[

Latest Changes in Global Regulatory Requirements and Their Impact on SAP EHSM
Jim Ferguson Nalco Connie Prostko-Bell 3E Company

[ Learning Points
The Global Compliance Landscape has been especially dynamic the past several years. In order to maintain compliance and compete in a global marketplace EHS must be embedded throughout the value chain. Your SAP system requires diligence from a data, technical and functional perspective to remain relevant.

Real Experience. Real Advantage.

[ Return on Investment
Compliance through integrated processes.
EHS no longer a siloed function at Nalco

Compliance embedded throughout the value chain.

Ensure access to markets Minimize risk Speed innovation

Real Experience. Real Advantage.

[ Best Practices
Use Standard functionality, complementary functionality and current data to maintain the relevance of your system and provide compliance assurance.

Real Experience. Real Advantage.

[ Nalco Overview
Essential Expertise for Water, Energy and Air
Nalco is the worlds largest sustainability services company focused on industrial water, energy and air applications. We help our customers reduce water, energy and other natural resource consumption, enhance air quality, minimize environmental releases and improve productivity and end products while boosting the bottom line.

Customer base is diversified across multiple industries Nearly 50,000 customer locations Business is divided into two core divisions
Water and Process Services (WPS) Water Services Paper Services Air and Emissions Control Offerings Energy Services (Energy)

Provider of Chemistry, Control and Monitoring Automation and Sustainability Services. More than 9,000 chemical products available globally.
Real Experience. Real Advantage.
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[ Diverse Global Presence

Countries of Operation

Plants

Real Experience. Real Advantage.

[ Nalco Delivers Superior Sustainability Performance

Nalco Mission Statement

Our Mission is to lead the industry in creating value for customers and Nalco through differentiated services and technologies that save water and energy, enhance production and improve air quality while reducing total costs of operation.

Real Experience. Real Advantage.

[ The 360Business Environment

Mechanisms

Product People

Real Experience. Real Advantage.

[ The New Compliance Reality

Premise 2: Supply Chains are not linear Premise 3: Risk is not linear
Ergo: Compliance is not linear

Premise 1: Obligations are not linear

Real Experience. Real Advantage.

[ Obligations are not Linear

Regulatory Obligations
Conflict Minerals

REACH

RoHS

GHS TSCA SOx

Real Experience. Real Advantage.

[ Obligations are not Linear

Non-Regulatory Obligations
GRI
Responsible Care / ISO 1400x

Joint Industry Guide (JIG)

EICC-GeSI Extractives Work Group

GADSL

SIN List Carbon / Water Footprints

OHSAS 18001

Real Experience. Real Advantage.

[ SHE Mission Statement

Nalco SH&E mission is to "manage risk and protect the brand". This must be achieved against the backdrop of:

A rapidly changing regulatory environment The spread of copycat legislation; each with minor differences in content which require development and implementation of a regulatory compliance solution A changing business environment with the goal of increasing the number of innovative technologies launched and a trend to shorter product life cycles Data intensive regulations with burden of proof on industry manual systems are simply not sustainable Internal and external Customers demanding greater proof of compliance
Real Experience. Real Advantage.
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[ Regulatory Programs
SH&E has global programs which are regionally delivered and comprise the following elements:

Information technology and content provided by SAP and 3E is critical to successful delivery

Real Experience. Real Advantage.

[ Hazard Communication - GHS

One challenge has been the rapid global spread of GHS regulations, sometimes with short lead-times
Country / Region
Japan New Zealand South Korea

Substance / Mixture
Both Both Both

Implementation Date
2008 2008 2008

Details
GHS SDS & Label Templates Expert Rules GHS SDS & Label Templates Expert Rules GHS SDS & Label Templates GHS Labels Templates Expert Rules GHS SDS & Label Templates GHS SDS & Label Templates GHS SDS & Label Templates GHS SDS & Label Templates GHS SDS & Label Templates GHS SDS & Label Templates Expert Rules (2011) GHS SDS & Label Templates Expert Rules (2012) BR in an SAP live country.

SAP as primary ERP system

No Yes No

Taiwan China Vietnam Indonesia Singapore European Union Brazil

Both Both Both Both Substances Only Substances Only Substances Only

2008 2009 2009 2010 2010 2010 2011

No No Yes (Fall 2011) No Yes Yes Yes

Real Experience. Real Advantage.

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[GHS legislation or standards have been passed in:

UN Purple Book (4th Revised Edition) (July 2011) Asia Pacific:
New Zealand (2001) * Korea (2008) * substances Singapore (2008) * substances China (2009) * Japan (2006) * Taiwan (2008) * Vietnam (2008) * Indonesia (2009) *

Europe
EU (2008) * substances Serbia (2009) * substances (2011) Russia (2009/SDSs and 2011)* Switzerland (2009)

Middle East & Africa

Abu Dhabi (2009) South Africa (2008)

Americas
Brazil (2009) * SDS format & substance classification (2011) Uruguay (2009) * Mexico (2011)

Transportation - SOLAS (International Convention for the Safety of Life at Sea) * * Indicates that GHS SDSs and classifications are already required
Real Experience. Real Advantage.

[GHS regulations have been drafted

Draft regulations on GHS published:
USA Australia Malaysia Philippines India (only transportation)

Preparation activities
Canada GHS compliant SDS accepted with reference to WHMIS MERCOSUR countries (Argentina, Brazil, Paraguay, Uruguay) SDS standards ANDEAN Community (Bolivia, Colombia, Ecuador and Peru, Ecuador) National Plan, capacity building Turkey Thailand UNITAR/ILO Global GHS Capacity Building Programme: Cambodia, Gambia, Laos, Nigeria, Senegal, Zambia

Real Experience. Real Advantage.

EHS IT Overview
PPE Sheet ECC 3E
Production
Process Order

SAP CRM/Portal

Order Entry

BOL

SDS Distribution
Purchasing & Logistics
Purchase Order Stock Transfer Order

Sales & Distribution

Sales Order Delivery

SAP

ECC EHS
CHARMS
Customer

SVT DG SharePoint

Material

SDS Online

Mobile App

License

R&A

Customer Portal

DMS SAP BI Specification Master Custom Reports

Generation Servers

Analytics

GLM

EHS IT Overview
PPE Sheet ECC 3E
Production
Process Order

SAP CRM/Portal

Order Entry

BOL

SDS Distribution
Purchasing & Logistics
Purchase Order Stock Transfer Order

Sales & Distribution

Sales Order Delivery

SAP

ECC EHS
CHARMS
Customer

SVT DG SharePoint

Material

SDS Online

Mobile App

License

R&A

Customer Portal

DMS SAP BI Specification Master Custom Reports

Generation Servers

Analytics

GLM

[ Example Scenario I
Regulatory Content Loaded from Ariel GHS Classification Data is loaded from Ariel at the List Substance level and is stored in the GHS Classification (List Data) property.

Real Experience. Real Advantage.

19

[ Example Scenario I
EHS Expert Rule Executed EHS Expert Rule is executed on the Real Substance to calculate the GHS Classification (EU CLP) based on the list substance data that was loaded from Ariel.

Real Experience. Real Advantage.

20

[ Example Scenario I
EHS Expert Rule Calculation GHS Classification (EU) property is filled with classification to EU CLP based on list substance data loaded for the components.

Real Experience. Real Advantage.

21

[ Example Scenario I
EHS Expert Rule Calculation Source Tab contains the reference to the EHS Expert Rule that was executed to calculate the classification.

Real Experience. Real Advantage.

22

[Global Inventories
New Inventories
Taiwan Turkey Malaysia

Changes to Existing inventories:

USA. Toxic Substances Control Act (TSCA) Chemical Substances Inventory China. Inventory of Existing Chemical Substances (IECSC) Japan. Inventory of Existing & New Chemical Substances (ENCS) and Industrial Safety & Health Law (ISHL)

Real Experience. Real Advantage.

[ Example Scenario II
Regulatory Content Loaded from Ariel
Inventory Status Data is loaded from Ariel at the List Substance level

EHS Expert Rule Executed

EHS Expert Rule is executed on the Real Substance to calculate the Product status based on the list substance data loaded from Ariel

EHS Expert Rule Calculation

Notification Status property is filled with product inventory status based on list substance data loaded for the components

Substance Volume Tracking (SVT)

Date is filled to SVT tables and used to check orders

Real Experience. Real Advantage.

24

[ Example Scenario II
Compliance in Practice Email Alerting
Year to 8/31/2011: ~ 470,000 orders ~ 800,000 items Reviewed globally SVT triggered: ~ 5,000 email notifications for ~ 2,000 orders

Order Blocking

Real Experience. Real Advantage.

25

[Remaining Relevant

Real Experience. Real Advantage.

[ Six Elements of Content

Real Experience. Real Advantage.

[ 3E Ariel SAP EHS solution

Expertise / Services MSDS Authoring Regulatory Services Integrated Content & Tools Data Loading Tools ADM EHSAP, OCC, VMSDS
Chemical Regulatory Content Dangerous Goods Content Phys-Chem Tox Eco-Tox Ariel Multilingual Phrases Ariel Rule Sets Rules Builder Vendor SDSs Content

Impl. Services

Document Templates

Real Experience. Real Advantage.

3E Company Confidential

[ 3E SAP EHSM Solution

ADM EHSAP Loading of Regulatory data

Ariel VMSDS Loader

Loading of Product data

SAP EH&S

Substances

Products

Ariel Expert Rules EH&S Expert Server

Ariel STD Templates WWI Server

Real Experience. Real Advantage.

[ADM EHSAP Architecture

ADM EHSAP Architecture
Web Browser client: User Roles/Security: ADM EHSAP and WebInsight IT Admin Regulatory Admin Regulatory User Online Configuration Secure on-demand data feed via Web Services over HTTPS

SAP EH&S (TEST) SAP EH&S (QUAL) SAP EH&S (PROD)

Support for multiple SAP EHS environments

SAP Network

ADM EHSAP on J2EE App. Server (e.g., SAP WebAS, Apache)

Client Firewall

Internet

Ariel Firewall

Ariel Chemical Regulatory Information Server (CHRIS)

Unicode Local Persistent Storage (LPS)

DVD Data Loader

Ariel Chemical Regulatory Data Warehouse

Unicode LPS stores Ariel regulatory content, filters, mappings and other decision support data

Off-Line Configuration Data updates via DVD

Real Experience. Real Advantage.

3E Company Confidential

Thank you for participating.

Please remember to complete and return your evaluation form following this session. For ongoing education on this area of focus, visit the Year-Round Community page at www.asug.com/yrc

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SESSION CODE: 0508

Real Experience. Real Advantage.