Group Guides and Manuals on Safety

GM-GR-HSE-003

Selecting indicators for HSE

recognition in service contracts

Industrial Safety Division

Confidentiality: level 1. For Total group internal use. Page 1/12

 Group Guides and Manuals on Safety

Guide to selecting safety indicators in contracts

REG-GR-HSE-003
SG/SEI Safety Major REX Rev. no.: 01
Date: 20/11/13

TABLE OF CONTENTS

1. Purpose .................................................................................................................................. 3
2. Application ............................................................................................................................. 3
3. Distribution ............................................................................................................................. 3
4. Reference documents ............................................................................................................ 3
5. Follow-up of the document drafting, validation and revision processes ........................... 3
6. Contents ................................................................................................................................. 4
7. Use .......................................................................................................................................... 4
8. Good practices for selecting indicators ............................................................................... 4
9. Good practices for implementing an incentive bonus or a safety challenge..................... 5
10. Practical arrangements for recognition (non-exhaustive) .................................................. 5
11. HSE contract indicators......................................................................................................... 7

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 Group Guides and Manuals on Safety

Guide to selecting safety indicators in contracts

REG-GR-HSE-003
SG/SEI Safety Major REX Rev. no.: 01
Date: 20/11/13

English translation of the French original, considered as the

Foreword reference version.

1. Purpose
This document provides guidance to assist prescribers and service contract managers in selecting
relevant HSE indicators to be used to calculate an HSE results-incentive system or to organize a
safety challenge.
It does not cover the way the incentive systems are contractually applied.

2. Application
Contracts for any kind of service with a company providing works, engineering, transport or any
other service. Not applicable to contracts for the supply of equipment.

3. Distribution

Paper format: Branch HSE Managers, Branch and Group Procurement Managers
Publication on the Intranet: Group Technical Standards REFLEX – SEI Intranet

4. Reference documents
Contractor safety policy (Dir-GR-SEC-005)
Group HSE performance recognition policy (POL-GR-RH-002)

5. Follow-up of the document drafting, validation and revision processes

REASON FOR THE

VERSION DATE PREPARED BY CHECKED BY APPROVED BY
CHANGE
01 20/11/13 Document creation D. GUENEZ J. DUPONT J.-M. JAUBERT

Thanks to all those who have contributed to writing this guide.

Stéphane GREGOIRE
Mikaël CHAIX
Jean-Marc STOFFEL

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 Group Guides and Manuals on Safety

Guide to selecting safety indicators in contracts

REG-GR-HSE-003
SG/SEI Safety Major REX Rev. no.: 01
Date: 20/11/13

6. Contents
A non-exhaustive list of HSE indicators is appended, classified by subject:
 Accident/Incident.
 Audit/inspection.
 Communication/reporting.
 Quality/organization.
 Road transport.
 Rail transport.
 Other.
The following are examined for each indicator:
 Type (leading or lagging).
 Precautions to be taken.
 Advantages.
 The target concerned (contractor Management/line management or employees executing
the contract).

7. Use
In theory there are no ideal indicators that could be recommended for each type of contract.
The prescriber – depending on his/her knowledge of the service context and nature and of the
contract – will decide on the indicators that will provide the basis for an HSE results incentive
system or a safety challenge.
In particular, the regulatory framework of the contract execution country/zone must be taken into
account. Certain indicators or contract structures may not be applicable. The prescriber has to
verifie these points.
This list of indicators can also be used for contract follow-up, without being linked to an incentive
system.
The selected indicators should be clearly listed in the contract along with details of their content
and the methods for measuring the results.
For multi-year contracts, it is wise to include an indicator revision clause in multi-year contracts, the
terms of which are to be agreed with the contractor.

8. Good practices for selecting indicators

An indicator proposal must be included in the call for tenders bid.
In the tender clarification discussions, the most pertinent indicators are to be chosen in
consultation with the contractor, in line with the improvement objectives identified and the specific
risks of the service to be provided.

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 Group Guides and Manuals on Safety

Guide to selecting safety indicators in contracts

REG-GR-HSE-003
SG/SEI Safety Major REX Rev. no.: 01
Date: 20/11/13

The following may serve as general selection criteria:

 Choose a small number of mixed indicators, making sure to offset the risks of drift or of
counter-productive induced behaviors arising from the use of a single indicator by using
one or more other indicators or adding a specific clause in the contract.
 Maintain a good balance between leading and lagging indicators, between indicators that
depend on contractor management and those linked to performance.
 Choose in preference indicators that are auditable or established jointly, which do not call
for specific extra work.

9. Good practices for implementing an incentive bonus or a safety challenge

It is important not to take over the contractor management's role of motivating its teams as regards
safety.
Particularly, any competition prizes, awards, gifts, training certificates etc. attributed to contractor
employees to reward performance in safety challenges should be given to them by their
management.
Give preference to incentive systems that allow the contractor to pass on the benefits to its
employees.
Spread the word widely about the selected indicators to create a genuine challenge and really
motivate the operating personnel.
Ceremonies to award trophies or prizes to contractor employees are a standard method of
promoting safety challenges.
The objectives set must be attainable. Expressing results as a percentage of a target figure within
a given bracket is a good means of maintaining a positive, ever-more efficient overall view.
Conversely, failure to achieve a pass/fail objective is liable to discourage further effort if the goal is
no longer attainable.
Operating personnel tend to be more motivated when there is only a short time between the safety
results and the "rewards". So a weekly or monthly challenge will be more successful at individual
level than an annual challenge. At collective level, however, annual challenges can be beneficial.

10. Practical arrangements for recognition (non-exhaustive)

Recognition varies greatly in form and type.
Generally speaking, if recognition is materialized in "gift" form, the value of the gift should be
proportional to the effort invested and the results attained, as well as with local salary practices.
The monetary value is often less important than the feeling of pride that comes from the way
management give the reward.
Below is a list of examples routinely given in the Group or by other contracting authorities.

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 Group Guides and Manuals on Safety

Guide to selecting safety indicators in contracts

REG-GR-HSE-003
SG/SEI Safety Major REX Rev. no.: 01
Date: 20/11/13

One good practice is simply to present a certificate or a congratulatory letter together with a gift.
"Gifts" may be, for example:
 Vouchers to buy goods or eat in a restaurant; cinema tickets.
 A gift from the Total catalog.
 A voucher for training in driving a vehicle.
 A smoke detector, fire extinguisher, solar lamp, gardening glove, etc.; any object that has a
positive impact in HSE terms.
The recognition can also be passed to the contractor company, to be given out as a complement to
its in-house HSE incentive system.
Recognition can also take the form of donations to charitable associations or works.

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 11.
Type of

11.1.
Target
indicator
Theme Indicator Risks (R) or Precautions to be taken (P) Advantage or Comment (C) (Management /
(Leading /
Operations)
Lagging) SG/SEI

Accident / Percentage of accidents and significant near- (P) Ensure analysis is uniform for a single site Obliges the plant operator (EU) and contractor (EE) to take
Leading Management
Incident misses analyzed (P) Precisely define the quality analysis expected a mutual interest in the quality of the analyses.

General
(R) Bumping up the figures with non-beneficial actions
Percentage of completion of action plans (PA)
Accident / (P) Link the indicator to a lead time
drawn up after analysis of accidents or significant Leading Obliges the EU and EE to approve action plans together Management
Incident (P) Validate the close-out of PA
near-misses
(P) Pay attention to ongoing actions, etc.

Audit / Percentage of responses (vs. total sent) to the

Lagging (P) Precisely define the term "request" A monthly indicator keeps the company mobilized Management
inspection site request on improving HSE performances
HSE contract indicators
Safety

Number of shortfalls observed in site / workshop (R and P) Ensure the number of audits is sufficient to avoid
Adaptability of the indicator to site objectives
Audit / cleanliness during operations and/or at the end subjective evaluation (only dirty/untidy work sites are to
Lagging Obliges shift teams to perform site handover Operations
inspection of the job. May also be applied to selective waste be evaluated)
(C) Essential for a selective waste management contract
management (P) Rigorously follow up the permits to be received

Audit / Number of deviations from the Golden Rules and (P) Draw up a rigorous, objective plan for auditing the
Lagging / Operations
inspection site HSE procedures contractors

Audit / Number of site shutdowns resulting from a risk Strongly discouraged and in conflict with the "Step Up,
Lagging STRONGLY DISCOURAGED Operations
inspection situation / failure to wear or use PPE Step In!" approach

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Audit / Percentage of non-compliances (NC) dealt with Strongly discouraged because every NC must be dealt with
Leading STRONGLY DISCOURAGED Operations
inspection while performing the job in real time
Major REX

(R and P) Ensure that all the planned audits are conducted

Percentage of site tours or inspections producing
Audit /
a "compliant" result for the "supplier evaluation"
inspection
part of the procurement process
with a high level of rigor to avoid a fragmented and
Lagging Serves to identify and share the HSE priorities Operations
subjective view
(P) Define the evaluation grid jointly in advance.
Group Guides and Manuals on Safety

Audit / Highlights the importance of risk assessments and the

Non-compliance of the "permit to work" audits Leading (R) Attributing to the EU shortfalls that it has not caused Operations
inspection relevance of safety measures in the permits
Guide to selecting safety indicators in contracts

Percentage of completion of the HSE cross-audit

(R and P) Involve both parties to avoid the contractor's

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Rev. no.: 01

Audit / and inspection program by the EU and EE

Leading target being compromised due to a lack of plant operator (C) Imperative in a contract review Management
inspection (May include themed audits depending on the
Date: 20/11/13

commitment
type of contract (e.g. selective waste)
REG-GR-HSE-003

Audit / Percentage of completion of the HSE action plan (P and R) Deploy the actions to be attributed to the EU so Encourage the EE to propose and carry out high-quality
Leading Management
inspection following cross-audits that it always sets a good example actions decided together with the EU
 Type of
Target
indicator
Theme Indicator Risks (R) or Precautions to be taken (P) Advantage or Comment (C) (Management /
(Leading /
Operations)
Lagging)

SG/SEI
Audit / Percentage of the HSE audit program completed Mobilize management and personnel of the EE tasked with
Leading / Management
inspection in the presence of a member of EE management executing the contract

Availability and compliance of equipment (R) Mismatch between the lists of equipment in the
Audit / (detection, PPE, lifting). Respect the intervals workshop(s) and the items available in the field (hoists, Adaptability of the indicator to the contract type
Lagging Management
inspection between tests, equipment expiry dates and the flexible hoses, etc.) (C) Professions in which this is mandatory (e.g. lifting)
availability of certificates (P) Make sure enough work site audits take place

(P) See that there are technical standards and a baseline

Audit / Number of shortfalls observed in the storage of Allows evolutions to be quantified against annual Management /
Lagging assessment
inspection hazardous and/or toxic products and waste objectives or based on a previous period Operations
For waste, refer to the Group Directive on waste

(R and P) Pay special attention to the quality of these talks

Communication Percentage of completion of a program of site
Safety

Leading so that people are not tempted to bump up the figures Helps to convey the priority HSE messages Management
/ Reporting safety talks or toolbox meetings
(R) Declarative only (hard to monitor)

(R and P) Have an EU entity validate and appraise anomaly

Communication Number of anomalies declared and successfully reports to ensure that they are not of poor quality
Leading Encourage EE to give their opinion Operations
/ Reporting managed by the EE, per employee (P) Define what an anomaly is
(P) Measure the changes year-on-year
(R and P) Have an EU entity validate and appraise anomaly
Communication Number of hazardous behavior-related situations reports to ensure that they are not of poor quality
Leading Encourage EE to give their opinion Operations
/ Reporting reported per employee (P) Define what an anomaly is
(P) Measure the changes year-on-year
(R and P) Have an EU entity validate and appraise anomaly
Communication Number of safety anomalies reported to the EU reports to avoid poor quality
Leading Encourage EE to give their opinion Operations

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/ Reporting by an EE employee (P) Define what an anomaly is
(P) Measure the changes year-on-year
Major REX

Communication Number of pertinent, validated proposals for HSE (P) Pay special attention to the quality of improvements Management /
Leading Increase HSE attention of all EE personnel
/ Reporting improvements and the resulting financial investment Operations

(P) Be demanding as regards the quality of reports and the

Communication Percentage of weekly / monthly safety reports
Leading information they must include (large companies should be / Management
/ Reporting submitted
Group Guides and Manuals on Safety

reporting daily)
Guide to selecting safety indicators in contracts

Communication Percentage of participation in HSE meetings

Leading (P) Precisely define the HSE meetings in question Is a means of sharing HSE information Management
/ Reporting organized by the site

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Date: 20/11/13

Communication Percentage of participation in contract reviews (P) Make sure contract managers and HSE managers attend
Leading / Management
/ Reporting including the HSE aspects the review
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 SG/SEI
Type of
Target
indicator
Theme Indicator Risks (R) or Precautions to be taken (P) Advantage or Comment (C) (Management /
(Leading /
Operations)
Lagging)

(P) Only to be used against large numbers of hours

Communication
Site LTIR or LTIF Lagging (P) Include a clause for resetting this indicator to zero if an / Management
/ Reporting
event is dissimulated

(P) Only to be used against large numbers of hours

Communication
Site TRIR Lagging (P) Include a clause for resetting this indicator to zero if an / Management
/ Reporting
event is dissimulated
Safety

(P) Only to be used against large numbers of hours

Communication
Number of TRI Lagging (P) Include a clause for resetting this indicator to zero if an / Management
/ Reporting
event is dissimulated

Figure representing the quality level of the SMS in place

Communication (P) Use this indicator in preference for selecting EE rather
TF1 for the agency (in Europe) Lagging Figures smoothed and correlated with the site LTIR/TRIR Management
/ Reporting than for following up contracts
Reduces the risk of information being dissimulated

Figure representing the quality level of the SMS in place

Communication (P) Use this indicator in preference for selecting EE rather
TF2 for the agency (in Europe) Lagging Figures smoothed and correlated with the site LTIR/TRIR Management
/ Reporting than for following up contracts
Reduces the risk of information being dissimulated

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Communication (P) Use this indicator in preference for selecting EE rather
TG for the agency (in Europe) Lagging / Management
/ Reporting than for following up contracts
Major REX

Under no circumstances must personnel be prevented

Communication
First aids Lagging from going to the infirmary; this could mask events with UNDER NO CIRCUMSTANCES Management
/ Reporting
the potential to become more serious
Group Guides and Manuals on Safety

Communication (P) Include a clause canceling any bonus if an event is Management /

Non-reported event Lagging Prevents the temptation to dissimulate an event
/ Reporting dissimulated, to avoid any temptation of under-reporting Operations
Guide to selecting safety indicators in contracts

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Rev. no.: 01

Percentage of personnel who have completed (P) Define precisely beforehand the training concerned:
Date: 20/11/13

Training the HSE training program (certificates available Leading compulsory courses / Management
and up to date) (P) Take into account training and refresher courses
REG-GR-HSE-003
 Type of SG/SEI
Target
indicator
Theme Indicator Risks (R) or Precautions to be taken (P) Advantage or Comment (C) (Management /
(Leading /
Operations)
Lagging)

Percentage of personnel who have taken medical Makes it possible to monitor medical fitness for the
(R) Possible prohibition arising from the country's company
Medical check-ups, and/or proportion of medical fitness Leading workplace and for specific tasks (confined spaces, work at Management
legislation
certificates that are available and up to date height, etc.)

(P) Reasoning based on a percentage means that the total

Percentage of operations covered by an operating
Quality
procedure, or number of newly-created or
organization
revised operating procedures
Quality Percentage of permit to work examinations that
theoretical number of operating procedures must be
Leading Highlights related groups of equipment Management
evaluated
(R) Pay particular attention to generic operating procedures
Places the emphasis on examination quality and
(P) Define the required quality of the permit preparations management of operations -
Safety

Leading Management
organization are on schedule and evaluate them together Makes it possible to respect the schedule for issuing
permits

Quality Number of jobs re-done due to non-quality Makes it possible to track work redone ("not right the first
Lagging (R) Difficult to monitor accurately Operations
organization during works or start up (gasketing, welding, etc.) time")

(P) Define the program at contract negotiation or plan

Number of emergency preparedness exercises
Quality
run in relation to the program (including
organization
environment and security exercises)
participation in exercises organized by the EU
Leading / Management
(P) Express the indicator as a % of the number of employees
taking part or including management participation

Quality Maintain the same rotation / shift patterns as are

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Leading (P) Define the work rhythm in the contract Reduces the number of fatigue-related accidents Management
organization defined in the contract (E&P specific)
Major REX

Quality Fuel consumption (vehicles, ships, rotating Choose low-consumption systems in preference. Avoid
Lagging (P) Introduce an auditable metering system Management
organization machinery) (E&P specific) improper use of fuels

Processing hazardous waste (if site waste is sent

(P) Must be clearly stipulated in the waste processing
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Quality for treatment): number of document for

Lagging contracts; possibly even include a clause stating the % paid Guarantees the traceability of hazardous waste processing Management
organization hazardous waste not sent back within the
for
required time
Guide to selecting safety indicators in contracts

(P) Anticipate a maximum % number of temporary workers

Temporary Monitoring of temporary workers employed by Provides a way of tracking seniority and/or the number of
Rev. no.: 01

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Leading in contracts Management
workers the EE for the contract rotation staff in connection with the contract
Date: 20/11/13

(P) Ensure the approach is compatible with local regulations

REG-GR-HSE-003
 11.2.
Type of indicator Target
Theme Indicator (Leading / Risks (R) or Precautions to be taken (P) Advantage or Comment (C) (Management / SG/SEI
Lagging) Operations)

Road
Driver training requirements fulfilled Leading (P) Define all obligations, regulations-based or not Drivers' availability to attend training Management
transport

Transport
(R) Risk of simply bumping up the figures
Road Drivers' experience can be used to update driving risk
Contribution to identification of black spots Leading (R) Consideration of only new risk situations and ones that Operations
transport assessments
have ceased to exist (not current ones)

Road (R) Risk of simply bumping up the figures Opens the way for an innovative approach, as near-misses
Number of near-misses Leading Operations
transport (P) Include a quality criterion in road transport are almost unheard-of

(R) Risk of simply bumping up the figures

Safety

Road (P) Include a quality criterion Gets the drivers involved; often they are the only ones
Hazardous conditions during loading / unloading Leading Operations
transport (M&S: examine from a "number of feedback reports" who know the unloading points
viewpoint)

Road (R) Carriers focusing on "quick wins" in terms of a system,

Action plans followed after carrier inspections Leading Increases carriers’ level as regards HSE Management
transport not the reality

Road
Number of spills Lagging (R) Risk of event being dissimulated / Operations
transport

Road Speeding in the case of trucks fitted with on- (R) Not all trucks are fitted with OBC

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Lagging Ensures rules are respected Operations
transport board computers (OBC) (P) Verify whether daily access to the database is possible
Major REX

(P) Clearly define the applicable rules

Road
Driving / break times respected Lagging (P) Verify whether daily access to the database is Ensures rules are respected Operations
transport
possible
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Road
Number of significant accidents Lagging (R) Risk of event being dissimulated / Operations
transport
Guide to selecting safety indicators in contracts

Rev. no.: 01

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Date: 20/11/13
REG-GR-HSE-003
 SG/SEI

Type of indicator Target

Theme Indicator (Leading / Risks (R) or Precautions to be taken (P) Advantage or Comment (C) (Management /
Lagging) Operations)

Road
% of trucks that fail the "safe to load" test Lagging (P) Clearly define the applicable rules Increases carriers’ level as regards maintenance Operations
transport

Road (P) Clearly define the applicable rules

Failure to respect the ban on night driving Lagging Ensures rules are respected Operations
transport (P) Verify whether daily access to the database is possible
Safety

Road (P) Clearly define the applicable rules

Parking in recommended zones Lagging Ensures rules are respected Operations
transport (P) Verify whether daily access to the database is possible

Road Routes and schedules respected (for affiliates (P) Clearly define the applicable rules
Lagging Ensures rules are respected Operations
transport that use geo-fencing) (P) Verify whether daily access to the database is possible

Road (P) Clearly define the applicable rules

% of trucks that fail vetting Lagging Increases the technical level of accredited trucks Management
transport

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Rail transport Number of rail tank cars (RTC) (P) Precisely define the notion of "lost" as opposed to "late" Risk management Management
Major REX

(P) Define the criteria and the acceptance process in the rental
Rail transport Compliance of RTC leaving the workshop Lagging Compliance with requirements on leaving the workshop Management
contract

(R) Companies focusing on "quick wins" in terms of a system,

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Action plans followed by the EE: rail company not the reality
Rail transport Leading / Management
(RC) or rental agent (P) For RCs, the action plan must be defined based on
evaluations, as per the minimum requirements of rail operators
Guide to selecting safety indicators in contracts

Ensures there are no non-compliant rail tank cars in

Rev. no.: 01

Rail transport Appropriate check prior to transport obtained Leading (R) Risk of RC zeal Management

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circulation
Date: 20/11/13
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