News Update: SEC Adopts Rules to Enhance and Standardize Climate-Related Disclosures for Investors
UPDATE, April 5, 2024
The Securities and Exchange Commission (SEC) has delayed the implementation of its climate-related disclosure rule in response to legal challenges from two fracking companies and various business groups. This decision awaits the judgment of the U.S. Court of Appeals for the Eighth Circuit on the appeals. Despite this, the SEC continues to assert its authority to mandate public companies to disclose their climate-related risks to investors and is prepared to defend the rule's validity in court. The stay temporarily halts the rule, which would first apply to large accelerated filers for fiscal years beginning in 2025, with other companies following at least a year later. Legal experts recommend companies continue preparing for compliance, while the appeals process could extend over months or years.
Washington D.C., March 6, 2024
The Securities and Exchange Commission today adopted rules to enhance and standardize climate-related disclosures by public companies and in public offerings. The final rules reflect the Commission’s efforts to respond to investors’ demand for more consistent, comparable, and reliable information about the financial effects of climate-related risks on a registrant’s operations and how it manages those risks while balancing concerns about mitigating the associated costs of the rules.
The adopting release is published on SEC.gov and will be published in the Federal Register. The final rules will become effective 60 days following publication of the adopting release in the Federal Register, and compliance dates for the rules will be phased in for all registrants, with the compliance date dependent on the registrant’s filer status.
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Sustainability and the Increasing Demand for ESG Reporting in Business
A growing number of investment groups, businesses, employees, and other relevant stakeholders are starting to ask companies about their sustainability and ESG (Environmental Social Governance) metrics. Some companies are even receiving requests to disclose their sustainability performance through various ESG reporting frameworks. Many companies find themselves unprepared to respond to such questions.
To better understand this trend, it is important to understand what sustainability and ESG are. Why should companies care about these concepts? Why are stakeholders asking about sustainability programs and requesting ESG disclosures through reporting frameworks? What are these ESG reporting frameworks? All these questions and more will be answered here.
What is sustainability and ESG?
Sustainability is commonly defined as the ability to meet the needs of the present without jeopardizing the ability of the future to meet its own needs (United Nations Brundtland Commission). While sustainability is usually associated with the environment and topics such as climate change, renewable energy/energy use, and water use, this is only one-third of what makes up sustainability. The other two parts of sustainability consist of the economy and society. These three parts, often referred to as the three pillars or spheres of sustainability, are interconnected. Doing something in one sphere can affect (for better or worse) the other two spheres. The idea of sustainability is to affect all three areas in a positive way.
ESG falls under the umbrella of sustainability and is very similar. So much so that, for all intents and purposes, the terms could be used interchangeably. The difference, however, is that rather than looking at the economic side of things, ESG looks at the governance of an organization through scopes such as data management, anti-corruption, and other policies and procedures. ESG is mostly used in business settings and functions as a more quantifiable type of sustainability, with ESG metrics providing an easy way to measure and compare sustainability performance. ESG disclosure refers to the process of publicly reporting an organization’s sustainability and ESG performance. Organizations tend to either: 1) release a Corporate Social Responsibility report detailing their sustainability performance over the past year, or 2) disclose the relevant information in accordance with one or more ESG reporting frameworks.
Why should companies/organizations care about sustainability and ESG?
Aside from the benefits to the environment and society, sustainability can also benefit the business itself. Many sustainability and ESG-related initiatives are aligned with business goals, at the same time, just as many business-related initiatives can be aligned with sustainability and ESG. The difference lies in the intent behind the initiative. The following are real-world examples of initiatives that address both sustainability and business goals:
Reducing the number of natural resources needed (or wasted) to manufacture a certain product can benefit the environment by conserving those resources but it also benefits the company by reducing overall costs.
Diversity, Equity, and Inclusion initiatives address the governance side of ESG but can also benefit the company itself. As a result of such inclusivity, existing employees may decide to stay and prospective employees may decide to join, thus improving talent acquisition and retention.
Assisting the local community through a food drive or community service event addresses the social side of ESG while also benefiting the company through a positive brand image, possibly helping to cultivate beneficial community connections.
Many environmental regulations are aligned with sustainability to some degree. Therefore, by pursuing certain sustainability initiatives in these areas of regulation companies can be better prepared for any stricter regulations if they come. Furthermore, there is the potential for these companies to qualify for some financial or tax incentives based on different ESG metrics or for implementing different sustainability initiatives.
ESG metrics are important for any organization or business to consider. Various ESG metrics can help identify areas of improvement in a company as well as potential problems before they become serious. ESG metrics are also helpful for tracking progress in a company's sustainability performance. Disclosing ESG metrics and sustainability performance is important for improving transparency, something a greater number of stakeholder groups are looking for in a company.
Sustainability efforts and ESG can also trickle down (or, rather, up) from clients to companies, from companies to their suppliers, and vice versa. If a company or supplier can’t meet their clients’ needs for sustainability, they may lose those clients to another firm that can. Overall, businesses that disclose their ESG performance and/or make efforts to improve their sustainability gain an advantage over their competitors.
What are ESG reporting frameworks?
ESG reporting frameworks help stakeholder groups understand how sustainable a company is by providing measurable and quantitative metrics; thereby enabling comparisons to be made between similar companies as well as displaying measurable improvements to a company’s sustainability efforts.
There are several major ESG reporting frameworks currently being used: GRI Standards, SASB Standards, CDP, and TCFD. Although there are other reporting frameworks out there, those listed above are perhaps the most common.
GRI (Global Reporting Initiative) Standards were some of the first ESG reporting standards to be developed and GRI remains one of the most prevalent ESG frameworks. There are about 32 reporting standards from three sections: environment, economy, and people (though not all of these standards need to be addressed or reported on). Organizations that are reporting in accordance with the GRI standards need only prioritize reporting on their material topics; topics that represent an organization’s most significant impacts on the environment, the economy, and people and their human rights.
SASB (Sustainability Accounting Standards Board) Standards consist of 77 standards for various industries, all of which are focused on the ESG issues most relevant to the financial performance and enterprise value of an organization.
TCFD (Taskforce on Climate-related Financial Disclosures) does not have any standards but rather recommendations for climate-related disclosures around four key company areas: Governance, Strategy, Risk Management, and Metrics and Targets.
CDP (formerly known as Carbon Disclosure Project but now just CDP) consists of three questionnaires for ESG reporting: Climate Change, Water Security, and Forests. An organization can report through one questionnaire or all of them. When completed, organizations are provided a letter grade based on the quantity and quality of questions answered. CDP reporting is completed annually and, in order to qualify for a grade, must be submitted mid-year.
While many of these frameworks differ in the level of detail and information required, they also tend to overlap, working together to achieve their common goal of improved transparency. For example, the climate-change questionnaire for CDP actually addresses all the recommendations from TCFD. This allows organizations to report through CDP while also reporting in line with the TCFD recommendations.
Why are stakeholders asking about sustainability and requesting ESG disclosures through ESG reporting frameworks?
As sustainability has grown in demand, investors, businesses, and other stakeholder groups have started taking it into account when making business decisions. People are becoming more environmentally and socially conscious if only to protect their bottom line. As a result, companies and businesses unable to keep up may lose out on valuable investors, clients, or even employees to competitors that are more sustainable (or at least transparent with their ESG metrics). Companies wanting an extensive sustainability report may request relevant ESG metrics or a complete ESG report from each of their suppliers and distributors in order to determine the full extent of their environmental and social impact. Recently, major automotive companies have requested that their suppliers disclose annual greenhouse gas emissions through an ESG framework or other reporting forum.
Automotive manufacturers, however, aren’t the only ones requesting their suppliers conduct ESG audits. In November, the White House administration proposed a new rule that could roll out in 2023: the Federal Supplier Climate Risks and Resilience Rule. This rule would require federal contractors receiving more than $50 million dollars in annual contracts from the U.S. Federal Government to report their greenhouse gas emissions and assess their climate risks through CDP. Federal contractors with annual contracts between $7.5 and $50 million dollars would only be required to report on their scope 1 and 2 greenhouse gas emissions. On top of this, there is a proposed ruling from the U.S. Securities and Exchange Commission (SEC) about requiring ESG-related metrics in company disclosures.
In general, sustainability and ESG are likely something that companies and organizations will be seeing more of soon, regardless of regulations. Sustainability isn't just about social and environmental impacts, but also about bettering the economy and business as a whole.
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OSHA Injury and Illness Recordkeeping and Reporting Requirements
Preventing workplace injuries and illnesses is always the focus of any company’s health and safety program; however, despite best efforts to eliminate workplace hazards and reduce risk, workplace injuries and illnesses still happen.
In my current position in the private sector and as a former OSHA Compliance Officer, I have provided safety and health consultation to employers in a wide range of industries. In both roles, I have noticed that many employers are not aware of their worker safety compliance obligations. Typical requirements that may be overlooked include injury and illness recordkeeping and reporting, documenting those records with sufficient detail, or submitting required records in a timely manner.
OSHA’s Recording and Reporting Occupational Injuries and Illnesses regulation, 29 CFR 1904, provides the compliance obligations for employers for recordable workplace injuries and illnesses. Many employers with more than ten employees are required to keep a record of serious work-related injuries and illnesses. (Certain low-risk industries are exempted). Minor injuries requiring first aid only do not need to be recorded. Visit the following links for more information on these topics:
During my career, I have found that some employers do not record occupational injuries and illnesses altogether. The basic requirement for recording listed in 29 CFR 1904.7(a) states: The employer must record any work-related injury or illness meeting the general recording criteria. That is, if it results in any of the following: death, days away from work, restricted work or transfer to another job, medical treatment beyond first aid, or loss of consciousness. Also, if it involves a significant injury or illness diagnosed by a physician or other licensed health care professional, even if it does not result in death, days away from work, restricted work or job transfer, medical treatment beyond first aid, or loss of consciousness.
OSHA Injury and Illness Recordkeeping Forms
Employers must use the required forms (or forms soliciting equivalent information). OSHA provides the following forms for injury and illness recordkeeping purposes:
Forms 300, 300A, 301 and Instructions PDF Fillable Format
Forms 300, 300A, 301 Excel format (Forms ONLY) Requires Microsoft Excel or equivalent
Recording Details and Following Instructions Required by the Form
In my experience, when an employer has kept injury and illness records, the records lack the detail required and the instructions were not followed. There are numerous examples of this: not classifying the case correctly; entering the wrong information on number of days away from work or days of restricted work; incorrect tallying of injury and illness case totals; or lack of employer representative signature are a few examples commonly mentioned.
Maintaining and Posting Records
The records must be maintained at the worksite for at least five years. Each February through April, employers must post a summary of the injuries and illnesses recorded the previous year. Also, if requested, copies of the records must be provided to current and former employees, or their representatives.
Severe Injury Reporting
Employers must report any worker fatality within 8 hours and any amputation, loss of an eye, or hospitalization of a worker within 24 hours.
Electronic Submission of Records
On many occasions, I’ve noted that an employer has failed to submit injury and illness records to OSHA in a timely manner or not at all. OSHA’s Injury Tracking Application (ITA) provides a secure website that offers three options for injury and illness data submissions. You can manually enter your data, upload a CSV file to add multiple establishments at the same time, or transmit data electronically via an API (application programming interface).
Who is covered by this reporting requirement?
Only a small fraction of establishments are required to electronically submit their Form 300A data to OSHA. Establishments that meet any of the following criteria DO NOT have to electronically report their information to OSHA. Remember, these criteria apply at the establishment level, not to the firm as a whole.
The establishment's peak employment during the previous calendar year was 19 or fewer, regardless of the establishment's industry.
The establishment's industry is on Appendix A to Subpart B of OSHA’s recordkeeping regulation, regardless of the size of the establishment.
The establishment had a peak employment between 20 and 249 employees during the previous calendar year AND the establishment's industry is NOT on Appendix A to Subpart E of OSHA’s recordkeeping regulation.
What must covered establishments submit?
Covered establishments must electronically submit information from their OSHA Form 300A.
When must covered establishments submit their completed Form 300A?
Establishments must submit the required information by March 2 of the year after the calendar year covered by the forms (for example, by March 2, 2022 for the forms covering calendar year 2021).
If the submission due date of March 2 has passed, establishments that meet the reporting requirements and failed to do so must still report their Form 300A data through the ITA and can do so until December 31.
Does OSHA provide training for the general public on recordkeeping requirements?
Yes. Through its national network of OSHA Training Institute (OTI) Education Centers, OSHA offers the OSHA #7845 Recordkeeping Rule Seminar course. This half-day course covers the OSHA requirements for maintaining and posting records of occupational injuries and illnesses, and reporting specific cases to OSHA. Included in the course are hands-on activities associated with completing the OSHA Form 300 Log of Work-Related Injuries and Illnesses, OSHA Form 300A Summary of Work-Related Injuries and Illnesses, and the OSHA Form 301 Injury and Illness Incident Report. To search for specific course locations and dates, please visit the OTI Education Centers searchable schedule.
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Proactive Steps That Can Prevent Workplace Incidents
Most people are familiar with the basic regulatory requirements facilities must meet under their respective reporting regimes. Many of these requirements involve documenting incidents AFTER they occur and then performing risk or root cause analysis to drive potential change in the workplace. There is no doubt these are important steps in creating a safer workplace culture, but what if you could have a safer workplace before waiting for something bad to happen?
This is where the concept of a behavior-based safety program comes into play. Programs like these are setup so that you can identify unsafe conditions and behaviors and perform risk analysis operations on them; thereby eliminating potential accidents before they ever occur.
What would this look like in practice?
Observations
Having a daily observation program in place to monitor workers during the day for five minutes can have a huge impact. A simple observational program can be easily formed and effortlessly repeatable. Those small observational data points can then be combined to provide trends to safety managers to see if there are changes necessary to the safety program.
Checklists
In this instance, employees are provided with a checklist of things to do to operate efficiently and safely in their environment. This can be anything from lockout/tagout procedures, work procedures and/or training manuals for specific equipment operation. Having clear-cut directions simplifies tasks and makes them much safer.
Goal Setting
Establishing identifiable safety goals to work towards can also make your workplace safer. Everyone is familiar with the typical “days without incident goal”, but there are many other achievable victories to be had. Reducing the number of days with PPE infractions is an example. Combining goals with small incentives will eventually save money by helping to reduce incident costs, lower insurance costs, and prevent the loss of productivity.
This may seem like a lot of work to prevent something that may not even happen, but I promise it is worth the time and effort to set up a system to automate these tasks. To help, Cornerstone has built systems that manage these elements and can provide templates and startups to get a new, more proactive safety management system off the ground quickly and easily.
Not only does Cornerstone have the applications to easily manage all this data, but we have the expertise and knowledge behind all our systems to provide insights, offer advice and guide our users in the right direction. All of this combined has saved our customers time, money, and lives. That’s the ultimate end goal of any safety system: to provide a productive work environment for employees and see them all go home at the end of each shift safely. We are proud to provide our clients with the tools and knowledge to help make that happen.
Joshua Sampia is the Director of Product Development. He is responsible for the applications development team at Cornerstone, ranging from web-based and mobile applications to device management for safety and environmental compliance and applicability.
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Indiana Facilities: Additional Filing Step for Tier II Required
Submission of Tier II form is required under Section 312 of the Emergency Planning and Community
Right-to-Know Act of 1986 (EPCRA) is due annually by March 1st. The purpose of the form is to provide State, local officials, and the public with specific information on potential hazards including the locations and amount, of hazardous chemicals present at facilities during the previous calendar year.
For Indiana facilities that report at least one extremely hazardous substance (EHS), an additional step in the filing process will be implemented for reporting year 2022. The EHS list identifies chemicals that could cause serious irreversible health effects from accidental release. To assist the Local Emergency Planning Committees (LEPCs) in development of their hazardous materials response plans, facilities will be asked[CL1] to complete six required inquiries on the Tier II.
Type(s) of common transportation routes for EHS chemicals to and from facility.
Process for Shelter in Place and/or Evacuation of Onsite and Off-Site populations
Process for Alerting/Warning the Public and Special Facilities
How many individuals trained in emergency response and what are their respective training levels/capabilities?
List the equipment or resources available for hazardous materials response at the facility
Provide the name, title and contact information for the individual(s) who has the authority to commit the facility’s resources in time of emergency.
Facilities reporting a pure or a mixture EHS (i.e., lead acid batteries) will be asked to provide response to each question per the Indiana Department of Homeland Security.
If your Indiana facility is contracted with Cornerstone to file Tier II reports, you would have received an email in mid-May with the questionnaire in preparation for these new requirements to be applied to Reporting Year 2022.
If you’re ready to make Cornerstone your Tier II partner, contact us at info@corner-enviro.com
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Expedite the Sale of Industrial Property with a Limited Site Investigation
Cornerstone has recently seen an increase in client requests to prepare a limited site investigation report for commercial or industrial properties they are preparing to sell. Although it is the responsibility of the prospective purchaser to conduct a Phase I Environmental Site Assessment (ESA) compliant with ASTM E1527-21, when the seller has a limited site investigation in-hand, the process can be accelerated.
Why should a property owner conduct a Limited Site Investigation before selling property?
Companies selling a property often find that making the report available to potential buyers helps to address any obvious concerns an ESA would characterize as a Recognized Environmental Condition (REC), such as an open disclosure of subsurface conditions. When the prospective purchaser is made aware in advance of any potential cleanup requirements, they can estimate the associated costs and evaluate their risk, making the purchasing decision more transparent and faster.
What if the property is clean?
If the report indicates there is no soil, groundwater, or vapor sampling exceeding a regulatory threshold, the seller has an advantage over other potentially contaminated sites the purchaser may be considering. It is still the responsibility of the purchaser to complete a Phase I ESA in order to get the protection of the Comprehensive Environmental Response, Compensation and Liability Act’s (CERCLA) innocent land owner defense under All Appropriate Inquiries (AAI).
What if the report indicates areas of concern?
When the results indicate there may be a need for further site investigation into the nature and extent of an environmental condition, the buyer and seller can negotiate how to proceed and contact a qualified environmental professional for further examination.
Seller companies should note though, if the investigators finds certain levels of contamination in the subsurface, the investigator, the current owner, or the buyer may be required to report the findings to a state or federal agency. If this occurs, the company can consult with their attorney for specific legal guidance or to protect their interests.
Contact Cornerstone
If your company has decided to sell your commercial real estate, you may want to consider conducting a limited site investigation to help expedite the sale process. Contact Kevin Mallin at kmallin@corner-enviro.com or (317) 489-3249 with any questions concerning this topic or other Environmental Remediation concerns.
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Are You Prepared for the Tier II Emergency and Hazardous Chemical Inventory Reporting Deadline?
Tier II Emergency and Hazardous Chemical Inventory Reports are due annually on March 1. Since these reports cover materials for the entire previous year, it’s important to continually track the chemicals/products entering and leaving your facility. Maintaining on-site inventory throughout the year will allow for a smooth Tier II reporting season. Don’t let the deadline sneak up on you!
The following is a quick overview of the EPCRA regulation and Tier II reporting:
What is EPCRA?
The Emergency Planning and Community Right-to-Know Act of 1986 was created to help communities plan for chemical emergencies. This regulation requires industry to report on the storage, use, and release of hazardous substances to federal, state, and local governments. EPCRA serves as the governing body for Tier II reporting.
What makes a chemical reportable under Tier II?
Reporting is applicable for any OSHA-hazardous chemical stored on site that exceeds the federal threshold quantity of 10,000 pounds, and any EHS stored in excess of 500 pounds or its threshold planning quantity (TPQ), whichever is less. Exceeding the threshold at any time during the reporting year triggers the reporting requirement. It is also important to note that individual states may have more stringent reporting requirements.
What is an EHS?
The Extremely Hazardous Substance (EHS) list identifies chemicals that could cause serious irreversible health effects as a result of a release. A full list of EHS chemicals can be found on epa.gov.
What storage information is needed to file the Tier II?
Reporting requirements include details of specific location(s) within a subject site where reportable chemicals are stored. In addition, the type of container utilized and exact maximum amount (typically measured in pounds) of hazardous chemicals present at the facility at any one time during the previous calendar year must be reported.
How do I know what reporting requirements exist for my state?
Although each state’s reporting system may vary, any subject facility must file a Tier II report annually with the State, County (LEPC), and local Fire Department. Additional information regarding filing criteria by state, along with associated fees, can be found at https://www.epa.gov/epcra/state-tier-ii-reporting-requirements-and-procedures.
Further Information
With a well-organized system in place, compliance with the Tier II reporting requirements is much easier to achieve. Cornerstone is an industry leader in chemical inventory management, electronic SDS imaging, and software management systems. Our proprietary software (FOUNDATION) combines both EPA and OSHA chemical tracking and reporting functions and provides a foundation for all compliance recordkeeping and reporting. Additionally, we have a team of experts who can assist with Tier II reporting and help keep your hazardous chemical data up to date throughout the year, so you will always be ready for the March 1 deadline.
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Incident Investigation and Injury/Illness Reporting Requires a Systematic Approach
No one wants to have workplace accidents, but when they happen it’s important to have an Incident Investigation and Injury/Illness Reporting Program in place. The program must include the procedures necessary to properly investigate the incident and determine the cause as well as how to prevent a recurrence. The following is a summary of the steps necessary to properly respond, investigate and record an incident to meet OSHA compliance.
Reporting the Incident
First and foremost, employees must immediately report all incidents and near misses to their supervisor who will then notify the person responsible for incident investigation and injury/illness reporting. Depending upon the type and severity of the incident, notification to OSHA may also be required.
Investigate the Scene
All incidents, regardless of severity or impact, need to be thoroughly investigated. The process must look beyond what happened to discover why it happened. This will allow for the identification and correction of shortcomings in the safety and health management programs. The principal incident investigators must go to the site of the incident to conduct the investigation. It is critical that the scene is preserved to prevent material evidence from being removed or altered. Using cones, tape, and/or other guards may be required. Facts must be carefully documented.
Collect Information
The principal incident investigators must collect information through interviews, review of documents, and other means. Using a checklist may help ensure that all information pertinent to the incident is collected. In addition, other sources of useful information may be sought out such as equipment manuals and training records.
Determining Root Cause of the Incident
The principal incident investigators must determine and document the underlying reasons the incident occurred and the corrective actions required to prevent future incidents. At a minimum, a determination must be made whether there are deficiencies in any area, and in doing so persistently ask the question “Why?” at least 5 times to probe the area in depth.
Corrective Actions
The investigation is not complete until corrective actions are implemented that address the root causes of the incident. Implementation entails program-level improvements and must be supported by senior management. It is important for the person(s) responsible for incident investigation and injury/illness reporting to review the root cause factors and corrective actions and forward the information to appropriate management personnel for follow-up and implementation. It is recommended for management personnel to(s be responsible for ensuring corrective actions are implemented.
Training
The person(s) responsible for incident investigation and injury/illness reporting must also provide training to management employees who are assigned duties under the program. The training must cover a review of the Incident Investigation and Injury/Illness Reporting Program, including all the information needed and steps involved in the process.
Records Required by OSHA
The person(s) responsible for incident investigation and injury/illness reporting must ensure all injury/illness records required by OSHA are completed and maintained. The company must record information about every work-related injury or illness that involves loss of consciousness, restricted work activity or job transfer, days away from work, or medical treatment beyond first aid. Significant work-related injuries and illnesses diagnosed by a physician or licensed health care professional must also be recorded. In addition, the company must record work-related injuries and illnesses that meet any of the specific recording criteria listed in 29 CFR 1904.8 through 1904.12.
OSHA recordkeeping and reporting requirements are extensive and necessitate a robust system for reporting and retaining records related to incident investigations. To ensure all the necessary information is investigated and reported properly, ask an expert for help when implementing an Incident Investigation and Injury/Illness Reporting Program.
Further Information
Cornerstone offers a structured software application for Incident Management which can be an invaluable tool to support incident prevention programs and facilitate the process of investigating and recording incidents. We also offer safety management programs and training to help prevent injuries and illnesses in the workplace. Learn more about Incident Management Systems.
David Blane is a Senior Health and Safety Specialist. He is a Certified Safety Professional by the Board of Safety Professionals. He currently provides health and safety compliance auditing, program development, training, and industrial hygiene monitoring to Cornerstone’s industrial and construction sector clients. Blane formerly served as an OSHA compliance inspector.
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Fast Facts About Tier II
By Rachel Powell Tier II Emergency and Hazardous Chemical Inventory Reports, commonly referred to as “Tier II”, is due annually on March 1st. The following is a quick overview of reporting requirements.
What is EPCRA?
The Emergency Planning and Community Right-to-Know Act of 1986 was created to help communities plan for chemical emergencies. It also requires industry to report on the storage, use and releases of hazardous substances to federal, state and local governments. EPCRA has four major provisions and serves as the governing body for Tier II reporting.
What makes a chemical reportable under Tier II?
Any OSHA-hazardous chemical stored over the federal threshold quantity of 10,000 pounds or more and any extremely hazardous substance (EHS) stored in quantities of 500 pounds or its threshold planning quantity (TPQ), whichever is less. Individual states may have more stringent reporting requirements. Exceeding the threshold at any time during the reporting year triggers the reporting requirement.
What are EHS chemicals?
EPA has designated EHS chemicals as those which could cause serious irreversible health effects from accidental releases. A full list of EHS chemicals can be found on epa.gov.
What storage information is needed to file the Tier II?
Reporting requirements include a section that lists specific location(s) within a facility where reportable chemicals are stored. In addition, the type of container being utilized and exact maximum amount (usually measured in pounds) of hazardous chemicals present at a facility at any one time during the previous calendar year must be reported.
How do I know what reporting requirements exist for my state?
Although each state’s reporting system can vary, Tier II reports must be filed annually with the State, County (LEPC) and local Fire Department. Additional information regarding filing criteria by state, including what fees are associated, can be found at https://www.epa.gov/epcra/state-tier-ii-reporting-requirements-and-procedures.
How can I prepare for this next year?
Don’t let the March 1 annual Tier II reporting deadline sneak up. Since the spring deadline covers materials for the previous calendar year, it’s important to track all chemicals/products that enter and leave your facility on an ongoing basis. Maintaining on-site inventory throughout the year will allow for a smooth Tier II reporting season.For the past seven years Rachel Powell has served as a Chemical Data Management Specialist at Cornerstone. She assists clients in setting up and maintaining their Safety Data Sheet Foundation System. On a monthly basis she serves as a facilitator who trains new users. She serves as a Tier II Emergency and Chemical Report filer for our clients on an annual basis.
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Using Leading Indicators to Prevent Workplace Injuries
By Joshua Sampia All companies have an obligation to create a safe work environment that allows their employees to do their jobs with minimal risk of injury. Most business understand their obligation to report accidents and illnesses to government agencies at the federal, state, and local level. What if you could use modern technology and trends to not only create a safer work environment but also prevent injuries from ever happening? This would save you time and money from completing reports, medical billing, and insurance claims, as well as reduce lost work time hours.
What are leading indicators?
Leading indicators are data points that can help predict future events and trends. This is where having a proactive safety culture comes into play. Leading indicators can be used to assess workplace culture in order to develop safety plans to minimize risk and increase productivity. OSHA defines leading indicators as “proactive and preventive measures that can shed light about the effectiveness of safety and health activities and reveal potential problems in a safety and health program.” The cost of worker’s compensation claims can range from thousands to hundreds of thousands of dollars depending on the nature of the incident. Having a program in place that can help prevent even one of those claims will automatically pay for itself. There also are many other intangible benefits like reduced costs for worker’s compensation insurance or a reduction in the number of fines. As the saying goes, an ounce of prevention is worth a pound of cure.
Set Goals for Leading Indicators
Most companies have goals set for lagging indicators, such as a threshold for lost work time or number of injuries; however, your organization should also set goals for leading indicators, such as:
Attendance Rates
Safety Observations
Risk Assessments
Preventative Measures and Maintenance
The key to any good program is setting, identifying, and reaching quantifiable goals. For example, we work with a company that had historically relied on lagging indicators such as types of injuries, location, and work task to track injuries. Our team worked with them to implement a more observational approach focused on minimizing future occurrences. They formulated daily observation checklists of employees to determine if they were performing their tasks in an efficient and safe manner. That daily observation data was then aggregated and analyzed develop better safety and training programs. The change has helped reduce the number of injuries and accidents. Incidentally, productivity has also increased. Implementing this kind of process does not have to be a time-consuming process. The daily observations are short checklists of yes or no type questions that take approximately two minutes each day to complete. The checklist can be completed on mobile devices which most staff are currently using in their work tasks. The company also can share observations across multiple departments and shift supervisors to create a network of data for the entire business.
Technology and Software for Worker Safety
There are other examples of using modern data technology to help. Tracking employee training is a great way to ensure a good safety environment. Making sure employees are well-trained and that training is up to date is crucial to safety success. Another important aspect is that you must have a robust program in place to capture and analyze the data. A good system will:
let you easily capture all this information through multiple devices and portals
let you report the data back into multiple formats and reports
have a great dashboard to see a visual representation of the data
improve accountability
It is also critical to have traceability so it is clear who entered what data and when. This is extremely important when it comes to having a chain of evidence.
How can Cornerstone Help?
Cornerstone’s Incident Management and Training Tracking systems can capture all of this information as well a provide data reporting, visual representation, and more. Our applications have highly customizable systems that can adapt to literally any industry including automotive, manufacturing, medical, industrial as well as retail and warehousing. Each system is configured to each company’s specifications and requirements. This can also be accomplished at a cost-effective price point, especially when compared to the cost of having one accident on record. Contact us for details on how Cornerstone can help your facility establish an effective safety program using leading indicators and our industry-leading software systems.
Joshua Sampia is the Director of Product Development. He is responsible for the applications development team at Cornerstone, ranging from web based and mobile applications to device management for safety and environmental compliance and applicability.