Note 11: HSE management processes

Management systems

Operational excellence at our sites is supported by risk-based management systems that follow Responsible Care® and Coatings Care® principles. Our rules and procedures are set up and updated in accordance with international standards such as ISO-14001, RC-14001, OHSAS-18001 and PAS 55 (public standard for process safety). Many sites and businesses also have external certifications for their management systems, which are subject to internal and external audit.

The greater focus on leadership in the revised ISO-14001: 2015 fits well with the focus on leadership in both our HSE and process safety management systems.

External certification

 

 

 

 

 

 

 

 

 

in % of manufacturing sites

 

2012

 

2013

 

2014

 

2015

ISO-14001/RC-14001

 

75

 

78

 

79

 

80

OHSAS-18001/RC-18001

 

42

 

51

 

53

 

54

Maturity framework

We have a common maturity framework for measuring HSE management progress at our manufacturing sites through self-assessment and audit. The maturity framework is being used to drive continuous improvement. In total, 97 percent of all sites achieved the target for 2015 of an average maturity level of six, this is an improvement of 14 percent (2014: 83 percent).

Self-assessment questionnaire (SAQ)

The SAQ, which covers all elements of the HSE management system, continues to be the company-wide HSE improvement planning tool. To maintain relevance to major programs rolled out during recent years (e.g. the PSM framework), the SAQ was thoroughly revised during 2014. Since January 2015, this revised version has been used by sites to self-assess the maturity of their processes and procedures against the updated requirements. The revision of the SAQ has resulted in the average HSE maturity level staying constant at 6.9 (2014: 6.9). This was an expected outcome due to the new requirements included in the revised tool.

Self-assessment questionnaire (SAQ)

 

 

 

 

 

 

 

 

 

in %

 

2012

 

2013

 

2014

 

2015

Sites at or above average SAQ of 6

 

 

 

 

 

83

 

97

Average SAQ score

 

6.2

 

6.5

 

6.9

 

6.9

HSE audit

The HSE audit process combines the SAQ continuous improvement tool with a periodic audit conducted by HSE subject matter experts from the business and managed by the global Internal audit function.

All sites carry out an annual self-assessment against our corporate HSE rules and procedures, and applicable business requirements, by filling in the SAQ. As well as providing input for the corporate HSE audits, the results are used locally to prepare site improvement plans. Together, the corporate HSE rules and auditing create the assurance framework.

For most sites, the audit frequency is every five years. For sites with a high hazard rating this frequency is every three years.

Management audits number of audits

Safety – Management audits (bar chart)Safety – Management audits (bar chart)

As in 2014, audits at multi-sites, where more than one business is represented, were completed by one (larger) audit team. During 2015, 57 corporate HSE audits were completed (2014: 63); of which two were site closure audits (2014: three) and eight were reassurance audits (2014: five) of previously audited sites with high risk findings.

Follow up on actions from corporate HSE audits is an important part of the corporate HSE audit protocol. Follow-up of non-compliances and high risks is supervised by the Internal audit function via the execution of reassurance audits. All reassurance audits in 2015 received the final conclusion “acceptable”.

Our HSE management system requires each site to develop a site safety improvement plan (SIP) annually. In parallel with the SAQ revision, a template was developed for SIPs which will be used as the standard during 2016.

These SIPs are intended to raise the level of HSE performance by ensuring the actions required to address the identified gaps in the SAQ and audits are completed, as well as keeping the site focused on delivering their HSE continuous improvement activities.

Learnings from HSE audits indicate that business management need to strengthen the process for completing HSE audit findings by assessing the quality of the SIPs and regularly reviewing progress, keeping site teams focused on delivery of the required actions. A project has been started to improve the governance of the follow-up of HSE audit findings during 2016.

Safety incidents

are those that result in severe consequences, requiring an independent investigation. We classify safety incidents based on the severity of the outcome (Level 1 to Level 3). Level 3 safety incidents receive the immediate attention of the Executive Committee.

To ensure timely and thorough investigations of our most serious incidents, we maintain a global pool of trained investigators (who also have or operational roles in the organization). The investigation results in actions to prevent a recurrence, with the lessons learned shared company-wide. Progress and compliance with the requirements is monitored and shared with the Executive Committee and line management on a monthly basis.

  • The total number of safety incidents in 2015 decreased slightly to 12 (2014: 15) all of which were at the lowest Level 1 (local impact only)
  • There were no Level 2 or Level 3 safety incidents during 2015 (2014: 2)
  • The Level 1 incidents included inadequate isolation of machinery (four), slips, trips and falls (two) and the use of forklift trucks (three)

Safety incidents (Level 3)

Safety – Safety incidents (Level 3) (bar chart)Safety – Safety incidents (Level 3) (bar chart)

Level 3 safety incidents: incidents involving loss of life, more than five severe injuries, environmental, assets or business damage totaling more than €25 million, or extensive reputational damage.

These incidents reinforce our need for a continued focus on behavior-based safety and our Life-Saving Rules.

Regulatory actions

We have defined four categories of regulatory actions, from self-reported issues (Level 1), to a formal notice of a criminal prosecution or penalty greater than €100,000 (Level 4). The Level 4 regulatory actions are recognized as material for AkzoNobel.

Regulatory actions

 

 

 

 

 

 

 

 

 

 

 

2012

 

2013

 

2014

 

2015

(Level 4): A formal notice of a criminal prosecution or (conditional) penalty greater than €100,000. These are reported to indicate to management the potential for reputational damage and the effect on our license to operate.

Regulatory actions (Level 4)

 

0

 

0

 

0

 

0

As in previous years, we did not receive any Level 4 prosecutions or penalties, which suggests that our people, process and product safety programs, near-miss reporting and investigation, stewardship and behavior-based safety programs continue to have an effect on reducing the number of serious injuries and significant losses of containment.

HSE capability building

The Integrated Supply Chain competency framework, proficiency levels and job profiles define the capability requirements for managers with critical responsibilities and HSE professionals. The core development programs, delivered through the Supply Chain, Research and Development Faculty, use a blended learning approach for line managers, HSE professionals, senior leaders and front line leaders with critical HSE functions in manufacturing and non-manufacturing units.

In 2015, the HSE Faculty’s offering was expanded with a new program for site managers – Advanced Safety Leadership: the Hearts & Minds program. This is a follow-up to the HSE critical leadership workshop and focuses on accelerated HSE improvement through enhanced engagement.

  • Since 2012, more than 1,200 critical leaders have been trained in the HSE critical leaders workshop (target 2015: 1,000)
  • In 2015, 40 percent of site managers were trained in four different sessions in Asia, the Americas and . The blended learning approach includes direct dialog with our most senior leaders on safety performance and improvement plans, virtual classrooms and two face-to-face events
  • In 2016, the second level within the HSE professionals curriculum will be further developed with additional content, including risk assessment training

HSE capability development

 

 

 

 

 

 

 

 

 

 

 

In % of target group

 

2013

 

2014

 

2015

 

Ambition 2015

 

Ambition 2016

critical leaders workshop

 

62

 

90

 

100

 

100

 

100

Site managers participated in Hearts & Minds

 

 

 

40

 

33

 

66

HSE

Health, safety and environment.

HSE

Health, safety and environment.

Safety incident

We have defined three levels of safety incidents. The highest category – Level 3 – involves any loss of life; more than five severe injuries; environmental, asset or business damage totaling more than €25 million; inability to maintain business; or serious reputational damage to AkzoNobel stakeholders.

HSE

Health, safety and environment.

Regulatory action

We have defined three categories of regulatory action, from self-reported issues (Level 1) to formal legal notifications with fines above €10,000 (Level 3).

HSE

Health, safety and environment.

EMEA

Europe, Middle East and Africa.

HSE

Health, safety and environment.