Note 15: HSE management processes

Management systems

Operational excellence at our sites is supported by risk-based management systems that follow and go beyond 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.

External certification

in % of manufacturing sites

2013

2014

2015

2016

ISO-14001/RC-14001

78

79

80

80

OHSAS-18001/RC-18001

51

53

54

53

Maturity framework

We have a common maturity framework for measuring HSE management progress at our manufacturing sites through self-assessment and audit. The HSE maturity framework is being used to drive continuous improvement. In total, 98 percent of all sites achieved the target for 2016 of an average maturity level of 6.5, this is an improvement of 30 percent of sites (2015: 68 percent of sites were at an average maturity level of 6.5 or higher).

Self-assessment questionnaire (SAQ)

The SAQ, which covers all elements of the management system, continues to be the company-wide HSE improvement planning tool. To maintain relevance to major programs rolled out during recent years (such as the PSM framework), the SAQ was thoroughly revised during 2014. This resulted in the average SAQ maturity staying constant in 2015, while in 2016 there was a small increase in the average SAQ maturity level to 7.2 (2015: 6.9).

Our HSE management system requires each site to develop a site safety improvement plan (SIP) annually using the standard template. In 2016, the templates for standardized and integrated safety improvement plans at site and business level were implemented, ensuring management visibility of the actions and required resources arising from the SAQ process and the monitoring of actions through to completion.

Self-assessment questionnaire (SAQ)

 

2013

2014

2015

2016

% sites at or above average SAQ of 6.5

66

68

98

Average SAQ score

6.5

6.9

6.9

7.2

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 into 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

Social value creation – Management audits (bar chart)Social value creation – Management audits (bar chart)

During 2016, 57 corporate HSE audits were completed (2015: 57); of which four were site closure audits (2015: two), and two were reassurance audits (2015: eight) 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 high risks is supervised by the internal audit function via the execution of reassurance audits. Both of the reassurance audits in 2016 received the final conclusion “acceptable”.

In order to improve the follow-up on other actions arising from audit findings, an automated action tracking system was introduced during 2016. The system enables management focus on the follow-up as it tracks actions through to closure and produces action tracking data which is planned to be included in the operation management reports. The SIPs include the actions to address the gaps identified in the audits.

Learnings from HSE audits indicate that the management of the AkzoNobel Life-Saving Rules and critical procedures should be further improved at site level.

Safety incidents

Severe safety incidents require an independent investigation. We investigate all safety incidents to ensure that lessons are learned, actions are taken to prevent reoccurrence and we continue to increase the safety of our operations. The lessons learned from are shared company-wide.

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.

Safety incidents (Level 3)

Social value creation – Safety incidents (Level 3) (bar chart)Social value creation – 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.

  • There were no Level 2 or Level 3 safety incidents during 2016 (2015: 0)
  • The total number of safety incidents in 2016 decreased to 2 (2015: 12) both of which were at Level 1 (local impact only)
  • The Level 1 safety incidents included:
    • An independent contractor struck his little finger with a hammer leading to its amputation
    • Ignition of flammable solid in a packing area lead to a loss of production time

Although the number is low, these incidents reinforce the need for continued focus on behavior-based safety and process safety management.

We maintain a pool of trained investigators (who also have HSE or operational roles in the organization) to ensure timely, thorough investigations of our most serious incidents (and our high potential near miss incidents). 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.

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

 

2013

2014

2015

2016

Ambition 2016

Regulatory action (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

0

It is now more than four years since we received a Level 4 prosecution or penalty, which suggests that our people, process and product safety programs, near miss reporting and investigation, product stewardship and behavior-based safety programs continue to have an effect on reducing the number of serious injuries and significant losses of primary containment.

HSE capability building

The Integrated Supply Chain competency framework, proficiency levels and job profiles define the capability requirements for managers with critical HSE responsibilities and HSE professionals. The core development programs, delivered through the HSE Faculty of the AkzoNobel Academy, 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. During 2016, the focus was on developing a career path curriculum which provides HSE professionals with insight into how they can develop themselves via on-the-job and off-the-job learning.

In 2016, the HSE Faculty’s offering was expanded with a new program for HSE professionals – Risk Management. This is a next level in the HSE professional’s curriculum and focuses on the risk management process.

  • Since 2012, more than 1,390 critical leaders have been trained in the HSE critical leaders workshop
  • In 2016, 70 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 2017, the Asset Integrity/PSM training will be updated and a second level training will be developed
HSE capability development

cumulative number of people trained

2014

2015

2016

Ambition 2016

HSE critical leaders workshop

885

1,208

1,397

Site managers participated in Hearts & Minds

83

130

123

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.

EMEA

Europe, Middle East and Africa.