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HSE Performance of contractors

HSE Performance of contractors. Viktória Márton GHSEA 14 November 2007. Content. MOL Group HSE Policy MOL Group HSE performance 2007 Contractors’ HSE performance 2007 MOL Group HSE expectations 2008. 2. MOL Group HSE Policy.

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HSE Performance of contractors

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  1. HSE Performance of contractors Viktória Márton GHSEA 14 November 2007

  2. Content • MOL Group HSE Policy • MOL Group HSE performance 2007 • Contractors’ HSE performance 2007 • MOL Group HSE expectations 2008 2

  3. MOL Group HSE Policy The HSE Policy is the highest Group level committment in our Health, Safety and Environment Management and applies to all our business Units, controlled subsidiaries and contractors as a basis for setting their HSE targets, objectives and programs. „Health, safety and environmental protection (HSE) is an integral part of the management philosophy of MOL Group. Considering HSE matters as any core business issues enables us to implement our corporate values and to achieve business excellence following the same approach wherever we do business.” 3

  4. MOL Group HSE Policy • to continuously improve our HSE performance, • to have a preference for suppliers and business partners complying with our HSE policy and standards, especially in case of long term partnerships, • to communicate openly

  5. MOL Group HSE performance H1 2007 Actual 2007* = Week 39 (end Q3) ** = with/ without near misses & road accidents 5

  6. Main causes of MOL Group LTIs in H1 2007 Other Pedestrian traffic within technological facilities Maintenance Pedestrian traffic in buildings Operating and servicing of machines, equipment, technologies, facilities Vehicle traffic at depots or at technological facilities • 37% of LTIs are derived from maintenance, 28% from pedestrian traffic at MOL Group out of 14 LTIs in H1 2007 6

  7. Contractors’ HSE performance 2007 • Till 19 October 2007 • Early warning: Time proportionate contractor LTI figure is nearly the same as 2006 data • Contractors’ has almost the same number of injuries as MOL Group employees • No serious contractor injury in 2007 7

  8. Contractor LTI with high injury potential 2/1 • On 23.08.2007. employees of a contractor and its two subcontractors were eliminating an illegal drainage on product pipeline near Balástya village, when the trench wall fell down covering a subcontractor employee fully and a main contractor employee partially. • Antecedents: • Surroundings of the drainage was excavated by dredger on 21 August • Size of the trench was 3x4x2,5m, there was a dirt road and a channel near the trench • Due to 10 bar overpressure the employees did not start repairing the pipeline • The incident: • The work restarted 2 days later (23 August) • The side wall of the trench slid burying two employees 8

  9. Contractor LTI with high injury potential 2/2 • Causes: No backslope was prepared because: • the employees intended to save the nearby channel and dirt road and • The days before this work they worked in smaller (90cm deep) trenches where backslope construction was not first priority Work should have not been allowed in the trench • Corrective action: • Internal regulation was prepared for earth works (detailing responsibilities) 9

  10. Contractors’ HSE performance 2007 • Till 19 October 2007 • The same trend as in LTIs 10

  11. Contractors’ HSE performance 2007 * In 2006 a tank explosion was caused by contractor work, this incident was NOT classified as contractor fire case **Till 19 October 2007 11

  12. MOL Group Strategic HSE Goals 2006-2010 HEALTH • Execute Workplace Health Promotion Program for at least 75% of MOL Group employees by 2010 SAFETY • Lost Time Injury Frequency (LTIF) target for MOL Group to be in first quartile among peer group or at least to be < 1 by 2008 • By implementing defensive driving culture, Road Accident Rate (RAR) target for MOL Group by 2008 is to be in first quartile among peer group • HSE pre-qualification of all key contractors by2008 (to have the same HSE performance at contractors as in MOL Group by 2010) ENVIRONMENT • Decrease amount of known (end Y2004) environmental provision-based liabilities by 90% till 2015 • Development of standardised waste management practice with reducing waste quantities and increasing ratio of reuse and recycling • Achieve integrated water management (with focusing on protection of freshwater resources) • Optimize greenhouse gas emissions and support the increase of renewable energy utilisation GOVERNANCE • Establishment and operation of Sustainable Development Framework in the Group • Compliance with Group HSE standards at high risk businesses by 2010 • Move company HSE culture towards generative approach • Set up HSE leading indicators for Group level and all business segments by 2008 12

  13. Group HSE Objectives & Targets for 2008 • Health protection: • No work related fatal accident in MOL Group (staff, contractors and 3rd parties) • Total reportable occupational illness frequency (TROIF) equal to zero • Each business unit contribute to get involved at least 40% of employees in workplace health promotion program • Safety • Lost time injury frequency (LTIF) no more than 1.0 • Road accident rate (RAR) not more than 2.3 • Incident inquiry should reach at least 80% • Long term suppliers (beyond 1 year) should be HSE pre-qualified • Each business unit should set and apply at least one Process Safety leading indicator • Environmental protection: • Each business unit should set Waste Management leading indicator • MOL Group’s environmental liabilities as known at the end of 2007 should be reduced by 6.0 bn HUF in 2008 • Reduce CO2 emissions by 1% as a direct result of GHG reduction initiative(s). • Reduce Group level fresh water intake by 10%

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