Risk Management of Chemical Substance Reporting Information #5 - Environmental Risk Management Models
The purpose of this article to introduce the reader to environmental risk modelling:
Environmental Risk Identification Models
Similar Risk Identification Logic
In post #2 we described the basics of performing a risk assessment, then in post #3 we looked specifically at risk in a project risk perspective.
Environmental risk identification can follow similar methods to identify risk, with the environmental risk assessment models handling the detailed analysis and treatment plans from a different risk perspective:
Environmental Risk Assessment Models
Environmental Impact Assessments (EIA)
EIA has been around since the 1970's, it was first conceived in the US National Environmental Policy act of 1969. EIA has now been adopted in over 100 nations across the world.
EIA is concerned with evaluating environmental impacts, which are a result of a project implementation. Therefore the objectives of EIA can be stated:
- Provide analysis based on core values of (i) Integrity - Being fair, objective, and unbiased in process; (ii) Utility - Provide credible and balanced information; (iii) Sustainability - EIA based implementations should result in sustainable implementations.
- Results in a greater awareness of nature and ecological systems which may be impacted by a piece of organisational activity.
- Reducing any environmental harm towards to nature and ecological systems, thereby protecting society as a whole.
- EIA becomes an enabler towards sustainable development.
- EIA compares the cost of activity with its stated impacts, and offers an organisation data on how using alternative methods / substances could result in better environmental impact costs. These would the be analysed with respective cost differentials by a organisational decision maker(s).
The figure below shows the stages of EIA as used in the UK, this model does augment depending on national implementations:
EIA does offer a valid method of assessing environmental impacts, due to the nature of review; engagement; discussion; updates to environmental statement and its final submission, the process time can be a very long drawn out affair, it should however ensure an organisation undertakes the most environmentally friendly decisions when large scale implementations are being considered.
Life Cycle Assessment (LCA)
Life Cycle Assessment (LCA) methods have gained increased prominence in recent years in that they can perform some very detailed analysis of the environmental impact of an article transformation cycle. The figure below summarizes LCA analysis:
The traditional LCA analysis (Scope; Inventory) can be augmented to look not just at traditional end-to-end analysis but at specific stages of a article transformation cycle as shown below:
LCA requires large detailed data which goes above and beyond normal supply chain reporting. This data includes detailed analysis of energy resources; machining / human resources (skilled / unskilled) / packaging / waste management data, which organisations may not readily wish to provide to customers.
There is a lot of divided opinion on LCA methods, it is quite intensive on supply chain organisation resources, as it will invariably be updated by the same individual(s) completing a material declaration request.
Lack of access to certain data types has led to the use of secondary data which augments the results of LCA. As a result the initial 'Cradle-to-Grave' approach has been augmented within LCA to more smaller and more manageable data analysis such as 'Cradle-to-Gate' or 'Gate-to-Gate'.
There is little doubt that LCA provides some very useful insights into environmental impacts, it does aid reuse and recycling of waste materials. Over time with following the establishment of good rich material declarations, and greater collaboration across a supply chain, LCA will aid the development of sustainable supply chain management.
Strategically organisations need to assess material declarations first, so supply chains begin the path to sustainability, to ensure compliance to chemical regulations.
LCA analysis does lay down the framework towards sustainable supply chains. However it does require all actors within a supply chain to visualize and understand the need to collaborate and share data:
Dossier Evaluation
Within Europe, an evaluation dossier would be created where a chemical substance either manufactured or imported into Europe, exceeds a one tonne band. ECHA evaluates at least 5% of received dossiers. The logic within a dossier is to:
- Define the chemical substance in question.
- Define detailed data regarding exposure(s) as a result of using the chemical substance.
- Assess the resultant hazards and risk as a result of using the chemical substance.
- Ensure appropriate risk measures are in place to handle the hazards and risks as a result of using the chemical substance.
- The net effect is to ensure a high level of environmental and human health protection, in using the chemical substance.
Following submission of a dossier, additional analysis such as compliance checking, examination of testing proposals and further substance evaluation may be undertaken.
Without going into too much detail, the dossier acts as an initial assessment, where organisations need to identify risk, determine issues, and provide a risk management measures.
Other Methods
There are numerous other environmental risk models which could be examined, we only touched on just a simple few.
Conclusions
It is fair to say that traditional approaches towards risk focus on disruption to manufacturing process, potential loss of human life, effect of competitor behavior; loss of market position / brand reputation, etc,
Environmental risk models extends the traditional risk methods by looking at factors which could the environment, humanity and society as a whole, such as energy consumption (use of fossil fuels / global warming), waste management (effect of disposal / recycling / reuse processing) - the key being to assess the impact on land, sea and air resources.
The data in this article is meant to be informative, introducing 3 types of approach towards detailing and managing environmental risk, in reality there is a much wider set of environmental risk analysis models which could of been used as part of this article.
The aim of this topic was to provide the reader a simple introduction to the topic of environmental risk models. If you have experience in the real world use of these or other environmental risk models, please feel free to share any experiences, views.
If any organisation is interested in being interviewed as part of my PhD research project, please feel free to contact me via LinkedIn or via the TICS website. All information will be recorded anonymously, in return I can offer your organisation aid, in the support and design of chemical substance reporting system