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8/13/2019 Per Metrics

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Performance Metrics Report

for 2010 to 2012Published November 2013


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GPCA adopted ResponsibleCarein 2010 and committed tomeasure and report on

21 different metrics in aphased program over4years.


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1

This publication provides an overview of the dataprovided by GPCA members for 2010 to 2012.

Lloyds Register worked with the PerformanceMetrics Sub-Committee to produce this publication.

Contents

Message from the Chairman 2

Respondents 3

Performance Metric Reporting A GPCA Journey 4

Performance Metrics and Implementation Phases 6

Participation 7

Occupational Safety and Health 8Process Safety 10

Emissions and Discharges 11

Resource Utilization 11

Responsible CareSuccess Story Borouge 12

Responsible CareSuccess Story Sipchem 14

Responsible CareSuccess Story CHEMANOL 15

Responsible CareSuccess Story SABIC 16

Responsible CareSuccess Story PIC 17

Responsible CareSuccess Story GPIC 18

Summary 20


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It gives me immense pleasure and satisfaction to share the first everGPCA Responsible CarePerformance Metrics Report. Since thebeginning of Responsible Careby GPCA in 2009 significant progresshas been made. The release of this metrics report signifies one of manymajor milestones for GPCA and participating member companies aspart of the Responsible Carejourney.

In 2013, GPCA members reported 19 out of 21 performance metrics.By 2014, members will be reporting all 21 metrics; complying with100% Responsible Carereporting requirements.

The journey that we started in 2010 was by no means an easy onebut the commitment of GPCA members, especially the task forcemembers, has been overwhelming. I firmly believe that the work doneon Responsible Careis a practical way to demonstrate that we careabout our people, the environments and the communities in whichwe operate.

I want to also thank Lloyds Register for creating this independentoverview of GPCA members performance and highlighting the areasthat need our attention to move forward towards excellence.

I am sure that with our sincere efforts we will make a difference increating a better world for the generations to come.

Mohamed Al-Mady

ChairmanBoard of Directors

Message from the Chairman

we careabout ourpeople, the

environmentsand thecommunitiesin which weoperate.

2

Performance Metrics Report for 2010 to 2012Published November 2013


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Respondents

Members 2010 2011 2012

Abu Dhabi Polymers Company Limited (Borouge) 3 3 3

Advanced Petrochemical Company (APC) 3 3 3

Al-Bayrouni 3 3 3

CHEMANOL 3 3 3

EQUATE Petrochemical Company 3 3 3

Farabi Petrochemical Co Ltd 3 3 3

Gulf Petrochemical Industries Company (GPIC) 3 3 3

Kemya 3 3 3

National Industrialization Company (TASNEE) 3 3 3

National Petrochemical Industrial Co (NATPET) 3 3

Petrochemical Industries Company (PIC) 3 3 3

Petro Rabigh 3 3 3

Petrokemya 3 3 3

Qatar Chemical Co Ltd (Q-Chem) 3

QAFAC 3

Qatar Petrochemical Company Ltd (QAPCO) 3 3 3

Qatar Vinyl Company Ltd Q.S.C (QVC) 3 3 3

Sahara Petrochemicals 3 3 3

Saudi Basic Industries Corporation (SABIC) * 3 3 3

Saudi Chevron 3 3 3

Saudi International Petrochemical Company (Sipchem) 3 3 3

Sharq 3 3 3

Yenpet 3 3 3

* Sites reported multiple data sets.

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Continuous improvement, reporting ofEnvironmental, Health and Safety (EHS)performance and transparency are fundamentalelements of the GPCA Responsible Careinitiative. The GPCA Guiding Principles whichare aligned with the ICCA Global Charter define

the vision for petrochemical and chemicalmanufacturers in the region as follows:

In 2010, the GPCA Responsible CareCommitteecommissioned a task force of subject matterexperts from member companies representativeof the region, with the objective of translating thisvision into a system to capture and openly reportEHS performance.

The task force adopted a strategy of building

on commonly reported performance measures,aligning with global trade associations andphasing in new value added metrics over time.The task force developed a guidance document,aligned with all GPCA member companies andthe first Performance Metrics Guidance Documentwas published by GPCA in the third quarterof 2010. It defines the performance measures,provides guidance in calculating the metric andoutlines requirements for reporting. The phasedapproach has given member companies time todevelop and implement management systems tocollect data and report as required by GPCA.

The metrics reporting cycle representing 2010,2011 and 2012 has now been completed. Datasubmitted has been consolidated, analyzedand a report generated with the help of anindependent third party consultant, LloydsRegister. All data submitted has been maintainedanonymously by GPCA throughout the process.It is noteworthy that a high level of participationby member companies during this first cycle ofreporting demonstrates the spirit of sharing and

cooperation across GPCA member companies.

With the publication of the Metric ReportingGuidance Document and the collection of theinitial performance metrics, the work by the taskforce was deemed complete. In the interest ofcontinuous improvement GPCA transformed thetask force into a sub-committee. The objectivesof the sub-committee are to help membercompanies gain better understanding of theGuidance Document, analyze the collected data,identify industry trends, establish additionalvalue added measures and most importantly toaid member companies in sharing best practices.

With the dedication and commitment of themember companies to the Responsible Careguiding principles, the EHS performancereporting program is now established andthe region can take pride in being one of thefew trade associations that have reached thismilestone in such a short time.

Performance Metric ReportingA GPCA Journey

To measure performance,openly report, make continualprogress towards our goal ofeliminating accidents, injuriesor harm to human health and

the environment from ourproducts and operations.

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2012 Performance Metrics Sub-Committee

Mr. Maher Al Dughaim Chemanol Committee Chairman

Mr. Jassim Darwish Gulf Petrochemical Industries Company (GPIC) Vice Chairman

Mr. Tariq Alauddin Saudi International Petrochemical Company (Sipchem)

Mr. Qasim Yunus Saudi Basic Industries Corporation (SABIC)

Mr. Andrew Blue Lloyds Register

Mr. Ridha Behbehani EQUATE Petrochemical Company

Mr. Sudhir Sivarajan Abu Dhabi Polymers Company Limited (Borouge)

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Performance Metrics and Implementation Phases

Categories Metrics

Number of metrics reported

Phase 1

2010

Phase 2

2011

Phase 3

2012

Phase 4

2013

Occupationalsafety and health 6 4 6 6 6

Process safety 3 2 3 3 3

Emissions anddischarges 8 4 6 6 8

Resourceutilization 3 1 3 3 3

Distribution 1 - - 1 1

Total 21 11 18 19 21

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5categories.

21metrics.


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Participation

20 out of24 companies participated 19 out of24 companies participated2010

0

40

80

40

23

80 78

Occupational safety(4)

Process safety(2)

8075

Emissions/discharges(4)

Resource utilization(1)

Datasetssubmitted

Performance metric category

5755

Required Reported

0

40

80

57

46

114 114 114107

Required Reported

5755

Occupational safety(6)

Process safety(3)

Emissions/discharges(6)

Resource utilization(3)


Datasetssubmitted

20

40

60

80

100

120

60 58

120 115 120 120

Required Reported

Datasetssubmitted


60 60

20 140

Occupationalsafety (6)

Processsafety (3)

Emissions/discharges (6)

Resourceutilization (3)

Distribution(1)

0

100

200

300

Required Reported

Datasetssubmitted


257

231

2010 Phase I

342322

2011 Phase II

380367

2012 Phase III

20 out of24 companies participated

7

2011

2012

2010 to 2012 combined


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Total Recordable Incident Rate

The most important and widely recognizedlagging health and safety indicator is TotalRecordable Incident Record (TRIR). This is animportant metric because:

stakeholders expect to see it, it is a proven safety indicator used universally, it can be used as a basis to demonstrate

performance improvement, and it has a high benchmarking value.

Occupational Safety and Health

2010 to 2012 combined TRIR for company employees Based on 200,000 man-hours worked

0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

TRIR

value

GPCA member companies 20112010 2012

0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

TRIR

value

GPCA member companies 2011 2012

2011 to 2012 combined TRIR for contractor employees Based on 200,000 man-hours worked

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Key messages

To compute overall averageincident rates for the GPCA membercompanies, the metric committee hasrequested member companies provideinformation on total man-hoursworked, a number which goes into theTRIR formula.

GPCA member company performanceis comparable and better than the USResponsible Carecompanies.

GPCA, through a series of plannedcommunications and workshops, ishelping member companies to alignoccupational safety and health metricsmeasurements and records.

Performance benchmarks

The graph below compares data for TRIR fromUS manufacturing companies, US chemicalcompanies, US American Chemistry Council(ACC) member companies and GPCA member

companies.

US manufacturing ACC employees ACC contractors GPCA employees GPCA contractors

TRIR

value

0

1.00

2.00

3.00

4.00

US chemical

2010 TRIR 2011 TRIR 2012 TRIR

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Chemical and petrochemical manufacturing companiescontain inherent safety risks which, if not contained, canresult in catastrophic incidents. Process safety performancemetrics measure the effectiveness of risk managementpractices implemented by the organizations to pro-activelycontrol inherent risks. The three metrics in this metric posses

high value because they:

are important to stakeholders, provide a measure to benchmark across industry, and demonstrate performance improvements.

Process Safety

Process safety performance

Process safety incident

A process safety incident is an incidentinvolving hazardous or toxic materialswhich results in a damage greater than$25,000. A lost time injury or fatality orrelease of material above a predefined

threshold quantity is classified as aprocess safety incident.

Key messages

Process safety metrics are relatively new, createdand issued by the AIChE/CCPS in 2007, and issuedas an API standard in 2010. GPCA has adoptedthe AIChE/CCPS guidelines and it is encouragingto see most member companies measuring andreporting process safety metrics despite thisbeing a new metric globally.

As the systems for measuring processsafety metrics mature within GPCA companies,additional details about the incidents in terms ofseverity will be shared and reported.

Process

safetyincidents

0

5

10

15

20

GPCA member companies 2010 2011 2012

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Emissionsand Discharges Resource Utilization

Protection of the environment is a key elementof Responsible Care. Measurement of materialsdischarged indicate the adverse impact of GPCAmember companies operations on the environmentand identify opportunities where it can be minimized.The selected eight emission and discharge metrics

are important because they show the impact ofactivities on pollution and global warming and:

reflect the potential adverse impact on theaquatic environment,

are a core measure in the Responsible CareGlobal Charter (NO

x), and

are a regulatory requirement in most areas.

2010 to 2012

Member companies were asked to report waterconsumption, energy efficiency and total energyconsumed. These new generation metrics areimportant because:

they are an important measure for global

stakeholders, they relate to sustainability issues, and water consumption is identified as an

International Council of Chemical Associations(ICCA) core measure in the Responsible CareGlobal Charter.

2010 to 2012

Key messages

Most member companies are measuring andreporting the metrics for emissions andresource utilization. In view of the varyingregulatory requirements in the GPCA region,the data reported by member companies

is not currently comparable. The SMEs on themetric sub-committee are working with membercompanies to standardize this data. Workshopsand training is planned in this area.

2010 2011 2012

Total GPCA region reported emissions (tons): Sulfur dioxide 5,659 12,080

Nitric oxides 21,701 20,093

Total reported energy consumption (tons of fuel oil equivalent) 88,105,623 169,042,028

Total reported hazardous waste generated (tons) 603,856 373,926 412,993

Total reported water consumption (million M3) 1,124,726 1161233

30

60

90

120

2010 2011

8068

114

94

120 120

2012

Required Reported

0Datasetssubmitted

20

40

60

80

2010 2011

20 20

57 5460 60

2012

Required Reported

0Datasetssubmitted

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Transitionfrom laggingto leading

indicators.

We measureand weimprove!

Responsible Care Success Story

Borouge has been measuring and reporting Environment, Health,Safety and Security (EHS&S) performance since the start of itsoperations in 2002. Initially the EHS&S reporting only included laggingEHS&S performance metrics which was relatively normal practiceat the time. It was soon evident that lagging indicators have manyinherent shortcomings; lagging indicators do not generate proactive

and positive actions and there is little guarantee of performanceimprovement over time. This was the case for Borouge, hence it wasdeemed necessary to have leading indicators for early warning beforefailure occurs.

Prior to 2011 there was a build-up of waste at site, most of whichoriginated during a recent turnaround and a major project. In 2011, alagging KPI was introduced to reduce the waste quantity stored at sitefrom >1,000 tons to


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Borouge EHS&S Scorecard 2013

Strategic objective KPIs

EHS&S general % serious potential incidents and TRI investigations performed


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NOxemissions

from Sipchemsreformer

furnace halved.


Nitrogen Oxides (NO and NO2) commonly referred to as NO

xreact

with organics in the atmosphere to produce ozone gas. Ozone atground level is an industrial pollutant, causing damage to lung tissuesand reduction in lung capacity even at very low concentrations. NO

x

are produced at high temperatures by the reaction of nitrogen withoxygen, conditions which exist in industrial furnaces and internal

combustion engines. Control of NOxemissions from furnaces is key tomaintaining breathing air quality for the public.

Sipchem is monitoring the NOxemissions from its reformer furnace

continuously to maintain them as low as possible and within thelimits set by Royal Commission for Jubail & Yanbus environmentalregulations. Although Sipchems emissions were in compliance withthe Environmental Operating Permit, they were slightly higher thanthe limits being set for new plants. Based on the measurements ofNO

xemissions, Sipchem decided to implement a program to reduce

the overall NOxemissions from its operation. A major project was

undertaken to replace 246 burners in the reformer furnace withburners utilizing the latest induced flue gas recirculation technology.The project was implemented at a cost of 10 million SAR in 2009.

Project implementation reduced total NOxemissions by 50%,contributing to improved air quality in the community and surroundingareas. Three years after project implementation, the performance ofthe Sipchem IMC reformer furnace is still considered as best availabletechnology for NO

xemission reduction.

Sipchem

NOXemissions

0

90

300

1,900

May05

Oct05

Mar06

Aug06

Jan07

Jun07

Nov07

Apr08

Sep08

Feb09

Jul09

Dec09

May10

Oct10

Mar11

Aug11

Jan12

Jun12

Mt NOx/yr NO

xnj/J

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Improvedsafetyperformance

metrics duringthe last twoyears.


As a result of participation in the Responsible Careinitiative,CHEMANOL has seen considerable improvement in safetyperformance.

In 2012, we initiated a near miss and unsafe conditions reportingcampaign after setting a corporate objective of 1,000 reports. This was

successfully achieved and surpassed by 131%.

As part of the campaign, we conducted a number of training andawareness sessions encouraging employees to report near missesand unsafe conditions. As an objective in every employee annualperformance appraisal, employees were asked to spot and reporthazards, and then take corrective action. Quality of reporting was notthe main consideration, rather it was to enhance safety culture andteach employees how to spot and report workplace hazards.

Department Managers had an additional performance measure whichwas linked to corrective action and closure of reported near missincidents and unsafe conditions. The whole process of documentingthe near miss reporting and corrective action was tracked effectively.

The campaign has resulted in a shift in safety behavior and a reductionin incident rates in both direct hire and contractor employees.

2011 2012

Direct hire employee incident rate 1.2 0.40

Contractor employee incident rate 0.68 0.50

We believe motivating our employees to report near misses and taketimely corrective action increases trust in the program and creates awin-win situation.

For 2013, we have set a corporate level objective of 1,500 reports andhave set a target of 10% improvement in incident rates.

Our corporate level EHS goal for 2013 is zero leaks and zero losttime injuries.

CHEMANOL

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Maintainingupmosttransparency

in performancereporting.


SABIC has introduced a unique system for all SABIC affiliates tomanage the reporting of annual EHSS performance to GPCA. The datacollected from all affiliates is reviewed firstly by local teams, beforefurther review is conducted by the regional EHSS team and SABICfocal point coordinator, before being submitted to GPCA. This ensuresaccuracy and integrity, while maintaining upmost transparency. In

addition, it ensures that regional EHSS teams are fully engaged andbought into the process.

GPCA performance reporting requirements are also integrated withinSABICs EHSS management system to ensure that it is working aspart of our business rather than being seen as an add-on or initiative-driven. Until 2011, SABIC was reporting on the EHSS performance offive affiliates as part of its GPCA membership requirement. SABIC hassince achieved corporate membership for all KSA affiliates and, from2012, is now reporting on the EHSS performance for all 18 affiliates.

Once again, this has raised the level of awareness and engagementwith Responsible Careas an integrated business activity across all ofour operations and allowed us to transfer the learnings from reportingof the first five affiliates across all of our operations.

SABIC

GPCA performance reporting and

review system at SABIC and affiliates

Responsibility/target

February

Week 2 Week 1 Week 2Weeks 3 and 4 Weeks 3 and 4

March

SABIC ResponsibleCarecoordinator toGPCA

GM, SABIC EHSS, ME/A

SABIC EHSS functionalsenior managers

No

No

YesYesSABIC Responsible

Carecoordinator, ME/A

Affiliates/function focal points

GPCA requirements,coordinate with

local team

Review and verificationby functional managers

Escalate to president/VP

Review all data andsend to GPCA

Mailcopy

Mailcopy

Mailcopy

Communicationinitiation

Receiveddata on time?

Consolidate all data

Anyclarification?

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AchievingRC 14001certification.


Petrochemical Industries Company (PIC) has been awarded the RC14001 Responsible CareManagement System certification basedon the companys strategies and continuous efforts to improve andenhance its performance in the area of Health, Safety, Security andEnvironment (HSSE). The certification was awarded to PIC onJuly 19, 2011.

PIC is one of the few companies in the Middle East to have attainedRC 14001 certification. PIC is committed to continually improvingits management systems by bringing best practices into theorganization and embracing new initiatives that benefit the society andenvironment.

PIC is now further deepening its sustainable development effortsthrough identifying 24 long-term Simple, Mensurable, Achievable,Realistic and Time-bound (SMART) sustainability goals. These goalsare being implemented by establishing a sustainability governancestructure and by creating awareness and executing improvementprojects using the six sigma methodology which has been runningover the past five years to improve business process across theorganization.

By looking at the initial list of successful projects completed during thislearning journey, many impressive and substantial achievements canbe clearly seen. 100 million dollars saved by completing 295 six sigmaprojects is a great achievement by any standard. We are now furtherdeepening our sustainable development through 2017 PIC corporatesustainability goals related to safety, environmental stewardship andexemplary corporate citizenship.

The true benefit of implementing this initiative has resulted inimproved skills and competencies of our future leaders. Whether itsgetting an ISO or Responsible Carecertification or any other highlevel task, our staff are getting more and more self-confident for biggerchallenges and more successes.

PIC

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Complyingwith regulatoryrequirements

andreducing ourenvironmentalfootprint.


The core objectives of our environmental management policy at GulfPetrochemical Industries Company (GPIC) is to comply with regulatoryrequirements and reduce our environmental footprint. The companyhas shown strong commitment to these objectives by establishingand upholding high environmental standards while at the same timepursuing capabilities and expertise towards softening the impact of

our industrial activities on communities and our natural environment.

GPIC has been rigorously pursuing environmental management byefficiently monitoring, controlling and reducing waste at all times,while also conforming to relevant environmental standards. Broadly,GPIC has displayed consistent progress in all its key environmentalperformance indicators: greenhouse emitting gases; ozone-depletinggases; hazardous and non-hazardous wastes; and natural resourcemanagement with respect to waste reduction, energy conservation,and compliance. In 1998 a Granular Urea Plant was commissioned thatplayed a pivotal role in reducing the CO

2emissions. This was followed

by a carbon dioxide recovery plant in 2009 that has further reducedCO

2emissions by 450MT/D.

GPIC has ensured 100% compliance and reporting to the governmental

agencies and stakeholders on effluents, emissions and wastemanagement. We have functioning CEMS for all flue gas stacks onour boilers and the reformers and are remotely connected to theBahrain Environmental Affairs emissions monitoring network henceour key emissions are being continuously monitored by governmentalregulators. Furthermore we have a mobile air quality monitoringsystem that measures the ambient air quality in the complex on acontinuous basis.

Our new projects in 2012 include the phasing out of chlorine gasthat was being used for sea water conditioning and replacing it withsodium hypochlorite. The replacement of the ammonia converterbasket during a recent turnaround has also resulted in significantenergy savings.

GPIC has won three Environment Excellence Awards during the pastfive years and is accredited to leading environmental managementsystems such as ISO 14001 and RC 14001. As part of its corporateresponsibility and environmental stewardship GPIC has become anactive partner of UN Global Compact in 2012 and also published its GRISustainability Report in July 2012.

GPIC

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Data was analyzed and reported by

Lloyds Register on behalf of GPCA.

GPCA gratefully acknowledges the

support of Lloyds Register in theproduction of this publication.

GPCA is a registered trademark and

a non-profitable organization.

The Gulf Petrochemicals and ChemicalsAssociation (GPCA) is a dedicated non-profit association serving its memberswith industry data and informationresources.

For more information please contact:

Gulf Petrochemicals

and Chemicals AssociationP.O. Box: 123055, DubaiUnited Arab EmiratesBusiness Bay, Executive TowersTower D (Aspect), Floor 7Offices 705, 706

Tel: +971 4 451 0666, ext 112Fax: +971 4 451 0777email: [email protected]: www.gpca.org.ae

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