Tag: 3BL

NEW YORK, April 2, 2025 /3BL/ – As California looks to expand corporate climate disclosure requirements with the newly introduced Senate Bill 755 (SB 755), a groundbreaking analysis from Governance & Accountability Institute (G&A) and supporters Ceres, Carbon Accountable, and Persefoni, reveals that most of California’s largest state suppliers do not yet disclose key climate-related information. The findings have implications for the State of California’s supply chain as it pursues a goal of carbon neutrality by 2045.

The report – “California Supply Chain: Current Practices & Trends in Climate Disclosure” – is the first industry-wide benchmark assessing how major suppliers to the State —representing billions of dollars in procurement spend—are aligned with its ambitious climate strategy, including regulations such as SB 253 (Climate Corporate Data Accountability Act), SB 261 (Climate-Related Financial Risk Act), and the newly introduced, supplier-focused SB 755 (California Procurement Climate Information Act). SB 755 would require suppliers with over $25 million in state contracts to report their climate-related financial risks and Scope 1-3 GHG emissions, and suppliers with $5 to $25 million in State contracts to report their Scopes 1-2 emissions.

While not all the suppliers included in this analysis are in scope for SB 253 and SB 261, most would be required to report under SB 755. The research finds low voluntary reporting rates among current suppliers, indicating a lack of readiness to comply with the proposed regulation and pointing to the potential level of transparency to be gained through mandated reporting. An increase in awareness of its supplier base’s climate disclosures would support the ability of California to reduce emissions and address climate risk across its supply chain.

“California is leading the way in climate disclosure policy, but our research shows that its supplier base largely is not yet aligned with climate disclosure expectations” said Louis Coppola, CEO & Co-Founder at G&A Institute. “With SB 755 on the horizon, we now have a critical baseline to measure progress over time. It’s a tool for policymakers, procurement teams, and suppliers themselves as they navigate this rapidly evolving regulatory landscape.”

Key Findings
Most of CA’s top suppliers don’t report climate data.

• 25% disclose Scopes 1 & 2 emissions
• 18% report Scope 3 emissions, the largest portion of most companies’ carbon footprints

Assurance and target-setting by CA suppliers lags behind expectations.

• 10% obtained third-party assurance for their reported GHG emissions.
• 11% have set science-based emissions reduction targets.

Climate risk assessments remain a blind spot for CA suppliers.

• 17% conducted a climate-related risk assessment aligned with the Task Force on Climate-related Financial Disclosures (TCFD).

These rates suggest state agencies, procurement teams, and policymakers should proactively drive supplier readiness by providing guidance on the specific requirements of each bill and their applicability, education on the complexities of climate reporting, and support for accurately measuring emissions and conducting climate-related risk assessments.

Establishing a Baseline for Future Progress
This new research provides a baseline for measuring progress in the years to come. As California’s climate regulations evolve, this analysis can be updated annually to track improvements, identify remaining gaps, and measure the impact of policies like SB 253, SB 261, and SB 755.

The report enables:

• Procurement teams to assess supplier progress and refine engagement strategies.
• Suppliers to benchmark their progress against their industry peers and make strategic and targeted improvements.
• Policymakers to track the effectiveness of climate laws and adjust guidance as needed.

“This report is an important resource for California policymakers and taxpayers and demonstrates the continued importance of ensuring that companies manage, measure, and disclose their climate-related risks and opportunities.” – Ceres

“Suppliers must do their part to help California achieve its ambitious climate goals. This analysis helps clarify where industry gaps exist and where targeted action is needed.”
– Carbon Accountable

“Persefoni is a carbon accounting and management platform that regularly supports customers as they examine their own supply chain risks and supplier specific emissions. Large institutional buyers – governments, universities, healthcare systems, corporations – are increasingly looking to suppliers to help assess and manage climate-related financial risks. This includes whether suppliers measure their own GHGs or consider potential disruptions to their own operations. Everyone is someone’s Scope 3, so all companies must be ready to provide emissions data and climate risk analysis. We’re only as resilient as our weakest supplier.” – Mike Wallace, Chief Decarbonization Officer, Persefoni 

What’s Next?
SB 755 is poised to bring even more suppliers into California’s climate disclosure framework. Analysis of the kind presented in this new report will be an essential tool for tracking progress, guiding industry engagement, and ensuring companies are prepared for increasing transparency demands.

Download the report at: https://www.ga-institute.com/research/research/research-reports/california-supplier-climate-trends-analysis/

About the Supporters

Ceres 
Ceres Accelerator for Sustainable Capital Markets is a center within Ceres that aims to improve the practices and policies that govern capital markets by engaging federal and state regulators, financial institutions, investors, and corporate boards to act on climate risk as a systemic financial risk.

Carbon Accountable
Carbon Accountable advances policies that increase the availability of the robust GHG emission data needed to inform corporate and investor decision making and empower consumers and policymakers.

Persefoni
Persefoni is a leading climate management and carbon accounting platform that enables businesses to track, manage, and disclose their carbon footprints in alignment with global standards.

About G&A Institute, Inc.

Founded in 2006, Governance & Accountability Institute, Inc. (G&A) is a sustainability consulting and research firm headquartered in New York City. G&A helps corporate and investor clients recognize, understand, and develop winning strategies for sustainability and ESG issues to address stakeholder and shareholder concerns. G&A’s proprietary, comprehensive full-suite process for sustainability reporting is designed to help organizations achieve sustainability leadership in their industry and sector and maximize return on investment for sustainability initiatives.

Since 2011, G&A has been building and expanding a comprehensive database of corporate sustainability reporting data based on analysis of thousands of ESG and sustainability reports to help steer strategy for our clients and improve their disclosure and reporting. More information is available on our website at ga-institute.com.

FOR MEDIA INQUIRIES & INTERVIEWS, CONTACT
Louis D. Coppola, CEO & Co-Founder 
Governance & Accountability Institute, Inc. 
Tel 646.430.8230 ext 14 
Email lcoppola@ga-institute.com

Sean Grady featured Jim Sullivan, Chief Strategy and Development Officer, on a recent episode of The Environmental Transformation Podcast to talk about how Jim’s expertise has helped shape the sustainability strategy and vision at Veolia North America.

Since July 2024, Jim has supported the actualization of our Environmental Solutions & Services strategy and the execution of the business plan by leading the commercial operations group along with business development, marketing and mergers and acquisitions.

In this episode, Jim dives into details about key industry trends, including the challenges and strategies around managing PFAS, regulatory shifts, leveraging AI and data analytics for improved customer experience and the critical role of mergers and acquisitions in expanding Veolia’s environmental capabilities.

Catch the full conversation here.

Originally published on PSEG ENERGIZE!

Energy needs don’t take a break – whether it’s staying warm in January or cool in July. That’s why we are actively advocating for programs like LIHEAP, which provide critical financial support to low-income households through every season. During LIHEAP Action Day in Washington, D.C., our employees met with legislators to emphasize the importance of maintaining and expanding funding for these vital programs.

“At PSE&G, we understand that some of our customers are facing challenges, and we know how essential energy is to their daily lives. No one should have to choose between paying for utilities and other basic needs,” said Rosa Pagnillo-Lopez, PSE&G Payment Assistance Outreach, process lead. “That’s why we are committed to advocating for vital assistance programs and connecting our customers to the support they need. We’re here to help our customers through tough times.”

In 2024, we helped over 225,000 customers access more than $265 million in payment assistance. Yet, there’s still work to be done – we estimate that 100,000 additional customers may qualify for help but haven’t yet applied. By pushing for funding, we are working to help more families stay safe and comfortable year-round.

These programs are more than just financial assistance – they’re a lifeline for vulnerable populations, including the elderly, disabled and families with young children. LIHEAP provides an average of $350 for heating and $300 to cover medically necessary cooling costs and up to $800 in crisis assistance per eligible household each year, while the Universal Service Fund (USF) and PAGE program offer additional relief. These aren’t just numbers – they’re real solutions that help New Jersey residents maintain stability through heatwaves, snowstorms and everything in between.

We’re proud to advocate on behalf of you, our customers, for continued and heightened support of these energy assistance programs. Together, we’re helping create a brighter future for our communities, no matter the forecast.

Learn more about programs available to you at www.pseg.com/help.

LAUSANNE, Switzerland and SAN JOSE, Calif., April 2, 2025 /3BL/ – Logitech International (SIX: LOGN) (Nasdaq: LOGI) today announces significant progress in eliminating plastic clamshell packaging from its hallmark mice categories, with the transition to paper now nearly complete. The magnitude of this initiative is estimated to remove 660 tons of plastic and reduce 6,000 tons of carbon dioxide from the air, equivalent to eliminating over 37 million single-use plastic water bottles annually. The global transition to paper packaging across tens of millions of products continues across various retailers, with expected completion dates by the end of 2025.

“Shifting away from plastic clamshell packaging marks a significant step toward our goal of completely eliminating single-use plastics from our portfolio. This milestone is about 90% complete and is our largest packaging endeavor to date,” said Delphine Donné, GM of the Personal Workspace Solutions business group at Logitech. “Before this transition, we successfully eliminated 1,800 tons of packaging material by implementing design modifications in other areas across our packaging. Every step forward brings us closer to saying goodbye to single-use plastic.”

A custom study conducted in partnership with GlobeScan’s Healthy & Sustainable Living report identified that 61% of consumers globally say they are interested in choosing recyclable packaging in the coming year. Single-use plastics and mixed-material packaging contribute to significant waste, as well as confusion about recyclability. While Logitech advocates 100% recycling of all materials, current waste management methods across geographical areas fall short. Instead, Logitech is proactively eliminating single-use plastics at the source.

“People increasingly value and actively seek out packaging less harmful to the environment. Using paper instead of single-use plastic enhances the customer experience by making packaging easier to open, visually appealing, and informative,” said Bliss Buter-Thompson, head of packaging at Logitech. “At the same time, we can optimize the weight and size of the package and lower the product carbon footprint – all in alignment with meeting our customers’ needs.”

Nearly 80% of a product’s environmental footprint can be influenced during its design process, impacting material choices and efficiency. As part of its Design for Sustainability initiative, Logitech has implemented packaging solutions that minimize environmental impact, including an FSC^TM-certified paper packaging program introduced in 2019 and a Single-Use Plastics Policy introduced in 2021. The company also removed plastic shrink wrap in its Logitech G gaming division, and implemented recyclable materials like paper pulp hang tabs and wood fiber bags for many products.

Removing single-use plastic packaging across its portfolio is part of Logitech’s broader efforts to design for sustainability, prioritize carbon reductions and enhance circularity. More information about Logitech’s sustainability programs can be found in its FY24 Impact Report or on the website.

About Logitech

Logitech designs software-enabled hardware solutions that help businesses thrive and bring people together when working, creating, gaming and streaming. As the point of connection between people and the digital world, our mission is to extend human potential in work and play, in a way that is good for people and the planet. Founded in 1981, Logitech International is a Swiss public company listed on the SIX Swiss Exchange (LOGN) and on the Nasdaq Global Select Market (LOGI). Find Logitech and its other brands, including Logitech G, at www.logitech.com or company blog.

# # #

Editorial Contacts:

Marie Perriard, Head of Sustainability Communications – USA mperriard@logitech.com
Ben Starkie, Corporate Communications – Europe +41 (0) 79-292-3499

• Various incentives offered for residential and business customers through the Charger Prep Credit, Off-Peak Charging Credit and Fleet Advisory programs

ST. PETERSBURG, Fla., April 2, 2025 /3BL/ – Duke Energy Florida announced the launch of three new programs – the Charger Prep Credit, Off-Peak Charging Credit and Fleet Advisory programs – to offer both residential and business customers more choices related to electric vehicles (EVs).

“Not only do EVs help save on fuel and maintenance costs for drivers, but they have significant economic and environmental benefits as well,” said Melissa Seixas, Duke Energy Florida state president. “Our goal with these programs and the various incentives they offer is to make EVs more accessible for all of our customers, helping meet their individual needs, while contributing to the ongoing energy transition.”

Charger Prep Credit Program (Residential and Business Customers)

Through the Charger Prep Credit program, both residential and business customers can receive a one-time credit to defray the cost of installing EV charging infrastructure, including new electric plug-in outlets, electrical wiring improvements and other electrical upgrades required to support Level 2 or higher EV chargers. However, it does not apply to the charging station hardware and software (if needed), as well as permit fees. For more information, please click here (for residential customers) or here (for business customers).

Off-Peak Charging Credit Program (Residential Customers Only)

The Off-Peak Charging Credit program allows residential customers to get paid for charging their EVs during times when demand for energy is typically lower. Eligible customers using a Level 2 charger can earn a $7.50 credit on their monthly electric bills for charging their EVs during these off-peak hours – 10 a.m. to 6 p.m. and 11 p.m. to 5 a.m. Monday through Friday and anytime on weekends and holidays. It originally began as a pilot (reaching its threshold of 3,000 active participants while maintaining a lengthy waitlist) and is now a permanent offering without an enrollment limit. For more information, please click here.

Fleet Advisory Program (Business Customers Only)

By participating in the Fleet Advisory program, business customers can receive up to $12,000 to offset the cost of completing a fleet electrification study to assess the benefits of switching their fleet vehicles to EVs. The goal is for businesses to learn how to reduce their carbon footprint, while also discovering how EVs can lower their operating costs and improve overall efficiency. To qualify, a customer’s fleet must include 20 or more light-duty vehicles, five or more medium/heavy-duty vehicles, or a combination of 10 or more light-duty and/or medium/heavy-duty vehicles. For more information, please click here.

Duke Energy Florida

Duke Energy Florida, a subsidiary of Duke Energy, owns 12,300 megawatts of energy capacity, supplying electricity to 2 million residential, commercial and industrial customers across a 13,000-square-mile service area in Florida.

Duke Energy

Duke Energy (NYSE: DUK), a Fortune 150 company headquartered in Charlotte, N.C., is one of America’s largest energy holding companies. The company’s electric utilities serve 8.4 million customers in North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky, and collectively own 54,800 megawatts of energy capacity. Its natural gas utilities serve 1.7 million customers in North Carolina, South Carolina, Tennessee, Ohio and Kentucky.

Duke Energy is executing an ambitious energy transition, keeping customer reliability and value at the forefront as it builds a smarter energy future. The company is investing in major electric grid upgrades and cleaner generation, including natural gas, nuclear, renewables and energy storage.

More information is available at duke-energy.com and the Duke Energy News Center. Follow Duke Energy on X, LinkedIn, Instagram and Facebook, and visit illumination for stories about the people and innovations powering our energy transition.

Contact: Aly Raschid
24-Hour: 800.559.3853
X: @DE_AlyRaschid

View original content here.

Since the Strengthening Organic Enforcement (SOE) Final Rule took effect under the National Organic Program (NOP) in March 2024, entities across the organic industry have undergone major operational shifts to achieve and maintain compliance with the updated organic regulations. These updates have increased rigor at all levels of the supply chain and bolstered trust in the organic label, with perhaps the most impactful change being the requirement of mandatory certification for organic importers and exporters. And while the SOE Final Rule will drive lasting positive change, some organic supply chains are experiencing a difficult transformation if they are unable to import organic products into the US.

In this blog, SCS Global Services’ organic program experts will answer some of the most important questions related to the ongoing challenges facing organic importers. Plus, we’ll talk about what SOE means for importers who happen to be uncertified at this time. By discussing essential elements, definitions, and expectations of the SOE Final Rule, we’ll equip you with everything you need to mobilize your company’s certification process under SOE — even if you are currently uncertified.

What is an organic importer?

Under SOE, an organic importer is defined as the operation responsible for accepting imported organic agricultural products within the United States. This role ensures NOP Import Certificate data are entered into the U.S. Customs and Border Protection import system of record.

How is an exporter different from an importer?

An exporter is defined as the final certified exporter of the organic agricultural product that facilitates the trade of, consigns, or arranges for the transportation or shipping of the organic agricultural product from a foreign country to the United States. An exporter is the entity that initiates the paperwork (NOP Import Certificate) that notifies United States Customs and Border Patrol of the incoming shipment of organic products through the importer.

What is an NOP Import Certificate?

An NOP Import Certificate is issued to the organic exporter by its certification body (CB), which verifies the organic status of the product contained in the shipment. NOP Import Certificates must be submitted by the importer to the United States Customs and Border Protection import system of record for all imported products regardless of origin. These certificates can be issued electronically by the exporter’s certifier using the Organic Integrity Database (OID), which means the certificate is issued upon exportation from the country of origin and not upon entry (import) to the destination country. These certificates may be issued for a single shipment or multiple shipments over a defined timeframe, up to a verified volume.

NOP Import Certificates include a review of the audit trail to verify organic status of the product exported to the United States. The certificate must include the following information:

• Country of origin
• Destination country
• Name of issuing certifier
• Harmonized System (HS) code(s)
• Total weight of product
• 10-digit exporter ID
• Unique numerical identifier

What is the process to issue an NOP Import Certificate?

While some variations in process may occur depending on the specific exporting country and organic entity, the issuance of an NOP Import Certificate generally follows these steps:

1. The exporter initiates NOP Import Certificate request with their organic certification body.
2. Certifier of exporter verifies the shipment and issues certificate.
3. Exporter provides NOP Import Certificate to US importer.
4. Importer or customs broker enters data into the Customs and Border Protection’s Automated Control Environment (ACE) System.
5. Product arrives at port of entry — this is where the shipment is accepted into the United States.
6. Importer verifies that the products received match the data provided on the certificate.
7. Certifier of importer audits accepted volumes of product.
8. NOP accesses CBP data to monitor for fraudulent activity.

What are the major impacts of SOE for organic importers?

SOE impacts organic importers in multiple, significant ways. For example, not only do importers and exporters of organic products have to be certified, but they must work directly with a USDA-accredited certifying agent. Like all certified organic entities, importers must also develop an Organic System Plan (OSP), part of which is the mandatory Organic Fraud Prevention Plan (OFPP). Once established, the OSP must undergo an annual compliance audit. Additionally, NOP Import Certificates are required for all products being shipped to the United States. The stakes for complying with SOE are high: Shipments without proper documentation may be rejected at ports of entry, causing significant disruption along the organic supply chain.

What happens if I am an uncertified importer of organic products?

Major disruptions can occur if an uncertified entity attempts to import organic products into the United States. Such disruptions mean that organic products cannot obtain customs clearance at the US border, and importers are prohibited from transacting organic products until they are certified, which can translate into serious business complications and even mandatory cessation of the ability to conduct business within the organic industry.

Under the SOE Final Rule, all organic entities are expected to have a baseline familiarity with the NOP regulations, the audit process and cycle, as well as a deeper understanding of traceability, identity preservation, and organic fraud prevention.

If these concepts and terms are unfamiliar to you, we encourage you to contact our experts as soon as possible. We can help uncertified importers of organic products better understand, prepare for, and earn organic certification under SOE.

Are there any exemptions under the new SOE?

Exemptions from SOE certification are now extremely limited, but some do exist. The following entities are considered exempt under SOE: Entities with gross sales under $5,000 annually, those handling products that contain less than 70% organic ingredients, distributors who only transact retail products in tamper-evident packaging, warehouses that store or prepare shipment products in tamper-evident packaging, and certain operations such as transportation companies, customs and logistics brokers, and some retail operations.

It’s important to note, though, that record keeping is mandatory even for entities that are exempt from SOE.

What should I do if I’m operating as an uncertified importer?

If you are currently uncertified, you should make plans to earn certification as soon as possible. Because enforcement for SOE is underway, every day that you operate without organic certification poses serious risks to your business.

The only means of earning certification is to work directly with an organic certification body. If you are involved in the trade of organic products, we recommend reaching out to our experts at SCS Global Services.

We’ve served as the preeminent certification body for the National Organic Program since 2000 and we encourage any importers in need of certification or support navigating and adapting workflows to remain compliant with SOE regulations to get in touch with us. At SCS, we are proud to act not only as a helpful source of knowledge and insight into all the technicalities of these important SOE updates, but also as a strategic partner helping companies navigate the often stressful and exhausting realities associated with inadvertently missing the implementation deadline for SOE.

Where can I learn more about organic importers and SOE?

In case you missed our SOE blog series last year, be sure to review these essential articles:

• Strengthening Organic Enforcement (SOE) Summary: Top Seven Changes to Watch as 2024 Deadline Nears
• Strengthening Organic Enforcement (SOE) – Top 8 Questions about Uncertified Operations and Missing the March 19, 2024 Deadline
• SOE Organic Fraud Prevention – What Every Business Needs to Know

Our webinar replay, Understanding the USDA’s New Strengthening Organic Enforcement Rule, offers a high-level overview of SOE and what to expect.

Companies can also turn to a number of resources to learn more, including the full summary of the Organic Trade Association’s SOE final rule, the Federal Register’s formal communications about the SOE amendment, and an official side-by-side comparison of the original organic program regulatory language and the new SOE rule.

If you think you’d benefit from dedicated, one-on-one expert support, please contact Ned Halaby at nhalaby@scsglobalservices.com or call +1.510.993.0235.

In this latest blog, Lindsay Wright, Director, Communications and Strategic Partnerships, Better Buying, explains why supplier participation in the Better Buying ratings cycle is essential to amplifying their voices and driving improvements in purchasing practices. Wright highlights how the data and insights gathered not only help buyers understand the impact of their practices on suppliers but also empowers suppliers with valuable knowledge to strengthen their own business relationships.

Read the full blog, titled: Why Should Suppliers Participate in Better Buying’s Rating Cycle?

For many South Australian farmers, the 2024 season was severely impacted by drought and frost. The latest agronomic knowledge and technology has helped some farmers to make the most of what they could, but when conditions were too challenging to achieve reasonable crop outcomes, CNH Capital has been able to help ease the strain.

To mitigate the impact of last year’s challenging weather conditions, South Australian farmers have relied on improved agronomic practices, and in some cases the assistance of finance providers.

The northern parts of South Australia saw one of the hardest seasons to date, with some grain crops not even reaching maturity due to severe drought conditions.

In the mid-north and York Peninsula region, such as the Clare Valley and around Freeling, the situation was relatively better, though still challenging. Crops like wheat, lentils, and canola were able to perform reasonably well in these central areas, despite the lack of rainfall.

Vater Machinery is a long-term New Holland dealer and, with its Dealer Principal, Roger Vater, has been supporting the South Australian farming community since 1960.

According to Roger, improved seeding, nutrition, weed control, and crop adaptability enabled farmers to better withstand challenging conditions and still achieve reasonable crop outcomes. But when conditions were tough, having the support of finance providers like CNH Capital has been able to reduce risk and ease financial strain.

“Agronomy over the last several years has improved so much that the timing of seeding, the nutrition, weed control, all those things have culminated to give those farmers the best chance of getting a good crop and a good return,” he said.

“Remarkably, lentils yielded reasonably well in most areas. They held on well in the dry and in some cases, had multiple flowerings. Wherever we got a late rain, the crops certainly made use of it.

Vater Machinery was one dealer in Australia that demonstrated New Holland’s next gen CR11 combine, ahead of its retail availability for the 2025 harvest.

New Holland’s next generation CR combines have been heralded as game changers, designed to provide higher productivity with close-to-zero grain loss, improved residue management, and maximum uptime—which is vital in challenging years when every grain counts towards farmers’ profitability.

Nasdaq

Early reporting company insights, powered by Nasdaq Sustainable Lens®

Nasdaq Sustainable Lens analyzed the companies that have released their CSRD-aligned annual reports. Insights from this analysis include double materiality trends, reporting formats, and depth of disclosures, which are important to note amid the CSRD evolution and EU regulatory discussions on global competitiveness and Omnibus efforts. 

Access the tracker to learn more.

In March 2025, the U.S. Department of Transportation issued a strong signal to the pipeline industry: it’s time to embrace Pipeline Safety Management Systems (PSMS). As part of this initiative, Transportation Secretary Sean P. Duffy announced that PHMSA (Pipeline and Hazardous Materials Safety Administration) is encouraging all regulated pipeline owners and operators to voluntarily adopt safety management systems (SMS) based on industry best practices like American Petroleum Institute’s (API) Recommended Practice 1173.

“We are committed to carrying out President Trump’s agenda to unleash American energy in all ways – big and small,” said Secretary Duffy. “Enhancing pipeline safety through innovative management systems is just one way we can boost our energy security and lower costs for the American people.”

The announcement was accompanied by the release of PHMSA’s Advisory Bulletin ADB-2025-01, reinforcing the agency’s long-standing position that PSMS enhances pipeline safety, strengthens operational discipline, and supports a culture of continuous improvement. This effort is also backed by the National Transportation Safety Board (NTSB), which has recommended implementation of PSMS for years.

“Safety Management Systems bring about a much-needed evolution of internal pipeline safety structures,” said PHMSA Acting Administrator Ben Kochman. “We encourage all operators to fully embrace the continuous improvement and safety benefits that come with implementing a pipeline SMS.”

What Is a Pipeline Safety Management System (PSMS)? 

A PSMS is a comprehensive, organization-wide framework designed to improve safety performance in pipeline operations. It provides a structured, proactive approach to identifying and managing safety risks, while fostering a culture of accountability and improvement.

PSMS is based on principles outlined within API RP 1173, which was developed by the API in collaboration with PHMSA, state regulators, and stakeholders after incidents like the 2010 oil release into the Kalamazoo River and the San Bruno gas explosion. These events highlighted a critical need for improved safety oversight and risk management within the energy industry.

Why is PSMS so Important Right Now? 

While approximately 86% of the 2.3 million miles of U.S. gas distribution pipelines are now covered by some form of PSMS, many smaller operators, especially those serving fewer than 25,000 customers, have yet to begin implementation.

This is where the new bulletin matters. It urges operators, particularly smaller and mid-sized ones, to recognize the scalability of API RP 1173 and to take the next steps in building or maturing their safety management systems. The bulletin also aligns with Section 205 of the PIPES Act of 2020, which directs PHMSA and state authorities to promote and assess PSMS frameworks.

The API RP 1173 Framework: A Proven Path 

API RP 1173 provides the basis for implementing an effective PSMS and focuses on building best practices to achieve the following:

• Improve pipeline integrity
• Identify and mitigate safety risks
• Embed continuous improvement into daily operations
• Strengthen coordination between leadership, employees, and contractors

Whether you’re just beginning your safety management journey or looking to refine existing programs, the framework is scalable and adaptable to operators of all sizes.

The 10 Core Elements of PSMS 

1. Leadership and Management Commitment
2. Stakeholder Engagement
3. Risk Management
4. Operational Controls
5. Incident Investigation and Lessons Learned
6. Safety Assurance
7. Management Review and Continuous Improvement
8. Emergency Preparedness and Response
9. Competence, Awareness, and Training
10. Documentation and Recordkeeping

These elements are not just procedural, they represent an integrated safety program where each function supports and reinforces the others.

Worker Participation: A Critical Factor 

Your front-line employees often hold the key to understanding and solving operational risks. That’s why worker participation is a foundational element of a successful PSMS. Employees should be empowered to:

• Communicate risks and identify improvement opportunities
• Assist in developing and reviewing procedures
• Engage in shared learning to prevent repeat incidents

Open communication, transparency, and mutual trust between field personnel and leadership drive the success of any safety initiative, especially a program as critical as PSMS.

The Role of Safety Culture 

PHMSA emphasizes that a strong safety culture is the core of effective pipeline safety management. This culture is built through everyday decisions, reinforced by leadership behavior, and sustained by organizational values that prioritize safety above compliance.

A mature safety culture helps eliminate complacency, reduce normalization of risk, and ensure that everyone, from the CEO to the field, feels responsible for safety.

How PSMS Affects Your Business 

A robust PSMS program will produce the following:

• Reduce risk of accidents, fines, and operational disruptions
• Improve safety outcomes for people and the environment
• Enhance compliance readiness and adaptability to future regulations
• Increase stakeholder confidence and public trust
• Strengthen operational performance through better coordination and decision-making

Where to Begin 

To get started, PHMSA recommends conducting a gap assessment to compare your current practices against those outlined within API RP 1173. From there, the following tasks can be prioritized and pursued:

1. Develop a roadmap and define priority actions.
2. Create a cross-functional PSMS team.
3. Engage leadership and workers in defining safety goals and values.
4. Identify and involve internal and external stakeholders.
5. Align the PSMS with your business strategy to ensure measurable impact.

Learn more from a real case study: An Action Plan & a Roadmap: Implementing Pipeline Safety Management Systems 

Final Thoughts 

Pipeline Safety Management Systems are not just about compliance, they’re about leadership, accountability, and protecting what matters most. PHMSA’s latest advisory bulletin, along with endorsements from DOT, the NTSB, and industry associations, makes it clear: adopting PSMS is a critical step for businesses looking to build resilience, reduce risk, and lead with safety.

Do you have questions about your Pipeline Safety Management System? We’re here to help. Get answers to your questions from our team of experts today!