PIC Responsible Care Journey GPCA Consolidating Success Stories! Responsible Care-Initiation To Certification By Eng. Bader Aladwani December 11th, 2012

Agenda Background on Petrochemical Industries (PIC) Mission and Vision Growth in Petrochemicals Certification Achievements Introduction to RC14001 Management System Responsible Care® & PIC’s Strength RC14001 Scope & Approach Responsible Care Certification ( RC14001) Roadmap Phase 1: Planning and Assessment Phase 2: Closing the Gaps & Building Capabilities Phase 3: Responsible Care MS Sustainability & Benefits Summary Conclusion

PIC Among Kuwait Petroleum Corporation Subsidiaries OSSC KOTC KPC KOC KNPC KGOC KAFCO ODC KPI KUFPEC PIC is the petrochemical arm of Kuwait Petroleum Corporation

PIC – Mission and Vision We aspire to be a recognized Global Petrochemical Player leveraging Kuwait national resources in value added partnerships to drive growth and being admired by our stakeholders 1. Maximizing value addition of Kuwait hydrocarbons resources 5. Fostering National economy 2. Excelling our organizational performance through peoples’ empowerment and infusing industry best practices 4. Collaborating closely with our partners towards a sustained and diversified global growth 3. Creating a challenging and fulfilling environment that will support skills and capabilities development

PIC Growth in Petrochemicals

PIC - Certification Achievements OHSAS - 18001 RC - 14001 ISO - 14001 ISO - 9001 ISO 27001 ISO 17020 Inspection Certification ISO 22000 Food & Safety Certification

What is Responsible Care®? The chemical industry’s commitment to the public to: Demonstrate continuous improvement in environmental, health and safety performance, and Ensure ongoing dialogue with, and involvement of the public In doing so, we hope to help secure long-term, significant improvement in the public’s perception of the chemical industry, its products and its performance.

RC14001 Management Systems – Enhance Current HSE&S MS Distribution Pollution Prevention Environmental Management System - ISO 14001 Employee Health & Safety Product Stewardship CAER Health & Safety Management System - OHSAS 18001 Process Safety CAER Security Security Management System- Security Codes Codes not fully Covered

Responsible Care® & PIC’s Strength Sustainable Development RC 14001 Sustainability OHSAS 18001 PSM This is just the beginning……. EMS ISO14001 QMS ISO9001 PIC Journey

RC14001 extended the scope a bit RC14001 Scope AIR Raw material Processes Product Water & Soil RC14001 extended the scope a bit

RC Management Framework Phases ( PDCA Cycle) Leadership & Commitment Policy Identify Requirements Set Objectives Targets and Plan Self Assessments Management System Review ACT Plan Define Organization- Communication Internal Audits Training Documentation Assessments CHECK DO Self Assessments Corrective /Preventive Actions - Measures Procedures Continual Improvement

Management System Integration OHSAS 18001 Environment ISO 14001 Quality ISO 9001 RC14001 Identification & Evaluation Health & Safety Risk Assessment Environmental Aspect Customer Requirement (Procedure, Software, PPE….etc) Control Test Control effectiveness Emergency Preparedness & Response (Mock drill) Audit Corrective / Preventive Action Corrective / Preventive Action New HSSE&Q Performance Level

PIC Management Commitment CEO Declaration of Support to GPCA Responsible Care Global Charter & Initiative . Formation of PIC Responsible Care Implementation Committee - Develop the Committee Charter 3. Approve the Roadmap for RC14001 Management System Certification. 4. Allocate the budget & provide resources, training and management support to meet this commitment. 5. Close monitoring and Progress follow-up.

PIC Management Commitment Petrochemical Industries Company (PIC)

Corporate PIC Responsible Care Certification ( RC14001) Roadmap Phase I Phase II Phase III Planning & Assessment Closing the Gaps Building Capabilities Sustainable Program Implementation Audits, MSR & CAR Bench Mark Experiences Leverage Existing Management Systems May-2011 Achieve RC14001 Certification July-2011 Send GPCA assessment Complete Internal RC14001 Audit Develop PIC-RC Manual Complete GPCA Self Assessment Close Gaps Communicate with Stakeholders 2nd Stage Assessment Aug 2010 Develop Action Plan for Gap Closure Pre-assessment RC14001 1st Stage Assessment Train PIC Employees HSE&S Risk Identification Promote RC Culture within PIC External Auditor 15

Phase 1: Planning and Assessment Establish the Responsible Care Implementation Committee (Engaging multi discipline functions) Internal Auditors Training to the Committee Members on RC14001 Management System Review RC-14001 Technical Specification (Auditor Guidance RC 152.03) GPCA RC Self assessment for PIC PIC RC14001 Internal Audit assessment

Phase 1: Planning and Assessment 2. Define the Scope and Boundaries of RC14001 certification 3. Brainstorming Session to Define PIC RC Stakeholders & Communication Plan 4. Update PIC integrated HSEQ&S Policy to comply with RC14001 Requirements- Signed by the C&MD

PIC integrated HSEQ&S Policy

Phase 2: Closing the Gaps & Building Capabilities 2. Conduct Distribution Risk Review (DRR) Assessment for PIC Products Product Stewardship across the Value Chain Distribution Code- Link to Other Codes Product Stewardship across the Value Chain Petrochemical Industries Company 2012

Phase 2: Closing the Gaps & Building Capabilities 1. Conduct PIC Vulnerability & Security Assessment (SVA) for the Plant, Head Office and the Social Gathering Center (Boubyan Club) Petrochemical Industries Company 2012

Phase 2: Closing the Gaps & Building Capabilities 3. Develop the RC14001 Internal Audit Checklist and the applicability matrix A tool has been developed to help complete a self-assessment of the requirements. Applicability, Does this apply to your department? If NO, then N/A If YES, Do we meet this requirement? (state how?) If NO, How will we meet this requirement in the future? Establish CAR if needed? Petrochemical Industries Company 2012

Corporate Responsible Care Governance Phase 2: Closing the Gaps & Building Capabilities Corporate Responsible Care Governance Leadership & Commitment Policy Insert L/C & Policy Requirements Level-I Policies Manual Insert Responsible Care Management System Requirements Level-II Procedures Manual Specify details Here Revise Procedures & WIs’ Level-III Departmental Procedures

Phase 2: Closing the Gaps & Building Capabilities 4. Include Responsible Care Management System requirements in the Integrated Management Systems Manual Define an integrated role matrix for the RC management systems. (Subject Matter Expert AND Resp Care – Applies to Who? ) Petrochemical Industries Company 2012

Phase 2: Closing the Gaps & Building Capabilities 5. Responsible Care Communication Articles in the Company Magazine Newsletters on Quarterly basis Campaign to Stakeholders (presentation, brochure, posters, booklets……) RC awareness sessions (internally & externally) RC webpage in PIC website, and intranet Customers satisfaction survey Effectiveness Survey for Communication Process Responsible Care/ HSE&S Legal Phrase in Contracts Petrochemical Industries Company 2012

Phase 2: Closing the Gaps & Building Capabilities 6. Document Control: Develop the scheme for RC structure in the IT system (Achiever Plus) Include Security and transportation risks in the Aspects and Impacts register. Petrochemical Industries Company 2012

Phase 3: Responsible Care MS Sustainability & Benefits

Phase 3: Responsible Care MS Sustainability & Benefits After Certification Lost interest in RC Great control plan

Phase 3: Responsible Care MS Sustainability & Benefits Responsible Care Effectiveness:

Phase 3: Responsible Care MS Sustainability & Benefits Quality

Phase 3: Responsible Care MS Sustainability & Benefits

Phase 3: Responsible Care MS Sustainability & Benefits

Summary Responsible Care® Value to PIC Responsible Care® / HSE&S is integrated into PIC’s strategies and culture including Sustainable Development Responsible Care® / HSE&S sustainability via PIC’s management systems and leadership accountability Responsible Care® / HSE&S is adaptable to different business models including acquisition integration and JV’s Responsible Care® / HSE&S provides competitive advantage and value as well as facilitating an industry leadership position Responsible Care® / HSE&S applies to all relevant business related activities – Operations, Product, Supply Chain, Purchasing, etc.

At PIC, Responsible Care ® / HSE&S Is Everyone’s Responsibility Thank you Q & A ?