HSE Performance of contractors

Viktória Márton
GHSEA
14 November 2007
Content

► MOL Group HSE Policy

► MOL Group HSE performance 2007

► Contractors’ HSE performance 2007

► MOL Group HSE expectations 2008

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MOL Group HSE Policy

The HSE Policy is the highest Group level committment in our Health,
Safety and Environment Management and applies to all our business
Units, controlled subsidiaries and contractors as a basis for setting their
HSE targets, objectives and programs.

„Health, safety and environmental protection (HSE) is an

integral part of the management philosophy of MOL Group.
Considering HSE matters as any core business issues
enables us to implement our corporate values and to achieve
business excellence following the same approach wherever
we do business.”

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MOL Group HSE Policy

 to continuously improve our HSE

performance,
 to have a preference for suppliers and
business partners complying with our HSE
policy and standards, especially in case of
long term partnerships,
 to communicate openly
 MOL Group HSE performance H1 2007

KPI for Target H1 Actual Forecast

Status evaluation
MOL Group 2007 2007 2007* 2007
Fatality 0 1 1 1 No fatal accident of MOL Group employee &
contractor / fatality of 3rd party (SNTrans)
LTIF 1,8 1,12 - 1,36 Below year-end target, but winter season
coming
LTI 47 14 30 34 (indicative figure only!) one serious event (E&P)
Fire cases 15 6 9 9 Damage deriving from fires reached 45000 EUR
TROIF 0 0 0 0 No reported occupational illness in the Group

RAR 2,5 2,25 - 2,4 Yearly target is achievable

Hazardous 80 000 23 963 - 80 000 Target set for 2007 is achievable (normal
waste tons operation & emergency cases)
Actual 2007* = Week 39 (end Q3)

** = with
with// without
without near misses & road
accidents

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 Main causes of MOL Group LTIs in H1 2007

Pedestrian traffic Other Maintenance

within technological
facilities 14% 7%

37%
Pedestrian traffic in
buildings
14%
Operating and servicing of
machines, equipment,
14% 14% technologies, facilities
Vehicle traffic at depots or
at technological facilities

• 37% of LTIs are derived from maintenance, 28% from pedestrian traffic at
MOL Group out of 14 LTIs in H1 2007

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Contractors’ HSE performance 2007
Num ber of Lost Time Injuries

35

30

25

20

15

10

0
2005 2006 2007*

LTIs •Till 19 October 2007

► Early warning: Time proportionate contractor LTI figure is nearly the

same as 2006 data
► Contractors’ has almost the same number of injuries as MOL Group
employees
► No serious contractor injury in 2007

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Contractor LTI with high injury potential 2/1

► On 23.08.2007. employees of a contractor and its two subcontractors were

eliminating an illegal drainage on product pipeline near Balástya village,
when the trench wall fell down covering a subcontractor employee fully and
a main contractor employee partially.
► Antecedents:
► Surroundings of the drainage was excavated by dredger on 21 August
► Size of the trench was 3x4x2,5m, there was a dirt road and a channel near the
trench
► Due to 10 bar overpressure the employees did not start repairing the pipeline
► The incident:
► The work restarted 2 days later (23 August)
► The side wall of the trench slid burying two employees

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Contractor LTI with high injury potential 2/2

► Causes:
No backslope was prepared because:
► the employees intended to save the
nearby channel and dirt road and
► The days before this work they worked
in smaller (90cm deep) trenches where
backslope construction was not first
priority
Work should have not been allowed in
the trench
► Corrective action:
► Internal regulation was prepared for
earth works (detailing responsibilities)

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Contractors’ HSE performance 2007
Num ber of non-Lost Tim e Injuries

25

20

15

10

0
2005 2006 2007*

NLTIs
•Till 19 October 2007

► The same trend as in LTIs

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Contractors’ HSE performance 2007

Fires

0
2005 2006* 2007**

Fires

* In 2006 a tank explosion was caused by contractor

work, this incident was NOT classified as contractor fire
case
**Till 19 October 2007

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MOL Group Strategic HSE Goals 2006-2010
HEALTH
• Execute Workplace Health Promotion Program for at least 75% of MOL Group employees by 2010
SAFETY
• Lost Time Injury Frequency (LTIF) target for MOL Group to be in first quartile among peer
group or at least to be < 1 by 2008
• By implementing defensive driving culture, Road Accident Rate (RAR) target for MOL Group
by 2008 is to be in first quartile among peer group
• HSE pre-qualification of all key contractors by 2008 (to have the same HSE performance at
contractors as in MOL Group by 2010)
ENVIRONMENT
• Decrease amount of known (end Y2004) environmental provision-based liabilities by 90% till 2015
• Development of standardised waste management practice with reducing waste quantities and
increasing ratio of reuse and recycling
• Achieve integrated water management (with focusing on protection of freshwater resources)
• Optimize greenhouse gas emissions and support the increase of renewable energy utilisation
GOVERNANCE
• Establishment and operation of Sustainable Development Framework in the Group
• Compliance with Group HSE standards at high risk businesses by 2010
• Move company HSE culture towards generative approach
• Set up HSE leading indicators for Group level and all business segments by 2008

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 Group HSE Objectives & Targets for 2008

► Health protection:
• No work related fatal accident in MOL Group (staff, contractors and 3rd
parties)
• Total reportable occupational illness frequency (TROIF) equal to zero
• Each business unit contribute to get involved at least 40% of employees in
workplace health promotion program

► Safety
• Lost time injury frequency (LTIF) no more than 1.0
• Road accident rate (RAR) not more than 2.3
• Incident inquiry should reach at least 80%
• Long term suppliers (beyond 1 year) should be HSE pre-qualified
• Each business unit should set and apply at least one Process Safety leading
indicator

► Environmental protection:
• Each business unit should set Waste Management leading indicator
• MOL Group’s environmental liabilities as known at the end of 2007 should be
reduced by 6.0 bn HUF in 2008
• Reduce CO2 emissions by 1% as a direct result of GHG reduction initiative(s).
• Reduce Group level fresh water intake by 10%