is being established. This code will probably require companies to adhere to mandatory site practices and use third-party verification and vulnerability assessments with mock terrorism or invasive attempts. Until now, the codes considered process safety hazards and worstcase scenarios but not invasive events. While the existing codes have required up to a year for approval, the new code will be presented in June, just four-and-a-half months after it was initiated. Grumbles contends that the expanded Responsible Care code should include transportation elements such as railroads and trucks. Transportation is hard to monitor, Grumbles notes, because it involves many variables that are out of a company's control. However, he says, Sasol has strong relationships with its Responsible Care partner carriers and is already working on improvements in this area. Given current reliance on computers, the seventh code should also consider threats to information systems, Grumbles suggests. "The security issue goes beyond elements traditionally considered in Responsible Care, but the Responsible Care foundation is a good one from which to address these new areas of concern," he says. Companies generally decline to give
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specifics about the measures they are taking to protect against terrorism. The response of Tim Fitzpatrick, director of public affairs at BASF Corp., is typical: "BASF has always placed a priority on the safety and security of our sites and our products. Since the attacks of Sept. 11, we have heightened our vigilance and active cooperation with law enforcement agencies to make sure that our sites and products are secure." BASF views Sept. 11 —as well as the deadly Sept. 21, 2001, Atofina fertilizer plant explosion in Toulouse, France, the cause of which remains unknown—in light of a long history of making chemicals in plants close to inhabited areas. "This issue is not new; it's been ongoing for 137 years at our site in Ludwigshafen, Germany," says Lothar Meinzer, head of the sustainability center at BASF. "We have been talking with neighborhood communities for decades and decades. We have developed a lot of trust, talking and working together with the community advisory panel." Events like the Sept. 11 attacks or the explosion in Toulouse illustrate the i m portance of ties between a plant and its community. "The most effective way to reassure the communities in which we operate is to have an open dialogue with them," says MichaelJ. Kern, senior vice president for environmental health and safety at Huntsman Corp. "We provide input into the community through our community advisory panels, our association with local community organizations, and through information provided by our associates. We seek input from the local fire and police departments and practice with them in drills."
munity where it operates. You can't regulate that." Since the late 1980s, chemical companies have relied on Responsible Care to reassure the public that chemical plant operators know what they are doing in
O N - S I T E As part of its community outreach efforts, Fielding Chemical Technologies gives tours of its Mississauga, Ontario, site.
terms of safety, waste, pollution, accidental releases, and now security, says Scott Berger, senior manager of the Center for Chemical Process Safety of the American Institute of Chemical Engineers. The first step in developing a security policy, Berger says, is to perform screening to decide which chemical sites should warrant initial attention. Those sites that are most vulnerable should, of course, be addressed first. In the case of Bayer, the company has followed up such assessments with a management system approach, says Barry Stutts, the firm's manager of Responsible Care. DuPont has the same philosThis approach involves five eleophy regarding the community. ments: leading by senior man"The only way to build trust is agement, identifying relevant through dialogue," Rittenhouse regulations and setting persays. "The local community formance goals, implementing must have access to people accountability through the orwho work there and understand ganization and training employRESPONSIBLE ees to carry out necessary the plant. People have to be able to see for themselves what tasks, auditing and documentCARE the facility is and the challenge ing, and reviewing and reportof making the product." ing so senior management can achieve continuous improvement. Local citizens may have ideas on other safety systems that could be put into DuPont also takes a top-down applace. "Plant personnel must be willing to proach to health, safety, and environlisten and respond to the community," ment—and now security—issues. In the Rittenhouse adds. "That's the only way to early 1990s, DuPont put into place a manbuild trust between a facility and the comagement system to check performance
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and compliance. Using what it learned about managing environmental systems, the company claims it has been able to implement effective security systems. Though there are some differences in policy from plant site to plant site, none are
major. The various sites hold practice drills on responding to an emergency, looking for problems to address. In light of the terrorist attacks, Huntsman has also reviewed its security protocols with local authorities "to receive their input into not only what we are doing, but how they feel we can make our facilities better," Kern says. "ACC's new Responsible Care Security Code w i l l assist the industry in this outreach by linking security protocols with a follow-up review by those in the communities in which we operate." According to CCPA's Wastle, a key question in the aftermath of Sept. 11 is, "Do we stop being so open with our community? This issue has been debated extensively, and the answer is no." Though there's always a risk in providing information to people who might misuse it, the worst risk is "hiding behind our barbedwire fences and shutting down our communication lines." That the Responsible Care program can expand to incorporate new problems like security is a testimony to its strength. Responsible Care has a long history of setting operating standards for the chemical industry, and it is rapidly evolving to encompass the new security issues. "To do something new and creative is hard work," ACC's Yosie says, "but it's essential."
C&EN / A P R I L 22, 2002
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"We are struggling w i t h t h a t difference," says T o m Grumbles, manager of p r o d u c t safety and occupational health for Sasol N o r t h America, formed in March 2 0 0 1 b y Sasol's acquisition of Condea. "Responsible Care is a defined set of codes and practices, summarized in six codes of management practice. Sustainable development, on the other hand, is n o t defined, and there are n o documents t o compare it t o Responsible Care." T h e relationship between Responsible Care and sustainable development differs depending on who's talking, b u t most see it as an intermeshing relationship w i t h some c o m m o n goals. D u P o n t believes t h a t sustainable d e velopment cannot be accomplished without Responsible Care: "It is fundamental as we move toward being a more sustainable company," says D a w n Rittenhouse, t h e firm's director of sustainable development. However, there are gaps between the two principles. For example, she says, Responsible Care challenges a company to do its best with the technology it has. It doesn't challenge companies t o create "really green" products and processes. "RESPONSIBLE CARE is an integral part of sustainable development," says Lothar Meinzer, head of the sustainability center at BASF. (CWe see sustainable development as a kind of roof over three pillars: economic development, environmental development, and social development. W e need to work o n t h e economic and social pillars, b u t Responsible Care has nailed down t h e environmental part." Because t h e return o n social efforts is difficult t o measure, implementing t h e m requires a lot of groundwork that was n o t needed for establishing t h e environmental pillar. Fact-finding is needed in the social area, Wastle says. "It is still an open question: Is it possible or necessary to codify t h e social side, as we have t h e environmental side?" Each company interprets the social and economic goals differently So according to Barry Stutts, manager of Responsible Care at Bayer, t o codify social goals, companies must find a common thread among their diverse operations. To d o this may m e a n going i n t o every c o m p a n y site— there are about 1,200 A C C m e m b e r facilities, h e says—to understand what site managers are doing to meet the social side of sustainable development. T h e third facet of sustainable development— economic progress—is "where we struggle t h e m o s t because i t is h a r d t o quantify," Wastle says.
For example, if a plant is running w e l l making products with rnininial environmental impact—it is a benefit t o society, contributes to t h e tax base, and generates income. "This positive performance c o m e s a b o u t because o f R e s p o n s i b l e Care," Grumbles says. H e concludes that "everything done in t h e name of the economic aspect of Responsible Care contributes t o sustainable development." D u P o n t is w o r k i n g t o integrate t h e three pillars. " T h e challenge in sustainable development is t o do t h e right thing
in a way that makes business sense," Rittenhouse says. "Doing things t o improve t h e s i t u a t i o n will m a k e y o u r business stronger." O t h e r organizations will bring a broader array of t h e m e s t o t h e Johannesburg summit. For example, the World Business Council for Sustainable D e v e l o p m e n t (WBCSD) is building a business case for sustainable development, says Advocacy and Communications Director Barbara Dubach. W B C S D has 150 m e m b e r comp a n i e s , i n c l u d i n g BASF, Bayer, BP,
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