HSEQ Goals and Targets

Guideline

OMV-EP Guideline

HSEQ Goals and Targets

Prepared by: Date 7January 2003

Peter E Neal, Senior HSEQ Advisor

Approved by: Date 7 January 2003

Ulrich Peball, Vice President EP-HSEQ

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1 Scope and Application

This guideline applies to all Austrian and international activities of the exploration and
production business unit.

The purpose of this procedure is to enable a systematic method of assessing line

management leadership in HSEQ matters. No manager can claim to be a leader unless they
can demonstrate a track record of performance. Performance and leadership are measured
by results.

This procedure provides guidance on a range of quantitative goals and targets that provide
assurance that HSEQ is being effectively managed. It is based on the maxim …

“What gets measured, gets done”

2 Cross-references
HSEQ Policy Elements and Objectives, document no HSEQ-HQ-00-01 latest revision.

3 Management responsibilities
Vice Presidents based in Austria and General Managers based overseas shall be
responsible for ensuring through their line management organisation, that:-
• Goals and targets are defined on a calendar year basis to cover the main activities
that can impact on HSEQ performance within their area of responsibility.
• Asset and Development managers have HSEQ goals and targets defined and
monitored for projects that align with the development schedule.
• Regularly reporting actual versus planned achievement against HSEQ goals and
targets.

4 Definitions
Goal – high level expectation that can be measured and possibly extending over more than
one year, e.g. an operating unit may set a goal of being certified to ISO 14001 in year 3.

Target – intermediate measurable achievement that contributes to completing a goal or is a

goal that can be completed within one year. Using the example of ISO14001 certification an
intermediate measure may be: year 1 - gap analysis for ISO14001, year 2 - write ISO 14001
procedures, year 3 - train internal ISO 14001 auditors.

KPI – key performance indicator – this is synonymous with a goal or target, however, more
usually used to benchmark or measure year-on-year improvement.

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5 Procedure

Line managers prefer to be judged on their efforts, rather than on the consequences resulting
from a series of events that happen to align and cause an accident. Many of these events will
not be in their immediate sphere of control. Therefore a system that reflects their efforts in
prevention and control of incidents is a far better way of assessing their HSE leadership.
Defining, measuring and improving on pro-active goals and targets can be expected to result
in overall improvement in final outputs and should be used to assess line management HSE
performance.
Safety can be defined as the absence of danger from which harm or loss could result. Then
the only direct measure of achieved performance is in terms of the harm or loss that does
occur, and reducing losses provides direct evidence of performance improvement. That is,
success can only be measured through the absence of failures; and so injuries, illnesses,
losses, etc have to be measured as outputs – they are the ‘bottom line’ of safety
performance.
Measuring outputs is characterised by two important limitations:
• When safety is good and injury and loss rates are low, then those measurements are
not sufficient to provide adequate feedback for managing safety.
• For operations where there may be the potential for severe accidents, the likelihood
of such events must be extremely low. This means that the absence of very unlikely
events is not, of itself, a sufficient indicator of good safety management.
Therefore, other – proactive – measurements of safety are necessary. These are indicators
that give assurance that the absence of harm or loss is due to a systematic management
approach which is aimed at preventing the occurrence of incidents. This approach contrasts
with the reactive management approach, which initiates actions and programmes after
undesired events.
Safety is assured by providing:
• Facilities which are ‘fit for the purpose’ of reducing risks from identified hazards as far
as is reasonably practicable.
• Systems and procedures to design, operate and maintain the facilities in a
satisfactory manner and to manage all associated activities.
• People who are competent, through knowledge, skills and attitudes, to design and
operate the facilities and to implement the systems and procedures.
These are the positive inputs of HSE management which are put in place to prevent the
negative outputs (the failures). HSE performance measurement has to effectively measure
four areas: three that are essentially positive (proactive) and one that is essentially negative
(reactive). Continual improvement in HSE performance is about expanding the positive
inputs to reduce the negative outputs – that is, to reduce the total of incidents which create
harm and loss to people, environment and assets. Figures 1 and 2 below shows this
diagrammatically.

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Technical standards and good practice

Facilities

+
Beliefs, values, Injuries,
attitudes, People + _ Failures illness, damage,
behaviours, pollution, etc
culture +

Systems &
Procedures

Compliance, adequacy, maintenance

Figure 1 HSE performance measurement - the areas to be covered

Accentuate the positive to eliminate the negative

+ + +
+ _ + _ + _
+ + +

Figure 2 HSE performance – continual improvement

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The goals and targets are listed below in a generalised form and categorised as indicated in
Figure 1. Individual line managers would need to have them redefined to make it specific to
their area of responsibility. Various components of these measures can be assembled into
composite indices of HSE performance that can be readily communicated to stakeholders.

Facilities – Technical standards and good practice

Description HSE
Technical audits S
Operational audits HSE
Percent completion of maintenance programme S
Inspections of facilities SE
Management safety behaviour audits S
Number of toolbox meetings/quarter S
Project HSE plan compliance HSE
Written scheme of verification implemented S
Safety equipment inspections S

People – Beliefs, values, attitudes, culture, etc.

Description HSE
Incentive schemes HSE
Percent of workforce with approved HSE training HSE
completed
Percent of workers trained (operational) - actual versus S
plan
HSE awareness programs HSE
Well being programs H
Staff and contractor employee turnover HS
Percent line managers/supervisors achieving 100% HSE
HSE competency
Number of hazards reported per month S
Senior management site visits S
Percent attendance at HSE committee meetings HSE
Percent complete safety induction S

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Systems and Procedures – Compliance, adequacy,

maintenance.
Description HSE
Percent health checks - completed versus planned H
Management system audits HSE
Project safety reviews and actions complete S
IS0 14001 certification E
Percent completion of planned HSE meetings HSE
Percent of workforce undergoing health screening. H
Percent complete of HSE action plans within a HSE
challenging timescale
Percent compliance with legal compliance register HSE
Percent completion of planned HSE audits HSE
Percent of job safety analyses performed S
Closeout from action tracking register HSE
Emergency response training drills SE

Failures – Incidents, injuries, damage, pollution.

Description HSE
LWIF S
Number of near misses per month SE
Days off sick that are not caused by reported workplace H
incidents.
TRI rate (=LTI+RWC+MTC) HS
Number of spills, leaks, fires, injuries as a percent of SE
historical average (or industry average for a new plant)
Near misses/unsafe behaviours reported S
Percent debriefs by line managers following an incident: SE
identifying learning points and instigating actions to
prevent recurrence
Waste disposal/recycling E
Energy efficiency/conservation E
Emissions E
Bio-diversity E

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The tables above are for guidance - they are not mandatory, however, line managers should
seek advice from their HSEQ advisors to develop measurable targets that will satisfy the
requirements of the HSEQ Policy Elements and Objectives (refer Sect 2 above).

Timescales for a normal operation would usually apply over a calendar year. For
development projects the time scale should be aligned with specific activities/stages of the
project.

In deciding what goals and targets are relevant and meaningful, the following criteria should
be used:
• Timely and consistent
• Key performance indication at a glance
• Analyses problem areas and benchmark successes
• Depicts trends versus events
• Allows “drill down” to identify issues/actions

Also, it should be noted that national or industry specific targets that cascade down to
operational level should also be included. This tends to be more in the environmental area,
e.g. greenhouse gas reduction, energy conservation, etc.

Goals and targets that regularly score at 100% should be periodically adjusted so that they
remain challenging and meaningful.

6 Record of Revisions
None.

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