Process Safety & Risk Management ModelNovember 2015

Engro Fertilizers

Engro Fertilizers

Engro Foods Engro Polymer and Chemicals

Engro Powergen

Eximp and Vopak

Terminal

Our Businesses

Engro Sites

Engro Polymer

Zarkhez Plant

Engro PowerGen

Engro PowerGen

Engro Fertilizers

Engro Foods

Engro Foods

Engro Agri

Engro Foods

Risks

Risks can be related to:• Process Plant• Management Systems• Geographical• Nature’s Forcess

– Earthquake, flood

• Political• Security / Terrorism

Hazards and Risks Matrix

Prob

abili

tyTerrorism Process

Upsets

Earthquake

Windstorm FloodTsunami

Fires

Political

Severity

Engro’s Layers of Protections

• Corporate Management System• Internatioinally aligned HSE Systems• Culture of Operational Excellence• Maintenance Systems• Audits & Inspections• Will to Improve

• PSM – Behavioral Rating – 4.2 “Excellence” - Sept 2013Personal Safety Management

• PSRM – Process Rating - 4.3 “Excellence” - Sept 2013Process Safety & Risk Management

• OHIH – Level 3Occupational Health and Industrial Hygiene

• ISO-9001: 2008 – Quality Continual improvement of Quality Management system

• ISO-14001: 2004 – Environment Environmental Management system

• SA-8000 Social Accountability• OHSAS-18001: 2007

Occupational Health & Safety Management systems• BSC

British Safety Council – Rating 4 Star• WWF Green Office Compliant• Six Sigma Operational Excellence

Corporate Management Systems

Safety• Embarked on DuPont alignment in 2003• Corporate HSE Committee chaired by CEO• DuPont Ratings: PSRM/PSM – LEVEL 4 – EXCELLENCE • The first company in Pakistan to achieve DuPont Level-4

Environment• Engro complies to all laws by EPA Pakistan / ISO-14000• British Safety Council Rating 4 star+• Green office Certification - WWF

Health• Attained OHIH Level 3.0 in DuPont Audit Oct 2010 • OSHA Compliance

Health, Safety & Environment

Practices at Engro

• Alignment with international standards and organizations

• International Construction and Building codes • Striving to achieve excellence in all areas• Operational Discipline• Audits and Inspections• Actiona Items Stewardship – use automated

Information Systems

Risk Management / Loss Mitigation

• Equipment Designed / Installed as per Standards• Safety Critical Devices defined through Qualitative Risk

Assessments• Process Risk assessments through Hazard Analysis program• Safety Audits / Inspections

• Internal and External by DuPont, BSC, SGS, WWF, GoP Inspectors, NPO, Engro Affiliates

• Operational Discipline and Hazardous Conditions – Line managers & HSE Pros conduct audits

• Management Safety Audits – Supervisors, managers and HSE Pros conduct audits

• Work Permit / LOTOTO Systems• Housekeeping / 5S Programs

Maintenance Philosophy & Inspection

• Preventive & Condition Based Maintenance• The goal is “Increased Asset Reliability”

• SAP for maintenance management• Surveillance routines• Reliability programs• Monitoring matrices for stationary and machinery equipment• KPIs – for all departments• Inspection System

• Guiding philosophy, roles & responsibilities from DuPont PSM system & Exxon guidelines

• Close monitoring / inspection of Safety & Business Critical equipment. LHO / HHP priorities

• Training – TNAs, Board Reviews, JQPs & Incentives

Health, Safety & Environment Monitoring

• HSE Policy - Well published and communicated Health, Safety,Environment and industrial hygiene policy

• Leading Indicators for HSE performance monitoring for ProcessSafety, Behavioral Safety, Health & Environment

• HSEQ MIS – Database with complete HSE monitoring available to allsite personnel with automated reminders

93%

91%

89%

92%

95%

90% 89%

2009 2010 2011 2012 2013 2014 2015(1H)

Behavioral Leading Indicators-Yearly Avg. 89.1% vs. 90% plan

EnVen / Base Merger

84%86% 87%

86%

80.67%

2011 2012 2013 2014 2015

Process Leading Indicators-Yearly Avg. 86.4% Vs. 80% Plan

85%

80%

88%

80%

2012 2013 2014 2nd Q 2015

Environmental KPIs- Yearly Avg. 80% Vs 80% Plan

81.3

84.6

80.8 80.7

77

84.69

Jan Feb March April May June

OHIH LIs - Yearly Avg. 82% Vs 80% Plan

Leading Indicators

Conclusion

• Engro truly believes in running its businesses on best internationally accepted standards to manage all sorts of risks

• Benchmarking & alignment with world leading companies is the starting point

• Implementing operational discipline, audits, stewardship forums and putting follow-up mechanisms are crucial to manage any business segment

Jahangir PirachaCEO – Engro PowerGen Qadirpur Limitedjpiracha@engro.com