“Empowering the Frontline” 2015 RETAIL HSSE STRATEGY “Empowering the Frontline” Downstream-One Retail 1

Site employee fatality Malaysia Third party fatality South Africa Contractor fatality Ukraine Site employee fatality this year the TRAGIC INCIDENTS have highlighted that work is still required Lack of competence of front line workers Inconsistent induction training for new site supervisors Insufficient training provided to workers to manage specific risks being faced, e.g. hot works, product discharge Non-compliance / Ineffective application of End-to-end assurance processes Front line supervisors did not apply assurance processes correctly, e.g. Talk not Tick, Permit to Work, Management of change Management assurance processes not applied effectively, e.g. supplier accreditation Poor safety culture & lax attitude towards risks Failure of colleagues to intervene when unsafe acts were proposed and executed Learning from Incidents (e.g. Oman incident) not shared with front line workers and used to mitigate identified risks

Building on this year’s hsse strategy, the RLT has ENDORSEd THE WAY FORWARD 2015 GOAL ZERO PRIORITIES IMPROVE HSSE competence at the front line Define the minimum standards Build front line competence bit-by-bit Leverage mechanisms that are already in place – MAKE THEM WORK BETTER 1 GET the assurance that supervisors and front line staff are operating safely Make assurance come alive – make it something people want to do Use local initiatives to make this happen Get local teams to define what “good” looks like and then self assess to close gaps Be able to predict where the next incident is coming from 2 3 BUILD safety culture at site through the site manager / site supervisor The site manager /site supervisor has greatest influence on workers’ safety mindset

We KNOW and FOLLOW the rules, We KEEP ourselves and others safe 1 Improve HSSE competence at the front line – the knowledge that everyone must have We KNOW and FOLLOW the rules, We KEEP ourselves and others safe We are working with a valid Safety Passport We have completed specific training programmes before performing specific tasks (LPG/CNG, Working at Height, excavations etc…) We have knowledge about the right Goal Zero behaviours and we are responsible to intervene with each other Examples Our minimum training and competence requirements… L2 working session What are our biggest risks and what are the actions to mitigate those risks? What are the minimum competence requirements for each of the roles in managing these risks? How do we assure that each worker has been properly trained to carry out his/her role?

I am ACCOUNTABLE for the safe operation of the activities! 2 GET THE ASSURANCE that supervisors and front line staff are operating sites safely I am ACCOUNTABLE for the safe operation of the activities! I provide evidence that I coach my work crew by using quality Tool box talks, Learning from Incidents and Near Misses and Potential Incidents to bring HSSE to life I have evidence that my work crew is trained and equipped to mitigate risks. I’m accountable to ensure each worker has a valid Safety Passport and all equipment and PPE has appropriate certification I provide evidence that everyone understands the job specific risks of the job, the actions required for them to reduce this risk and when to stop the job to review / update the risk assessment due to change in circumstances My competences have been auditing by L2 as part of L3 Assurance programme L2 working session How can we assure that supervisors and front line staff are operating sites safely and that the operational procedures and processes defined are robust ?

BUILDING SAFETY CULTURE at site through the L3 supervisor I build a Goal Zero safety culture by CREATING the right SAFETY CONDITIONS at site Examples I am always assessing the risks of my site’s operations I am proactively managing these risks I am engaging my work crew about the risks and providing them with the right training and competences L2 working session What does success look like for us for each of these 3 objectives? What actions do we need to take to achieve success?

2 Contractor Management Safety and LOPC Assurance for engineering partners

Accountability for Contractor Management - Safety and LOPC Assurance Objectives Clarify Shell expectations for Market Teams and Partners on assurance. Outline the L2’s own plans of how they meet Shell HSSE requirements of L2’s managing the L3’s Identify the key control points that the Shell Markets and the Shell Global teams must regularly check to get the adequate Contractor Management Safety and LOPC Assurance system in place. Integrate HSSE Assurance into Global, Market and Partners’ GPAs The L2’s own internal governance requires them to - Appoint L3’s through an accreditation process which meets the Shell Group policy and procedure requirements Ensure Shell’s global policies, technical design standards, HSSE permit to Work Management Procedure, processes and tools are used throughout. Review critical documents, licences and designs. Work activities are planned and agreed prior to commencement Site activities are executed according to plans, designs, procedures. With critical touch points witnessed and signed off. Reports are made on performance, non compliance and incidents Audits are conducted to ensure compliance and share best practice

Accountability for Contractor Management - Safety and LOPC Assurance Process Activity Expectations from L2 Partners Expectations from Market teams Expectations from Global teams FMC PMC Frequency Shell Market team Shell Global team Contractor Appointment Accreditation of new L3 contractors New Contractor Yes, according to Risk Assessment in Market Through HSSE joint audit on L2 Management System Audit Site Performance Audit Standards Compliance to Global Design Standard (GDS) Activity / Project Yes, during Design Risk Assessment (DRA) Spot check Group Control Framework Monthly Reporting Annual Checks BAL process Critical Equipment Inspection Monthly & Annual Checks Commissioning Regular Review Contractor office audit As Scheduled No action LCSC Quarterly Visible leadership Attend 1 per year HSSE Plan Annual / Scheduled Agreement to L2’s Annual Plan Alignment with HSSE LII Forum Statutory Licence and documents management Scheduled /Activity / Project Ensure complete and uploaded to SharePoint Business Assurance Letter (BAL) process

Accountability for Contractor Management - Safety and LOPC Assurance Process Activity Expectations from L2 Partners Expectations from Market teams Expectations from Global teams FMC PMC Frequency Shell Market team Shell Global team Design Design Risk Assessment Project Yes, according to Risk Assessment in Market Spot checks Pre-Construction Meeting Construction Readiness Plan / HSSE Plan Minimum once per month. More according to Risk Assessment in Market Attend once per quarter Identify Contractors High Risk Activity and Schedule L3 contractors on site .. who / where / what / when Location of utility services, excavations, and lifting plans Competent Site Supervisor, Safety Co-ordinator and Permit Holder appointment Neighbour impact from traffic, noise, working hours Global Support Line of Defence 2 + 3 audits As Scheduled Yes Review high audit findings Joint HSSE Audits on L2’s Quality Assurance Programme Yes, more regularly, 4 per country According to the annual audit programme Partners and Shell to determine and jointly audit key L3 & L4 Yes, new for both Shell & L2

Accountability for Contractor Management Safety and LOPC Assurance Process Activity Expectations from L2 Partners Expectations from Market teams Expectations from Global teams FMC PMC Frequency Shell Market team Shell Global team Site Activity Safety Passports for all staff Activity / Project Ensure all Shell staff have passport Ensure all Shell Global have passport Ensure correct competencies are carrying out tasks Quarterly full site audit – site selection linked to the risk tracker Attend full site audit twice a year Quality PTW documents (WCF, JHA, Permit) in place PTWs with competent Permit Issuer & Holder Supervises high risk work activity while on site Ensure Tool Box Talks (TBTs) and Last Minute Risk Assessment (LMRA) are carried out Carry out site inspection checklist Project Carries out Site inspection Talk Not Tick (TnT) 1 per quarter Ensure Safety Alerts/Learning from Incidents are shared After each incident Ensure Near Miss / Potential Incident; Lost Time Injury: First Aid incidents are recorded Activity/ Project Reviewed monthly Review in HSSE LII Forum Witness Commissioning Depending on Market & project Attend handover twice a year

What’s the future looks like – moving from the good to the great Enhance safety leadership and HSSE competences at the Front Line L3 supervisors are VISIBLE SAFETY LEADERS – they lead HSSE communications and intervene Contractor workers increase their HSSE competence on the job experiences and from coaching, having effective training plans in place and using HSSE tools 2016 The ‘GOOD’ Empowering Front Line by “perfecting the minimum” The L3 supervisor create the right safety condition at site Front Line have the right HSSE knowledge and skills to manage the risks properly. They know the barriers and controls and are equipped to act on weak signals The people at the front line “Do the Right Thing” because they understand the risks and know how to keep themselves and others safe 2015