Promoting Resource Efficiency in Small & Medium size ... - UNEP

8.2 WHY:
Chemical efficiency benefits for SMEs
In recent years, treatment and disposal costs for hazardous wastes
have risen, while regulatory fees and paperwork associated with toxic
materials have become increasingly steep.
Against the backdrop of the soaring costs and liability exposure
associated with the use of hazardous materials, it makes increasing
economic sense to invest in alternative substances and processes
that reduce reliance on industrial toxics wherever possible. Reducing
the usage of toxins helps manufacturers to improve their production
efficiency and achieve other goals traditionally associated with quality
improvement programmes. It can help businesses to economise on
materials, cut production time, improve product quality, decrease
transport, treatment and disposal costs, reduce regulatory fees and
compliance headaches, improve worker safety and cut worker’s
compensation insurance rates. 87
Of the 5-7 million known chemical substances, companies use
more than 80,000 in their production processes and operations.
Numerous new chemicals are discovered and produced each year.
Today, almost every company uses some type of chemical. Those
enterprises that manage chemicals efficiently can gain concrete
benefits.
Growing consumer consciousness of environmental and social issues
has led to the creation of requirements that suppliers must meet to have
their products accepted in many international markets. By identifying
and reducing the use of banned chemicals and hazardous substances,
companies can improve their competitive position and make the
communities where their operations are located safer. Moreover, by
improving the management of chemicals, companies are simultaneously
moving towards meeting the requirements of management system
standards such as ISO 9000 (quality) and 14000 (environment). ISO
certification would be helpful leverage for winning contracts. For
example, many of the activities required for Environmental Management
Systems (EMS) certification are aimed at reducing the use of hazardous
substances, protecting the health of workers and reducing negative
effects on the natural environment; these three improvements will in
turn also improve the quality of a company’s product.
• Improved worker health and safety
Chemicals alone or mixed with other substances can cause
injury, disease, or even death for people handling these materials.
The misuse of chemicals may result in fires and explosions.
Accidents involving chemicals create additional costs for
companies in terms of lost materials, damaged equipment and
facilities, and personal injury. Reducing health and safety risks
for employees improves their motivation and productivity and
reduces absenteeism due to injury and illness. 88
Reducing
environmental
impact
Reducing
production costs
Triplewin
Improving worker
safety and health
Institutional
learning by
improvement of
communication
8.3 HOW:
Establish a chemical management programme
Step 1: Identify Substances
Step 1 explains how to create a structured information base that can
be used to make continual improvements towards chemical efficiency
in your company. It involves systematically identifying all chemical
substances stored and in use in your company.
Chemical Inventory
Establishing an inventory of hazardous chemicals allows for:
Figure 41: Triple Win 86
Benefits of chemical efficiency
Adopted from the “Chemical Management Guide for SMEs” (Federal
Ministry for Economic Cooperation and Development, Germany)
• Reduced cost and environmental impact
Chemicals can represent a major part of the production cost for
companies. Any measures that can be taken to reduce the loss,
waste, contamination and expiry of these substances will bring
cost savings to companies and at the same time, reduce their
environmental impact.
• Competitive advantage
While chemicals are often used to achieve certain characteristics
and qualities in a product – consumers are increasingly resistant
to the presence of harmful chemicals in the products they buy
or in the environment. Companies that avoid using banned and
restricted substances can avoid having their products rejected in
the marketplace. Customers and the community will appreciate
companies who voluntarily abstain from using illegal chemicals
that have negative health and environmental attributes.
• A better understanding of where some of the main chemical
hazards in your company are located
• An opportunity to identify risk reduction actions through stock
control and storage practices before tragedy strikes
• An opportunity to optimise stocks and orders, and to cut costs
• Identification of redundant products
• Identification of unknown substances, which can then be used
before they expire or can be properly disposed of
• Reducing losses due to substances expiring in storage
• Checking the condition of the packaging (damaged, wet,
leaking, etc.)
• Avoiding accidents, fires, and explosions from incompatible
materials stored together or mixed inappropriately
What do you need to know about the chemicals stored and used at your
company?
• Types of chemicals
• Characteristics/properties
• Place of use/storage
• Type of containment/container
• Average quantities
86) Tischer M., Scholaen S., Chemical Management and Control Strategies: Experiences from the GTZ Pilot Project on Chemical Safety in Indonesian Small and Medium-sized
Enterprises, 2003.
87) Office Of Technical Assistance, A Practical Guide To Toxics Use Reduction, undated
88) GTZ, Chemical Management Guide for Small and Medium Sized Enterprises: Improve Chemical Management to Gain Cost Savings, Reduce Hazards and Improve Safety, 2008
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