Policies and Management Systems – Environment, Health and Safety

The board is responsible to shareholders for the group’s corporate governance, strategic objectives and stewardship of the company’s resources, with board responsibility for environment, health and safety (EHS) resting with the Chief Executive. The Group Director of Environment, Health and Safety reports to the Chief Executive.

The board reviews EHS performance annually, but it is the Chief Executive’s Committee (CEC) and the CSR Compliance Committee (a sub-committee of the CEC) which identify and manage EHS risks. Through these reviews and committee meetings, EHS priorities and strategies are generated. Performance is monitored using monthly information on significant events, health and safety statistics and detailed site audit reports.

The Chief Executive’s Committee formulates and agrees a written policy statement which forms the basis of the group EHS management system. The board approves this policy statement which is signed by the Chief Executive and is available at each site throughout the Johnson Matthey group, as well as being published externally.

The CSR Compliance Committee considers all risks associated with EHS. The committee is responsible for:

EHS compliance and strategy.
Application of risk control measures and review of accidents and other incidents.
Ensuring EHS issues are resolved efficiently and corrective actions are completed.

Performance is also monitored through the group control self-assessment process administered by Group Internal Audit which reviews controls at each site.

EHS performance is dependent on leadership from the top, accountability at divisional level and the commitment of strong local line management. Individuals also have to take a responsible attitude to their own health and safety performance at work.

Assessing and controlling the risks through professional management minimise the financial implications for the company, helping to protect shareholder interests. Certain risks are insured, but this is no substitute for sound management of the function.

Read our Environment, Health and Safety Policy

Environmental, Health and Safety Management

Our EHS policies provide the guiding principles that ensure high standards are achieved at all sites around the world and afford a means of promoting continuous improvement based on careful risk assessment and a comprehensive EHS management system.

Group EHS Management System

The group EHS management system is reviewed regularly to ensure that it reflects international best practice and our growing understanding of the practical application of sustainable development.

The corporate objectives, policies and group EHS management system define accountability and set the standards against which conformance audits are assessed. This system is available to all employees via the company intranet. All facilities have developed local policies to meet the requirements of these corporate policies.

EHS Compliance Audits

EHS compliance audits are an integral part of the corporate EHS management system and are vital for the achievement of continuous improvement in all aspects of EHS. All Johnson Matthey operated manufacturing and research and development facilities are included in the audit programme. The audit frequency for each facility is determined by the scale, inherent risk and past performance of the operation. Audits review conformance with the group EHS management system and compliance with national legislation, and also provide opportunity to share best environmental, health and safety practices.

Audit reports are rated as excellent, satisfactory, important or very important. The CSR Compliance Committee reviews all audit reports, including health management reviews, and appropriate follow up is taken on any outstanding issues. A total of 42 detailed compliance audits were completed during 2007/08.

Health Management

The Group Occupational Physician undertakes business health management reviews to provide consulting advice to guide the prioritisation and planning of programmes to optimise workplace health protection and promote workforce sustainability. The final year of the three-year programme to implement a revised corporate health management strategy throughout the business was completed successfully. All business units now undertake annual health management continuous improvement planning as a formal exercise to structure programmes and services that meet changing business needs.

ISO 14001 Environmental Management System

Over the past year continued progress has been made to implement ISO 14001, in line with our target of achieving registration at all major manufacturing sites by 2010. Three manufacturing sites, two in India and one in South Korea, achieved ISO 14001 registration during the last year and 68% of employees now work at ISO 14001 sites.

Driving Continuous EHS Improvement

Training is vital to ensure continuous improvement in environmental, health and safety performance. A number of seminars on high priority health and safety topics were completed during the year across the group. A series of project management training courses have been completed in the US and Europe, in which facility managers and engineers were able to gain greater understanding and share best practice on how to improve the EHS aspects and impacts of significant development projects. This training will be extended to Asia during 2008/09.

Accidents and incidents are investigated to gain shared learning and drive continuous improvement. We also monitor relevant events in our industry sectors to derive additional learning and assurance that we are working to the highest standards and best practices. Following the publication of the investigation reports on the incidents at BP’s Texas City refinery and at the Buncefield oil storage facility, Hertfordshire, UK, we reviewed these reports with a view to integrating any relevant learning into our existing EHS management systems. The review generated a number of actions that will be completed during the next financial year.