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March 8, 2012

EHS: Profit Center or Circumstantial Overhead?

By christophermeeks March 8, 2012

Historically, most companies have viewed their EHS department as a necessary evil that must be retained to avoid regulatory infractions.  However, some companies have shifted their thinking to include their EHS departments as profit centers through re-classifying wastes as revenue streams and identifying opportunities for cost reductions and cost avoidance.  This transition is becoming more noticeable as companies implement ISO programs, look for ‘Greener’ products and attempt to reduce the use of raw materials.  The following include techniques to demonstrate to executive managers that an EHS department can serve as more than just an overhead expense:

  • Lighting Upgrades – improve the quality of lighting in work areas, reduce cost, reduce certain pollutants emitted when generating electricity
  • Finding Markets for ‘Wastes’ – re-classify ‘wastes’ as feedstock in another company’s process to eliminate disposal costs, receive revenue, reduce regulatory requirements
  • Searching for Product Alternatives – compare ‘real’ price of existing materials versus ‘real’ price of using less hazardous materials
  • Deploy ‘Source Reduction’ – evaluate processes to implement procedures that significantly reduce or completely eliminate waste before it is created

And, as always, DOCUMENT, DOCUMENT, DOCUMENT.  Without an accurate baseline, results are hard to demonstrate.

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