What do we mean by governance? In short, governance is leadership. It is the glue that binds together people, planet, and profits. It connects ESG with strategy and execution. Governance incorporates vision and values, organization and culture, goals and metrics, incentives and rewards. Examples include….
Working with the Board committee with oversight of EHS and sustainability, the CEO, company Presidents, CFO, General Counsel, and Vice President of EHS, we reviewed the EHS and sustainability governance system of a Fortune 500 company. The goal was to ensure that a robust governance system would drive top quartile performance. The review included:
- Board Committee Agenda Restructuring. We redesigned how the time was spent during board committee meetings; the nature and depth of the pre-reading board packet; and the individuals presenting at future board meetings.
- Goals and Metrics. We established new long-term, medium-term, and short-term goals and metrics.
- Assurance Letter Process. We established a new EHS Assurance Letter Process – an annual signed attestation by each company president to the CEO, indicating the current EHS and sustainability state of his/her business, including a list of major current and emerging risks and actions to address each.
- Emerging Issues Analysis. The world is changing fast – and having a robust emerging issues tracking process is a threshold requirement today. We helped convert a strong process into a leading one.
- Comprehensive EHS and Sustainability Risk Assessment Process. designed a completely new process for identifying, quantifying, and communicating top EHS and sustainability risks.
- Environment, Health & Safety (EHS) Audit Program Redesign. This company had an excellent EHS audit program focused on audits of its company operations. However, the program did not address supply chain or product risks, both of which were significant. Hedstrom Associates redesigned the audit program to be more comprehensive in focusing on supplier audits, facility audits, and assessments of risks associated with customer use and ultimate disposal of products.
Working for the president of a new venture within a Fortune 100 company, we built a robust twenty-first century management system, reflecting both traditional EHS issues and new environmental and social drivers that will grow in importance in the years ahead.
A Fortune 500 company asked Hedstrom Associates to evaluate potential risk areas throughout its worldwide operations and to help design a system that would provide ongoing environmental assurance. Our staff helped the client develop an ongoing risk management program and assisted in strengthening the EHS audit program to address those risks.
Hedstrom Associates brings over 25 years of leadership in developing and implementing robust EHS and sustainability management systems. Starting during the mid-1980s while at Arthur D. Little, the EMS work has involved work at dozens of companies and hundreds of operating facilities. Our EMS work involves the full spectrum: developing new systems, evaluating existing ones, conducting ISO 14001 gap analyses, conducting EMS and ISO training, and reporting to management.