ILTA adopts – and acts on – ESG principles

Kathryn Clay, president of the International Liquid Terminals Association (ILTA) looks at new ESG principles and the impacts of fire-fighting foam regulatory changes in the US

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AS THE terminal industry’s leading advocate in the US, the International Liquid Terminal Association (ILTA) is focussed on building a strong brand in Washington as we expand our advocacy efforts. Since the Biden Administration’s arrival earlier this year, ILTA has gone to work to educate new political appointees and career officials charged with regulating our industry. We have helped them to understand the challenges facing our industry and the opportunities for terminals to be a part of the solution for our shared goals. We convey to these policymakers what we see every day – that ILTA member companies are committed to providing safe, secure, efficient and environmentally responsible services to energy and fuel supply chains. Liquid terminals are a critical link in getting liquid products – like gasoline, diesel, chemicals and liquid foods – in the hands of the ultimate consumer. Terminals connect modes of transport and enable economic growth at home and abroad. ILTA shares how our industry supports sustainability goals. Whether it is through improving the energy efficiency of their facilities, practicing sound water resource management, or conducting proactive dialogue with their neighboring communities, ILTA member companies are working to integrate sustainability into their business models.

COMMITTED TO SUSTAINABILITY

The commitment that ILTA member companies have to sustainability is apparent in other ways as well. Terminal companies are increasingly investing in renewable energy projects such as hydrogen production and solar installations. One innovative approach involves installing solar panels on the roof of tanks. This not only reduces greenhouse gas emissions, but also offsets energy costs for the facility. I am excited to share that the ILTA board of directors voted to approve a set of environmental, social, and governance (ESG) principles. The principles are the result of an industry-wide dialogue over more than six months. The ILTA ESG principles are truly the result of contributions from across our ILTA community, demonstrating how much corporate sustainability is on the minds of terminal industry professionals. The principles are publicly available on the ILTA website, and see boxout, left.

NEW PROPOSALS ON FIRE-FIGHTING FOAMS

ILTA is being guided by its principles in how we approach environmental policy. This includes our efforts to contribute to solutions related to the use of per- and

polyfluoroalkyl substances (PFAS). These man-made chemicals are used widely throughout many industries, including in most fire-fighting foams. Our society’s reliance on them is also one of the most widely discussed environmental challenges of our day. Many of the bulk liquid products handled by ILTA member companies, including fuels and certain chemicals, demand special precautions due to their flammable properties. While high-hazard events at terminals are rare, it is vital that when they do occur the terminal industry maintains its full ability to ensure worker and public safety. For decades, the tank storage industry has relied upon firefighting foams containing PFAS to protect communities, workers, commodities, and infrastructure from potentially dangerous fire hazards. Unfortunately, proposed legislation in a number of states could hamper and possibly prevent proper firefighting efforts in high-hazard situations. Currently, no procedures for use of fluorine-free foams are certified for large tank fires like those that can occur at liquid terminal facilities. ILTA recognises the potentially serious health effects of PFAS exposure and firmly supports a safe, strategic, wellmanaged transition to fluorine-free foams. ILTA also recognises that significant barriers must be addressed to achieve a complete, industry-wide transition to these alternatives. Terminal operators face a number of requirements for fire preparedness and response that are not common in municipal firefighting contexts including large-scale events, deep tank fires, and alcohol-type fires. With unique expertise in the application of firefighting foams at liquid terminals, the ILTA membership has offered to serve as a resource to the US Environmental Protection Agency’s (EPA’S) PFAS Council. Transitioning to fluorine-free foams will involve other challenges as well. Currently, we lack practicable methods to destroy PFAS or permanently dispose of existing stocks of firefighting foams. Terminal operators will need clear guidance on how to dispose of their existing stocks to make room for alternative foams and to ensure all eventual contamination risks are mitigated. Regulators and stakeholders will also need to establish cleaning practices for equipment previously used to deliver PFAS based foams. ILTA believes that transitioning to fluorine-free foams will require collaboration between regulators and industry stakeholders, including terminal owners and operators, firefighters, foam manufacturers, and disposal vendors. We share the goal of developing strategies to safely phase-out firefighting foams containing PFAS, while ensuring that the safety of firefighters, workers and communities. We also support believe it is crucial to provide a timeline that allows us to adequately develop fluorine-free foams, application equipment, and requisite standards through bodies such as the National Fire Protection Association and Underwriter Laboratories. I am looking forward to the work ahead as ILTA continues to represent our industry to regulators, and to continue to support the sustainability objectives of our member companies.

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ILTA ESG PRINCIPLES

ENVIRONMENT 1. Overall environment commitment

We embrace our responsibility for environmental stewardship through the use of conservation and sustainable practices.

2. Water management principle

We believe in using sound water management practices to the benefit of our surrounding communities including spill prevention and control measures. We believe the modest water usage levels at terminals should still be efficient, with reuse and recycling where practical.

3. Air quality principle

We strive to maintain air quality for the communities in which we operate. In addition to meeting requirements for air emissions standards, as an industry we will continue to review new technologies and procedures for further emissions monitoring and reductions.

4. Climate change principle

We support policy that encourages new technologies to reduce greenhouse gas emissions and improve energy efficiency, promoting innovation and the competitiveness of our industry.

SOCIAL 1. Safety principle

We support a culture of continuous safety improvement, always with zero injuries as our goal. The safety and well-being of our employees, contractors, and communities is a top priority.

2. Community engagement principle

We actively work to build trust and foster collaboration with neighboring communities and other stakeholders.

3. Diversity, equity, and inclusion principle

We are committed to creating and attracting a diverse and inclusive workforce.

We make our employment decisions without regard to age, colour, disability, gender, gender identity, race, religion, sexual orientation, or veteran status.

GOVERNANCE 1. Ethical conduct principle

We believe it is important to develop and adopt a business code of conduct to promote a high standard of behaviour for employees, executive officers and directors with regards to ethics, compliance and human rights.

2. Grievance reporting and non-retaliation principle

We enable employees to direct questions and concerns regarding safe, secure, and responsible operations to the appropriate company resource, and work to ensure that any individual reporting a suspected violation is not subject to retaliation of any kind.

ESG PLEDGE

As an organisation, ILTA pledges to support these ESG Principles and to guide, inspire and share resources with its members for the benefit of the global community.