2020 Sustainability Report English

You might also like

Download as pdf or txt
Download as pdf or txt
You are on page 1of 34

SUSTAINABILITY

REPORT

Encompassing
Operational
Excellence
01. Operational 02. Health 03. Environmental 04. Human 05. Social 06. Economic Performance
Excellence and Safety Stewardship Capital Enrichment and Product Responsibility

Contents
About this Report 3

A Message from our Chairman 4

A Message from our CEO 5

Our Business 6

Our Approach to Sustainability 8

Our Contribution to the SDGs 9

2020 Highlights 10

Operational Excellence 12 2
Operational Excellence 12
Enterprise Risk Management 13

2020 Sustainability Report


Health and Safety 15
COVID-19 Response 15
Process Safety 16
HSE Awareness 18
Turnaround 2020 19

Environmental Stewardship 21
GHG and Air Emissions 22
Energy 24
Water 24
Waste 25

Human Capital 27
Nurturing the Best Talents 27
Training and Development 28

Social Enrichment 30

Economic Performance and 32


Product Responsibility
01. Operational 02. Health 03. Environmental 04. Human 05. Social 06. Economic Performance
Excellence and Safety Stewardship Capital Enrichment and Product Responsibility

About this report

We are pleased to present our 7th annual REPORTING PERIOD


Sustainability Report for the year of The report covers the
2020. Sustainability reports allow us to 2020 calendar year.
actively engage with our stakeholders,
CONTACT US
through transparency about the impact
For feedback and comments on
of our business on economic, social and
this report, please send an email to:
environmental aspects. We disclose
our performance at our three Q-Chem Public Relations Department:
operated facilities: publicrelations@qchem.com.qa

OUR ADDRESS
ƒ Qatar Chemical Company Ltd.
(Q-Chem) Amwal Tower, Omar Al Mukhtar St,
3
ƒ Qatar Chemical Company II Ltd. Al Dafna, Doha, Qatar
(Q-Chem II) Qatar Chemical Co. Ltd. (Q-Chem)

2020 Sustainability Report


ƒ Ras Laffan Olefins Company Ltd. P.O. Box 24646
(RLOC) Phone: (+974) 4484-7111
Fax: (+974) 4483-7379

DISCLAIMER
This report contains not only past and present We have made every effort to ensure the report
facts but also includes statements that may be is as accurate and truthful as possible. However,
deemed as “forward-looking statements”, which by nature, forward-looking statements are
express the way in which Q-Chem intends to qualified due to inherent risks and uncertainties
conduct its activities. surrounding future expectations that could cause
actual results to differ materially from these
Forward statements could be identified by the use
projected or implied statements. Such statements
of forward-looking terminology such as “plans”,
are subject to risks that are beyond Q-Chem’s
“aims”, “assumes”, “continues”, “believes”, or any
ability to control and therefore do not represent
variations of such words that certain actions,
a guarantee that events implied in these forward-
events or results “may”, “could”, “should”, “might”,
looking statements will actually occur.
“will”, or “would” be taken or be achieved.
01. Operational 02. Health 03. Environmental 04. Human 05. Social 06. Economic Performance
Excellence and Safety Stewardship Capital Enrichment and Product Responsibility

A message from our Chairman

WELCOME TO THE SEVENTH SUSTAINABILITY REPORT FOR


Q-CHEM. THE 2020 SUSTAINABILITY REPORT DETAILS OUR
SUSTAINABILITY PERFORMANCE IN TERMS OF ECONOMIC
CONTRIBUTION, ENVIRONMENTAL INITIATIVES, AND
CARING FOR OUR PEOPLE AND COMMUNITIES.

We are committed to delivering Throughout 2020, we at Q-Chem were


open, transparent, and informative able to navigate smoothly through
communications to our stakeholders
in the disclosure of our sustainability
the pandemic with our operational
excellence and robust risk management
4
performance and we continue to adopt framework, which enabled us to maintain
partially the Global Reporting Initiative our business running without disruptions

2020 Sustainability Report


(GRI) standards as a further endorsement while keeping our employees safe
of our credibility. and sound. We did not only conclude
the year with two major turnarounds
COVID-19 has impacted people’s lives
with an outstanding health and safety
and businesses in every industry, while
performance, but also recorded
offering new horizons for innovation
several environmental and financial
and growth at the same time. Global
achievements.
problems necessitate global strategies
and solutions, cross-border collaboration, I would like to thank the Q-Chem team
and mutual confidence and trust. As for their support during this exceptional
these characteristics are very important year, looking forward to achieving further
to Q-Chem, they have enabled us to successes in the year ahead by working in
develop tremendous resilience in the face collaboration to capture the opportunities
of adversity. and benefits that sustainability brings.

Sustainability has been integrated into ABDULRAHMAN AL-SUWAIDI


Q-Chem’s strategy and culture since its Chairman of the
inception, and we have been enjoying Board of Directors
its benefits ever since. However, in a
challenging year such as 2020, the true
meaning of sustainable business has
never been clearer.
01. Operational 02. Health 03. Environmental 04. Human 05. Social 06. Economic Performance
Excellence and Safety Stewardship Capital Enrichment and Product Responsibility

A message from our CEO

Q-CHEM HAS LONG BEEN REGARDED AS PIONEERS IN SUSTAINABILITY Finally, I encourage you to read further
IN QATAR, A REPUTATION WE ARE PROUD OF. WE BELIEVE THAT into this report and learn more about
the sustainable performance of Q-Chem
INCORPORATING SUSTAINABILITY INTO OUR BUSINESS STRATEGIES
in such an unprecedented year. As we
LEADS TO VALUE DEVELOPMENT AND CREATIVITY. continue progressing in our sustainability
journey, I am confident of the brilliant
Therefore, through aligning our Our commitment to be a “Green results we will be attaining, contributing
sustainability strategies to national and Company” keeps raising the bar for to a sustainable future for the coming
international priorities, we are making us to improve our environmental generations.
significant contributions to Qatar’s performance and conduct our business
KHALID SULTAN AL-KUWARI
National Vision (QNV) 2030 and the more responsibly. We have ended
Chief Executive Officer
5
global Sustainable Development Goals 2020 with zero company responsible
(SDGs), driving economic growth and environmental events, along with an
outstanding performance in every

2020 Sustainability Report


prosperity in Qatar and beyond.
environmental aspect – thanks to our
Although 2020 was a transformative
‘Pollution Prevention’ program that
year for everyone, it had provided a
motivates ownership and innovation
new perspective and had set challenges
among Q-Chem’s operating units.
for companies globally. At Q-Chem,
we were able to maintain our high As part of adapting to the new normal
standards of operational excellence, of working remotely, we embraced more
even while conducting two major technology into our daily operations
turnarounds for 45 days. Our workforce and shifted to e-learning solutions to
health and safety remained our top continue operating effectively and
priority this year, implementing the best maintain our employees' development.
mitigation and prevention plans to keep The turnover rate decreased by 0.9%,
our people safe, and continuing with while increasing the representation of
our Q-Safe program to instill safety into Qatari employees by 2% among the
Q-Chem’s culture. As a result, we have total workforce. This highlights our
recorded the lowest recordable injury commitment to retain the best talents
rate in Q-Chem's history in 2020, with within Q-Chem and contribute to the
zero environmental reportable events National Development Strategy for
and process safety events. human and economic development.
01. Operational 02. Health 03. Environmental 04. Human 05. Social 06. Economic Performance
Excellence and Safety Stewardship Capital Enrichment and Product Responsibility

Our Business

QATAR CHEMICAL COMPANY


LTD. (Q-CHEM) WAS BUSINESS STRUCTURE
ESTABLISHED IN 1997 AND
BEGAN OPERATION IN 2004. QATAR CHEMICAL COMPANY QATAR CHEMICAL COMPANY II RAS LAFFAN OLEFINS COMPANY
LTD. (Q-CHEM) LTD. (Q-CHEM II) LTD. (RLOC):
IT IS A JOINT VENTURE
Products: ethylene, high and Products: HDPE, normal alpha Products: Ethylene, C3/C4
BETWEEN MESAIEED medium density polyethylene olefins (NAO) and Pygas
PETROCHEMICAL HOLDING (HDPE and MDPE), 1-hexene and
Permitted production capacity: Permitted production capacity:
COMPANY, CHEVRON PHILLIPS other by-products.
460,000 MTPA of HDPE and 1.55 million MTPA ethylene
CHEMICAL INTERNATIONAL Permitted production capacity: 440,000 MTPA of NAO
Complex facilities: Ethane
6
QATAR HOLDINGS LLC AND 675,000 metric tons per annum
Complex facilities: the first cracker plant. Ethylene produced
MTPA of ethylene, 720,000 MTPA
QATAR PETROLEUM. full-range Normal Alpha Olefins by RLOC is transferred via a 135

2020 Sustainability Report


of polyethylene and 79,000 MTPA
(NAO) unit producing: Butene; km pipeline from Ras Laffan to
of 1-hexene.
Hexene; Octene; Decene and Q-Chem II and Qatofin derivatives
Q-Chem and its associated company,
Complex facilities: a world-class Higher- Molecular-Weight Olefins units in Mesaieed. Upon arriving in
Qatar Chemical Company II Ltd.
integrated petrochemical plant up to C30+, and Polyethylene (PE), Mesaieed, 53.5% of ethylene are
(Q-Chem II), are located in Mesaieed
producing high-density and along with associated utilities, allocated to Q-Chem II and 46.5%
Industrial City, whereas Ras Laffan
medium-density polyethylene warehousing, and a shipping dock. to Qatofin.
Olefins Company Ltd. (RLOC) is
(HDPE & MDPE), 1-hexene and
located in Ras Laffan Industrial City.
other products. Along with the
Our mission is to grow sustainably
sulfur recovery and solidification
and become the leader of world
plant, the complex includes a
class operators in the petrochemical
water treatment plant; a seawater
industry, planning to meet the Qatar
cooling system; dock facilities; and
National Vision 2030 by end of year
administrative buildings.
2027. We produce polyethylene,
1-hexene, and normal alpha olefins in
a safe and environmentally friendly
manner, creating opportunities for our
employees and value for our customers,
shareholders, and the State of Qatar.

*The production figures mentioned above represent the "Permitted Production Capacity"
01. Operational 02. Health 03. Environmental 04. Human 05. Social 06. Economic Performance
Excellence and Safety Stewardship Capital Enrichment and Product Responsibility

CERTIFICATIONS: MEMBERSHIPS AND ASSOCIATION:


ƒ Certified on ISO 45001:2018, ƒ Mesaieed Industrial City (MIC) ƒ Ras Laffan Community Outreach
Occupational Safety and Health Environmental, Safety, Emergency Program (COP) Laffan Environmental
Management System Response & Community Outreach Society (LES)
ƒ Re-certified on RC 14001:2015, Working Subcommittee ƒ European Petrochemical Association
Responsible Care Management System ƒ Gulf Petrochemicals and Chemicals (EPCA)
ƒ Re-certified on ISO 9001:2015, Quality Association (GPCA) ƒ GPCA Industrial Waste Subcommittee
Management System ƒ Responsible Care, Supply Chain,
ƒ Re-certified on ISO 14001:2015, International Trade, Research and
Environmental Management System Innovation, Procurement and Gulf
ƒ Re-certified on ISO 17025:2017 for SQAS (Safety & Quality Assessment
Testing and Calibration Laboratories for Sustainability)

2020 Sustainability Report


01. Operational 02. Health 03. Environmental 04. Human 05. Social 06. Economic Performance
Excellence and Safety Stewardship Capital Enrichment and Product Responsibility

Our Approach to Sustainability

AT Q-CHEM, WE HOLD
OURSELVES ACCOUNTABLE TO
OUR STAKEHOLDERS AND THE
NATION OF QATAR THROUGH ECONOMIC PERFORMANCE
ENVIRONMENTAL
ƒ Governance
OPERATING IN A SUSTAINABLE PERFORMANCE
ƒ Regulatory Compliance
AND RESPONSIBLE MANNER. ƒ Flaring, Emissions and Venting
ƒ Quality Control
ƒ Water Management
ƒ Customer Satisfaction
ƒ Materials and Waste
Sustainability is at the core of Q-Chem’s ƒ Products, Sales
ƒ Energy Management
vision, mission, and values and has been
woven into our long-term business
and Marketing
ƒ Pursuit of Excellence
8
strategy, aligning with the Qatar National ƒ Accountability
Vision 2030.

2020 Sustainability Report


Our sustainability philosophy is built on
Operational Excellence, which means that
“sustainability” takes a broader meaning
to entail governance and business ethics,
customer satisfaction, employee safety
SOCIAL ENRICHMENT HUMAN CAPITAL
and wellbeing, community development,
ƒ Indirect Economic ƒ Qatarization and Education
and environmental management. This
Impact ƒ Workforce and Training
integrated approach does not only
ƒ Corporate Social ƒ Care and Respect for All People
enhance our overall sustainability
Responsibility (CSR)
performance, but it also generates
and Community Impact
value for our stakeholders and the local
economy where we operate.

We believe that engaging internal and


external stakeholders is key to our HEALTH AND SAFETY
sustainability approach. We aim to ƒ Personnel Safety
create a greater transparency with our ƒ Process Safety
stakeholders and a better understanding ƒ Occupational Health
of our sustainable operational impact ƒ Contractor Welfare
through our annual sustainability reports. ƒ Industrial Hygiene

Our sustainability framework is aligned with Q-Chem's mission, vision and values.
01. Operational 02. Health 03. Environmental 04. Human 05. Social 06. Economic Performance
Excellence and Safety Stewardship Capital Enrichment and Product Responsibility

OUR CONTRIBUTION TO THE SDGS


We understand the intricate relationship between the 17 Sustainable Development
Goals (SDGs), and we aim to keep moving towards having a direct impact on all of
them to achieve the aspired global sustainable development by 2030.

Below are the top 8 SDGs that are most relevant to Q-Chem and are being
significantly impacted by our business.

IMPACTED SDG Q-CHEM’S CONTRIBUTION IMPACTED SDG Q-CHEM’S CONTRIBUTION

SDG 3: Good Health ƒ Promoting employee health programs SDG 11: ƒ Creating genuine sustainability-focused
and Wellbeing and encouraging healthy habits Sustainable Cities cities with Mesaieed Industrial City and
ƒ Working with communities to improve and Communities Ras Laffan Industrial City
wellbeing for outside stakeholders ƒ Helping to create more sustainable
communities through partnerships with
local groups 9
SDG 4: ƒ Promoting education programs for SDG 12: ƒ Responsible consumption of natural resources
Quality Responsible

2020 Sustainability Report


Qatari youth through energy efficiency and renewable
Education ƒ Helping train university students for Consumption energy implementation
a career in an impactful industry and Production ƒ Production is also becoming more sustainable
through operating in an eco-friendly manner
and investing in initiatives that aim at
promoting renewable energy

SDG 8: ƒ Providing good, quality employment for SDG 13: ƒ Taking serious action towards limiting the
Decent Work people in Qatar, with excellent opportunities Climate Action adverse impacts of our business operations
and Economic for professional growth through investing in eco-solutions and
Growth ƒ Helping contribute to sustained economic innovative technology that enable us to
growth in Qatar and the Gulf Region at large preserve the environment and live up to our
perception of “Green” company

SDG 9: ƒ Q-Chem’s products help fuel industry in Qatar SDG 17: ƒ Q-Chem works with various stakeholders and
Industry, and beyond, with innovative new practices to Partnerships partners to share the industry knowledge
Innovation, and produce less impactful chemicals that can be for the goals and best practices in pursuit of achieving
Infrastructure used to spur further industry and innovation the National Vision of Qatar (QNV) by 2027,
that contributes to and is completely aligned
with the the United Nation's (UN) global
sustainability agenda for 2030
01. Operational 02. Health 03. Environmental 04. Human 05. Social 06. Economic Performance
Excellence and Safety Stewardship Capital Enrichment and Product Responsibility

2020 highlights

Two major turnarounds in 2020 under the theme Started the Completing the
vaccination for all
"Operational 8.3%
Come Safe, Work Safe, operation-critical Excellence 5th annual Reduction in
personnel ERM cycle GHG emissions
Go Safe… We Care For You Initiative
Award"

Accomplishment of
multiple production >5 million 14% 0.016 12% 6,000
optimization projects man-hours during the reduction in overall Recordable Injury Rate reduction in energy beneficiaries
that worth turnaround without costs - the best ever consumption from our CSR 10
recordable injuries in company's history programs
QAR+80mn

2020 Sustainability Report


Zero 30% 18% 2% 3% >1 million
Tier 1 and Tier 2 drop in turnover rate increase in water increase in drop in tons/year the average
process safety events recycling intensity Qatarization freshwater annual derivative
consumption production rate

Zero 14 120 150 "CPChem Zero


occupational CSR projects employees were employees attended the President's OE fatalities
and heat-related recognized with Operational Excellence
Award"
illnesses long-service awards refresher training
sessions

Successfully launched
16% 250 94% our in-house Zero +117,000
drop in waste volunteering local environmental contractors’
disposal hours procurement
ERM application reportable training hours
events
01. Operational 02. Health 03. Environmental 04. Human 05. Social 06. Economic Performance
Excellence and Safety Stewardship Capital Enrichment and Product Responsibility

Operational 11

Excellence

2020 Sustainability Report


HIGHLIGHTS

Completing the Successfully launched our


5th annual in-house ERM
application
ERM cycle

150
employees attended the
Operational Excellence
refresher training sessions

PILLARS
01. Operational 02. Health 03. Environmental 04. Human 05. Social 06. Economic Performance
Excellence and Safety Stewardship Capital Enrichment and Product Responsibility

Operational Excellence

WE STRIVE EACH DAY TO CONDUCT OUR BUSINESS IN A SAFE, Q-Chem follows a systematic approach In addition, an annual OE Self
SECURE, INJURY-FREE, AND ENVIRONMENTALLY RESPONSIBLE to guide and assess the effectiveness of Review was also conducted to verify
our OE activities to continuously improve compliance against the work processes
MANNER. WE ARE COMMITTED TO COMPLY WITH ALL LAWS AND
our performance and learn from our implemented; Actions plans were
REGULATIONS APPLICABLE TO OUR FACILITIES AND BUSINESS experiences. As a further emphasis on developed and are being tracked for
ACTIVITIES, AND WE ALIGN OURSELVES TO INTERNATIONAL BEST operational excellence, members from areas where improvement opportunities
PRACTICES SUCH AS THE INTERNATIONAL STANDARD ORGANIZATION senior management visit the sites to were discovered.
engage directly with the employees and
(ISO) AND RESPONSIBLE CARE MANAGEMENT SYSTEM (RC).
verify that the workplace is maintained in
a safe, reliable, and productive condition.
OPERATIONAL EXCELLENCE
We take pride in striving for Operational
Excellence (OE) by doing the right
personnel and process safety incidents
within our operating facilities with
These visits were highly appreciated by
employees and contractors who were
inspired to fully adhere and comply with
150 12

employees attended the online


the requirements of the OE system.

2020 Sustainability Report


things, in the right way. We take care of minimal environmental impact.
OE refresher training sessions
our people, our assets, the environment,
The framework of our OE System has a This year, we have successfully completed
our customers, and the communities we
total of 28 elements and is designed the 2020 annual integrated management
operate within. Our primary OE focus is
to meet the requirements of international system surveillance review, conducted
to reduce operational risks, translated
standards and best practices. OE System by ABS Quality Evaluations through an
into having zero injuries and zero
has five components, namely as follows: online remote assessment due to the
challenges imposed by the pandemic.
Although no major nonconformities
were identified during the assessment,
we have developed new action plans
to address improvement opportunities
and keep raising the bar of operational
excellence. We have also arranged online

1. 2. 3. 4. 5.
OE refresher training sessions, with over
150 employees attending and completing
these sessions.
Policy Principles Focus Areas OE Expectations, Verification of
Demonstrates Defines Pinpoint specific Global OE Compliance and
Commitment; Expectations and areas our company
Standards, Management
approved and set priorities for intends to target
signed by CEO improvement and Required System
Manufacturing
Standards
01. Operational 02. Health 03. Environmental 04. Human 05. Social 06. Economic Performance
Excellence and Safety Stewardship Capital Enrichment and Product Responsibility

ENTERPRISE RISK MANAGEMENT “TOP-DOWN” STRATEGIC RISK


We recognize that effective risk management is fundamental to ensuring MANAGEMENT
organizational sustainability. We have embedded a strategic risk
management process into the overall
In line with this recognition, we initiated an Enterprise Risk Management (ERM) process
process of Strategic Planning with the
in 2014 that was embedded in all critical business activities, functions and processes. It
aim of managing the top risks that could
is an integrated risk management process that combines a ”Bottom-Up” Operational
shape future Q-Chem performance.
Risk management process; and a “Top-Down” Strategic Risk management process.
In doing so, we help achieve desired
performance metrics that are reviewed
and monitored on a quarterly basis by the
company’s leadership.

“BOTTOM-UP” OPERATIONAL RISK


MANAGEMENT
Risk assessments are carried out on
an annual basis across the Q-Chem
organization. These risks are prioritized, 13
with the most significant risks undergoing
Strategic Risk Oversight
by the Board
review and monitoring once every
Top Down:
quarter by the Senior Leadership team,

2020 Sustainability Report


Strategic Risk
Management and the Board Business Risk and Crisis
Enterprise
Level
Management Committee’s for Q-Chem
Risks and RLOC. This drives timely and well
t

supported deployment of effective risk


en

Strategic Risk
em

Management by
mitigation efforts from the bottom to the
ag

top of the organization. 2020 saw the


an

the Executive
kM

completion of our fifth annual ERM cycle,


Ris

culminating in the development of key


ise

Tactical Level Risks


risk mitigation plans and the completion
pr
ter

of our first iteration of Q-Chem’s


En

Strategic Risk Profile. We also developed


ed

Tactical Risk Management


and executed an effective Pandemic
rat

by Management Team
eg

Response Plan in cooperation with the


Int

Q-Chem HSE Department.

In the area of digitalization, we developed


Bottom Up: Work Group Level Risks and successfully rolled out an in-house
Operational Risk
Operational Risk Enterprise Risk Management application
Management by
Management
Frontline Staff during 2020. We also initiated an
improvement project to advance our
Business Continuity Management System.
01. Operational 02. Health 03. Environmental 04. Human 05. Social 06. Economic Performance
Excellence and Safety Stewardship Capital Enrichment and Product Responsibility

Health 14

and

2020 Sustainability Report


HIGHLIGHTS

"Operational Excellence
Zero

Safety
Initiative Award" and "CPChem
Tier 1 & Tier 2 process
President's OE Award"
safety events

2020 Turnarounds: the largest


and safest in Q-Chem’s history
Zero
occupational and
heat-related illnesses
>5 million
man-hours recorded in the
turnaround without recordable injuries
0.016
RIR - the lowest in
PILLARS
Q-Chem’s history
01. Operational 02. Health 03. Environmental 04. Human 05. Social 06. Economic Performance
Excellence and Safety Stewardship Capital Enrichment and Product Responsibility

Health and Safety

SAFETY IS OUR UTMOST CORE VALUE. AT Q-CHEM, SAFETY MEANS COVID-19 RESPONSE engaged in updating employees and
HAVING A SAFE AND HEALTHY WORKPLACE, WHERE ASSETS, At the beginning of the pandemic, contractors on the pandemic status and
and in response to the fast-evolving the compulsory measures to safeguard
PEOPLE AND THE ENVIRONMENT ARE ALL PROTECTED.
situations, we activated the Q-Chem everyone from getting infected. A self-
Crisis Management Team (CMT) that assessment tool was developed by our

>5 million
Safety is the responsibility of every involved members from Enterprise Risk Q-safe team to emphasize the control
employee working for Q-Chem, as well as Management (ERM), Public Relations, measures and the precautionary steps
every contractor working with us. Every and Health and Safety departments, that all employees should adhere to in
single person involved is empowered man-hours in turnarounds among others as Operations, Technical, combating the pandemic. The Facility
with the authority to stop any work they with zero injuries Commercial, etc. The "CMT" worked in Management Department at Q-Chem
believe is unsafe or could cause any harm. close coordination with Qatar Petroleum implemented stringent measures to 15
(QP) and followed guidelines established maintain social distancing across all the
Q-Chem has a strong history of
by the Ministry of Public Health (MoPH) facilities and prevent the spread of the
accomplishments when it comes to safe
disease. Sanitizers were placed in every

2020 Sustainability Report


to help protect the safety of our
operations. Since commissioning, we had
employees and other stakeholders. location, and employee temperature
recorded zero employee or contractor
was monitored regularly. Moreover,
fatalities. 2020 was an additional success The CMT formed multiple working
work protocols changed drastically,
to our records, considering the major groups and worked closely with QP and
necessitating increased technological and
turnarounds conducted in February and governmental authorities to prepare for
e-learning solutions to work efficiently
March 2020. We have achieved zero worst-case scenarios including potential
and provide an added value to the talent
occupational illnesses and zero heat-related curfews. Arrangements were made to
development program.
illnesses for the 13th year in a row. We split the operations team into two groups,
also recorded more than 5 million man- working one week from home and another
hours with zero recordable injuries durig week from the plant, interchangeably,
the two major turnarounds, and zero Tier to minimize the personal contact
1 and Tier 2 process safety events for the between employees, while keeping those
third year in a row. in administrative jobs working from
home. Additional arrangements and
We are proud to say that our Recordable
measures were taken to ensure timely
Injury Rate (RIR) of 0.016 in 2020 was
supply of products to customers with no
the lowest in history. On top of that,
interruption, based on the level of risk and
we have received the "Operational
the changing pandemic phases in Qatar.
Excellence Initiative Award" for the novel
knife switch interlocking device that was Q-Chem’s Administration, Human Capital,
designed by our safety department. and Public Relations have been actively
01. Operational 02. Health 03. Environmental 04. Human 05. Social 06. Economic Performance
Excellence and Safety Stewardship Capital Enrichment and Product Responsibility

PROCESS SAFETY NUMEROUS PROCESS SAFETY • Assisting in developing the Tier 3 PSM
Process Safety is one of the critical MANAGEMENT INITIATIVES WERE KPIs for industrial cities, as a member of
steps in our priority hierarchy and INTRODUCED OVER THE PAST YEAR: the “QP led PSM” working group.
reliable operations of our plants. • Expanding our Process Safety • Sharing Center for Chemical Process
Hence even minor Loss of Primary Management (PSM) metrics to Safety (CCPS) Process Safety Beacon
Containment (LOPC) events are include Asset Integrity metrics and with employees and contractors on a
reported timely and addressed to additional KPIs to ensure business monthly basis to continuously improve
prevent escalation which can affect continuity and sustainable PSM process safety awareness
people, our assets and the environment. performance across all operations. and knowledge.

Our safety event rate for tier 1 & 2 per


1 million working hours remained at PRIORITY HEIRARCHY
zero in 2020. Despite the challenges
we had due to major turnarounds and
the COVID-19 pandemic, Q-Chem
managed to complete Mechanical
Integrity Covered Equipment (MICE)
Key principles
16
Preventive Maintenance timely to ensure
safe operations. In an effort to have a
If it's worth doing, Continual
successful and safe turnarounds, learning

2020 Sustainability Report


do it better Improvement
experiences from previous turnarounds
were shared with employees and
contractors under the theme of “Keeping
There is always
Memories Alive”, which all resulted in
time to do it right Production
having zero Tier 1 and Tier 2 Process
Safety events this year.

Work safetly
Environment
or not at all

Process / Asset Safety

Personnel Safety
01. Operational 02. Health 03. Environmental 04. Human 05. Social 06. Economic Performance
Excellence and Safety Stewardship Capital Enrichment and Product Responsibility

Q-SAFE PROGRAM In August, this was followed by


Our Q-Safe program is a behavior- starting to distribute a monthly Rolling
based safety program that helps us Trophy for the selected “Q-Safe Team
refine our behaviors to build and of the Month” who exemplified the
sustain a more robust safety culture best safety participation.
among the entire workforce. This is
Other Q-Safe achievements from
done through observation, reflection,
2020 included the development of a
correction, and continuous coaching.
“COVID-19 self-assessment tool” to
Employees' monthly participation in improve the safety associated with
the Q-Safe program was a respectable the ongoing COVID-19 guidelines and
73%, with a total of 27,451 observations precautionary measures. We have also
being made and more than 4,746 invited our non-baseload contractors
at-risk incidents being ultimately to participate in the Q-Safe program to
corrected by end of 2020. demonstrate their hazard recognition

As of June 2020, we began


skills and to further extend the value
of the program. As a result, a total of
17
recognizing those employees who
356 observations were made and 128
participated in the observation
at-risk behaviors were corrected

2020 Sustainability Report


process with “Observer Magnetic
Badges” to promote safety excellence
and improve employee participation
in the Q-Safe program.

2603
2550 2558
2481 2432 2425
2350 2348
2228 2275
2072
76% 71% 76% 77% 75%
63% 64% 66% 67%
57% 61%

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV

Number of Observations
% Monthly Employee Participation
01. Operational 02. Health 03. Environmental 04. Human 05. Social 06. Economic Performance
Excellence and Safety Stewardship Capital Enrichment and Product Responsibility

HSE AWARENESS SEVERAL SAFETY AWARENESS EVENTS WERE HELD DURING 2020:
Q-Chem’s HSE program is focused
ƒ 3-Dimensional Safety ƒ Year-End Safety campaign (YES for 113)
on increasing the health and safety
Awareness Facility: This campaign was launched in Q4 of
awareness of our employees and
To educate people about safe work 2020 to acknowledge the outstanding
contractors through training sessions to
practices and prevent the reoccurrence year-to-date safety performance
leverage the workforce’s capabilities to
of past incidents, Q-Chem established and to encourage all employees
handle hazardous situations in a safe and
“NEVER AGAIN”, a three-dimensional and contractors to maintain this
responsible manner, returning to their
safety awareness facility at performance for subsequent years.
home safe and sound.
Mesaieed demonstrating hazardous The campaign included several
Q-Chem’s work from home scheme situations in an interactive way activities (e.g. toolbox talks, field
and social distancing protocols in 2020 where everyone can understand audits, preceptorial games, online
necessitated the move to virtual training the potential risk and its impact. hazard identification contest, and
programs, which resulted in fewer video demonstrations with lessons
number of training hours delivered for learned), aiming to refresh their
HSE topics. However, contractor HSE memory with key information and
training hours doubled over the past year steps to be considered in everyday 18
with only a 5% increase in training cost operations to prevent potential
over 2019. safety incidents.

2020 Sustainability Report


HSE AWARENESS TRAININGS

2018 2019 2020

 Total training hours for HSE topics


(contractors)
 Total cost of training for contractors (QR)
01. Operational 02. Health 03. Environmental 04. Human 05. Social 06. Economic Performance
Excellence and Safety Stewardship Capital Enrichment and Product Responsibility

TURNAROUND 2020 3. “MY 6 BASICS” TENT


In preparation of the 2020 Turnarounds, “My 6 Basics” tent demonstrated 2020 TURNAROUNDS: Some of the Best Practices
more than 4,000 contractors were how six basic PPE items are “COME SAFE, WORK SAFE, implemented during this TA 2020:
involved in awareness activities about essential for protection. GO SAFE… WE CARE FOR YOU”
ƒ A song for the theme “Come Safe,
Q-Chem’s safe work practices. These 2020 Turnarounds were under the
Work Safe, Go Safe… We Care For
activities revolved around several critical theme “Come Safe, Work Safe, Go
You” was written in English, Hindi
safety aspects for the Turnaround Village Safe… We Care For You”. These
and Arabic.
at Mesaieed, including: turnarounds were executed between
ƒ “Keeping memory alive” workshop
February and March at both, Mesaieed
1. “JOB PACKS” OBSERVATION was conducted to focus on previous
and RLOC sites, simultaneously,
CAMPAIGN turnaround incidents and near-
and involved planned maintenance,
With the support of the Q-Safe program, misses and learn from
inspections and activities that were
detailed job packs were posted at all these experiences.
aligned with operational and business
Permit Tents for Turnaround 2020 along ƒ “Do's and Don'ts” video was
objectives.
with an observation campaign being prepared and customized to be
conducted under the name The two turnarounds were the largest included in contractors’ training.
“JOB PACKS – 2020”. and safest turnarounds in Q-Chem’s ƒ “Rules to Live By” poster and 19
history; each completed with zero video were created to communicate
2. SAFETY INFORMATION CENTRE
Recordable Injuries, zero Tier 1 & turnaround safety rules.
Safety videos were continuously shown
2 Process Safety Events, and zero ƒ “My 6 Basics” PPE demonstration

2020 Sustainability Report


in the Safety Information Center for visual
Reportable Environmental events. and posters were prepared in
communication of safety awareness,
They helped to restore peak operating multiple languages to show the
along with PPE guidelines, informational
capabilities and allow for continued benefits of personal protective
sign posters, and other safety necessities.
safe, reliable, and incident-free equipment.
performance from all units. ƒ Turnaround Flange Management
(TFM) process was introduced
for the first time, consisting of three
layers of checks to ensure the right
bolts, gaskets, and torquing are
applied.

4,000
contractors were involved in
awareness activities about
Q-Chem’s safe work practices
01. Operational 02. Health 03. Environmental 04. Human 05. Social 06. Economic Performance
Excellence and Safety Stewardship Capital Enrichment and Product Responsibility

Environmental 20

Stewardship

2020 Sustainability Report


HIGHLIGHTS

69% 12%
decrease in Upstream reduction in energy consumption
responsible events

3%
8.3% drop in freshwater consumption
reduction in GHG emissions

18%
31% increase in water recycling intensity
drop in SO2 emissions intensity

PILLARS 16%
drop in waste disposal
01. Operational 02. Health 03. Environmental 04. Human 05. Social 06. Economic Performance
Excellence and Safety Stewardship Capital Enrichment and Product Responsibility

Environmental Stewardship

WE PERCEIVE OURSELVES AS A “GREEN COMPANY” THAT IS


COMMITTED TO OPERATIONAL EXCELLENCE IN EVERY ASPECT OF ITS
BUSINESS CONDUCT. THUS, WE RELENTLESSLY WORK ON IMPROVING
OUR ENVIRONMENTAL PERFORMANCE AND CONDUCT OUR
OPERATIONS IN A RESPONSIBLE AND ECO-FRIENDLY MANNER TO
REDUCE THE NEGATIVE IMPACTS ON THE VITAL NATURAL RESOURCES
OF OUR PLANET (AIR, WATER, LAND AND WILDLIFE).

In 2020, we have reduced our upstream Pollution Prevention Programs that have 21
responsible events by 69% in the past 5 been recently implemented to include
years; thanks to close coordination with environmental aspects, such as flaring
reduction, waste minimization, energy

2020 Sustainability Report


upstream operations, maintaining the
lowest Environmental Reportable Incident optimization, and chemicals management.
Rate (ERIR) in the company’s history, In addition, we started selecting monthly
with zero company responsible events champions for housekeeping and waste
as well. While the COVID-19 pandemic segregation to engage employees in
brought many challenges, exceptional the process of maintaining our facilities
teamwork ensured that we were able to clean and tidy. Annual champions were
complete all compliance monitoring as also selected and awarded for their
per the Consent to Operate (CTO) and performance in the Leak Detection
Land Lease Agreement (LLA) for 2020. and Repair (LDAR) program and other
other operational and non-operational
We continued to improve our
aspects to increase motivation, maintain
environmental performance, spurring
good ambient air quality, reduce
innovation and ownership among
greenhouse gases, and promote reliable
employees through our effective
environmental-friendly operations.
01. Operational 02. Health 03. Environmental 04. Human 05. Social 06. Economic Performance
Excellence and Safety Stewardship Capital Enrichment and Product Responsibility

GHG AND AIR EMISSIONS


We follow a proactive approach to 2. INCREASED ERG FEED RAMP-UP
manage our greenhouse gas (GHG) and RATE DURING START-UP
other air emissions. Q-Chem continually Increased Ethane Rich Gas (ERG) feed
works on optimizing its processes’ ramping rate to 40-45 tons/hour without
efficiency through integrating the best- affecting the unit operation, which helped
in-class innovations and practices that minimizing the acid gas flaring during
lead to lower energy consumption and start-up and the accompanying emissions.
reduced volumes of negative emissions.
3. GHG ACCOUNTING AND REPORTING
In 2020, the total GHG emissions were TOOL, CALCULATOR,
reduced by 8.3% over the past year, with AND MANAGEMENT MANUAL
SO2 emissions intensity dropping by 31% We have started the development of the
compared to 2019. Although there were GHG Accounting and Reporting Tool,
zero company responsible events, we Calculator, and Management Manual
had four upstream responsible events for Q-Chem and Q-Chem II, as per the
that caused flaring beyond our control directions of QP and similar to the tool 22
due to interruptions in power and feed developed for RLOC in 2014.
supplier that caused unavoidable flaring.
4. FUGITIVE EMISSIONS MONITORING

2020 Sustainability Report


This led to an increase in NOx emissions
AND REPORTING
by 1.8% over the previous year.
Employees are encouraged to report
Below are some initiatives we introduced their concerns about odor and fugitive
in 2020 to reduce GHG emissions: emissions to arrest any potential leak
as early as possible, and help reduce
1. ETHYLENE UNIT COLD SECTION
nuisance to the nearby communities.
THAWING OPERATION
Thawing the cold section with hot N2 to
remove the hydrates from the system
helped us avoid flaring and increase
the plant efficiency, keeping the unit
at its maximum throughput and
energy efficiency.

8.3%
reduction in total GHG emissions
01. Operational 02. Health 03. Environmental 04. Human 05. Social 06. Economic Performance
Excellence and Safety Stewardship Capital Enrichment and Product Responsibility

31%
NATURAL GAS INTENSITY FLARING INTENSITY DURING In an effort to reduce our GHG emissions,
(M3/TON OF PRODUCTION) NORMAL OPERATION we contracted with a consulting firm in
(M3/TON OF PRODUCTION) 2019 to assess opportunities to optimize
energy and minimize flare losses. Q-Chem reduction in SO2 emissions intensity
implemented a plan based on this
study in 2020 to improve performance
across operations in line with industry
best practices and our own Operational
Excellence Management System. We plan
to continue improving utilities and energy
efficiency to minimize GHG emissions,
costs, and energy in the processes,
without causing adverse impacts on
2018 2019 2020 2018 2019 2020
production or reliability.

SO2 AND NOX EMISSIONS INTENSITY (TONS/1000 TONS OF PRODUCTION) ETHYLENE FLARING (%) 23
Q-Chem Q-Chem II RLOC

2020 Sustainability Report


2018 2019 2020
2018 2019 2020 2018 2019 2020 2018 2019 2020
 NOX emissions intensity  SO2 emissions intensity
* Ethylene flaring figures for Q-Chem ll and RLOC includes 2020 Turnarounds
01. Operational 02. Health 03. Environmental 04. Human 05. Social 06. Economic Performance
Excellence and Safety Stewardship Capital Enrichment and Product Responsibility

ENERGY WATER
As part of our operational excellence, Given the water scarcity issue in our
we aim to reduce energy usage and region, we understand the importance
improve energy efficiency throughout of water conservation and the efficient
all of Q-Chem’s operations. management of water sources.

Q-Chem’s total energy consumption In line with this, we continue to increase


for all operations dropped 12% in 2020, our treated wastewater recycling, while
with energy intensity also dropping a moving forward towards our aim in
respectable 2% over last year. This was a reaching near zero liquid discharge in
result of several initiatives implemented the near future. Therefore, our 2020
to optimize energy consumption: water performance was aligned with this
strategy, reducing freshwater consumption
ƒ Commissioning a new primary dryer for
and water discharged to sea by 3% and
the ethylene unit, which improved the
10%, respectively, while increasing water
energy efficiency and overall flaring.
recycling intensity by 18% over last year.
ƒ Reducing run time on chillers
connected to the Acid Gas Removal
24
WATER RECYCLING INTENSITY
Unit (AGRU), where electrically-
(M3/TON OF PRODUCTION)
operated chillers were made

2020 Sustainability Report


shutdown during night shifts, thus
reducing electrical power usage and
energy consumption.

ENERGY INTENSITY
(GJ/TON OF PRODUCTION)

2018 2019 2020

2018 2019 2020


18%
increase in water recycling
intensity in 2020
01. Operational 02. Health 03. Environmental 04. Human 05. Social 06. Economic Performance
Excellence and Safety Stewardship Capital Enrichment and Product Responsibility

WASTE

Zero
RECYCLED WASTE AS PERCENTAGE
Managing waste, much like managing 2020 TURNAROUNDS WASTE
OF TOTAL WASTE GENERATED
water, is one of our top environmental MANAGEMENT
concerns and focus areas. Q-Chem In support of the efforts to have a
liability risk was taken on
witnessed a remarkable improvement in safe and cost-effective waste disposal

50%
waste generation and handling this year. method at Q-Chem II, an innovative
waste management plan was put in
We managed to decrease waste
place and implemented successfully
disposal by 16%, which reflected in a 2%
with the following results in 2020: overall disposal cost saving
drop in waste intensity. Simultaneously,

100% 50%
we worked on increasing the
percentage of waste recycled out of
total waste generated to achieve a rate
that is 27% higher than last year. It is of waste was disposed of safely drum cost saving by reusing
2018 2019 2020
worth mentioning that there were no applicable drums
spills recorded in 2020.
25
5,000
Our waste management system
was enhanced this year with many
projects that resulted in huge waste

2020 Sustainability Report


reduction and cost savings, naming UN-rated drums reused
few of these projects:

ƒ Reusing approximately 5,000


UN-rated drums that covered our
demand of drums for the entire 2021,
thus, saving QAR 0.91 million.
ƒ Sludge drying and incineration to
reduce waste volume.
ƒ Diverting ~100 tons of melted
derivatives from offsite incineration
to offsite reusage facilities.
ƒ Cost optimization initiatives for
contractor expenses, where QAR
150,000 were saved from the
monthly expenses of both, Q-Chem
and Q-Chem ll, and around QAR
60,000 were saved from RLOC’s
monthly expenses.
01. Operational 02. Health 03. Environmental 04. Human 05. Social 06. Economic Performance
Excellence and Safety Stewardship Capital Enrichment and Product Responsibility

Human 26

Capital

2020 Sustainability Report


HIGHLIGHTS

1,035 2%
total workforce increase in Qatarization rate

32 120
different nationalities employees were recognized with
among the workforce long-service awards

30% +117,000
drop in turnover rate contractors’ training hours

PILLARS
01. Operational 02. Health 03. Environmental 04. Human 05. Social 06. Economic Performance
Excellence and Safety Stewardship Capital Enrichment and Product Responsibility

Human Capital

EMPLOYEES ARE AN INTEGRAL PART OF THE SUCCESS OF ANY This year, almost 20 employees We offer a wide range of capacity-
BUSINESS. WE ARE ALWAYS SEEKING TO ATTRACT AND RETAIN took advantage of their Individual building programs to prepare, attract and
Development Plans (IDPs) to progress develop Qatari nationals for careers at
HIGH-CALIBRE OF TALENTS, INVESTING IN THEIR DEVELOPMENT AND
within the company, successfully Q-Chem. We also foster younger Qatari
WELFARE AND PROVIDING THEM WITH A SAFE AND NURTURING moving to a new position with brilliant individuals so that they may eventually
ENVIRONMENT WHERE THEY CAN GROW AND CONTRIBUTE TO THE performance results. benefit from our initiatives. We believe
OVERALL SUCCESS OF THE COMPANY. our efforts have resulted in a dynamic
TURNOVER RATE and dedicated team of professionals who
pursue a common goal and, in doing so,
Furthermore, we managed to reduce the
NURTURING THE BEST TALENTS we are contributing to their own growth,
Since our employees are our greatest
voluntary turnover rate by approximately
30% over 2019 due to our continuous
professional development and integrity. In 27
asset, we always aim to cultivate a 2020, we increased our Qatarization rate
retention efforts along with engagement
culture of care and respect at Q-Chem, by 2% over last year.
and enablement activities.

2020 Sustainability Report


to maintain a healthy environment for
every employee, and to attract and Our internal selection process provides QATARIZATION RATE
retain the best talents who are a perfect career paths for both national and
fit for our organization’s values and expatriate employees and we always
vision. Therefore, we strive to maintain prioritize existing employees as potential
2018 2019 2020
low employee attrition rates across all candidates for career development.
levels of the organization,
in addition to attracting the most TOTAL WORKFORCE QATARIZATION
qualified and talented candidates In alignment with the QNV 2030 and in
through our dedicated “Talent support of the National Development
Stewardship Committee”. Strategy, Qatarization continues to be
one of Q-Chem’s key commitments. In
With the man-power optimization 2018 2019 2020
2020, we introduced the Qatarization
approach implemented at Q-Chem
Steering Committee that will be
in the recent years, our total number
responsible for applying the Qatarization
of employees dropped to 1,035
strategy to identify and accelerate the
employees in 2020. We have 32 different
development of Qataris and expand the
nationalities among our workforce,
capabilities of the Q-Chem workforce.
reaffirming our belief in how diversity
can enrich the working environment. 2018 2019 2020
01. Operational 02. Health 03. Environmental 04. Human 05. Social 06. Economic Performance
Excellence and Safety Stewardship Capital Enrichment and Product Responsibility

TAQDEER AWARDS reduced as well, with some events


We believe that the hard work, dedication being postponed or cancelled as per
and diligence of long-standing employees the mandated regulations. However, we
are key contributors to Q-Chem’s focused more on key initiatives including:
prosperity and sustainability. As a gesture
ƒ Development of nationals
of gratitude, we celebrate their long-
ƒ Setting up the foundations of
serving contributions and company
successions planning
loyalty with appreciation certificates and
ƒ Launching the Knowledge Sharing
long-service bonus.
program to support the training and
In 2020, 120 employees were recognized development of internal employees
with long-service awards. We are very ƒ E-learning solutions to adopt to the
proud that 55% of our entire workforce remote working scheme
have been with Q-Chem for over 10
At Q-Chem, contractors’ training has
years, and nearly 94% for more than 3
an equal emphasis as well. We follow
years. This is testament to our employees’
satisfaction and our relentless efforts to
a rigorous safety compliance and
training mechanism that aligns with
28
retain a loyal workforce that fit well with
OSHA Operational Excellence and ISO
Q-Chem’s culture and values.
standards. While planning for the 2020

2020 Sustainability Report


55%
Turnarounds, we worked on digitalizing
the compliance training scheduling,
evaluation and certification, to ensure the
of our entire workforce have been full adherence of contractors to our strict
with Q-Chem for over 10 years safety code and to ensure successful
and safe turnarounds. More than 117,000
TRAINING AND DEVELOPMENT hours of training were provided to our
Our comprehensive talent management contractors, resulting in the outstanding
program is focused on having the right performance we had in the biggest
people with the right skills, in the right turnarounds in Q-Chem’s history.
place at the right time, towards achieving
Q-Chem’s vision. We aim to develop
our employees and prepare the next
generation of Q-Chem leaders, with a
huge focus on Qatari nationals.

In 2020, training hours dropped


117,000+
immensely due to the remote working hours of training provided
conditions and cost reduction plans in to our contractors
response to the pandemic. Internship
programs and scholarships were all
01. Operational 02. Health 03. Environmental 04. Human 05. Social 06. Economic Performance
Excellence and Safety Stewardship Capital Enrichment and Product Responsibility

Social 29

Enrichment

2020 Sustainability Report


HIGHLIGHTS

14 6,000
CSR projects beneficiaries from our CSR programs

250 8th
volunteering hours consecutive year of the National
Sports day at Al-Reem club

PILLARS
01. Operational 02. Health 03. Environmental 04. Human 05. Social 06. Economic Performance
Excellence and Safety Stewardship Capital Enrichment and Product Responsibility

Social Enrichment

AS A RESPONSIBLE CORPORATE CITIZEN, OUR CORPORATE Additionally, we donated 1,000 t-shirts


Q-Chem has also donated office
SOCIAL RESPONSIBILITY (CSR) PROGRAM IS A VITAL PART OF OUR to Mesaieed Middle School and Al Noor
supplies such as printers and
Institute for the Blind on the National
SUSTAINABILITY STRATEGY, WITH STRONG PARTNERSHIPS IN PLACE network hardware to the following
Sports Day to encourage physical activity
TO HELP IMPLEMENT EFFECTIVE CSR ACTIVITIES WITH AN EXTENDED three charities:
and increase awareness on the benefits
IMPACT THAT GOES BEYOND OUR ORGANIZATION TO REACH THE of maintaining a healthy lifestyle.
LOCAL COMMUNITY AND THE NATION AS A WHOLE.
QATAR CHARITY
Our CSR focus is largely in the area of Before the onset of the pandemic, we Carries out programs to fight
providing educational opportunities and
initiatives for Qatari youth, with a lower
organized the National Sports Day for
the 8th consecutive year at Al-Reem
global poverty
30
but still significant focus on both sport Club. The event had an array of indoor
and health initiatives for people of all ages. and outdoor activities that suited all

2020 Sustainability Report


ages and genders to raise awareness EID CHARITY
In 2020, the number of community events
about the importance of sports and Provides relief and subsidies,
dropped due to COVID restrictions,
fitness, promoting an active and healthy along with medical assistance to
recording a total of 14 community,
lifestyle for the entire family. This is one disadvantaged people.
educational, health, and sports events that
of our most important yearly events that
provided around 250 volunteering hours,
directly supports Q-Chem’s CSR program
with a large-base impact covering more
and contributes towards achieving Qatar
than 6,000 beneficiaries.
National Vision 2030.
QUODORAT CENTER
COMMUNITY OUTREACH Helps youth through guiding
their energy to achieve more
comprehensive societal
25% development

13% 62%

 Educational initiatives
 Health initiatives
 Sport initiatives
01. Operational 02. Health 03. Environmental 04. Human 05. Social 06. Economic Performance
01. Economic Value Creation
Excellence 02. Operating Responsibly
and Safety Stewardship 03. WorkingCapital
Together 04. Our community
Enrichment and Product 05. Appendix
Responsibility

Economic 31

Performance

2020 Sustainability Report


HIGHLIGHTS

14%
and Product reduction in overall costs

94%

Responsibility
local procurement

PILLARS
01. Operational 02. Health 03. Environmental 04. Human 05. Social 06. Economic Performance
Excellence and Safety Stewardship Capital Enrichment and Product Responsibility

Economic Performance and Product Stewardship

OUR ECONOMIC PERFORMANCE IS CRITICAL TO Q-CHEM’S


OPERATIONAL SUCCESS, GIVEN THAT OUR ORGANIZATION IS
PART OF AN ENERGY INDUSTRY VALUE CHAIN THAT BEGINS
WITH ENERGY EXPLORATION AND CONCLUDES WITH
HIGH-VALUE PETROCHEMICAL EXPORTS.

As part of our commitment towards our FISCAL RESPONSIBILITY


shareholders to maintain a profitable Fiscal responsibility enhances our
business that generates long-lasting
value, we will be constantly looking for
ability to deliver maximum profitability
to shareholders, which has led to a
32
ways to increase our operational and strong record of profitability over the
cost efficiency though our integrated years. In 2020, we undertook various

2020 Sustainability Report


approach of monitoring and managing measures to reduce overall costs by
economic performance that focuses on 14% compared to the budget to adapt
three main areas: to the decline in prices. Regular audits
and analyses of our fiscal performance
PRODUCTION AND SALES
were conducted in alignment with
Though 2020 saw a reduction in oil
best practices and the regulatory
prices and sales revenues due to the
requirements of the State of Qatar.
unprecedented global pandemic,
Q-Chem’s overall production outlook ECONOMIC IMPACT
was less affected than many other Our production has more than tripled
major companies, even with the added since our first year of operation in
challenge of going through a 45-day 2004. We generate valuable revenue
turnaround in the beginning of the that deeply contributes to the State
year. Furthermore, the average annual of Qatar’s overall wealth, economic and
derivative production was not affected industrial development. Furthermore,
by 2020 numbers, remaining above 1 as an employer of more than 1,000
million tons per year, which confirms our individuals with an operating budget
financial stability as a company. above QAR 1.6 billion, Q-Chem creates
many economic opportunities for
Qatar through employment and
procurement. »
01. Operational 02. Health 03. Environmental 04. Human 05. Social 06. Economic Performance
Excellence and Safety Stewardship Capital Enrichment and Product Responsibility

Local procurement of materials and PRODUCT STEWARDSHIP


services accounted for 69% of total Our efforts have been focused on
procurement spending in 2020, with an keeping our company and our products
increase of 33% in the budget of local up to international standards and
service contracts. We have also initiated accreditations. We are committed
and completed multiple projects this members of the Gulf Petrochemicals
year with a budget of more than QAR and Chemicals Association (GPCA)
80 million to optimize the production, Responsible Care and Gulf Sustainability
enhance the safety of our people and & Quality Assessment System (SQAS)
assets and ensure compliance with initiatives, with all our facilities being
environmental regulatory requirements. certified with ISO 14001 Management and
Looking forward, we have projects in RC 14001 Responsible Care standards. A
the pipeline spanning over the next Product Risk Management Team (PRMT)
three years with an additional budget is in place to help us proactively manage
of around QAR 900 million to help us the adverse impacts of poor handling
achieve our vision of sustainable and
reliable economic performance.
of our products inside or outside the
boundaries of our facilities. The PRMT
33
is responsible for addressing the safety
In support of the QNV 2030, we always
impacts of all new and existing products.
focus on increasing the local content

2020 Sustainability Report


The team also provides trainings to
in our procurement practices through
support risk evaluation and management,
leading the Supply Chain Localization
while ensuring that information on the
Program “TAWTEEN”, along with the “In-
safe use and handling of our products
Country Value (ICV)” incentive program.
is always provided to meet our
One of 2020 highlights in this area was
customer requirements.
qualifying a local supplier to manufacture
Bulk Sacks in Qatar using locally In the spirit of continuous improvement,
produced ingredients. Furthermore, several audits involving product
we have engaged three local-based responsibility were conducted throughout
manufacturing suppliers into our business 2020, including: A risk survey; the
following our 4Cs program (Category, CPChem OE Review and Safety Cultural
Consolidate, Commit and Contract). Assessment; the RC and ISO review; the
Process Safety Cultural Assessment.
Results of these audits and reviews

QAR 80m were largely positive and reflected our


continued pursuit of excellence in the
area of safety performance.
spent to optimize the production,
enhance the safety of our people and
assets and ensure compliance with
environmental regulatory requirements

You might also like