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GPCA Responsible Care Workshop Dubai September 24-25 2013 Robert Wakefield Country Director Bahrain

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Introduction Hertel is a multi-disciplined Industrial Services company Predominantly focused on the Offshore, Oil & Gas and Petrochemical markets Present in Europe, Middle East and Asia 12,000 employees worldwide Annual Turnover in 2012 was Euro 907 million

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Hertel in the Middle East Present in Bahrain, Oman, Qatar, Saudi Arabia and the UAE Activities spread across Insulation, Painting, Scaffolding and Refractory Construction and Maintenance Hertel expansion in Middle East has been through acquisition and establishment of Joint Ventures Hertel Regional Office in Middle East is in Abu Dhabi Employees in Middle East - 2500

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Contents Vision Drivers History Global Approach to HSE Management Pyramid HSE Policy HSE Management Framework Standard Guidances & Practices Target Zero Programmes Conclusion

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Vision

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Hertel aims to continuously operate worldwide in a safe and responsible manner with the greatest respect for the health and safety of its employees, contractors, customers, the communities and the environment in which it operates. Vision

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Drivers

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Managing Health, Safety & Environmental aspects and impacts professionally is an integral part of running a successful business, in particular in the industries Hertel is active in. Safety efforts can make or break our companys reputation and is inherent as a requirement for both existing as well as for potential and existing clients. HSE - activities have been part of Hertels heritage for more than 100 years. Focus has always been on Doing the job safely- preventing injuries and ill health - and respect for the environment. Drivers

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Hertels future challenge for safety derives from: Hertel wants to be injury-free Customers expectation for high levels of safety Financial; Good safety is Good business Expectation of our employees and communities Drivers

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History

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In 5 years time, Total Recordable Injury Frequency decreased from 2.10 to 0.39 (81%) Lost Time Injury Frequency Moving Average decreased by 89% Overall, employees return home safely and their injuries are less severe than in the past Improvement in safety performance is approaching a deadlock A need for different emphases is upon Hertel: global standardization; cultural aspects. Group TRIF - Development TRIF (200,000 worked hours) Year

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Global Approach to HSE Management - Pyramid

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Global Approach to HSE Management The pyramid resembles our built approach towards safety: in order to obtain the goals set in our policy, all underlying bases need to be covered in a sustainable way. It is important to note that, all things equal, local offices have an important role in establishing the success of this pyramid. The actual safety performance for Hertel stands or falls with the communication, cooperation and coordination of this pyramid.

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HSE Policy Vigorous focus on zero Harm Need for active involvement Strengthening of safety culture Continuous improvement in all aspects Stimulate communication, cooperation and coordination on HSE management.

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HSE Management Framework Learning platform across Company. Best-in-class processes and procedures in place to identify, analyze and manage hazards and risks. Control mechanism for our Target Zero Culture. Enables the 3Cs between regions: Organisational Learning. Alignment with the Customer requirements. Interdependence between elements, processes and tools.

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Element 1 - Leadership, Commitment & Culture Element 2 - Risk Assessment & Planning Element 3 - Resources, Roles & Responsibility Element 4 - Competence, Training & Awareness Element 5 - Operational Risk Management Element 6 - Management of Change Element 7 - Communication, Participation & Consultation Element 8 - Performance Measurement & Monitoring Element 9 - Management Review & Verification HSE Management Framework

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Element 1 Leadership, Commitment & Culture Commitment & involvement of everyone in Hertel is required. Lead in HSE as individuals within our teams and as an organization. Building a world class safety culture. Element 2 - Risk Assessment & Planning Ongoing identification and assessment of hazards and their risks to gain understanding of what needs to go right. Improve operational risk status with the goal of achieving ALARP or better. Building a flexible and resilient safety culture to achieve high levels of operational and situational awareness.

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Element 3 Resources, Roles & Responsibility Defining the roles and responsibilities to ensure we continue to operate as safely as reasonably possible. Making available the resources required in order to ensure sustained effort and consistent achievement of our goals. HSE Management Framework Element 4 Competence, Training & Awareness Selection of the right people for the right job is essential. Continuous training is required to maintain and enhance knowledge and skills. Training & awareness are required to perform the job competently and thoroughly.

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Element 5 - Operational Risk Management Ensure identified hazards and related risk scenarios are controlled effectively. Putting in place the required safe systems of work. Account for the hierarchy of controls to withstand degradation effects of human, organizational and technical factors. HSE Management Framework Element 6 - Management of Change Necessity to avoid the probability of invalidating the risk management process due to new hazards and risks. Systems must be in place that recognize and control changes that have the potential to compromise operational integrity. Ensuring change is understood and recognised.

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Element 7 Communication, Participation & Consultation Providing the dissemination of information upwards, downwards and across our organization so that it is understood by all relevant persons. HSE Management Framework Considering and discuss jointly issues of mutual concern to seek acceptable solutions to problems. It requires full participation at all levels in order to make these processes as thorough and efficient as possible.

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Element 8 Performance Measurement & Monitoring Adopting a systematic approach for measuring and monitoring HSE performance. Planning what and how performance will be measured, including where and when. HSE Management Framework The results of measurement and monitoring are to be analysed and used to identify both successes and areas requiring correction or improvement.

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Element 9 Management Review & Verification Link must be established between the system assessment and, its verification and the policy expectations and framework requirements. Past experience and findings of verified assessments are used as input to updating the next set of operational plans for HSE. HSE Management Framework This is critical in ensuring the continuous improvement and effectiveness of our efforts in HSE management.

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Procedures & Guidance in order to support implementation of the HSE Management Framework and processes. Standards as a procedural set of requirements Following specific operational topics within the HSE Management Framework, mainly outcomes of risk assessment. LSRs become operational values. Standard guidances & practices

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Programmes are the practical translation of the Management System. Procedures, practices and guidance as support to the Management System and Policy. Standardizing working methods towards one approach. Better comparison and cooperation: best practices and bottlenecks easier identified. Target Zero Programmes

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Life Saving Rules TimeOut Programme Last Minute Risk Assessment Site Safe Visits Hearts & Minds Hertel Safety Leadership Programme Programmes

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TimeOut Spot -potentially- hazardous acts or situations at an early stage. Continuous development and improvement of Hertels systems. Life Saving Rules Life Saving Rules offer a straightforward and coherent set of guidelines to approach general risks faced in the industry. Years of research by the OGP led to a combined set of 18 high risk areas. Programmes

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Hearts & Minds Toolkit to help advance towards a higher cultural level. Provides the process and tools to get everyone involved. Last Minute Risk Assesment Identify and control risks that have been overlooked or couldnt be anticipated before, just before work commences. Programmes

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Site Safe Visits Engagement with the workforce. Active involvement & quick resolution of outstanding issues. Hertel Safety Leadership Programme Familiarization of middle and upper management with the complete integrative approach towards safety within Hertel. Assurance of management understanding Hertels safety approach and ability to promote this internally and externally. Programmes

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Conclusion Hertel has made good progress in the past few years. There is a compelling need for emphasis on standardization and cultural aspects, as a next step. Future consists of: Standardization of systems and working methods. Uniform and substantiated messages through communication channels. Becoming an expert-follower in safety management.

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Hertel and GPIC We have worked together since 1990 Painting and Scaffolding activities throughout plant GPIC safety culture is embedded in its entire workforce as is Hertels The combination makes GPIC a very safe place for our people to work We recently celebrated 1 million manhours safe working in GPIC GPIC is a major partner of ours in our Road to Zero

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Challenges Multi National workforces Our workforce from Bahrain, India, Nepal, Pakistan, Phillipines, UK Diverse cultures and attitudes to EHS Educational level of general workforce Varied educational levels Difficult to teach basic EHS without basic educational base Has been a recruitment issue Weather and other environmental issues Heat and Humidity are significant EHS factors in Middle East Heat Stress is a major health hurdle

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Success Story 9 th September 2013 in Ammonia Area 7 Scaffolder Dhan Bahadur Ran noticed a small electrical fire starting He calmly stopped work and made his way to emergency phone and contacted emergency services He then returned to the fire location by which time the fire was taking hold He located a Dry Powder extinguisher and extinguished the fire prior to the arrival of the emergency services A potential catastrophe was averted because Contractor and LSP were fully alligned from an EHS perspective