Are you leading…or lagging? Revolutionizing safety performance in Oil and Gas

Editor’s note: This webinar is now available On Demand. Watch it anytime.

So, you’re tracking safety performance. Great. What metrics are you tracking? Are you measuring the right elements of your safety program? What are your metrics telling you? In short: are you leading, or lagging?

If you can’t answer these questions, join us for Leading and Lagging Indicators: Revolutionizing Safety Performance in Oil & Gas. Geared towards leaders in the oil and gas sector but applicable to any business that has to deal with recording, managing and tracking workplace incidents, accidents, near-misses, environmental impacts and more on a regular basis, this free 30-minute webinar explores how reimagining your approach to environment, health and safety (EHS) metrics can revolutionize organizational performance, minimize costs and curtail risk. It is slated to begin at 3 p.m. EST on Wednesday, August 15.

In the presentation, Intelex oil and gas solution specialists Stephen Buffett and Gurpreet Lalwani will explore how to leverage leading and lagging indicators to improve overall organizational safety performance, gain greater insight into understand your indicators and what they mean for your organization, and the role of tools in converting lagging into leading indicators.

“Behind every fatality, behind every recordable incident, there’s going to be tons of near-misses, and hundreds if not thousands of at-risk behaviours,” adds Buffett. “By changing the way you track leading and lagging indicators, you can significantly reduce the risk of these business-critical errors ever occurring.”

Register now for this exclusive event!

Is a software-based EMS the only way to effectively improve sustainability performance?

Monitoring environmental impacts by tracking sustainability KPIs is essential for any business that wants to improve or report on environmental performance. But, from a financial perspective, how these environmental metrics are tracked is as important as the fact they are tracked. Results increasingly show a software-based EMS is the most effective way of improving environmental performance and boosting revenue.

Environmental management has been overcomplicated in recent years, and business leaders often feel overwhelmed by the perceived array of complex requirements associated with environmental performance. But it is actually quite simple. On a rudimentary level, it involves tracking and reporting on four critical metrics: waste and wastewater output, water usage, and air emissions. After analyzing these factors, a business can develop and implement new policies to mitigate its environmental impacts and save money. 

But the most substantial savings of environment management arises from the implementation of a software-based EMS. The return on investment (ROI) from a system that tracks, analyzes and reports on all of the metrics associated with your environment program can be enormous, and manifests in a number of ways:

  • Efficiency: Environment management personnel commit a substantial amount of time and effort to basic tasks, including the collection, assessment and reporting of environmental data. These are all elements of an environment program that can be streamlined through software. For example, consider all the time an environment manager or full-time equivalent spends manually inputting data into a traditional spreadsheet program, assessing the data and generating reports based on the data. The right software will allow staff across all locations to input the four critical environmental metrics into a web-based platform and automate the processes of assessing and collecting data.
  • Risk Avoidance: Often businesses face substantial fines from permit violations as a result of poor management of wastewater output and air emissions. A robust software-based EMS is capable or correlating real-time emissions and wastewater statistics to permit thresholds and issuing automatic email notifications to warn environment management personnel that a permit violation is likely or imminent. This allows a business to proactively manage emissions sources and discharge points to ensure permitted tolerances are not exceeded and costly fines are avoided.
  • Brand Image: As the world becomes more environment-conscious, the value of a legitimate, environmentally progressive brand image is substantial. But the perception of a progressive environmental agenda is only as effective as the environment program supporting it. A software-based EMS will curb the amount of time spent on the minutiae of managing an environment program, freeing up time for environment managers to focus on improving environmental performance by implementing aggressive sustainability policies. Also, real-time access corporate environment KPIs and live reporting capabilities will enable a resort to prove its environmental performance with current data at any point.

A robust software solution will also provide cost savings associated with continual audit preparedness, the elimination of duplicate data, and the tracking of (and automatic following-up on) corrective actions. Further, environment management software is the most effective and efficient means of implementing and maintaining a robust EMS as well as ensuring continued compliance with regulatory and legislative standards.

To integrate, or not to integrate… Part 3

For a company over-anxious to reconcile EHS and Quality processes and data, some complications may emerge.

For example, some integrated management opponents argue that strict adherence to one specific set of standards can be sacrificed in the name of integration. That is, in defining a broad-base of widely applicable standards to enforce across all EHS and Quality domains, some details are institutionally enabled to slip through the cracks.

Really, it all depends on what specifically a company is attempting to integrate. For example, getting managers across all departments to employ the same audit checklists and reports can be like mixing apples and oranges. However, leveraging the same auditing software that allows the importing of individual EHS and quality checklists can reduce costs.

The standards governing quality can be far removed from those governing environment, health and safety. However, this notion can be a very particular function of a particular corporate culture and which aspect (of EHS and Quality) has the greatest impact within that corporate culture.

Further, an old paradigm suggests some aspects of environment, health and safety are not tied intrinsically to aspects of quality, such as continual improvement in performance, legislative compliance and considerations of risks.

This has changed somewhat as businesses constantly try to improve their environment, health and safety performance. Historically these concerns have been dominated by legislation, and quality, by and large, has been customer-driven. Now environment, health and safety are being strongly influenced by brand impact, and quality is being influenced by new consumer protection legislation.

Some IMS critics a suggest integrated systems can actually make audits more complex. However, having an IMS places no demand on any company to fulfill a comprehensive EHS and Quality audit each time an audit is conducted. Rather, businesses need to asses where overlap exists and where it makes good business sense to combine elements. We’ll discuss more about this in our conclusion.

Successful Sustainability Strategy Series: Tip #5 — Communicate your performance

We’ve covered the importance of developing a proactive plan, quantifying financial gains, understanding the role of metrics, and using software to manage your sustainability program for the most effective results.

Today let’s talk about the often overlooked element of a winning sustainability program: communicating your progress.

5. Communicate Commitment/Performance to Stakeholders: While the primary function of sustainability initiatives will be the returns they deliver through conservation efforts and a number of other cost-savings effects, don’t miss the boat on the wealth of opportunities that accompany clearly communicating sustainability efforts and accomplishments to stakeholders. When developing a sustainability strategy, consider incorporating an ongoing sustainability reporting plan that conforms to existing frameworks (such as the IIRC, GRI and others).

While some critics have complained that comprehensive sustainability reporting can dominate resources and distract from essential business operations, proper planning, resource allocation and the use of software solutions (with configurable reporting capabilities) can render reporting a seamless and automatic process.

Even before sustainability benchmarks have been achieved, once a commitment to sustainable development has been solidified by way of a documented sustainability strategy, an organization can begin touting its agenda. The marketing, publicity, sales and customer relations benefits that flow from flaunting environmental, social and financial sustainability are too substantial to ignore.

In closing

We hope you’ve enjoyed our overview of the elements we believe are integral to a successful sustainability strategy. Please share your thoughts with us! We’ve barely scratched the surface of what can be a nuanced, multilayered file, but we’ve tried to provide some beginner-level guidance to the uninitiated organization that aspires to be more sustainable. 

As a parting thought, do not fall into the trap many newcomers to the sustainability game find themselves in by being either overly ambitious or forgetting to frame priorities accurately. Remember that your organization is a business first and foremost: instead of framing your business priorities in terms of environmental issues, frame environmental issues in terms of your business priorities.

Successful Sustainability Strategy Series: Tip #4 — Forecast and track with software

So far in our week-long discussion on building a successful sustainability strategy, we’ve reviewed the importance of developing a proactive plan, quantifying financial gains, and understanding the role of metrics.

Now let’s turn our attention to another critical aspect and something that’s dear to our hearts at Intelex: the role of software. Yes, it could be argued we’re more than marginally invested in the role software plays in sustainability, but we still deeply believe it is an essential part of building an effective program.

4. Use Software to Track Metrics and Forecast: Certainly, though conventional paper- and spreadsheet-based platforms can be and are used to track environmental, social and economic performance, the advantage of integrated software solutions over such archaic means is undisputable.

In particular, some configurable software products already geared towards streamlining the management of EHS systems can be extended to cover most if not all aspects of a complete sustainability program.

Moreover, some systems are prepared to capture, correlate, assess and automatically report on sustainability data, eliminating the time and effort spent on manual data collection, entry and assessment by employees—personnel that could most likely focus their energy on improving the caliber and scope of your sustainability program.

By automating the assessment and reporting on key sustainability metrics with software, organizations can analyze trends and forecast to streamline the allocation of resources and identify potential weaknesses in their sustainability programs and, critically, cut costs.

Successful Sustainability Strategy Series: Tip #3 — The role of metrics

We’ve discussed the value of a proactive strategy and quantifying financial gains in building a sustainability strategy.

Today we’ll look at another critical component of a sustainability strategy that is the heart of the adage “you can’t manage what you don’t measure.”

3. Understand the Role of Metrics: Before you make your first step into the world of sustainability – before you install that first compact fluorescent lightbulb – it’s imperative to understand you need to know where you’re at.

Along the lines of the lightbulb example above, it can be as simple as starting with an energy audit of your plants, offices, sites and other business units. If you know where you’re at, you can begin to set goals and targets, key elements of any successful sustainability strategy. The progress achieved through each action and each campaign within your sustainability strategy will be much more significant if they can be measured against where you were at when you launched your strategy.

Without defined, tracked sustainability metrics, you have no sustainability program. Not only will you be unable to monitor the success of sustainability initiatives and continually improve sustainability performance, you won’t be able to tie such initiatives to ROI and you won’t be able to share your track record with stakeholders.

First FSMA rules in effect July 3. Are you ready?

Earlier this week the U.S. Food and Drug Administration (FDA) announced the first set of rules under the landmark Food Safety Modernization Act (FSMA), legislation signed earlier this year which gives the FDA sweeping powers to prevent food safety disasters.

The two new rules, which take effect July 3, are pretty logical preventive measures that, in all fairness, probably should have been implemented a long time ago. The new rules are as follows:

  • Order on Administration Detention of Food: The first new rule gives the FDA the authority to hold food products that may be contaminated or mislabeled. Before now, the administration only had the right to detain food when it had sufficient evidence it was mislabeled or contaminated, thereby presenting a threat to humans or animals. Now if the FDA even suspects contamination or mislabeling, it can detain the product.
  • Rule on Imported Food:  Organizations importing food now have to disclose whether another country has rejected or refused the product. With this information, the FDA will be better equipped to target foods that may pose a risk to public health.

The new regulations are the first in what will be an ongoing stream of new rules determining how the FSMA affects organizations across the U.S., but also adds to the Act’s current scope, which includes legislative components that took affect earlier this year when it was signed into law, including the following:

  • If the FDA determines a reasonable probability of serious adverse health consequences in any food product, it may demand records of other food products affected in a similar manner.
  • If the FDA finds a “reasonable probability” food has been misbranded, adulterated, or capable of generating serious adverse health consequences, it may issue a mandatory recall.
  • Whistleblowers who report violations or testify benefit from increased protection from any form of reprisal.
  • The FDA has already increased the frequency of inspections and also uses a risk-based model to prioritize inspections.

As more FSMA rules are come down the pipes in the next 12 months, and as the new requirements take effect July 3, it is up to all U.S. Food and Beverage businesses to take action now, by implementing food safety management systems, documenting detailed food safety plans, focusing on companywide hazard identification and risk mitigation (along the lines spelled out in HACCP), and prepare for a higher frequency of inspection.