1. Responsible Care Performance Metrics Kashif Rasheed Senior Consultant Lloyd’s Register EMEA 24 September 2012

2. 2 Responsible Care Performance, Metrics Definitions, Data Analysis, Results and Q&A Background Guidance Document Overview and EH&S Performance Measurement Categories Scope of data received and analyzed Value of Metrics, Definitions and Data set analysis by Category Summary

3. 3 Background Lloyd’s Register being a third party and having extensive experience in independent assurance reviews, was assigned with responsibility to gather, analyze and benchmark this data for today’s workshop. Lloyd’s Register was provided data without companies identification. LR Team worked with the RC Metrics sub-committee to develop the contents of this workshop. All data inputs provided by GPCA member companies are treated without any modifications/corrections.

4. 4 Guidance Document Overview and EH&S Performance Measurement Categories Content of Guidance Document: Metric Value Units of the Metric Definitions Member Reporting Instructions 5 Categories (21 Indicators) Occupational Safety (6) Process Safety(3) Emissions / Discharges to Environment (8) Resource Utilization (3) Distribution Incidents (1)

5. 5 GPCA Metrics Current Template

6. 6 Gulf Petrochemicals & Chemicals Association-GPCA GPCA Members-Performance Metrics-Consolidated Performance Metrics - 2010 Metric Name Employee Fatalities Lost Time Injury Incident rate for Employees OSHA Recordable Cases Incidence Rate for Employees Contractor Employee Fatalities Process Safety Incidents Process Safety Total Incident Rate (PSTIR) Hazardous Waste for Disposal Non-Hazardous Waste for Disposal Quantity of Waster Water discharged to Environment Discharges to Water - Chemical Oxygen Demand Process Water Consumption Assigned PM Key A1A2A3A4B1B2C1C2C3C4D3Comments Full Members M-0200.080.4100020,840453003.03 M-0300000015.9831.2076,530.50NR0.18 M-0400.7051.410NR 0592128,604NR1.7073 M-0506.070.21000140120109,0001.70.331 M-06000020.4291250526,2207.480.684 M-07000000301.7206.6334,103,11220,046.21.606 M-0802.450.220NR 110.2828642,204NR1.15 M-1000.0360.14000223.388139.0081,473,6601774.46 M-110000150.08342656912,300,856792.87 M-1300.221.1600NR143.43445.41,270,20029.722.08664 M-16000.420NR 22762NR1521,116,216 M-17000.320NR 142,1226,1882,086,555156.54.37 M-18NR 0 0.28NR 001,30861647,249NR1.09 M-1910.200.26480.15377,544100,2895,892,925133,36044.37 M-2006.030.260NR 34,667222.5007.2 M-21000.070NR 4,9191,802007.44 M-2300.00 0NR 576 268001.53 M-250.0 NR 186540.00 1.53 M-2600000014600013.920.69 M-29000.2086000748888380,454,181.508,423.6 Total603,856112,9891,639,111,297154,0231,124,726 Legend: NR - NOT REPORTED

7. 7

8. 8 2010 EH&S Data Received Phase I Submittals 20 / 24 companies participated 97.5% 57.5% 93.75%

9. 9 2011 EH&S Data Received Phase II Submittals 19 / 24 companies participated 100 % 80.7% 93.8% 96.5%

10. 10 2010/2011 EH&S Data Received 94 % 88 %

11. 11 Occupational Safety

12. 12 Value of Occupational Safety Metrics They are important to stakeholders. They are measures of the most severe and significant safety factors. They are proven safety metrics, universally used. They can be used as a basis to demonstrate performance improvement. They have high benchmarking value

13. 13 Occupational Safety Definitions Employee Fatalities: Death, regardless of the time between injury or exposure and death or length of the illness, caused by a work-related event or exposure Recordable Injury Incident Rate: Defined as the number of OSHA recordable incidents for each 100 full-time employees per year based on 2,000 hours worked per employee per year. Annual # of Recordable Injury Cases x 200,000 employee hours Annual number of employee hours worked Lost Time Injury Incident Rate: Defined as the number of lost workday Injury incidents for each 100 full-time employees per year, based on 2,000 hours worked per employee per year Annual # of Days Away from Work Cases x 200,000 employee hours Annual number of employee hours worked

14. 14 GPCA Member Company, Occupational Safety Data Set Analysis (TRIR=Total Recordable Incident Rate) Arithmetic AVG.* = 0.27 7 Reporting Zero Actual AVG. TRIR = 0.17 Arithmetic AVG. * = 0.426 Key Messages: TRIR low for most companies and 35% report a “zero” incident rate *TRIR AVG. derived from taking actual average instead of using incidents and man-hours

15. 15 GPCA Member Company, Occupational Safety Data Set Analysis (TRIR=Total Recordable Incident Rate) 2011 TRIR for Contractor Employees TRIR AVG.* 0.34 7 Reporting Zero Key Messages: TRIR low for most companies and 37% report a “zero” incident rate *TRIR AVG. derived from taking arithmetic average instead of using incidents and man-hours

16. 16 2010 and 2011 Occupational Safety Performance Benchmarks

17. 17 2010-2011 Key Messages - Occupational Safety Actual number of injuries and man-hours worked are needed to calculate GPCA overall TRIR In 2010 88% of the data requested for this category was received from 83% of member companies (20 out of 24) In 2011 100% of the data requested for this category was received from 79% of member companies (19 out of 24) A large percentage of GPCA companies report a zero incident rate. Some inconsistencies in data set indicate a need for uniform understanding of definitions (22 LTIs & 6 Recordables, 10 LTIs and 4 Recordables)

18. 18 Occupational Safety Panel Q&A

19. 19 Process Safety

20. 20 Process Safety – Value of Metrics Are important to stakeholders Provide a measure to benchmark across industry Demonstrates performance improvements

21. 21 Process Safety Incident An unplanned or uncontrolled release of any material, from a process that results in one or more of the consequences listed below: 1. An employee or contractor LTI, and/or fatality, or hospital admission and/or fatality of a third party (non-employees/contractor). 2. An officially declared community evacuation or community shelter-in-place; 3. Fires or explosions resulting in greater than or equal to $25,000 of direct cost to the company, or; 4. An acute release of flammable, combustible, or toxic chemicals greater than the chemical release threshold quantities

22. 22 Process Safety Definitions ……Cont. Process Safety Incident Count (PSIC): The count of all incidents which meet the definitions of a Process Safety Incident. Process Safety Total Incident Rate (PSTIR): The cumulative (annual) count of PSI normalized by man-hours. Number of PSI in a year x 200,000 Total Man-hours Employees & Contract Employees Process Safety Incident Severity Rate (PSISR): The cumulative (annual) severity- weighted rate of Process Safety Incidents PSI normalized by man-hours. Total Severity Score for all PSI in a year x 200,000 Total Man-hours Employees & Contract Employees

23. 23 What Is Severity Level? Consequences of PSI Incident Severity Level from CCPS Table 2 Recordable Injury to Employee or Contractor4 Lost Word Day ( Lost Time) Injury3 Fire or explosion resulting in direct cost 100,00 to 1 Million $3 On Site Fatality employee or contractor2 Fire or explosion resulting in direct cost > 10 million $1

24. 24 GPCA Member Company, Process Safety Data Set Analysis Key Messages: Wide variance in numbers reported indicate understanding needed on definitions & Data capturing. Not Reported : 8 9 reporting zero Not Reported: 3 9 reported zero 2011 Number of Process Safety Incidents

25. 25 2010-2011 Key Messages Process Safety Data not sufficient to establish trends or use as benchmarks. Additional data sets to be requested to make meaningful comparisons. Members to review their internal systems for data capturing/recording.

26. 26 Process Safety Panel Q&A

27. 27 Environmental Emissions/Discharges

28. 28 Emissions and Discharges Value of Metrics: Hazardous and Non Hazardous Waste for Disposal: primarily a measure for the efficient use of resources Discharge to Water - Quantity & Chemical Oxygen Demand: reflects the potential adverse impact on the aquatic environment Sulphur Oxides (SOx) and Nitrogen Oxides (NOx): This core measure is identified in the Responsible Care Global Charter. It is important to external stakeholders and relatively easy for members to report. It is a regulatory requirement in most areas.

29. 29 Discharge to Water - Quantity & Chemical Oxygen Demand (COD): Waste water discharged to the environment directly or through a third party water treatment facility and the amount of COD in the discharged waste water. Sulphur Oxides (SOx) and Nitrogen Oxides (NOx): Annual emissions inventory for criteria pollutants, NOx and SOx, for those company sources within facilities that are required to prepare and submit annual emissions inventory as per their respective permitting / regulatory requirements

30. 30 Environmental Data Reporting – 2010 & 11 85 % 82 %

31. 31 Emissions and Discharges Key Messages In 2010 94% of the data requested for this category was received from 83% of member companies (20 out of 24!) In 2011 94 % of the data requested for this category was received from 79% of member companies (19 out of 24!) Extreme variations in submitted data – possible need for understanding of metric definitions. Data quality/quantity not sufficient for benchmarking

32. 32 Environmental Emissions & Discharges Panel Q&A

33. 33 Resource Utilization

34. 34 Resource Utilization Value of Metric: Energy Efficiency: It is an important measure for global stakeholders. It is also tracked by many other reporting tools and systems. This speaks to sustainability issues. Process Water Consumption This ICCA core measure is identified in the Responsible Care Global Charter. This is important to external stakeholders. It is also a clear new generation metric.

35. 35 Resource Utilization Definitions Use of Energy (Tons of Fuel oil Equivalent; TOE) Total energy consumed at GPCA member company facilities. This includes purchased non feedstock power and energy from combustion of waste or by product streams. Energy recovered from the process is not considered as consumed energy. Detailed calculation methodology is attached to the guidance document Process Water Consumption : The total amount of water pumped, piped, or otherwise brought on site for use in manufacturing activities and not returned to the water source from which it was withdrawn.

36. 36 Resource Utilization - Data Set Analysis Key Message: Data Sets with huge variations demands a better understanding of metrics definitions. 100 % 94.7 %

37. 37 Resource Utilization Panel Q&A

38. 38 Summary Quantity of Data inputs received are encouraging Analysis identifies the need for a better and uniform understanding of the metrics definitions Use this workshop to share and learn from each other Contractors engagement for this campaign is essential.