Per Metrics
Content
Performance Metrics Report for 2010 to 2012
Published November 2013
GPCA adopted Responsible Care® in 2010 and committed to measure and report on
21
different metrics in a phased program over
4
years.
Contents
Message from the Chairman 2 Respondents 3 Performance Metric Reporting – A GPCA Journey 4 Performance Metrics and Implementation Phases 6 Participation 7 Occupational Safety and Health 8 Process Safety 10 Emissions and Discharges 11 Resource Utilization 11 Responsible Care® Success Story – Borouge 12 Responsible Care® Success Story – Sipchem 14 Responsible Care® Success Story – CHEMANOL 15 Responsible Care® Success Story – SABIC 16 Responsible Care® Success Story – PIC 17 Responsible Care® Success Story – GPIC 18 Summary 20
This publication provides an overview of the data provided by GPCA members for 2010 to 2012. Lloyd’s Register worked with the Performance Metrics Sub-Committee to produce this publication.
1
Performance Metrics Report for 2010 to 2012 Published November 2013
Message from the Chairman
“…we care about our people, the environments and the communities in which we operate.”
It gives me immense pleasure and satisfaction to share the first ever GPCA Responsible Care® Performance Metrics Report. Since the beginning of Responsible Care® by GPCA in 2009 significant progress has been made. The release of this metrics report signifies one of many major milestones for GPCA and participating member companies as part of the Responsible Care® journey. In 2013, GPCA members reported 19 out of 21 performance metrics. By 2014, members will be reporting all 21 metrics; complying with 100% Responsible Care® reporting requirements. The journey that we started in 2010 was by no means an easy one but the commitment of GPCA members, especially the task force members, has been overwhelming. I firmly believe that the work done on Responsible Care® is a practical way to demonstrate that we care about our people, the environments and the communities in which we operate. I want to also thank Lloyd’s Register for creating this independent overview of GPCA members’ performance and highlighting the areas that need our attention to move forward towards excellence. I am sure that with our sincere efforts we will make a difference in creating a better world for the generations to come. Mohamed Al-Mady Chairman Board of Directors
2
Respondents
Members Abu Dhabi Polymers Company Limited (Borouge) Advanced Petrochemical Company (APC) Al-Bayrouni CHEMANOL EQUATE Petrochemical Company Farabi Petrochemical Co Ltd Gulf Petrochemical Industries Company (GPIC) Kemya National Industrialization Company (TASNEE) National Petrochemical Industrial Co (NATPET) Petrochemical Industries Company (PIC) Petro Rabigh Petrokemya Qatar Chemical Co Ltd (Q-Chem) QAFAC Qatar Petrochemical Company Ltd (QAPCO) Qatar Vinyl Company Ltd Q.S.C (QVC) Sahara Petrochemicals Saudi Basic Industries Corporation (SABIC) * Saudi Chevron Saudi International Petrochemical Company (Sipchem) Sharq Yenpet
* Sites reported multiple data sets.
2010 3 3 3 3 3 3 3 3 3 3 3 3 3
2011 3 3 3 3 3 3 3 3 3 3 3 3 3 3
2012 3 3 3 3 3 3 3 3 3
3 3 3
3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3
3
Performance Metrics Report for 2010 to 2012 Published November 2013
Performance Metric Reporting A GPCA Journey
Continuous improvement, reporting of Environmental, Health and Safety (EHS) performance and transparency are fundamental elements of the GPCA Responsible Care® initiative. The GPCA Guiding Principles which are aligned with the ICCA Global Charter define the vision for petrochemical and chemical manufacturers in the region as follows:
“To measure performance, openly report, make continual progress towards our goal of eliminating accidents, injuries or harm to human health and the environment from our products and operations.”
In 2010, the GPCA Responsible Care® Committee commissioned a task force of subject matter experts from member companies representative of the region, with the objective of translating this vision into a system to capture and openly report EHS performance. The task force adopted a strategy of building on commonly reported performance measures, aligning with global trade associations and phasing in new “value added” metrics over time. The task force developed a guidance document, aligned with all GPCA member companies and the first Performance Metrics Guidance Document was published by GPCA in the third quarter of 2010. It defines the performance measures, provides guidance in calculating the metric and outlines requirements for reporting. The phased approach has given member companies time to develop and implement management systems to collect data and report as required by GPCA.
The metrics reporting cycle representing 2010, 2011 and 2012 has now been completed. Data submitted has been consolidated, analyzed and a report generated with the help of an independent third party consultant, Lloyd’s Register. All data submitted has been maintained anonymously by GPCA throughout the process. It is noteworthy that a high level of participation by member companies during this first cycle of reporting demonstrates the spirit of sharing and cooperation across GPCA member companies. With the publication of the Metric Reporting Guidance Document and the collection of the initial performance metrics, the work by the task force was deemed complete. In the interest of continuous improvement GPCA transformed the task force into a sub-committee. The objectives of the sub-committee are to help member companies gain better understanding of the Guidance Document, analyze the collected data, identify industry trends, establish additional “value added” measures and most importantly to aid member companies in sharing best practices. With the dedication and commitment of the member companies to the Responsible Care® guiding principles, the EHS performance reporting program is now established and the region can take pride in being one of the few trade associations that have reached this milestone in such a short time.
4
2012 Performance Metrics Sub-Committee
Mr. Maher Al Dughaim
Chemanol “Committee Chairman”
Mr. Jassim Darwish
Gulf Petrochemical Industries Company (GPIC) “Vice Chairman”
Mr. Tariq Alauddin
Saudi International Petrochemical Company (Sipchem)
Mr. Qasim Yunus
Saudi Basic Industries Corporation (SABIC)
Mr. Andrew Blue
Lloyd’s Register
Mr. Ridha Behbehani
EQUATE Petrochemical Company
Mr. Sudhir Sivarajan
Abu Dhabi Polymers Company Limited (Borouge)
5
Performance Metrics Report for 2010 to 2012 Published November 2013
Performance Metrics and Implementation Phases
5
categories.
Number of metrics reported
21
metrics.
Categories
Metrics
Phase 1 2010
Phase 2 2011
Phase 3 2012
Phase 4 2013
Occupational safety and health
6
4
6
6
6
Process safety
3
2
3
3
3
Emissions and discharges
8
4
6
6
8
Resource utilization
3
1
3
3
3
Distribution
1
-
-
1
1
Total
21
11
18
19
21
6
Participation
2010
20 out of 24 companies participated
2011
114 114
19 out of 24 companies participated
114
107
80 80 Data sets submitted 40 40 0 Occupational safety (4) 23 Process safety (2) Emissions/discharges Resource utilization (4) (1) Required Reported 78 80 Data sets submitted 75 57 55
80
40
57 46
57
55
0 Occupational safety (6) Process safety (3) Emissions/discharges Resource utilization (6) (3) Required Reported
Performance metric category
Performance metric category
2012
120 100 80 Data sets submitted 60 40 20 0 Occupational safety (6) Process safety (3) 60 120 115
20 out of 24 companies participated
120
120
58
60
60
20 Emissions/ discharges (6) Resource utilization (3)
14
Distribution (1) Reported
Performance metric category
Required
2010 to 2012 combined
380 342 257 322
300
367
200 Data sets submitted
231
100
0 2010 Phase I Performance metric category 2011 Phase II 2012 Phase III Required Reported
7
Performance Metrics Report for 2010 to 2012 Published November 2013
Occupational Safety and Health
Total Recordable Incident Rate The most important and widely recognized lagging health and safety indicator is Total Recordable Incident Record (TRIR). This is an important metric because: • stakeholders expect to see it, • it is a proven safety indicator used universally, • it can be used as a basis to demonstrate performance improvement, and • it has a high benchmarking value. 2010 to 2012 combined TRIR for company employees
1.6 1.4 1.2 1.0 0.8 0.6
TRIR value
Based on 200,000 man-hours worked
0.4 0.2 0
GPCA member companies 2010 2011 2012
2011 to 2012 combined TRIR for contractor employees
1.6 1.4 1.2 1.0 0.8 0.6
TRIR value
Based on 200,000 man-hours worked
0.4 0.2 0
GPCA member companies 2011 2012
8
Performance benchmarks The graph below compares data for TRIR from US manufacturing companies, US chemical companies, US American Chemistry Council (ACC) member companies and GPCA member companies.
4.00
3.00
2.00
1.00
TRIR value
0 US manufacturing 2010 TRIR US chemical 2011 TRIR 2012 TRIR ACC employees ACC contractors GPCA employees GPCA contractors
Key messages To compute overall average incident rates for the GPCA member companies, the metric committee has requested member companies provide information on total man-hours worked, a number which goes into the TRIR formula. GPCA member company performance is comparable and better than the US Responsible Care® companies. GPCA, through a series of planned communications and workshops, is helping member companies to align occupational safety and health metrics measurements and records.
9
Performance Metrics Report for 2010 to 2012 Published November 2013
Process Safety
Chemical and petrochemical manufacturing companies contain inherent safety risks which, if not contained, can result in catastrophic incidents. Process safety performance metrics measure the effectiveness of risk management practices implemented by the organizations to pro-actively control inherent risks. The three metrics in this metric posses high value because they: • are important to stakeholders, • provide a measure to benchmark across industry, and • demonstrate performance improvements. Process safety performance
Process safety incident A process safety incident is an incident involving hazardous or toxic materials which results in a damage greater than $25,000. A lost time injury or fatality or release of material above a predefined threshold quantity is classified as a process safety incident.
20
15
10
Process safety incidents
5
0
GPCA member companies
2010
2011
2012
Key messages Process safety metrics are relatively new, created and issued by the AIChE/CCPS in 2007, and issued as an API standard in 2010. GPCA has adopted the AIChE/CCPS guidelines and it is encouraging to see most member companies measuring and reporting process safety metrics despite this being a new metric globally.
10
As the systems for measuring process safety metrics mature within GPCA companies, additional details about the incidents in terms of severity will be shared and reported.
Emissions and Discharges
Resource Utilization
Protection of the environment is a key element of Responsible Care®. Measurement of materials discharged indicate the adverse impact of GPCA member companies operations on the environment and identify opportunities where it can be minimized. The selected eight emission and discharge metrics are important because they show the impact of activities on pollution and global warming and: • reflect the potential adverse impact on the aquatic environment, • are a core measure in the Responsible Care® Global Charter (NOx), and • are a regulatory requirement in most areas. 2010 to 2012
120 Data sets submitted
Member companies were asked to report water consumption, energy efficiency and total energy consumed. These new generation metrics are important because: • they are an important measure for global stakeholders, • they relate to sustainability issues, and • water consumption is identified as an International Council of Chemical Associations (ICCA) core measure in the Responsible Care® Global Charter.
2010 to 2012
80 Data sets submitted
90 60 30 0 2010 Required Reported 80
114 94
68
120
120
60 40 20 0 20 2010 Required Reported 20 2011 2012
57
54
60
60
2011
2012
2010 Total GPCA region reported emissions (tons): Sulfur dioxide Nitric oxides Total reported energy consumption (tons of fuel oil equivalent) Total reported hazardous waste generated (tons) Total reported water consumption (million M3) 603,856 1,124,726
2011 5,659 21,701 88,105,623 373,926
2012 12,080 20,093 169,042,028 412,993 1161233
Key messages Most member companies are measuring and reporting the metrics for emissions and resource utilization. In view of the varying regulatory requirements in the GPCA region, the data reported by member companies is not currently comparable. The SMEs on the metric sub-committee are working with member companies to standardize this data. Workshops and training is planned in this area.
11
Performance Metrics Report for 2010 to 2012 Published November 2013
Responsible Care® Success Story
Borouge
Transition from lagging to leading indicators. We measure and we improve!
Borouge has been measuring and reporting Environment, Health, Safety and Security (EHS&S) performance since the start of its operations in 2002. Initially the EHS&S reporting only included lagging EHS&S performance metrics which was relatively normal practice at the time. It was soon evident that lagging indicators have many inherent shortcomings; lagging indicators do not generate proactive and positive actions and there is little guarantee of performance improvement over time. This was the case for Borouge, hence it was deemed necessary to have leading indicators for early warning before failure occurs. Prior to 2011 there was a build-up of waste at site, most of which originated during a recent turnaround and a major project. In 2011, a lagging KPI was introduced to reduce the waste quantity stored at site from >1,000 tons to <30 tons. This KPI was supported by a number of proactive plans, shared across all functions. The result was achieved prior to the year end. Once this objective was achieved, it was decided that the waste KPI would no longer be required; however the positive waste management practices have been sustained. In 2012, a new Occupational Health Improvement Program KPI was introduced. It is expected that the KPI will remain along with associated annual campaigns until employees have a full understanding of their specific health concerns and the processes in place to manage those concerns. Prior to 2012, a leading indicator was used to ensure emergency exercises were being performed on a regular basis. In 2011 it was recognized that although the KPI was being met, there were key leadership positions that were not being trained as a result of the existing KPI. In 2012 the KPI was changed to specifically focus on the team that really matters i.e., On-Scene Commander (OSC), Incident Management Team (IMT) and Crisis Management Team (CMT). The process is now embedded and regular training occurs without the need for a specific KPI. The training was delivering business value. During 2012 the KPI was fine-tuned to measure training attendance. This KPI now focuses on the quality of the training delivery and the processes that support attendance. The attendance average at each session indicates that they are now better planned and the quality assured. Observation tours are another leading indicator that has transitioned from a quantitative to a qualitative KPI. Initially there was a need to ensure that employees were motivated to take part in the program. This was done at a company level. The next stage was to set annual KPIs by function/team. Now that participation has become automated, in 2013 this KPI was further fine-tuned to target the close-out of unsafe acts/conditions arising from observation tours.
12
Borouge EHS&S Scorecard 2013
Strategic objective EHS&S general
KPIs % serious potential incidents and TRI investigations performed <30 days % EHS&S action close-out against target % EHS&S audits undertaken against plan EHS&S training attendance % observation tours closed actions versus total actions raised
Health and environment
% occupational health program milestones achieved % ISO 50001 milestones achieved
Process safety
EHS&S critical equipment systems tested against plan % management of change following due process
Lagging indicators
TRI frequency Energy per ton production Flaring of hydrocarbons
Simple, Mensurable, Achievable, Realistic and Time-bound (SMART) selection of KPIs can deliver significant business value. All aspects of our EHS&S performance have improved over recent years, and we believe this improvement is truly sustainable. At Borouge, we have all contributed and are proud of this success.
13
Performance Metrics Report for 2010 to 2012 Published November 2013
Responsible Care® Success Story
Sipchem
NOx emissions from Sipchem’s reformer furnace halved.
Nitrogen Oxides (NO and NO2) commonly referred to as NOx react with organics in the atmosphere to produce ozone gas. Ozone at ground level is an industrial pollutant, causing damage to lung tissues and reduction in lung capacity even at very low concentrations. NOx are produced at high temperatures by the reaction of nitrogen with oxygen, conditions which exist in industrial furnaces and internal combustion engines. Control of NOx emissions from furnaces is key to maintaining breathing air quality for the public. Sipchem is monitoring the NOx emissions from its reformer furnace continuously to maintain them as low as possible and within the limits set by Royal Commission for Jubail & Yanbu’s environmental regulations. Although Sipchem‘s emissions were in compliance with the Environmental Operating Permit, they were slightly higher than the limits being set for new plants. Based on the measurements of NOx emissions, Sipchem decided to implement a program to reduce the overall NOx emissions from its operation. A major project was undertaken to replace 246 burners in the reformer furnace with burners utilizing the latest induced flue gas recirculation technology. The project was implemented at a cost of 10 million SAR in 2009. Project implementation reduced total NOx emissions by 50%, contributing to improved air quality in the community and surrounding areas. Three years after project implementation, the performance of the Sipchem IMC reformer furnace is still considered as best available technology for NOx emission reduction. NOX emissions 1,900 90
300 May 05 Oct 05 Mar 06 Aug 06 Jan 07 Jun 07 Nov 07 Apr 08 Sep 08 Feb 09 Jul 09 Dec 09 May 10 Oct 10 Mar 11 Aug 11 Jan 12 Jun 12
0
Mt NOx/yr
NOx nj/J
14
Responsible Care® Success Story
CHEMANOL
Improved safety performance metrics during the last two years.
As a result of participation in the Responsible Care® initiative, CHEMANOL has seen considerable improvement in safety performance. In 2012, we initiated a near miss and unsafe conditions reporting campaign after setting a corporate objective of 1,000 reports. This was successfully achieved and surpassed by 131%. As part of the campaign, we conducted a number of training and awareness sessions encouraging employees to report near misses and unsafe conditions. As an objective in every employee annual performance appraisal, employees were asked to spot and report hazards, and then take corrective action. Quality of reporting was not the main consideration, rather it was to enhance safety culture and teach employees how to spot and report workplace hazards. Department Managers had an additional performance measure which was linked to corrective action and closure of reported near miss incidents and unsafe conditions. The whole process of documenting the near miss reporting and corrective action was tracked effectively. The campaign has resulted in a shift in safety behavior and a reduction in incident rates in both direct hire and contractor employees.
2011
2012
Direct hire employee incident rate
1.2
0.40
Contractor employee incident rate
0.68
0.50
We believe motivating our employees to report near misses and take timely corrective action increases trust in the program and creates a win-win situation. For 2013, we have set a corporate level objective of 1,500 reports and have set a target of 10% improvement in incident rates. Our corporate level EHS goal for 2013 is zero leaks and zero lost time injuries.
15
Performance Metrics Report for 2010 to 2012 Published November 2013
Responsible Care® Success Story
SABIC
Maintaining upmost transparency in performance reporting.
SABIC has introduced a unique system for all SABIC affiliates to manage the reporting of annual EHSS performance to GPCA. The data collected from all affiliates is reviewed firstly by local teams, before further review is conducted by the regional EHSS team and SABIC focal point coordinator, before being submitted to GPCA. This ensures accuracy and integrity, while maintaining upmost transparency. In addition, it ensures that regional EHSS teams are fully engaged and bought into the process. GPCA performance reporting requirements are also integrated within SABIC’s EHSS management system to ensure that it is working as part of our business rather than being seen as an add-on or initiativedriven. Until 2011, SABIC was reporting on the EHSS performance of five affiliates as part of its GPCA membership requirement. SABIC has since achieved corporate membership for all KSA affiliates and, from 2012, is now reporting on the EHSS performance for all 18 affiliates. Once again, this has raised the level of awareness and engagement with Responsible Care® as an integrated business activity across all of our operations and allowed us to transfer the learnings from reporting of the first five affiliates across all of our operations.
GPCA performance reporting and review system at SABIC and affiliates
February Responsibility/target SABIC Responsible Care® coordinator to GPCA GM, SABIC EHSS, ME/A Week 2 Mail copy Weeks 3 and 4 Week 1 March Week 2 Weeks 3 and 4 Review all data and send to GPCA
Communication initiation
Escalate to president/VP
SABIC EHSS functional senior managers
Mail copy
No Received data on time?
Review and verification by functional managers
Any clarification? Yes
No
SABIC Responsible Care® coordinator, ME/A
Mail copy
Yes
Consolidate all data
Affiliates/ function focal points
GPCA requirements, coordinate with local team
16
Responsible Care® Success Story
PIC
Achieving RC 14001 certification.
Petrochemical Industries Company (PIC) has been awarded the RC 14001 Responsible Care® Management System certification based on the company’s strategies and continuous efforts to improve and enhance its performance in the area of Health, Safety, Security and Environment (HSSE). The certification was awarded to PIC on July 19, 2011. PIC is one of the few companies in the Middle East to have attained RC 14001 certification. PIC is committed to continually improving its management systems by bringing best practices into the organization and embracing new initiatives that benefit the society and environment. PIC is now further deepening its sustainable development efforts through identifying 24 long-term Simple, Mensurable, Achievable, Realistic and Time-bound (SMART) sustainability goals. These goals are being implemented by establishing a sustainability governance structure and by creating awareness and executing improvement projects using the ‘six sigma’ methodology which has been running over the past five years to improve business process across the organization. By looking at the initial list of successful projects completed during this learning journey, many impressive and substantial achievements can be clearly seen. 100 million dollars saved by completing 295 six sigma projects is a great achievement by any standard. We are now further deepening our sustainable development through 2017 PIC corporate sustainability goals related to safety, environmental stewardship and exemplary corporate citizenship. The true benefit of implementing this initiative has resulted in improved skills and competencies of our future leaders. Whether it’s getting an ISO or Responsible Care® certification or any other high level task, our staff are getting more and more self-confident for bigger challenges and more successes.
17
Performance Metrics Report for 2010 to 2012 Published November 2013
Responsible Care® Success Story
GPIC
Complying with regulatory requirements and reducing our environmental footprint.
The core objectives of our environmental management policy at Gulf Petrochemical Industries Company (GPIC) is to comply with regulatory requirements and reduce our environmental footprint. The company has shown strong commitment to these objectives by establishing and upholding high environmental standards while at the same time pursuing capabilities and expertise towards softening the impact of our industrial activities on communities and our natural environment. GPIC has been rigorously pursuing environmental management by efficiently monitoring, controlling and reducing waste at all times, while also conforming to relevant environmental standards. Broadly, GPIC has displayed consistent progress in all its key environmental performance indicators: greenhouse emitting gases; ozone-depleting gases; hazardous and non-hazardous wastes; and natural resource management with respect to waste reduction, energy conservation, and compliance. In 1998 a Granular Urea Plant was commissioned that played a pivotal role in reducing the CO2 emissions. This was followed by a carbon dioxide recovery plant in 2009 that has further reduced CO2 emissions by 450MT/D. GPIC has ensured 100% compliance and reporting to the governmental agencies and stakeholders on effluents, emissions and waste management. We have functioning CEMS for all flue gas stacks on our boilers and the reformers and are remotely connected to the Bahrain Environmental Affairs emissions monitoring network hence our key emissions are being continuously monitored by governmental regulators. Furthermore we have a mobile air quality monitoring system that measures the ambient air quality in the complex on a continuous basis. Our new projects in 2012 include the phasing out of chlorine gas that was being used for sea water conditioning and replacing it with sodium hypochlorite. The replacement of the ammonia converter basket during a recent turnaround has also resulted in significant energy savings. GPIC has won three Environment Excellence Awards during the past five years and is accredited to leading environmental management systems such as ISO 14001 and RC 14001. As part of its corporate responsibility and environmental stewardship GPIC has become an active partner of UN Global Compact in 2012 and also published its GRI Sustainability Report in July 2012.
18
Emissions monitoring 2012
NOx (mg/Nm3) Limit Actual
CO (mg/Nm3) Limit Actual
PM (mg/Nm3) Limit Actual
Boiler A/B
100
40
100
N.D
50
N.D
Boiler C
100
88
100
N.D
50
N.D
CDR boiler
100
20
100
20
50
N.D
Gas turbine
100
75
100
N.D
50
N.D
Ammonia Reformer
300
180
100
N.D
20
N.D
Methanol Reformer
300
195
100
N.D
20
N.D
19
Summary
The occupational safety and health data shows the Gulf Region to be performing at an extremely positive level in terms of personal safety.
The data sets provided for process safety, emissions and discharges, and resource utilization are inconsistent and widely varying. Where possible the data is illustrated in a consolidated manner. In order to address the data quality, GPCA, through the Responsible Care® Metrics Sub-Committee, will continue the campaign of increasing member company understanding of the Performance Metrics Guidance Document, which is based on industry standards and practices.
The Gulf Petrochemicals and Chemicals Association (GPCA) is a dedicated nonprofit association serving its members with industry data and information resources. For more information please contact: Gulf Petrochemicals and Chemicals Association P .O. Box: 123055, Dubai United Arab Emirates Business Bay, Executive Towers Tower D (Aspect), Floor 7 Offices 705, 706 Tel: +971 4 451 0666, ext 112 Fax: +971 4 451 0777 email: [email protected] website: www.gpca.org.ae
Data was analyzed and reported by Lloyd’s Register on behalf of GPCA. GPCA gratefully acknowledges the support of Lloyd’s Register in the production of this publication. GPCA is a registered trademark and a non-profitable organization.
Published November 2013
GPCA adopted Responsible Care® in 2010 and committed to measure and report on
21
different metrics in a phased program over
4
years.
Contents
Message from the Chairman 2 Respondents 3 Performance Metric Reporting – A GPCA Journey 4 Performance Metrics and Implementation Phases 6 Participation 7 Occupational Safety and Health 8 Process Safety 10 Emissions and Discharges 11 Resource Utilization 11 Responsible Care® Success Story – Borouge 12 Responsible Care® Success Story – Sipchem 14 Responsible Care® Success Story – CHEMANOL 15 Responsible Care® Success Story – SABIC 16 Responsible Care® Success Story – PIC 17 Responsible Care® Success Story – GPIC 18 Summary 20
This publication provides an overview of the data provided by GPCA members for 2010 to 2012. Lloyd’s Register worked with the Performance Metrics Sub-Committee to produce this publication.
1
Performance Metrics Report for 2010 to 2012 Published November 2013
Message from the Chairman
“…we care about our people, the environments and the communities in which we operate.”
It gives me immense pleasure and satisfaction to share the first ever GPCA Responsible Care® Performance Metrics Report. Since the beginning of Responsible Care® by GPCA in 2009 significant progress has been made. The release of this metrics report signifies one of many major milestones for GPCA and participating member companies as part of the Responsible Care® journey. In 2013, GPCA members reported 19 out of 21 performance metrics. By 2014, members will be reporting all 21 metrics; complying with 100% Responsible Care® reporting requirements. The journey that we started in 2010 was by no means an easy one but the commitment of GPCA members, especially the task force members, has been overwhelming. I firmly believe that the work done on Responsible Care® is a practical way to demonstrate that we care about our people, the environments and the communities in which we operate. I want to also thank Lloyd’s Register for creating this independent overview of GPCA members’ performance and highlighting the areas that need our attention to move forward towards excellence. I am sure that with our sincere efforts we will make a difference in creating a better world for the generations to come. Mohamed Al-Mady Chairman Board of Directors
2
Respondents
Members Abu Dhabi Polymers Company Limited (Borouge) Advanced Petrochemical Company (APC) Al-Bayrouni CHEMANOL EQUATE Petrochemical Company Farabi Petrochemical Co Ltd Gulf Petrochemical Industries Company (GPIC) Kemya National Industrialization Company (TASNEE) National Petrochemical Industrial Co (NATPET) Petrochemical Industries Company (PIC) Petro Rabigh Petrokemya Qatar Chemical Co Ltd (Q-Chem) QAFAC Qatar Petrochemical Company Ltd (QAPCO) Qatar Vinyl Company Ltd Q.S.C (QVC) Sahara Petrochemicals Saudi Basic Industries Corporation (SABIC) * Saudi Chevron Saudi International Petrochemical Company (Sipchem) Sharq Yenpet
* Sites reported multiple data sets.
2010 3 3 3 3 3 3 3 3 3 3 3 3 3
2011 3 3 3 3 3 3 3 3 3 3 3 3 3 3
2012 3 3 3 3 3 3 3 3 3
3 3 3
3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3
3
Performance Metrics Report for 2010 to 2012 Published November 2013
Performance Metric Reporting A GPCA Journey
Continuous improvement, reporting of Environmental, Health and Safety (EHS) performance and transparency are fundamental elements of the GPCA Responsible Care® initiative. The GPCA Guiding Principles which are aligned with the ICCA Global Charter define the vision for petrochemical and chemical manufacturers in the region as follows:
“To measure performance, openly report, make continual progress towards our goal of eliminating accidents, injuries or harm to human health and the environment from our products and operations.”
In 2010, the GPCA Responsible Care® Committee commissioned a task force of subject matter experts from member companies representative of the region, with the objective of translating this vision into a system to capture and openly report EHS performance. The task force adopted a strategy of building on commonly reported performance measures, aligning with global trade associations and phasing in new “value added” metrics over time. The task force developed a guidance document, aligned with all GPCA member companies and the first Performance Metrics Guidance Document was published by GPCA in the third quarter of 2010. It defines the performance measures, provides guidance in calculating the metric and outlines requirements for reporting. The phased approach has given member companies time to develop and implement management systems to collect data and report as required by GPCA.
The metrics reporting cycle representing 2010, 2011 and 2012 has now been completed. Data submitted has been consolidated, analyzed and a report generated with the help of an independent third party consultant, Lloyd’s Register. All data submitted has been maintained anonymously by GPCA throughout the process. It is noteworthy that a high level of participation by member companies during this first cycle of reporting demonstrates the spirit of sharing and cooperation across GPCA member companies. With the publication of the Metric Reporting Guidance Document and the collection of the initial performance metrics, the work by the task force was deemed complete. In the interest of continuous improvement GPCA transformed the task force into a sub-committee. The objectives of the sub-committee are to help member companies gain better understanding of the Guidance Document, analyze the collected data, identify industry trends, establish additional “value added” measures and most importantly to aid member companies in sharing best practices. With the dedication and commitment of the member companies to the Responsible Care® guiding principles, the EHS performance reporting program is now established and the region can take pride in being one of the few trade associations that have reached this milestone in such a short time.
4
2012 Performance Metrics Sub-Committee
Mr. Maher Al Dughaim
Chemanol “Committee Chairman”
Mr. Jassim Darwish
Gulf Petrochemical Industries Company (GPIC) “Vice Chairman”
Mr. Tariq Alauddin
Saudi International Petrochemical Company (Sipchem)
Mr. Qasim Yunus
Saudi Basic Industries Corporation (SABIC)
Mr. Andrew Blue
Lloyd’s Register
Mr. Ridha Behbehani
EQUATE Petrochemical Company
Mr. Sudhir Sivarajan
Abu Dhabi Polymers Company Limited (Borouge)
5
Performance Metrics Report for 2010 to 2012 Published November 2013
Performance Metrics and Implementation Phases
5
categories.
Number of metrics reported
21
metrics.
Categories
Metrics
Phase 1 2010
Phase 2 2011
Phase 3 2012
Phase 4 2013
Occupational safety and health
6
4
6
6
6
Process safety
3
2
3
3
3
Emissions and discharges
8
4
6
6
8
Resource utilization
3
1
3
3
3
Distribution
1
-
-
1
1
Total
21
11
18
19
21
6
Participation
2010
20 out of 24 companies participated
2011
114 114
19 out of 24 companies participated
114
107
80 80 Data sets submitted 40 40 0 Occupational safety (4) 23 Process safety (2) Emissions/discharges Resource utilization (4) (1) Required Reported 78 80 Data sets submitted 75 57 55
80
40
57 46
57
55
0 Occupational safety (6) Process safety (3) Emissions/discharges Resource utilization (6) (3) Required Reported
Performance metric category
Performance metric category
2012
120 100 80 Data sets submitted 60 40 20 0 Occupational safety (6) Process safety (3) 60 120 115
20 out of 24 companies participated
120
120
58
60
60
20 Emissions/ discharges (6) Resource utilization (3)
14
Distribution (1) Reported
Performance metric category
Required
2010 to 2012 combined
380 342 257 322
300
367
200 Data sets submitted
231
100
0 2010 Phase I Performance metric category 2011 Phase II 2012 Phase III Required Reported
7
Performance Metrics Report for 2010 to 2012 Published November 2013
Occupational Safety and Health
Total Recordable Incident Rate The most important and widely recognized lagging health and safety indicator is Total Recordable Incident Record (TRIR). This is an important metric because: • stakeholders expect to see it, • it is a proven safety indicator used universally, • it can be used as a basis to demonstrate performance improvement, and • it has a high benchmarking value. 2010 to 2012 combined TRIR for company employees
1.6 1.4 1.2 1.0 0.8 0.6
TRIR value
Based on 200,000 man-hours worked
0.4 0.2 0
GPCA member companies 2010 2011 2012
2011 to 2012 combined TRIR for contractor employees
1.6 1.4 1.2 1.0 0.8 0.6
TRIR value
Based on 200,000 man-hours worked
0.4 0.2 0
GPCA member companies 2011 2012
8
Performance benchmarks The graph below compares data for TRIR from US manufacturing companies, US chemical companies, US American Chemistry Council (ACC) member companies and GPCA member companies.
4.00
3.00
2.00
1.00
TRIR value
0 US manufacturing 2010 TRIR US chemical 2011 TRIR 2012 TRIR ACC employees ACC contractors GPCA employees GPCA contractors
Key messages To compute overall average incident rates for the GPCA member companies, the metric committee has requested member companies provide information on total man-hours worked, a number which goes into the TRIR formula. GPCA member company performance is comparable and better than the US Responsible Care® companies. GPCA, through a series of planned communications and workshops, is helping member companies to align occupational safety and health metrics measurements and records.
9
Performance Metrics Report for 2010 to 2012 Published November 2013
Process Safety
Chemical and petrochemical manufacturing companies contain inherent safety risks which, if not contained, can result in catastrophic incidents. Process safety performance metrics measure the effectiveness of risk management practices implemented by the organizations to pro-actively control inherent risks. The three metrics in this metric posses high value because they: • are important to stakeholders, • provide a measure to benchmark across industry, and • demonstrate performance improvements. Process safety performance
Process safety incident A process safety incident is an incident involving hazardous or toxic materials which results in a damage greater than $25,000. A lost time injury or fatality or release of material above a predefined threshold quantity is classified as a process safety incident.
20
15
10
Process safety incidents
5
0
GPCA member companies
2010
2011
2012
Key messages Process safety metrics are relatively new, created and issued by the AIChE/CCPS in 2007, and issued as an API standard in 2010. GPCA has adopted the AIChE/CCPS guidelines and it is encouraging to see most member companies measuring and reporting process safety metrics despite this being a new metric globally.
10
As the systems for measuring process safety metrics mature within GPCA companies, additional details about the incidents in terms of severity will be shared and reported.
Emissions and Discharges
Resource Utilization
Protection of the environment is a key element of Responsible Care®. Measurement of materials discharged indicate the adverse impact of GPCA member companies operations on the environment and identify opportunities where it can be minimized. The selected eight emission and discharge metrics are important because they show the impact of activities on pollution and global warming and: • reflect the potential adverse impact on the aquatic environment, • are a core measure in the Responsible Care® Global Charter (NOx), and • are a regulatory requirement in most areas. 2010 to 2012
120 Data sets submitted
Member companies were asked to report water consumption, energy efficiency and total energy consumed. These new generation metrics are important because: • they are an important measure for global stakeholders, • they relate to sustainability issues, and • water consumption is identified as an International Council of Chemical Associations (ICCA) core measure in the Responsible Care® Global Charter.
2010 to 2012
80 Data sets submitted
90 60 30 0 2010 Required Reported 80
114 94
68
120
120
60 40 20 0 20 2010 Required Reported 20 2011 2012
57
54
60
60
2011
2012
2010 Total GPCA region reported emissions (tons): Sulfur dioxide Nitric oxides Total reported energy consumption (tons of fuel oil equivalent) Total reported hazardous waste generated (tons) Total reported water consumption (million M3) 603,856 1,124,726
2011 5,659 21,701 88,105,623 373,926
2012 12,080 20,093 169,042,028 412,993 1161233
Key messages Most member companies are measuring and reporting the metrics for emissions and resource utilization. In view of the varying regulatory requirements in the GPCA region, the data reported by member companies is not currently comparable. The SMEs on the metric sub-committee are working with member companies to standardize this data. Workshops and training is planned in this area.
11
Performance Metrics Report for 2010 to 2012 Published November 2013
Responsible Care® Success Story
Borouge
Transition from lagging to leading indicators. We measure and we improve!
Borouge has been measuring and reporting Environment, Health, Safety and Security (EHS&S) performance since the start of its operations in 2002. Initially the EHS&S reporting only included lagging EHS&S performance metrics which was relatively normal practice at the time. It was soon evident that lagging indicators have many inherent shortcomings; lagging indicators do not generate proactive and positive actions and there is little guarantee of performance improvement over time. This was the case for Borouge, hence it was deemed necessary to have leading indicators for early warning before failure occurs. Prior to 2011 there was a build-up of waste at site, most of which originated during a recent turnaround and a major project. In 2011, a lagging KPI was introduced to reduce the waste quantity stored at site from >1,000 tons to <30 tons. This KPI was supported by a number of proactive plans, shared across all functions. The result was achieved prior to the year end. Once this objective was achieved, it was decided that the waste KPI would no longer be required; however the positive waste management practices have been sustained. In 2012, a new Occupational Health Improvement Program KPI was introduced. It is expected that the KPI will remain along with associated annual campaigns until employees have a full understanding of their specific health concerns and the processes in place to manage those concerns. Prior to 2012, a leading indicator was used to ensure emergency exercises were being performed on a regular basis. In 2011 it was recognized that although the KPI was being met, there were key leadership positions that were not being trained as a result of the existing KPI. In 2012 the KPI was changed to specifically focus on the team that really matters i.e., On-Scene Commander (OSC), Incident Management Team (IMT) and Crisis Management Team (CMT). The process is now embedded and regular training occurs without the need for a specific KPI. The training was delivering business value. During 2012 the KPI was fine-tuned to measure training attendance. This KPI now focuses on the quality of the training delivery and the processes that support attendance. The attendance average at each session indicates that they are now better planned and the quality assured. Observation tours are another leading indicator that has transitioned from a quantitative to a qualitative KPI. Initially there was a need to ensure that employees were motivated to take part in the program. This was done at a company level. The next stage was to set annual KPIs by function/team. Now that participation has become automated, in 2013 this KPI was further fine-tuned to target the close-out of unsafe acts/conditions arising from observation tours.
12
Borouge EHS&S Scorecard 2013
Strategic objective EHS&S general
KPIs % serious potential incidents and TRI investigations performed <30 days % EHS&S action close-out against target % EHS&S audits undertaken against plan EHS&S training attendance % observation tours closed actions versus total actions raised
Health and environment
% occupational health program milestones achieved % ISO 50001 milestones achieved
Process safety
EHS&S critical equipment systems tested against plan % management of change following due process
Lagging indicators
TRI frequency Energy per ton production Flaring of hydrocarbons
Simple, Mensurable, Achievable, Realistic and Time-bound (SMART) selection of KPIs can deliver significant business value. All aspects of our EHS&S performance have improved over recent years, and we believe this improvement is truly sustainable. At Borouge, we have all contributed and are proud of this success.
13
Performance Metrics Report for 2010 to 2012 Published November 2013
Responsible Care® Success Story
Sipchem
NOx emissions from Sipchem’s reformer furnace halved.
Nitrogen Oxides (NO and NO2) commonly referred to as NOx react with organics in the atmosphere to produce ozone gas. Ozone at ground level is an industrial pollutant, causing damage to lung tissues and reduction in lung capacity even at very low concentrations. NOx are produced at high temperatures by the reaction of nitrogen with oxygen, conditions which exist in industrial furnaces and internal combustion engines. Control of NOx emissions from furnaces is key to maintaining breathing air quality for the public. Sipchem is monitoring the NOx emissions from its reformer furnace continuously to maintain them as low as possible and within the limits set by Royal Commission for Jubail & Yanbu’s environmental regulations. Although Sipchem‘s emissions were in compliance with the Environmental Operating Permit, they were slightly higher than the limits being set for new plants. Based on the measurements of NOx emissions, Sipchem decided to implement a program to reduce the overall NOx emissions from its operation. A major project was undertaken to replace 246 burners in the reformer furnace with burners utilizing the latest induced flue gas recirculation technology. The project was implemented at a cost of 10 million SAR in 2009. Project implementation reduced total NOx emissions by 50%, contributing to improved air quality in the community and surrounding areas. Three years after project implementation, the performance of the Sipchem IMC reformer furnace is still considered as best available technology for NOx emission reduction. NOX emissions 1,900 90
300 May 05 Oct 05 Mar 06 Aug 06 Jan 07 Jun 07 Nov 07 Apr 08 Sep 08 Feb 09 Jul 09 Dec 09 May 10 Oct 10 Mar 11 Aug 11 Jan 12 Jun 12
0
Mt NOx/yr
NOx nj/J
14
Responsible Care® Success Story
CHEMANOL
Improved safety performance metrics during the last two years.
As a result of participation in the Responsible Care® initiative, CHEMANOL has seen considerable improvement in safety performance. In 2012, we initiated a near miss and unsafe conditions reporting campaign after setting a corporate objective of 1,000 reports. This was successfully achieved and surpassed by 131%. As part of the campaign, we conducted a number of training and awareness sessions encouraging employees to report near misses and unsafe conditions. As an objective in every employee annual performance appraisal, employees were asked to spot and report hazards, and then take corrective action. Quality of reporting was not the main consideration, rather it was to enhance safety culture and teach employees how to spot and report workplace hazards. Department Managers had an additional performance measure which was linked to corrective action and closure of reported near miss incidents and unsafe conditions. The whole process of documenting the near miss reporting and corrective action was tracked effectively. The campaign has resulted in a shift in safety behavior and a reduction in incident rates in both direct hire and contractor employees.
2011
2012
Direct hire employee incident rate
1.2
0.40
Contractor employee incident rate
0.68
0.50
We believe motivating our employees to report near misses and take timely corrective action increases trust in the program and creates a win-win situation. For 2013, we have set a corporate level objective of 1,500 reports and have set a target of 10% improvement in incident rates. Our corporate level EHS goal for 2013 is zero leaks and zero lost time injuries.
15
Performance Metrics Report for 2010 to 2012 Published November 2013
Responsible Care® Success Story
SABIC
Maintaining upmost transparency in performance reporting.
SABIC has introduced a unique system for all SABIC affiliates to manage the reporting of annual EHSS performance to GPCA. The data collected from all affiliates is reviewed firstly by local teams, before further review is conducted by the regional EHSS team and SABIC focal point coordinator, before being submitted to GPCA. This ensures accuracy and integrity, while maintaining upmost transparency. In addition, it ensures that regional EHSS teams are fully engaged and bought into the process. GPCA performance reporting requirements are also integrated within SABIC’s EHSS management system to ensure that it is working as part of our business rather than being seen as an add-on or initiativedriven. Until 2011, SABIC was reporting on the EHSS performance of five affiliates as part of its GPCA membership requirement. SABIC has since achieved corporate membership for all KSA affiliates and, from 2012, is now reporting on the EHSS performance for all 18 affiliates. Once again, this has raised the level of awareness and engagement with Responsible Care® as an integrated business activity across all of our operations and allowed us to transfer the learnings from reporting of the first five affiliates across all of our operations.
GPCA performance reporting and review system at SABIC and affiliates
February Responsibility/target SABIC Responsible Care® coordinator to GPCA GM, SABIC EHSS, ME/A Week 2 Mail copy Weeks 3 and 4 Week 1 March Week 2 Weeks 3 and 4 Review all data and send to GPCA
Communication initiation
Escalate to president/VP
SABIC EHSS functional senior managers
Mail copy
No Received data on time?
Review and verification by functional managers
Any clarification? Yes
No
SABIC Responsible Care® coordinator, ME/A
Mail copy
Yes
Consolidate all data
Affiliates/ function focal points
GPCA requirements, coordinate with local team
16
Responsible Care® Success Story
PIC
Achieving RC 14001 certification.
Petrochemical Industries Company (PIC) has been awarded the RC 14001 Responsible Care® Management System certification based on the company’s strategies and continuous efforts to improve and enhance its performance in the area of Health, Safety, Security and Environment (HSSE). The certification was awarded to PIC on July 19, 2011. PIC is one of the few companies in the Middle East to have attained RC 14001 certification. PIC is committed to continually improving its management systems by bringing best practices into the organization and embracing new initiatives that benefit the society and environment. PIC is now further deepening its sustainable development efforts through identifying 24 long-term Simple, Mensurable, Achievable, Realistic and Time-bound (SMART) sustainability goals. These goals are being implemented by establishing a sustainability governance structure and by creating awareness and executing improvement projects using the ‘six sigma’ methodology which has been running over the past five years to improve business process across the organization. By looking at the initial list of successful projects completed during this learning journey, many impressive and substantial achievements can be clearly seen. 100 million dollars saved by completing 295 six sigma projects is a great achievement by any standard. We are now further deepening our sustainable development through 2017 PIC corporate sustainability goals related to safety, environmental stewardship and exemplary corporate citizenship. The true benefit of implementing this initiative has resulted in improved skills and competencies of our future leaders. Whether it’s getting an ISO or Responsible Care® certification or any other high level task, our staff are getting more and more self-confident for bigger challenges and more successes.
17
Performance Metrics Report for 2010 to 2012 Published November 2013
Responsible Care® Success Story
GPIC
Complying with regulatory requirements and reducing our environmental footprint.
The core objectives of our environmental management policy at Gulf Petrochemical Industries Company (GPIC) is to comply with regulatory requirements and reduce our environmental footprint. The company has shown strong commitment to these objectives by establishing and upholding high environmental standards while at the same time pursuing capabilities and expertise towards softening the impact of our industrial activities on communities and our natural environment. GPIC has been rigorously pursuing environmental management by efficiently monitoring, controlling and reducing waste at all times, while also conforming to relevant environmental standards. Broadly, GPIC has displayed consistent progress in all its key environmental performance indicators: greenhouse emitting gases; ozone-depleting gases; hazardous and non-hazardous wastes; and natural resource management with respect to waste reduction, energy conservation, and compliance. In 1998 a Granular Urea Plant was commissioned that played a pivotal role in reducing the CO2 emissions. This was followed by a carbon dioxide recovery plant in 2009 that has further reduced CO2 emissions by 450MT/D. GPIC has ensured 100% compliance and reporting to the governmental agencies and stakeholders on effluents, emissions and waste management. We have functioning CEMS for all flue gas stacks on our boilers and the reformers and are remotely connected to the Bahrain Environmental Affairs emissions monitoring network hence our key emissions are being continuously monitored by governmental regulators. Furthermore we have a mobile air quality monitoring system that measures the ambient air quality in the complex on a continuous basis. Our new projects in 2012 include the phasing out of chlorine gas that was being used for sea water conditioning and replacing it with sodium hypochlorite. The replacement of the ammonia converter basket during a recent turnaround has also resulted in significant energy savings. GPIC has won three Environment Excellence Awards during the past five years and is accredited to leading environmental management systems such as ISO 14001 and RC 14001. As part of its corporate responsibility and environmental stewardship GPIC has become an active partner of UN Global Compact in 2012 and also published its GRI Sustainability Report in July 2012.
18
Emissions monitoring 2012
NOx (mg/Nm3) Limit Actual
CO (mg/Nm3) Limit Actual
PM (mg/Nm3) Limit Actual
Boiler A/B
100
40
100
N.D
50
N.D
Boiler C
100
88
100
N.D
50
N.D
CDR boiler
100
20
100
20
50
N.D
Gas turbine
100
75
100
N.D
50
N.D
Ammonia Reformer
300
180
100
N.D
20
N.D
Methanol Reformer
300
195
100
N.D
20
N.D
19
Summary
The occupational safety and health data shows the Gulf Region to be performing at an extremely positive level in terms of personal safety.
The data sets provided for process safety, emissions and discharges, and resource utilization are inconsistent and widely varying. Where possible the data is illustrated in a consolidated manner. In order to address the data quality, GPCA, through the Responsible Care® Metrics Sub-Committee, will continue the campaign of increasing member company understanding of the Performance Metrics Guidance Document, which is based on industry standards and practices.
The Gulf Petrochemicals and Chemicals Association (GPCA) is a dedicated nonprofit association serving its members with industry data and information resources. For more information please contact: Gulf Petrochemicals and Chemicals Association P .O. Box: 123055, Dubai United Arab Emirates Business Bay, Executive Towers Tower D (Aspect), Floor 7 Offices 705, 706 Tel: +971 4 451 0666, ext 112 Fax: +971 4 451 0777 email: [email protected] website: www.gpca.org.ae
Data was analyzed and reported by Lloyd’s Register on behalf of GPCA. GPCA gratefully acknowledges the support of Lloyd’s Register in the production of this publication. GPCA is a registered trademark and a non-profitable organization.
