SABTANK’s RESPONSIBLE CARE THE UNCHARTED FRONTIERS

1. SABTANK’s RESPONSIBLE CARETHE UNCHARTED FRONTIERS Initiation to Certification Workshop December 11-12, 2012 Dubai

2. Introduction-Topics of the Presentation Topics • SabTank in Sabic Value Chain • Global Charter & SabTank-Gaps • RC 14001 Gaps • Ship-Shore Checklist • Jetty Booklet • Hazard Communication Program • GPCA’s Product Stewardship Code • Communication Across Value Chain • Certifications

3. Sabic’s Value Chain Order Fulfillment

4. Shipping Operations

5. SabTank’s Responsible Care-Global Charter & Us Adopt Global Responsible Care Initiative Core Principles Gap # 1: Reach out to every sector of the life cycle with appropriate tools to minimize harm to people & the environment • The Core Principles commit companies and national associations to work together to: • Continuously improve the environmental, health and safety knowledge and performance of our technologies, processes and products over their life cycles so as to avoid harm to people and the environment. • Use resources efficiently and minimize waste. • Report openly on performance, achievements and shortcomings. • Listen, engage and work with people to understand and address their concerns and expectations. • Cooperate with governments and organizations in the development and implementation of effective regulations and standards, and to meet or go beyond them. • Provide help and advice to foster the responsible management of chemicals by all those who manage and use them along the product chain. The full life-cyclefor a product describes all stages from resource extraction and processing/packaging, through to transportation, use and ultimate disposal. Gap # 2: Develop an effective inter-communication system designed to involve all People People: Employees Suppliers Communities Customers/Users Gap # 3: Align strategically with Governments & Organizations with a robust and effective two-way dialogue program Communication Gap Absence of a two-way communication protocol

6. SabTank’s Responsible Care-Global Charter & Us Implement Fundamental Features of National Responsible Care Initiative Programmes • Each national chemical association establishes and manages its own Responsible Care Initiative programme based on a set of eight common fundamental features. They are: • Establish and implement a set of Guiding Principles that member companies sign. • Adopt a title and logo that are consistent with Responsible Care Initiative. • Implement management practices through a series of systems, codes, policies or guidance documents to assist companies to achieve better performance. • Develop a set of performance indicators against which improvements can be measured. • Communicate with interested parties inside and outside the membership. • Share best practices through information networks. • Encourage all GPCA member companies to commit to and participate in Responsible Care Initiative. • Introduce and apply systematic procedures to verify the implementation of the measurable elements of Responsible Care Initiative by member companies. • Industry leaders support the national associations in the fulfillment of these fundamental features. The Charter defines specific commitments consistent with the fundamental features. Gap # 4: Development of Codes and guidance documents to implement best management practices fulfilling the regional needs as well as aligned with international initiatives Lack of Codes & Guidance Documents. Gap # 5: Develop program for systematic verification of member companies Lack of Systematic procedures.

7. SabTank’s Responsible Care-Global Charter & Us Commit to Advancing Sustainable Development Responsible Care Initiative is a uniquely designed initiative that enables the chemical industry to make a strong contribution to sustainable development. Through improved performance, expanded economic opportunities, and the development of innovative technologies and other solutions to societal problems, the industry will continue taking practical steps to implement initiatives in support of sustainable development. The industry will expand its dialogue with stakeholders to identify additional opportunities to contribute to sustainable development through Responsible Care Initiative. The chemical industry recognizes the important contribution that can be made through capacity building of the sound management of chemicals to achieve sustainable development goals. The industry will continue to support national, regional and international initiatives to advance these goals. Gap # 6: Effective communication and networking strategy with stakeholders Absence of an effective program for stakeholders involvement Gap # 7: Effective capacity building program at awareness, skill and decision-making levels Capacity Building measures not in place Gap # 8: Establish an effective two-way communication protocol with international agencies like UNO, UNEP, UNEDP etc. to absorb sustainable development goals into regional programs No clear communication channels with national, regional & international agencies

8. SabTank’s Responsible Care-Global Charter & Us 4. Continuously improve and report performance Gap # 9: Ensure integration of RC requirements under the Plan-Do-Check-Act cycle of member companies management systems • Chemical companies that implement Responsible Care Initiative will: • Adopt a management systems approach to implement their Responsible Care Initiative commitments consisting of the internationally accepted elements of Plan-Do-Check-Act. • Utilize clean and safe technologies and processes when building new plants or expanding their current facilities around the world. • Go beyond self-assessment of the implementation of Responsible Care Initiative and adopt verification processes carried out either by associations, government bodies or other external organizations. No methodology to ensure management system approach Gap # 10: Ensure integration of measures designed for using safe and clean technologies into member companies business processes Lack of mechanism Lack of clear mechanism for future verification processes Gap # 11: Develop an effective and workable plan for independent verification of member companies

9. SabTank’s Responsible Care-Global Charter & Us 5. Enhance the Management of Chemical Products Worldwide – Product Stewardship • Product stewardship issues will increasingly shape the Responsible Care Initiative in future years. The ICCA will establish a strengthened global programme to evaluate and manage chemical-related risks and benefits by developing a unified product stewardship management system approach. National associations, working with their member companies, will commit to this concerted global effort by establishing processes for Responsible Care Initiative companies to: • Re-commit to full implementation of current Responsible Care Initiative product stewardship commitments, including all existing codes, guidelines and practices. • Improve product stewardship performance and increase public awareness of the industry’s commitments and results. • Develop and share best practices through mutual assistance. • Work in partnership with upstream suppliers and downstream chemical users to collaborate on improved processes for the safe and effective uses of chemicals. • Encourage and sustain support for education, research and testing approaches that will yield useful information about the risks and benefits of chemicals through such initiatives as the High Production Volume chemical testing program and the Long-range Research Initiative. • Implement enhanced product stewardship commitments consistent with the ICCA’s Global Chemicals Management Policy, and periodically assess product stewardship practices in the light of evolving societal expectations for chemical products. Gap # 12: Develop an effective Product Stewardship Program incorporating ICCA’s requirements and initiatives on Global Chemicals Management

10. SabTank’s Responsible Care-Global Charter & Us 6. Champion and facilitate the extension of Responsible Care Initiative® along the chemical industry’s value chain Responsible Care Initiative® companies and associations commit to promoting the Responsible Care Initiative ethic, principles and practices along their own value chains and communicating the importance of the industry’s economic and social contributions. Chemical companies and national associations commit to increase dialogue and transparency with their business partners and other stakeholders and to expand knowledge and understanding of the management of chemicals. They will also work in partnership with national governments, multi-lateral and non-governmental organizations to define mutual assistance priorities and share access to information and expertise. The global chemical industry will develop and share information and practices across companies consistent with competition law and other legal requirements. Gap # 13: Develop an effective program for systematic collaboration with all the entities No mechanism in place for working with national governments, multi-lateral and non-governmental organizations

11. SabTank’s Responsible Care-Global Charter & Us 7. Actively support national and global Responsible Care Initiative governance processes. The chemical industry, through the ICCA, commits to an enhanced, transparent and effective global governance process to ensure accountability in the collective implementation of Responsible Care Initiative. The governance process will be implemented by the ICCA and will incorporate such issues as tracking and communicating performance commitments; defining and monitoring the implementation of Responsible Care Initiative obligations; supporting national association governance; helping companies and associations to achieve Charter commitments; and establishing a global process for revoking, when necessary, the Responsible Care Initiative status of any company or association that fails to meet its commitments. Gap # 14: Develop an annual report program in alignment with the requirements of element 7 of the Global Charter No Annual Reporting System

12. SabTank’s Responsible Care-Global Charter & Us 8. Address stakeholder expectations about chemical industry activities and products. The global chemical industry will extend existing local, national and global dialogue processes to enable the industry to address the concerns and expectations of external stakeholders to aid in the continuing development of Responsible Care Initiative. Gap # 15: Develop an effective dialogue processes with stakeholders Absence of an effective process for dialogue with stakeholders

13. SabTank’s Responsible Care-Global Charter & Us 9. Provide appropriate resources to effectively implement Responsible Care Initiative. Responsible Care Initiative is the signature performance initiative of the chemical industry and will have an increasingly important part to play as a basis for the industry’s views in societal and regulatory discussions. Companies participating in Responsible Care® Initiative must support and meet the requirements of the regional/national programmes and provide sufficient resources for implementation. Gap # 16: Develop a guidance for the member companies on the types of resources needed with approach towards synergy. No proper identification of resources neededfor RC

14. SabTank’s Responsible Care-Global Charter & Us In progress Accomplished Accomplished In progress Accomplished

15. SabTank’s Responsible Care-Global Charter & Us

16. Being Specific-RC 14001 Gap Analysis • Strengths: • Good management systems. • Environmental programs in place • H&S programs in place • Weaknesses: • Security management system severely lacking • Gaps in Policy e.g. GPs, Stakeholders etc. • Transportation risks • Stakeholders’ perspective • Communication with stakeholders • Product Stewardship • Qualification and review of carriers, suppliers, distributors, customers, contractors and third-party providers

17. Addressing the Gaps-Policy Policy

18. Tackling the Basics of Product Stewardship • MSDS • MSDSs’ were provided by the affiliates. • The available MSDSs’ were mostly one-page, few were as long as three-pages. • Mostly were prepared by the labs of the affiliates or provided by the affiliates’ partners. • These partners include companies like Shell, Exxon, Celanese etc. • None of the MSDSs’ were of recommended format.

19. OSHA’s Recommendation • OSHA's Hazard Communication Standard (HCS) specifies certain information that must be included on MSDSs, but does not require that any particular format be followed in presenting this information (29 CFR 1910.1200 (g)). • In order to promote consistent presentation of information, OSHA recommends that MSDSs follow the 16-section format established by the American National Standards Institute (ANSI) standard for preparation of MSDSs (Z400.1). • By following this recommended format, the information of greatest concern to workers is featured at the beginning of the data sheet, including information on chemical composition and first aid measures

20. Responsible Care Journey Affiliates approached to provide the recommended format MSDSs’. Time-frame given by the affiliates was not reasonable. SabTank decided to explore its own options. Based on OSHA’s recommendations, SabTank decided to adopt a uniform structure for MSDS SabTank subscribed to Genium Publishing Company’s MSDS database MSDS for all thirty-five chemicals handled at that time were downloaded.

21. Case Study-SabTank OSHAS’s recommended 16-Section ANSI Format A database of over 48 chemicals maintained over the last 13 years Intensively being used in training and HazCom programs Essential element of the loading operations

22. Case Study-SabTank Information is being used as part of the Ship-shore checklist Ship-Shore Checklist is a classic example of an effective use of MSDS information

23. Case Study-SabTank Section 1.1 exclusively highlights the Terminal regulations related to EHS Within this section there is a caution which states “ We would especially draw your attention to those regulations applying to emergency procedures and pollution measures. Please note: In a pollution incident cause by the vessel, the vessel will be responsible for the cleanup costs incurred by all parties which can be expected to amount to a minimum of US$ 1MM in addition to any fines imposed by the authorities”. This section is signed by the Master/Chief Mate of the vessel.

24. Case Study-SabTank Section 1.3 deals with Cargo Operation Plan Agreement One of the section/column is related to the Vapor Control System

25. Case Study-SabTank Section 1.5.1 details Ship/Shore Checklist

26. Case Study-SabTank Section 1.5.1 details Ship/Shore Checklist Various sections within this section deals with: Bulk Liquid General-Physical Checks Bulk Liquid General-Verbal Verification Bulk Liquid Chemicals Bulk Liquid Gases

27. Case Study-SabTank Section 1.5.2 details requirements related to Ship Port Pre-Arrival Fitness Verification Various sections within this section deals with: Master’s Responsibilities Bridge and Navigational Equipment Life Saving Appliances Accommodation Main & Other Deck Areas Working Spaces Engine Room

28. Hazard Communication Another document which carries important EHSS information is the Jetty Booklet

29. Hazard Communication Jetty Booklet Various sections within this section deals with: Pre-Arrival Requirements Approached to the Port Berthing Operation Emergency Procedures Pollution Safety and Security Procedures Operations at Berth Marine Vapor Combustion System (MVCS) Mooring Plans Berth Layout Sketched

30. Hazard Communication Jetty Booklet At the start of the booklet, WARNINGS are explicitly written: Smoking Arrestment of Vessels and Drugs Alcohol and Drugs Pollution Communications

31. Case Study-SabTank Jetty Booklet • Section 8-Emergency Procedures: • Responsibilities • Jetty Emergency Alarm • Vessel Emergency Alarm • Crew Evacuation from Vessel • Actions by the Ship or Terminal Personnel • Applicable Emergencies: • Fire on board own ship, another ship or on the jetty • Power failure ship/shore including jetty control system failure • Oil or Chemical spill on the deck • Gas release on the vessel or jetty • Bomb threat to vessel or jetty area • Terrorist Activity on the vessel or jetty • etc

32. Hazard Communication Jetty Booklet Section 9-Marine Vapor Combustion System (MVCS): General Policy General Rules Visual Monitoring of Ballast Discharge Anti-Pollution Equipment Reporting of Chemical and Oil Spills Pollution Clean-up Cleanup Costs

33. Case Study-SabTank Jetty Booklet Section 12-Marine Vapor Combustion System (MVCS): Description MVCS Vapor Collection Hose/MLA Dimensions Chlorinated Hydrocarbons VDU Vapor Collection Hose Dimensions

34. Hazard Communication Hazard Communication Program SabTank also has a robust Hazard Communication Program, which addresses issues within and outside the fence line.

35. Hazard Communication GPCA’s Product Stewardship Code SabTank applies the Codes of Management Practices of GPCA;s Product Stewardship Code. This code has 12 Management Practices.

36. Product Stewardship Communication Packages

37. Communication Across the Value Chain The Value Chain Product Stewardship BUSINESS Awareness of Hazards & Risks of Products Distribution Networks

38. Communication Across the Value Chain Interpretation of Data: • LEL/UEL: A range within which the air-vapor mixture catches fire provided ignition source is present • Below LEL and beyond UEL the mixture will not catch fire even if the ignition source is present • At flashpoint, LEL is reached and the mixture becomes explosive • At Autoignition temperatures, the chemical will catch fire even if the source is not present • Vapor pressure is the direct measure of vapors in vapor space • At boiling point, the vapor pressure reaches 760 mm of Hg. Flash Point Autoignition Temperature Lower Explosive Limit-LEL Upper Explosive Limit-UEL Vapor Pressure Boiling Point

39. Communication Across the Value Chain Interpretation of Data-Example-Methanol: • At flash point of 12C, LEL of 6% is reached which makes the methanol-air mixture explosive. • From LEL of 6% to UEL of 36% the mixture remains in the explosive range • Below LEL of 6% the mixture is too lean to catch fire. • Beyond UEL of 36%, the methanol-air mixture is too rich to catch fire. • Methanol catches fire in the presence of air at 464C even if the ignition source is not present. • The vapor pressure of 97.66 mmHg at 20C reaches 760 mmHg at 64.7C which is the boiling point. • Vapor density shows that the leaking Methanol vapors will settle down on the ground level especially in humid and still weather. Flash Point: 12C Autoignition Temperature: 464C LEL: 6% (V/V) UEL: 36% (V/V) Vapor Pressure: 97.66 mmHg @ 20C Boiling Point: 64.7C Formula Wt.: 32.04 SG: 0.81 Vapor Density: 1.11

40. Communication Across the Value Chain Product Stewardship Value Chain Different Literacy Levels Plants & Facilities Technical-Can translate info from MSDS BUSINESS Transportation Routes Non-Existent Knowledge Communities in the vicinity of plants and along the transportation routes Non-Existent Knowledge

41. Communication Across the Value Chain Value Chain Product Stewardship Very little technical knowledge Warehouses Distribution Networks No knowledge Farmers No knowledge

42. Communication Across the Value Chain Value Chain Product Stewardship Number of Packages to be developed: Highly Technical (Plant Personnel) Semi-Technical (Warehouse Personnel) Non-Technical (Distribution Networks & Communities) Non-Educated (Farmers)

43. Communication Across the Value Chain Product Stewardship Across the Value Chain Number of Packages to be developed: Highly Technical (Plant Personnel) MSDS or equivalent will serve the purpose

44. Communication Across the Value Chain Product Stewardship Across the Value Chain Number of Packages to be developed: Semi-Technical (Warehouse Personnel) Mix of easy technical terms written in different languages will serve the purpose

45. Communication Across the Value Chain Product Stewardship Across the Value Chain Number of Packages to be developed: Non-Technical (Distribution Networks & Communities) A mix of simple written instructions with pictures

46. Communication Across the Value Chain Product Stewardship Across the Value Chain Number of Packages to be developed: Non-Educated (Farmers) A package with pictograms

47. Communication Across the Value Chain Product Stewardship Across the Value Chain Number of Packages developed: Highly Technical (Plant Personnel) Semi-Technical (Warehouse Personnel) Non-Technical (Distribution Networks & Communities) Non-Educated (Farmers) Must be part of the Facility’s: Hazard Communication Program Training Program Audit Program Management Review Process

48. Communication Across the Value Chain Product Stewardship Across the Value Chain GPCA’s Product Stewardship Code: Provides basis for: Framework for establishing an effective Product Stewardship Program Capitalizing on existing management system approach Leadership involvement in the program

49. Case Study-SabTank Certifications SabTank became the first company in the region to achieve third-party Responsible Care Certification. This was accomplished in the year 2008. ISO 14001 OHSAS 18001 ISO 9000 RC 14001 ISPS CDI-T Yanbu CDI-T Jubail

50. GPCA’s Responsible Care Initiative For more information visit http://www.gpca.org.ae or GPCA’s Responsible Care website at www.gpca.org.ae/responsiblecare or call Tahir Jamal Qadir, Director Responsible Care at 00971 567799281 or email at tahir@gpca.org.ae or responsiblecare@gpca.org.ae