CHANGING BEHAVIOUR IS THE KEY TO THE SUCCESS OF THE HSE MANAGEMENT SYSTEM

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INDEX

1. ARENDAL

2. CONSTRUCTABILITY

3. MANAGEMENT SYSTEM

4. DOCUMENT SYSTEM

5. BBS (BEHAVIOR BASED SAFETY)

6. GOLDEN RULES

7. OLA (ORDER, CLEANLINESS AND ARRANGEMENT)

8. INCENTIVE PROGRAM: OVATION

9. VISUAL SAFETY LEADERSHIP

10. INCIDENT MANAGEMENT

11. HEALTH, SAFETY AND ENVIRONMENT POLICY

12. SAFETY WALKTHROUGH

13. COMMUNICATION SYSTEM

14. RISK CONTROL

15. RISK MANAGEMENT – INDUSTRIAL HYGIENE

16. TRAINING

17. ARENDAL HSE SYSTEM IMPLEMENTATION STOYBOARD

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Our philosophy has built a Mexican company with the technical capacity to undertake specialized projects and the human sense that allows us to have a high degree of efficiency and customer service that lets us provide our clients with world-class quality.

Communication issues, due to the complexity and size of the project and diverse languages represented. Cultural integration among Mexicans, Brazilians, Italians, Venezuelans and other cultures Different perceptions of risks and approaches to mitigate them Lack of local HSE culture and cultural barriers to safe practices Strong influence of unions Presence of unskilled workforce High standards associated with every customer around the world (Malaysia, EUA, Europe and Mexico)

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Experience in the development of

infrastructure investment projects.

Arendal provides services throughout the energy sector, based on

its high capabilities of execution of complex

projects.

Considering a workforce of more than 1,000

people situated in seven active projects.

More than 120 projects executed throughout Mexico, all of them

finished on time and within budget scopes.

Over two million work hours without any

accident.

The first Mexican company that has

completed seven Shore Approach in just one

year.

Our commitment in Arendal is with the values of Safety, Health and Environment, and this commitment is proportional to the size of the Project, always focused on the elimination and control of work related hazards, the protection of the environment, and the health of our workers. At all Project’s levels, this commitment is institutionalized in the Health, Safety, and Environmental Integrated Management System, which lays out the processes of prevention, mitigation and response to incidents and hazards and the promotion of a healthy, safe and productive workplace that respects our natural resources.

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“Constructability” is the safe and complete realization of technical and commercial aspects, while managing expected costs and terms, by elaborating a robust and consistent implementation plan, analyzing the “plot plan,” “layout,” construction methods, potential safety hazards, project implementation plan, and its chronogram in order to avoid surprises in the construction phase. The aim of constructability is to achieve the following targets by influencing the project design:

Improve safety Improve quality Improve security Reduce costs

“Constructability” was an integral part of our project development process in detailed engineering and construction start-up. From a health and safety point of view, this approach anticipated and proposed actions implemented with a vision to reducing and / or eliminating any potential dangers:

1. Weather impact mitigation

2. Modularization

3. Pre-assembly

4. Pre-dressing

5. Task force to identify correct types of construction tools for carpenters and steel-fixers to mitigate an initially poor trend of recordable cases

CONSTRUCTABILITY

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Health, Safety, and Environment Management System

The Arendal Safety, and Environment management system establishes a set of policies, standards, procedures and controls to enable us to identify and consistently monitor risks and potential HSE hazards, reduce incidents, comply with legal norms, and generally improve business performance. In other words, we seek to strengthen prevention with a focus on results, discipline, and knowledge sharing, while promoting an improved HSE culture and maximizing efficiency. Our HSE Management System is essential to achieve our goal of zero incidents and is based on best practices of commitment, leadership, communication, training, and performance measurement.

MANAGEMENT SYSTEM

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It is well known that most occupational accidents are caused by unsafe acts and / or risky behaviors. For that reason, the promotion and consolidation of safe behavior among workers is one of the key elements of any prevention system. BBS is an observation and positive feedback process used to perform a job safely through behavior modification, seeking to change risky behavior to safe habits. Our BBS program is a work method aimed at:

Identifying safe behaviors necessary to the activity.

Systematically disseminating these behaviors in a way that promotes workers perceiving them as relevant to personal safety.

Pointing out to the workers risky behaviors that occur during job execution and promoting the change of a risky behavior to a safe behavior.

Identify and eliminate behavior change barriers, i.e. sources of human error

Our program also contains as a reference the “Basic List of Site Safe Behavior,” as well as the “Discipline Scheme Purpose for Intolerable Behaviors or Serious Intolerable Behaviors,” to support us in the identification of safety behaviors and the type of safety breaches which should be sanctioned according to the identified risk.

These specific targets support us in the fulfillment of overall objectives:

Working in a structured manner to achieve the goal of zero incidents, i.e. reducing the possibility of accidents.

Creating and / or bringing to life a collective security awareness, an authentic culture of prevention.

BBS (BEHAVIOUR BASED SAFETY)

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GOLDEN RULES

SECURITY STARTS WITH US, TAKE CARE!

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In Arendal, this tool allows us to monitor and evaluate if the areas of operation are maintained in an orderly, clean and well-arranged manner, in order to prevent accidents.

With this aim, HSE professionals and leaders or supervisors of the area inspect site conditions at least once per week, evaluating performance and compliance rates at each work site according to the OLA checklist and established HSE criteria, as shown in the following table:

PERCENT FOUND EQUIVALENT

MENTION ICON

When compliance percentage is higher or equal to 70%.

Satisfactory

When compliance percentage is 50% to 70%.

Requires improvement

When compliance percentage is lower than 50%.

Poor

•Commitment Matrix

OLA (ORDER, CLEANLINESS AND ARRANGEMENT)

The purpose of the tool is to structure the HSE routine, defining minimum requirements, activities and responsibilities of leadership. Leadership is understood as those professionals with workers under their direct charge, such as foremen, supervisors, coordinators, managers, and directors. These Leaders must fulfill HSE activities established for each position contained in the project responsibility matrix.

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INCENTIVE PROGRAM: OVATION

This tool is meant to recognize and improve the worker´s level of awareness and commitment through formal recognition, promoting the hard work. In this way, we seek to establish a safe working environment that protects the physical integrity and health of workers, as well as the environment.

OVATION exists since 2019 in Arendal

OVATION in the office: 18

OVATION in seven different projects:

98

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VISUAL SAFETY LEADERSHIP

Detection of unsafe acts and conditions,

awareness-raising talks, participation of upper and middle management and

the rest of the line of command committed to

work safely.

The culture of Zero accidents on based on the commitment of everyone

in Arendal in the prevention of accidents.

Safety is a condition of employment.

The culture of Zero accidents on based on the commitment of everyone

in Arendal in the prevention of accidents.

Effective follow-up of the action plan is ensured by

registering the information in SIGA, a platform that

aids in tracking the status of each accident and

verifying actions taken.

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INCIDENT MANAGEMENT

To meet the goal of Zero Accidents, Arendal developed and important digital tool, known as SIGA, to record and manage the investigation process and incident analysis.

Part of SIGA is based on the accident investigation technique, which involves the search for the root cause of the incidents. It provides reliable and standardized information, which helps to create a timeline of the Work hours without incidents.

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HEALTH, SAFETY AND ENVIRONMENT POLICY

Arendal has designated health, safety, and environment (HSE) as essential Project objectives. These three objectives govern all activities of the Project with its employees, clients, partners, subcontractors, suppliers, local communities, lenders and other parties involved.

Arendal is committed to ensuring our workplace, services, and installations meet current legal requirements and the highest HSE standards. This is the goal to meet during all phases of the Project, from engineering and procurement to construction and start-up.

The purpose of the HSE Management System is to guarantee fulfilment of this policy.

The commitment of Arendal is:

Our Health, Safety and Environment Policy provides the foundation of our commitment to the well-being of our workers, our natural environment, and our stakeholders. Safety is everyone's responsibi- lity and, for that reason, requires a strongly established safety cultu- re. With that in mind, our responsibility is to sensitize our workers and their families in the importance of respecting and following safety guidelines, both in their jobs and daily lives.

•Implement and maintain the HSE Management System based on this policy. •Promote and incentivize a work environment focused on responding proactively and positively in all matters relating to HSE, that extends to all those who participate in the Project. •Monitor continually compliance with the HSE policy of Arendal. •Set objectives and targets to achieve continuous improvement in Project activities, establishing significant and effective behavioral and performance indicators to achieve that improvement. •Deliver induction, education and training programs on HSE to Project personnel. •Guarantee that health, safety and environment have a decisive role in the planning of activities and decision-making of Arendal. •Promote and develop initiatives and campaigns aligned with the policy, involving communities and local authorities, directed at the preservation of the cultural heritage of the region.

COMMUNICATION SYSTEM

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SAFETY WALKTHROUGH

The management commitment to health, safety and environment is manifested in the weekly walkthrough conducted in every area of the project. This initiative aims to evaluate the level of functioning of the HSE system in site and establish points to improve. At the end of each walkthrough, the management holds a meeting, in which the site leader presents findings and areas of opportunity. The participation of various levels of supervision promotes knowledge of HSE procedures and reinforces a strong HSE culture.

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RISK MANAGEMENT – CONTINGENCY PLAN

The Arendal HSE department is dedicated to anticipate, recognize, evaluate and control the exposure of its members to various physical agents and/or chemical contaminants in their workplace to avoid damage to their health in the short, medium and long term (occupational illnesses).

“WE ARE HERE FOR YOU, STAY HOME FOR US”

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TRAINING

A training matrix was developed based on job profiles and occupational hazards identified in the different phases of the project. The training strategy is aligned with project objectives and the Integrated HSE Management System. Training courses and immediate induction courses to continual professional development and specific HSE and skill-based education. To meet the goal of HSE, Arendal developed “Universidad Arendal” (Arendal University), a digital tool that provides courses to the employees.

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ARENDAL HSE SYSTEM IMPLEMENTATION STORYBOARD

HSE Indicator have great importance in every Project, these help to ensure compliance with the goals established by Arendal. Arendal has defined the HSE indicator that support every Project commitment. Such as Frequency Index (LTI), Severity Index and Visual Safety Leadership.

Through a lot of Company effort, awareness and capacitation, Arendal went from above 2.9 LTI in 2016 to 0 in 2020

ARENDAL HISTORICAL SAFETY INDICATORS

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ARENDAL is committed to improve continuously the efficiency of its operations, having for this, an Integrated Management System with innovative and lean processes and procedures, ensuring compliance with the established requirements within the works that are executed. We focus all our efforts towards to achievement of successful, safe and committed projects with the environment, complying at time and satisfying the requirements and expectations of our customers, partners and shareholders and other stakeholders. Arendal establishes a commitment to the prevention of injuries and illnesses of our collaborators, preventing pollution, controlling environmental impacts, compliance with legal requirements and other applicable requisites. We participate actively fulfill the objectives of the Organization, always aligned with the vision and values of ARENDAL.

Presented by: Julio Cezar Alves Duarte Diego Díaz Miramontes Fryne Figarola Ledesma Karla Rodríguez González Samuel Ronquillo Carreón