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The Path to Zero: Transforming Safety & Reliability Culture in the Energy Industry

Explore Enbridge's journey post-Marshall Incident as they rebuild safety culture from the core out, highlighting challenges, responses, and the forging of a new safety culture framework for a complex industry setting. Discover how Enbridge achieved "Best-In-Class" performance while navigating change.

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The Path to Zero: Transforming Safety & Reliability Culture in the Energy Industry

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  1. Path to Zero The Many Steps of Change October 11, 2017 Peter Lineen – Director, Health, Safety & Emergency Response

  2. Enbridge North America’s Premier Energy Infrastructure Company • $165B enterprise value • Liquids: 30,320 km (18,840 miles) of pipe; ~2.8 MMbpd • Gas: 165,600 km (102,899 miles) of gas pipelines; ~3.5M customers • Green Energy: ~3,000 MW generating capacity • $70B+ secured growth + development projects • Merged 2 companies,12 Business Units into 4 • Approximately 15,000 employees Enbridge Spectra Liquids long-haul Liquids long-haul Gas long-haul Gas long-haul G&P pipelines G&P pipelines Processing plants Processing plants Geothermal power Gas storage facility Wind assets Crude storage Solar assets NGL storage Gas distribution Gas Distribution Terminals / storage Propane terminals Power transmission Slide reflects pro-forma combination with Spectra Energy. For more information please refer to the presentation and news release dated September 6, 2016 which is available on Enbridge.com

  3. Our Path to Zero Our system is perfectly designed to get the results we get Marshall Incident Our Response Marshall Incident Our Response Present Challenges 3

  4. The Marshall Incident A Defining Eventfor Enbridge, Industry, and all of our Stakeholders The Marshall incident prompted us to reassess and rebuild from the core out https://www.ntsb.gov/investigations/AccidentReports/Pages/PAR1201.aspx In July 2010, Line 6B ruptured, spilling 20,000 bbls of oil near Marshall, MI In 2010 Enbridge’s success had been built on a 60-year track record of strong safety performance The company had a long-standing strong “tone from the top” about safety We believed we had a good reputation in the safety and reliability domain We thought we were safety leaders

  5. Our Response Since the Incident • Re-focusedon Safety & Reliability from a Priority to a Value • Governance restructured to heighten focus on Safety & Reliability • Board Safety & Reliability Committee; • Operations & Integrity Committee; Others • Strategic clarity (“SOAP”, “Best-In-Class”) • ESOR created to provide central focus and oversight of Safety & Reliability areas • Occupational & Contractor Safety • Pipeline & Facility Integrity • Crisis & Emergency Response • Risk • Defining & Embedding Cultural Artifacts

  6. Enbridge Safety Foundations & Alignment Foundation: Focus Areas for Early Alignment Enterprise-Wide • Values • Health & Safety Principles • Lifesaving Rules • Foundational Safety Stories • Human Factors • An Integrated Management System Common Framework • Incident Severity Classification • Metrics and Performance Reporting • Standardized safety metrics • Tied to STIP • Reported monthly to OIC

  7. Present Challenges with Competing Resources Achieving “Best-In-Class” Performance While Navigating Change • 2017 Acquisition/Merger and integration • Results Delivery Office & Decision Making • Strategy and SOAP for each BU • Principals of Integration • Advancing on the Improvement Curve • Progressing and maturing culture in complex industrial settings • 2017 Acquisition/Merger and integration • Results Delivery Office & Decision Making • Strategy and SOAP for each BU • Principals of Integration • Advancing on the Improvement Curve • Progressing and maturing culture in complex industrial settings Source: https://www.neb-one.gc.ca/sftnvrnmnt/sft/sftycltr/sftycltrsttmnt-eng.html • 2017 Acquisition/Merger and integration • Results Delivery Office & Decision Making • Strategy and SOAP for each BU • Principals of Integration • Advancing on the Improvement Curve • Progressing and maturing culture in complex industrial settings

  8. Enbridge Safety Culture Framework Forging our Path Forward • Legacy approaches • Awareness and limitations • Assigned team reviewed multiple frameworks • Perception plus actual activity • Interfacing with partners (industry and regulators) • Cultural dimensions examined in depth • Traits – Attributes - Characteristics • Measurement methods developed • Piloting approach:Q4 – 2017 • Liquids and Gas Operations (US & CAN) • Broader application 2018 • Share with industry post application

  9. Closing Statements Putting It All Together Foundations First: Cornerstone to culture. A lot of work. Honour the Existing Cultures:Understand and preserve elements from joining organizations while establishing a unified culture Stakeholder Consistency

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