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- Daniel Yergin | The Quest
- CERAWeek 2012
First major update in more than 28 years will have largest impact on companies operating exclusively in the US
The U.S. Occupational Safety and Health Administration (OSHA) is expected to modify its longtime Hazard Communication Standard by adopting the
U.N. Globally Harmonized System (GHS) of Classification and Labeling of Chemicals, according to Francis Trudeau and Mary Rudolph, product stewardship experts at information and analysis provider IHS (NYSE: IHS).
“OSHA’s proposed revision will reduce complexity for global businesses by replacing a disparate patchwork of regulations with a single unified standard for developing safety data sheets and container labeling,” said Trudeau. “We recommend that American chemical manufacturers start preparing to comply with GHS requirements in order to achieve new operational efficiencies as part of a unified enterprise sustainability management strategy.”
By amending the U.S. Hazard Communication Standard to reflect GHS standards, OSHA will require regulated companies to:
The updated regulation also is expected improve workplace safety by providing employees with clear, easy-to-read instructions regarding proper handling, transportation and storage of chemicals.
OSHA submitted its proposed rule changes for public comment in 2009. After a two-year waiting period, final rule is expected to be finalized later this year. If adopted, OSHA’s proposed revision would be the first major change to the U.S. Workplace Hazard Communication Standard since 1983.
According to new IHS analysis, the revised OSHA regulation is likely to have a minimal impact on companies with broad international operations because they are probably already complying with GHS in one of many markets where GHS has previously been adopted -- including the European Union, Brazil, Japan and South Korea. Trudeau and Rudolph recommend companies that operate solely within the U.S. to become familiar with those same GHS procedures for developing safety data sheets and container labels.
“Companies also need to be aware they are required to provide training to their entire workforce on GHS requirements for labels and M/SDSs,” Rudolph said. “While GHS processes are more complex and detailed than the previous standard, they are expected reduce risk of exposure by promoting safer handling and transportation of chemicals.”
OSHA’s adoption of GHS only applies to the classification and labeling of chemicals in the workplace. The U.S. Department of Transportation has already adopted provisions for chemicals that are transported via commercial carriers. The U.S. Environmental Protection Agency and Consumer Product Safety Commission also have jurisdiction over designated provisions of GHS.
OSHA’s anticipated adoption of GHS is one example of proliferating compliance mandates that are driving organizations to manage product stewardship concerns as part of a comprehensive approach to enterprise sustainability management. IHS offers six information management solutions—a unique blend of software, information content and expertise—that enable organizations to address business challenges around environment, greenhouse gas and energy, product stewardship, operational risk, health and safety, and corporate responsibility. Thousands of market-leading companies have relied on IHS solutions to address their EHS and sustainability business challenges for nearly two decades. For more information, visit www.ihs.com/ehs-sustainability.
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About IHS (www.ihs.com)
IHS (NYSE: IHS) is the leading source of information and insight in critical areas that shape today’s business landscape, including energy and power; design and supply chain; defense, risk and security; environmental, health and safety (EHS) and sustainability; country and industry forecasting; and commodities, pricing and cost. Businesses and governments in more than 165 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS employs approximately 5,100 people in more than 30 countries around the world.
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