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GPCA Responsible Care Program Development Workshop-II

20 and 21 March 2012

Dr. Wm. Claude White

Global Director Product Safety

LyondellBasell

Responsible Care®, Product Stewardship and GPS- Issues and Key Learnings from Implementation

lyondellbasell.com

LyondellBasell is:

• One of the world’s largest olefins, polyolefins, chemicals and refining companies with revenues of $41billion (2010)

• The global leader in polyolefins technology, production and marketing

• A pioneer in propylene oxide and derivatives

• A producer of fuels and refined products, including biofuels

• Dedicated to ongoing research and development programs that meet the ever-changing requirements of our customers, including the creation of new catalysts, processes and products

• Listed on the New York Stock Exchange (NYSE) as a publicly traded company. Ticker symbol: LYB

2

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Our product lines and the end markets we serve…

TechnologyIntermediates & Derivatives

Olefins & Polyolefins AmericasEurope, Asia & Int’l

Process Licensing

Catalyst Sales

Technology Services

Ethylene

Propylene

Polyethylene

Polypropylene

Catalloy process resins

PP Compounds

Polybutene-1

Propylene Oxide

Styrene Monomer

PG and PGE

Acetyls

C4 Chemicals

Ethylene Oxide

EG and EOD

End Uses • Insulation• Home Furnishings • Adhesives• Consumer Products • Coatings

End Uses • Polyolefin

and Chemical Manufacturers

End Uses• Food Packaging• Textiles• Automotive• Appliances• Films• Flexible Piping

Refining & Oxyfuels

Gasoline

Diesel

Olefins Feed

Oxyfuels

End Uses• Automotive Fuels• Aviation Fuels• Heating Oil• Industrial Engine

Lube Oils

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Responsible Care ® Foundation

• Management Commitment

• Communications

• Line Management and Employee Commitment

• Management Systems– Policies, standards, procedures, guidelines

– Define the requirements

– Clear expectations and responsibilities

– Execution against the requirements

• Continuous Learning and Improvement– Incident investigation and follow-up

– Internal audits and follow-up

– External audits or benchmarking (example: Responsible Care Audits)

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Responsible Care ®

A journey, not a destination!

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• Recognition•Action Item Resolution• Technical Directives• Technical Advisories• Lessons Learned Library• Standard Revisions

ACT

• Operational Excellence Standards• Engineering Design Standards• Process Technology

• Process Safety Information• Competency & Expectations

PLAN

• Incident Investigations• Audits• Self Assessments• Internal & External Reviews• Benchmarking• Metrics & KPI’s• Management System Reviews

CHECK

• Risk Assessment & Management• Hazard Identification• Facility Siting• Operating Procedures• Alarm Management• Operations Communications• Life Critical Standards• Management of Change / PSSR• New Manager PS Review• Training & Coaching• Asset Integrity Standard• Stationary Equipment• Rotating Equipment• A I & E Equipment• Emergency Response & Management

DOCONTINUOUS

IMPROVEMENT

CONTINUOUS IMPROVEMENT

EXECUTE

ACHIEVE

Operational Excellence Roadmap

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Getting Back into Responsible Care ® - Learnings, Observations and Challenges

• Take advantage of ISO certificates – for structure, organization, commitment; develop complimentary systems

• Share best practices with fellow members

• A good consultant can be very useful

• Combining systems and processes of different legacy companies – not so much operations but support (e.g. security)

• Making existing systems work without creating new systems or adding on to the old ones

• Touches everyone (HR, IT, Customer Service, etc.) and it may be new to them

• Qualification and re-qualification of suppliers (raw materials and logistics services), particularly the one-offs (Product Stewardship helps)

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7.0 Product Stewardship

• We operate a worldwide product stewardship program to make health, safety and environmental protection an integral part of the development, manufacture, distribution, use, recycle and disposal of our products

7.1 Product Stewardship – Product risks are identified, managed and communicated

7.2 Product Usage - Product use and destination is properly understood and managed

7.3 Customer Interfaces – Interaction takes place with suppliers, carriers, distributors and customers to help them maintain high safety and environmental standards

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Product Stewardship

• Forward looking

• Proactive identification, assessment and, where necessary, mitigation of risks

• Assess risk by multiple factors

• Spans the life cycle of products

• Involves many functional areas

• Product Stewardship is the “Process Safety” for commercial groups

• Culturally, Product Stewardship should be like Safety – everyone is responsible within their sphere of operation

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LyondellBasell Product Stewardship Process

1. Conduct GAP Analysis vs. Product Stewardship Standard

2. Develop GAP Closure Plan (Summary of Findings and Action Items)

3. Product Risk Characterization (PRC)– Identify the hazards, exposures, and end uses

– Determine overall risk category I, II or III

– Have any adjustments approved

4. Product Risk Management Plan (PRMP)– Identify all Product Risk for Full Life Cycle

– Identify management system(s) addressing each risk

– Assess each management system. Is it adequate? (Yes/No)

– If inadequate then identify action, responsible party and timing

– Identify any key or critical risk management practices

– Identify non-supported or restricted uses

5. Periodically assess the execution and effectiveness of the plan

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Product Risk Categorization and Product Risk Map

III III III

II II III

I I II

> 30

11 to 30

0 to 10

SUM of Exposure / Use Rating

0 to 9 10 to 20 > 20

SUM of Hazard Rating

Product Risk Category

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LyondellBasell Product Stewardship Process – Learnings, Observations, and Challenges

• Our process works best for discreet chemicals

• Sometime a challenge to keep the group focused on risk instead of the Risk Categorization

• Sometimes hard to keep the focus on Risk and not just Hazard

• Chemical risks are heavily weighted to physical / chemical / toxicological properties and transport / logistics risk

• Polymers risks are heavily weighted to end use (e.g. medical)

• Use of groupings of similar products is necessary to keep the process manageable

• A generic Product Risk Management Plan can be used to reduce redundancy across many similar product plans

• Site-limited “products” were more prevalent than suspected

• Critical Risk Management Practices and Non-Supported Use Identification were enlightening

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ICCA Global Product Strategy (GPS)

• Base set of Information

• Sharing of relevant information between companies

• Tiered process to evaluate risk and identify appropriate risk management actions

• Extending guidance for safety assessment onto global scale

• Help define safe use conditions for chemicals; guidance to companies to enable them to meet safe use conditions

• Measure industry performance and public reporting

• Product Stewardship cooperation with downstream customers

• Partnerships with intergovernmental organizations. Outreach and dialog with customers, the public, and other stakeholders

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ICCA Guidance on Chemical Risk Assessment

• Very REACh like

• Quantitative

• Works well for discreet chemicals, not so well for polymers

• Final step in the GPS Risk Assessment process is a GPS Safety Summary

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GPS Safety Summaries

• Content: Short overview of relevant information for the chemical (basic, understood by the layman)

• ICCA Commitment– Priority chemicals by YE 2012

– All chemicals by 2018

• Target Audience: General public, interested stakeholders

• Resource: – Global Product Strategy: ICCA Guidance on Chemical Risk

Assessment

• Examples:– Company Web Sites

– ICCA Web Site

– American Chemistry Council Web Site

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GPS Safety Summaries

• No required format – company discretion– ICCA Guidance offers a starting point

– Wide variability – 2 pages to 30 pages, high level to detailed

– Modify to suit your communication objectives

• No definition of (High) Priority - company discretion– Possible factors – Production volume, types of end uses, potential

exposures, hazard classification

– LyondellBasell – High Production Volume (HPV, >1 MM PPY), GHS Hazardous Classification and in commerce

• Visit www.LyondellBasell.com or the ICCA Web Site

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GPS- Issues and Key Learnings from Implementation

Thank You