Responsible Care Performance Metrics

Kashif RasheedSenior ConsultantLloyd’s Register EMEA24 September 2012

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Responsible Care Performance, Metrics Definitions, Data Analysis,

Results and Q&A• Background

• Guidance Document Overview and EH&S Performance Measurement Categories

• Scope of data received and analyzed

• Value of Metrics, Definitions and Data set analysis by Category

• Summary

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Background

• Lloyd’s Register being a third party and having extensive experience in independent assurance reviews, was assigned with responsibility to gather, analyze and benchmark this data for today’s workshop.

• Lloyd’s Register was provided data without companies identification.

• LR Team worked with the RC Metrics sub-committee to develop the contents of this workshop.

• All data inputs provided by GPCA member companies are treated without any modifications/corrections.

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Guidance Document Overview and EH&S Performance Measurement Categories

• Content of Guidance Document:• Metric Value• Units of the Metric• Definitions• Member Reporting Instructions

• 5 Categories (21 Indicators)• Occupational Safety (6)• Process Safety(3)• Emissions / Discharges to Environment (8)• Resource Utilization (3)• Distribution Incidents (1)

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GPCA Metrics Current TemplateGPCA Company Name: Report for the Year:

S.No Metric Name Metric Formula / DefinitionGPCA Member Company

Annual Report

A. Occupational Safety

1 Employee Fatalities # of Fatalities

2 Lost Time Injury Incident rate for Employees (# of days away from work cases X 200,000) / Employee man-hours worked

3 OSHA Recordable Cases Incidence Rate for Employees (# of Injuries X 200,000) / Employee man-hours worked

4 Contractor Employee Fatalities # of Fatalities

5 Lost Time Injury Incidence Rate for Contract Employees (# of Injuries X 200,000) / Contractor man-hours worked

6 OSHA Recordable Cases Incidence Rate for Contract Employees (# of Injuries X 200,000) / Contractor man-hours worked

B. Process Safety

1 Process Safety Incidents (# of Incidents that meet the Process safety Incident Criteria

2 Process Safety Total Incident Rate (PSTIR) (# of Process Safety Incidents x 200,000) / (Employee + Contractor Employee man-hours)

3 Process Safety Total Incident Severity Rate (PSTIR) (Total Severity Score x 200,000) / (Employee + Contractor employee man-hours)

C. Emissions / Discharges to Environment

1 Hazardous Waste for Disposal Metric tons / Year

2 Non-Hazardous Waste for Disposal Metric tons / Year

3 Quantity of Waster Water discharged to Environment Cubic Meters / Year

4 Discharges to Water - Chemical Oxygen Demand Metric tons of O2 / Year

5 Sulfur Dioxide Metric tons / Year

6 Nitrogen Oxides (NOX) Metric tons / Year

7 Total Green House Gas Emissions (GHG) Metric tons CO2 Equivalent (See Appendix C & D & E)

8 Carbon Dioxide (CO2) Intensity Million Metric tons emitted per year / Million Metric tons of production

D. Resource Utilization

1 Use of Energy (Tons of Fuel oil Equivilant; TOE) Energy from Fossil Fuels + Net Energy Purchased + Self Generated Renewable Energy

2 Specific Energy Consumption TOE / Metric tons of production

3 Process Water Consumption Millions of Cubic Meters

E. Product Distribution

1 No of Distribution Incidents Total # of Incidents classified by means of transport

Phase I - 2010 Data to be reported by September 2011

Phase II - 2011 Data to be reported by March 2012

Phase III - 2012 Data to be reported by March 2013

Phase IV - Potential Metric for 2014

6

7

8

2010 EH&S Data ReceivedPhase I Submittals

20 / 24 companies participated

80

40

8078

23

75

0

10

20

30

40

50

60

70

80

90

Occupational safety (6) Process Safety (3) Emissions/Discharges (6)

Required Reported97.5%

57.5%

93.75%

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2011 EH&S Data ReceivedPhase II Submittals

19 / 24 companies participated

114

57

114

57

114

46

107

55

0

20

40

60

80

100

120

Occupational safety (6) Process Safety (3) Emissions/Discharges (6) Resource Utilization (3)

Required Reported100 %

80.7%

93.8%

96.5%

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2010/2011 EH&S Data Received

342

200

322

176

0

50

100

150

200

250

300

350

400

2010 Phase I 2011 Phase II

Required Reported 94 %

88 %

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Occupational Safety

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Value of Occupational Safety Metrics

• They are important to stakeholders.

• They are measures of the most severe and significant safety factors.

• They are proven safety metrics, universally used.

• They can be used as a basis to demonstrate performance improvement.

• They have high benchmarking value

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Occupational Safety Definitions

• Employee Fatalities: Death, regardless of the time between injury or exposure and death or length of the illness, caused by a work-related event or exposure

• Recordable Injury Incident Rate: Defined as the number of OSHA recordable incidents for each 100 full-time employees per year based on 2,000 hours worked per employee per year.

Annual # of Recordable Injury Cases x 200,000 employee hours

Annual number of employee hours worked

• Lost Time Injury Incident Rate: Defined as the number of lost workday Injury incidents for each 100 full-time employees per year, based on 2,000 hours worked per employee per year

Annual # of Days Away from Work Cases x 200,000 employee hours

Annual number of employee hours worked

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GPCA Member Company, Occupational Safety Data Set Analysis(TRIR=Total Recordable Incident Rate)

Arithmetic AVG.* = 0.277 Reporting Zero

Actual AVG. TRIR = 0.17Arithmetic AVG. * = 0.426

Key Messages: TRIR low for most companies and 35% report a “zero” incident rate *TRIR AVG. derived from taking actual average instead of using incidents and man-hours

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GPCA Member Company, Occupational Safety Data Set Analysis(TRIR=Total Recordable Incident Rate)

2011 TRIR for Contractor Employees

TRIR AVG.* 0.347 Reporting Zero

Key Messages: TRIR low for most companies and 37% report a “zero” incident rate *TRIR AVG. derived from taking arithmetic average instead of using incidents and man-hours

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2010 and 2011 Occupational Safety PerformanceBenchmarks

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2010-2011 Key Messages - Occupational Safety

• Actual number of injuries and man-hours worked are needed to calculate GPCA overall TRIR

• In 2010 88% of the data requested for this category was received from 83% of member companies (20 out of 24)

• In 2011 100% of the data requested for this category was received from 79% of member companies (19 out of 24)

• A large percentage of GPCA companies report a zero incident rate.

• Some inconsistencies in data set indicate a need for uniform understanding of definitions (22 LTIs & 6 Recordables, 10 LTIs and 4 Recordables)

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Occupational Safety Panel Q&A

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Process Safety

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Process Safety – Value of Metrics

• Are important to stakeholders

• Provide a measure to benchmark across industry

• Demonstrates performance improvements

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Process Safety Incident

An unplanned or uncontrolled release of any material, from a process that results in one or more of the consequences listed below:

1. An employee or contractor LTI, and/or fatality, or hospital admission and/or fatality of a third party (non-employees/contractor).

2. An officially declared community evacuation or community shelter-in-place;

3. Fires or explosions resulting in greater than or equal to $25,000 of direct cost to the company, or;

4. An acute release of flammable, combustible, or toxic chemicals greater than the chemical release threshold quantities

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Process Safety Definitions ……Cont.

• Process Safety Incident Count (PSIC): The count of all incidents which meet the definitions of a Process Safety Incident.

• Process Safety Total Incident Rate (PSTIR): The cumulative (annual) count of PSI normalized by man-hours.

Number of PSI in a year x 200,000 Total Man-hours Employees & Contract Employees

• Process Safety Incident Severity Rate (PSISR): The cumulative (annual) severity-weighted rate of Process Safety Incidents PSI normalized by man-hours.

Total Severity Score for all PSI in a year x 200,000 Total Man-hours Employees & Contract Employees

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What Is Severity Level?

Consequences of PSI IncidentSeverity Level

from CCPS Table 2

Recordable Injury to Employee or Contractor 4

Lost Word Day ( Lost Time) Injury 3

Fire or explosion resulting in direct cost 100,00 to 1 Million $ 3

On Site Fatality employee or contractor 2

Fire or explosion resulting in direct cost > 10 million $ 1

24

0

5

10

15

20

25

0 2 4 6 8 10 12 14 16 18 20

GPCA Member Company, Process Safety Data Set Analysis

Key Messages: Wide variance in numbers reported indicate understanding needed on definitions & Data capturing.

Not Reported : 89 reporting zero

Not Reported: 39 reported zero

2011 Number of Process Safety Incidents

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2010-2011 Key Messages Process Safety

• Data not sufficient to establish trends or use as benchmarks.

• Additional data sets to be requested to make meaningful comparisons.

• Members to review their internal systems for data capturing/recording.

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Process Safety Panel Q&A

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Environmental Emissions/Discharges

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Emissions and Discharges

Value of Metrics:

• Hazardous and Non Hazardous Waste for Disposal: primarily a measure for the efficient use of resources

• Discharge to Water - Quantity & Chemical Oxygen Demand: reflects the potential adverse impact on the aquatic environment

• Sulphur Oxides (SOx) and Nitrogen Oxides (NOx): This core measure is identified in the Responsible Care Global Charter.

• It is important to external stakeholders and relatively easy for members to report.

• It is a regulatory requirement in most areas.

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• Discharge to Water - Quantity & Chemical Oxygen Demand (COD):

Waste water discharged to the environment directly or through a third party water treatment facility and the amount of COD in the discharged waste water.

• Sulphur Oxides (SOx) and Nitrogen Oxides (NOx):

Annual emissions inventory for criteria pollutants, NOx and SOx, for those company sources within facilities that are required to prepare and submit annual emissions inventory as per their respective permitting / regulatory requirements

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Environmental Data Reporting – 2010 & 11

80114

6894

020

4060

80100

120

2010 2011

Environmental Data Rquired Reported Data inputs by GPCA Members

85 %

82 %

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Emissions and Discharges Key Messages

• In 2010 94% of the data requested for this category was received from 83% of member companies (20 out of 24!)

• In 2011 94 % of the data requested for this category was received

from 79% of member companies (19 out of 24!)

• Extreme variations in submitted data – possible need for understanding of metric definitions.

• Data quality/quantity not sufficient for benchmarking

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Environmental Emissions & DischargesPanel Q&A

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Resource Utilization

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Resource Utilization

Value of Metric:

• Energy Efficiency: It is an important measure for global stakeholders.• It is also tracked by many other reporting tools and systems.• This speaks to sustainability issues.

• Process Water Consumption This ICCA core measure is identified in the Responsible Care Global Charter.

• This is important to external stakeholders.• It is also a clear new generation metric.

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Resource Utilization DefinitionsUse of Energy (Tons of Fuel oil Equivalent; TOE)

Total energy consumed at GPCA member company facilities. • This includes purchased non feedstock power and energy from combustion

of waste or by product streams. • Energy recovered from the process is not considered as consumed energy.• Detailed calculation methodology is attached to the guidance document

Process Water Consumption :The total amount of water pumped, piped, or otherwise brought on site for use in manufacturing activities and not returned to the water source from which it was withdrawn.

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Resource Utilization - Data Set Analysis

Key Message: Data Sets with huge variations demands a better understanding of metrics definitions.

57

20

54

20

0

10

20

30

40

50

60

2010 2011

Data Inputs Required Data Inputs Reported

100 %

94.7 %

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Resource UtilizationPanel Q&A

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Summary

• Quantity of Data inputs received are encouraging

• Analysis identifies the need for a better and uniform understanding of the metrics definitions

• Use this workshop to share and learn from each other

• Contractors engagement for this campaign is essential.