Overview

2. Overview Introduce ERM CVS Define “EMS” and “Certification” Identify EMS Certification Drivers How to get value from EMS and Certification Summarize the Current “Clean Texas” Program

3. About ERM Certification and Verification Services An independent member of the worldwide ERM Group Provide full suite of EHS certification and verification services ISO 14001, EMAS, OHSAS 18001, TCEQ certification RCMS/ RC14401 Sustainability report verification GHG verification (UKAS, UNFCC-accredited) Integrated compliance and certification auditing programmes Accredited and non-accredited training Advisory Board: Derek Osborn, Professor Dan Esty and others

4. Clients include Amerada Hess Applied Materials ArvinMeritor BAA Bausch & Lomb Baxter Bayer BHP Billiton BP CH4 ConocoPhillips DuPont Eaton Corp ENI ExxonMobil GKN plc Rohm & Haas Shangri La Shell Chemicals Shell Oil Smiths plc State Env. Agencies (Colorado, Texas, Utah, Virginia) Statoil Talisman Timken National Grid Transco Umicore U.S. Air Force U.S. Army World Bank

5. ERM CVS is working in 52 countries

6. Defining Environmental Management Systems

8. Defining certification Certification/Registration - statement that an organisation conforms with the requirements of the standard Certification Body/Registrar - entity responsible for assessing if an organisation conforms with the requirements of the standard. Accreditation - 3rd party confirmation that certification (of an organisation) is carried out by competent teams in a consistent and effective manner Accreditation Body/Accreditor - entity which ensures that certification bodies field competent teams which operate in a consistent and effective manner (e.g., UKAS, ANAB, JAS-ANZ)

9. Defining Certification Accredited certification – Audit and certification done by accredited certifying body/registrar Non-accredited certification Self-declaration of certification Second party audit certification Third party audit certification

10. Certification Drivers Legislation Corporate Leadership Fundamental Forces

11. Fundamental forces driving increased interest in environment and certification

12. Powerful forces driving environment as a concern for society Environment is regarded by an ever increasing array of parties as a vital ethical, legal, business development and economic issue for leaders of corporations. Poor management of environment Taints success Damages reputations Can be very costly

13. Do all certification statements mean the same thing?

14. Traditional approach to EMS auditing and certification Focuses on conformance (to the standard) Centered around the documented system manual Not consistent with the way people (managers) get results

15. Managers use a variety of techniques to produce outcomes Documented procedures typically represent less than 10% of manager techniques used to drive performance EHS outcomes are a product of management and operator behaviors

16. Multiple studies show little correlation between EHS MS and performance EMSs do not lead to direct improvements in outcomes, as measured by incidents and complaints or by legal action than those without. Firms and sites with certified environment management systems (ISO 14001 or EMAS) did not appear to perform better than those without. Half the companies that participated in the study missed some of their most important environment risks (aspects) and there is considerable room for improvement in the application of EMS standards by auditors. “On the whole, however, there was no statistical difference between the total numbers of violations, non-compliances or fines at these facilities [those with EMSs to those without them].” “Findings presented here raise potentially disturbing questions regarding the reliability of OHS management program and system audit findings, particularly in light of the emphasis industry has placed on certifications and status achieved secondary to “passing” an audit.”

17. Auditing to provide value Understand how it works in practice here. Focus on behaviours and outcomes not on documentation and bureaucracy Explain our approach and how it focuses on the real means used to control the business and the extent to which these are being used by mainstream operational personnel to drive environmental aspectsExplain our approach and how it focuses on the real means used to control the business and the extent to which these are being used by mainstream operational personnel to drive environmental aspects

18. Auditing to drive performance and management engagement