STRENGTH IN NUMBERS… Fleet Safety Benchmarking Collaborating to Reduce Crashes, Injuries, and Fatalities Jack Hanley Executive Director Network of Employers for Traffic Safety (NETS) International Conference on Road Safety at Work Washington, D.C. February 17, 2009

Contents STRENGTH IN NUMBERS… 1  Background and mission………………………2  Profile of participating companies…………….3  Benchmark objectives………………………….4  Business case…………………………………..5  Scope…………………………………………….6  Types of drivers and types of vehicles……….7  Metrics and Program Elements……………….9  Best practices summary  CPMM, Program Elements results  Critical success factors  Statistical analyses  Summary and conclusions

STRENGTH IN NUMBERS… STRENGTH IN NUMBERS… Fleet Safety Benchmarking  Started in 1994  Mostly big pharma in early years  Funded by J&J through 2006  Funded by Monsanto Co  2008  Under auspices of Network of Employers for Traffic Safety  Collect global and by-country benchmark data Mission is to reduce crashes, injuries, fatalities among member companies and to model safe driving in the communities where member companies operate 2

Profile of Participating Companies  Pharma  Ag  Automotive  Beverage  Chemical  Consumer  Delivery/Logistics mgmt  Insurance  Medical  Manufacturing  Oil  Service 28 Companies 249,000 Total Vehicles 6 Billion Total Miles Driven 104 Countries Anonymity is maintained STRENGTH IN NUMBERS… 3

STRENGTH IN NUMBERS… STRENGTH IN NUMBERS… Benchmark Objectives  Improve the vehicle safety record of participating companies  Establish common definitions to permit cross-comparisons  Be a vehicle safety role model to other companies and organizations  Share best practices among participants  Provide a network to assess and resolve vehicle safety-related concerns/issues  Provide a network to assess the benefits of emerging vehicle technologies  Provide resources to assist companies wanting to develop a road safety program Share best practices to put in place a cost effective, integrated, and comprehensive vehicle safety program 4

Justification/Business Case STRENGTH IN NUMBERS… eco3  eco3 eco  economic cost of crashes eco  economic cost of poor driving habits  eco  ecological cost to the environment 5

Benchmark Scope 1.Metrics  By country 2.Program Elements  By country/world area  Light Vehicles  Sedans, SUVs, Pick-up Trucks, Mini-vans  Medium (10,000-25,999 lbs.)  Heavy (>26,000 lbs)  2 and 3-wheeled motorized STRENGTH IN NUMBERS … 6

STRENGTH IN NUMBERS… STRENGTH IN NUMBERS… Categories of Drivers Covered by Survey Written policy in place by region % US (22) % M/C (13) % EMEA (14) % AP (12) % LA/CA (12) Employees driving a company vehicle 100%92%93%92% Employees driving personal/rental on business 86%77%79%83% Family members driving a company vehicle 73%46%43%42% Contractors driving on company business 50%46%43%50% Passengers 45%62%57%67% 7

Written policy in place by region % US (22) % M/C (13) % EMEA (14) % AP (12) % LA/C A (12) Light vehicles 100% Medium vehicles 68%77%71%75% Heavy vehicles 50%54%50% 2/3-wheel vehicles 36%62%57%58% STRENGTH IN NUMBERS… Types of Vehicles Covered by Survey 8

Metrics Collisions  Collisions  46,734 Total  Composite: 8.34 CPMM  Range : CPMM Injuries  Injuries  1,334 Total  Composite: 0.25 IPMM  Range : IPMM Fatalities  Fatalities  9 Total % of Fleet in Crash  % of Fleet in Crash  Composite: 20%  Range : 1-31% STRENGTH IN NUMBERS… 9

 Policies  High risk drivers  Collision review process  Driver education/training  Commentary Drives  Crash review process  Deductible charge policy  Use of technology  Vehicle safety features  Metrics reporting process  Severity indices  Vehicle safety communication  Vehicle safety outreach programs  Green fleet initiatives  Vehicle safety critical success factors  Telemetrics and telematics STRENGTH IN NUMBERS… Benchmark Program Elements Statistical analysis is done to determine which Program Elements correlate to lowest CPMMs 10

Universal Practice  Seatbelts Best Practices (Statistically significant) 1.Complete mobile phone ban by ALL LEADING companies 2.Collision reviews required by ALL LEADING companies Additional commonalities from 5 leading companies  Seat belts and air bags  Training for tenured drivers  Classroom format used  Immediate manager involved  Follow-up action required  Lessons learned shared  Mgmt meeting presentations Best Practices (Based on lowest CPMMs) STRENGTH IN NUMBERS… 11

CountryFleet % GT FleetsCollisions % GT Collisions United States114,55848%20,41144% France8,7984%2,5325% Japan8,4294%1,7595% Germany7,7383%2,0964% Italy7.4333%2,2135% Mexico6,9213%1,9854% United Kingdom6,3043%1,3433% Spain5,0402%1,4553% Brazil4,9952%3411% Canada4,6032%7172% Russia4,0172%9842% Total SIN Fleet238,46646,73420% STRENGTH IN NUMBERS… Fleet Size and Collision Frequency 12

STRENGTH IN NUMBERS… 2007 CPMM by Company  APMM Range: 0.48 to  27 companies  Company numbers assigned by APMM  Based on passenger-vehicle data 13

STRENGTH IN NUMBERS… 2007 CPMM by Country APMMs by Country (Passenger Vehicles) BRAZIL CANADA FRANCE GERMANY ITALY JAPAN MEXICO RUSSIA SPAIN UNITED KINGDOM UNITED STATES Country APMM

STRENGTH IN NUMBERS… CPMM by World Region 15

Policies in place % US (26) % M/C (15) % EMEA (15) % AP (13) % LA/CA (13) Driver training for new hires 69%80% 77% Driver training for tenured drivers 92%100% Commentary drives 58%60%67%62% Collision reviews, for on-the-job collision 85%80%73%77% Collision reviews, for off-the-job collision 42%27%13%15% Periodic motor vehicle record checks 88%67%60%54% Remedial action for high risk drivers 81%80%73%69% Deny employment based on high risk records 69%40%33%23% Termination for DUI/DWI conviction 88%67% 62% Restrict or ban phone/telematic use 88%87% 85% STRENGTH IN NUMBERS… Fleet Safety Policies 16

Written policy in place % US (26) % M/C (15) % EMEA (15) % AP (13) % LA/CA (13) Yes 85%87%93%92% Mobile Phone Policy STRENGTH IN NUMBERS… 17

Written policy in place by region % US (22) % M/C (13) % EMEA (14) % AP (12) % LA/CA (12) Ban the use of any type of mobile phone equipment unless vehicle is stopped and parked 41%31%29%33% Permit the use of hands-free mobile phone equipment while driving 59%69%71%67% Ban vs. Permit Hands-free STRENGTH IN NUMBERS… 18

Reasons for not banning phones % Companies (13) Management hasn't been asked to ban all phone use 8% Management is not aware of the research 8% A ban would be too difficult to enforce 85% A ban is unrealistic; mobile phones are a fact of life 77% Reasons for Not Banning Mobile Phones STRENGTH IN NUMBERS… 19

Check phone records after collision % US (22) % M/C (13) % EMEA (14) % AP (12) % LA/CA (12) Yes, all collisions 9%8%7%8% Yes, but only for injuries 5%8%7%8% Yes, but only for serious or fatal injuries 32%38%36%42% Phone Records for Collisions STRENGTH IN NUMBERS… 20

Data reported to % US (26) % M/C (15) % EMEA (15) % AP (13) % LA/CA (13) Fleet management 81%67%53%62% Field management 73%67% 69%62% Drivers 46%33%27%23% Senior management 92%100% Safety staff 85%93% 92% Severity index in place % US (26) % M/C (15) % EMEA (15) % AP (13) % LA/CA (13) Yes 15%27% 31% Reporting and Severity STRENGTH IN NUMBERS… 21

Green fleet program in place % US (26) % M/C (15) % EMEA (15) % AP (13) % LA/CA (13) Yes 42%47%53%54% If yes above, program components include: % US (11) % M/C (7) % EMEA (8) % AP (7) % LA/CA (7) Evaluate/quantify greenhouse gas emissions 91%100%88%86% Set reduction goals 64%71%63%57% Educate drivers 73%43%38%29% Limit the use of 4x4s and SUVs 64%29%25%14% Add greener vehicles to fleet options 82%71%75%57% Vehicle upgrades for choosing green fleet vehicles 45%14%13%0% Cash incentives for choosing green fleet vehicles 18%29%25%29% Purchase greenhouse gas credits 9%0% STRENGTH IN NUMBERS… Green Fleet Programs 22

Choose one# of Companies Senior management support 16 Field management support 5 Driver training 3 Strong policies 1 High risk program 1 Use of metrics to set goals 1 Incentives 0 STRENGTH IN NUMBERS… Critical Success Factors ( Fleet Safety Manager Opinions) 23

Statistical Analyses Results STRENGTH IN NUMBERS… Based on the 2006 and 2007 data years, the following correlate best with low CPMMs…  Frequent measuring of CPPM  Reporting of serious crashes to senior management  Frequent training of company drivers  Total cell phone use ban Note: There is no correlation between fleet size and CPMM 24

STRENGTH IN NUMBERS… STRENGTH IN NUMBERS… Summary and Conclusions STRENGTH IN NUMBERS STRENGTH IN NUMBERS Benchmark Program  Administered by Network of Employers for Traffic Safety  Annual survey  Global membership  Comprehensive  Metrics and Program Elements  Low cost/high return  For all fleet sizes, public and private organizations  Engages People, Processes, and Technology  Includes 2 newsletters  Annual post-benchmark best practices conference STRENGTH IN NUMBERS For information on participating in NETS’ STRENGTH IN NUMBERS Benchmark program, please QUESTIONS? 25