Responsible Care Implementation The Sipchem Story

1. Responsible Care ImplementationThe Sipchem Story

2. Purpose & Values Purpose: Sipchem aims to be a responsible, innovative and globally recognized petrochemical company providing competitive and quality products to satisfy our customers, motivate our employees and meet Shareholders' expectations. • Values: • Adhere to highest ethical standards, embracing integrity, trust and taking responsibility for Sipchem's actions. • Strive for operation excellence in delivering products and services. • Embrace innovation and adapt to changing conditions. • Care for the well being of Sipchem's employees, community and environment.

3. Sipchem Responsible Care and Quality Policy

4. Sipchem December 2001 • 25 employees • Grass Roots Plants • Grass Roots Company • No policies, No standards, No procedures…. just a vision We Started with a blank Sheet of Paper, Industry Standards and Experienced Leaders 3

5. Responsible Care Journey • 2003 • 2004 • 2005 • 2006 • Systems Needed for a Safe Startup • PSSR • Permit to Work • Emergency Response • MOC • High Priority Systems implemented • Commissioned Methanol Plant ahead of schedule • No Process Safety Incident • No Safety Incident • PSM Vision • Achieve World Class PSM Performance through: • Operational Discipline • Line Management Responsibility • Employee Participation • Use the OSHA PSM Standard as guide • In house development • Build & Reinforce on existing systems • Quality and Environmental Vision • Integrate Quality and Environmental initiatives. • Achieving; • Continual improvements • International Standard Recognition thru ISO 9001 and 14001 certification 4

6. Sipchem Management Systems in 2010 Before Integration & Transformation Security Procedures Process Safety Management (Included “Employee Health & Safety”) Quality and Environmental Management System • Linkage between the three Silos not well defined • No formal procedures/system for; • Distribution • Product Stewardship • Community Awareness & Emergency Response outside the fence 5

7. Documentation Structure • Defined the Document Hierarchy • Established guidelines for Sipchem PSM Management System Standards • Written in the end state • Included Element KPI’s • Established review & Approval Process 6

8. Integration and Transformation • Security Procedures • Process Safety Management Quality and Environmental Management System Security Procedures Process Safety Management Quality and Environmental Management System 7

9. Sipchem Management System in 2011 After Integration & Transformation • Employee Health & Safety QEMS • CAER • Distribution • Security • PSM • CAER • PSM QEMS Product Stewardship • Distribution Product Stewardship • Security • Employee Health & Safety Responsible Care and Quality Management System Policy Statement 8

10. Strategic Goals Guide Lines Figure 1 Objectives & Policies Management System Standards Level 1 Technical Standards Functional Standards Corporate Work Processes, Corporate Functional Procedures Level 2 Departmental Work Processes, Departmental Functional Procedures Level 3 Level 4 Work Instructions Records Documentation Structure • Defined the Document Hierarchy • Established guidelines for Sipchem Responsible Care and Quality Management System Standards • Written in the end state • Established review & Approval Process 9

11. How did we do it? Where did we start? • Commitment by CEO • Appointment of Responsible Care Manager and full time Responsible Care Coordinator • Appointment of Executive to GPCA Responsible Care Committee • Capital funding made available • “World Renowned” consultants utilized 10

12. Management of Change Process Implemented: • Executive Sponsors and Subject Matter Experts (SMEs) identified for Codes and GAP analysis completed • EH&S Committee redesign ----Over 100 employees directly involved • Selection and use of SME Consultants to help close specific GAPS • New Committees formed to address Gaps • Integration Process Launched with focus on RC&QM Roadmap Development with New Standards / Procedures • Build on Deputy Management Representative (DMR) organization created for QEMS • Training • Communication, Communication, Communication 11

13. Roadmap and Scope of Document Changes 12

14. Audit Strategy Developed • Implemented an Integrated Internal Audit Process • Auditor Training • PSM Auditor • QEMS Auditor • RC14001 Auditor • Bundled certifications with single registrar • Minimum 5 years experience required for RC14001 Lead Auditor 13

15. New Responsible Care and Quality Management Documents • Policy Statement • Responsible Care and Quality Policy Statement • Standards • Development and Control of Management System Documents • Responsible Care and Quality Roles and Responsibilities • Product Stewardship • Commercial Partner Standard (Procurement) 14

16. New Responsible Care and Quality Management Documents • Nine Distribution Safety Standards • Sipchem Distribution Safety Management System • Distribution Safety Roles and Responsibilities • Distribution Risk Management • Complying with Distribution Safety Regulations • Securing Chemicals in the Distribution Chain • Chemical Handling in the Distribution Chain • Selection and Management of Distribution Service Providers • Preparation and Response to Distribution Incidents • Managing Chemical Deliveries and Customer Provided Transportation 15

17. General Orientation and Specific Training • Executive Team Orientation – 30 minute overview/refresher plus reading materials • General Orientation included in Corporate Safety meeting materials – Mandatory for all Departments and Employees ….Approximately 1 hour • “Inside the Fence Line” Specific training - 12 revised standards and 4 new Standards – Mandatory for DMRs and Managers …..1/2 day. • Distribution Safety Specific training - 9 new standards – Mandatory for Distribution functions, Marketing, Procurement, Responsible Care, Security, Training and Public Relations / Communications 16

18. Areas Improved in 2012 • Awareness of Aspects & Impacts • Management ownership and support • Affiliates and departments participation • Monitoring and reporting • Monitoring and Measurement Standard • Employee reporting • Stakeholders communications • Distribution, Product Stewardship and Care Codes • System improvement such as SAP-EHS & Stature 17

19. Focus Areas for 2013 • Cascading of objectives/targets and action planning by functional areas • Audit program improvements including RCA and corrective action planning • Monitoring and measurements – Inspection, test, and PM programs for Safety and PSM equipment • Compliance with procedures • Emphasis on accountability for RC&Q Management from Executives down to employees • Use of leading indicators such as CAMEL 18

20. Thank You