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ORLEN Group 2016 Integrated Report

II nagroda specjalna w kategorii Raport Zintegrowany | Najlepszy raport on-line

Safety of Employees and Contractors

Capitals:  
 

Occupational health and safety and process safety are priority areas in our strategy. In 2016, thanks to the high motivation and commitment of the entire team, we achieved a very good Total Recordable Rate, proving that PKN ORLEN is a safe place for both employees and contractors. We also seek to develop the ORLEN Group’s production assets in a sustainable manner, with due regard to the natural environment and local communities.

Piotr Chełmiński
Member of the Management Board, Development and Power Generation
(to 06/30/2017)

Safety is one of the ORLEN Group’s priorities, on a par with those of value creation and building of solid financial foundations. Our safety policy is put in action by integrating all aspects, standards, best practices, and new knowledge and technology advances in the field of workplace safety into the operations of the ORLEN Group.

This priority follows from our business philosophy where people are our most valuable asset and must be provided with safe working conditions. This is an ethical approach to the protection of human life and health, which makes it imperative that whatever needs to be done in given circumstances to prevent hazards, industrial accidents, fire and other disasters, is actually done.

Safety and the management system

The safety management system operated by the ORLEN Group encompasses not only the Group employees but also the staff of our contractors. The system focuses on two main directions. The first is to ensure the highest standards of work safety, including to implement best practice and integrate the latest knowledge and technology advances into the Group’s operations. The second is to put a strong focus on building the awareness of safe work procedures and on creating proactive attitudes among our employees and contractors. Measures to further develop and improve the ORLEN Group’s safety management system are provided for in the OHS Strategy. Implementation of the Strategy objectives helps to build a common safety standard across the ORLEN Group and fulfil each company’s individual safety needs in the context of their business and its specific needs.

The safety management system of the ORLEN Group is monitored on an ongoing basis to identify any potential areas for improvement. The Group companies operate OHS management systems supervised by certification bodies accredited by the Polish Centre for Accreditation (Polish companies only). Certification audits include reviews of the companies’ compliance with legal requirements and other applicable regulations. The Group also holds at its subsidiaries regular internal audits as well as coordination and consultancy visits devoted to safety matters. Findings and observations serve as basis for formulating and implementing correction and refinement plans, workplace health and safety improvement plans, and individual OHS Strategy targets.

To meet the needs of the ORLEN Group’s constantly evolving occupational safety area, a new OHS management concept is planned for implementation in 2017−2021. It will be based on building and developing the ORLEN Group’s uniform safety standards, while enhancing the excellence in operations and in preventive measures related to personal and process safety. According to the new concept, an important element of the ORLEN Group’s safety management system is building a safety culture in which employees identify with the Group’s work safety standards and take responsibility for their own and their colleagues’ safety.

 

The ORLEN Group’s safety management structure as of 2017:

We also continued our best practices in 2016, including the ‘Report a Safety Hazard’ initiative, the OHS incentive programme, and the ‘Safety First’ project, which are designed to enhance OHS awareness among our and our contractors’ employees. Safety culture was also promoted by organising competitions for the ORLEN Group employees, such as the fourth edition of ‘Good OHS Practice’ or the second edition of the ‘Millions of Accident-Free Man-Hours’ competition.

The measures taken to reinforce accident-free safety culture are based on education and motivation of employees and subcontractors as well as on promoting safe behaviours, and their goal is to instil a sense of shared responsibility for their own safety and the safety of others, both at work and elsewhere. Those measures include dissemination of knowledge on occupational safety, promoting a healthy lifestyle and work-life balance. One of the initiatives carried out at the ORLEN Group in the past five years is the Occupational Health and Safety Week. It features activities promoting a healthy lifestyle and balanced diet, such as first aid demonstrations, meetings with dietitians, medical information and relax areas, educational activities as well as games and competitions. The event brings together not only ORLEN Group employees, but also their families and the Group’s contractors. Furthermore, the ‘Safe Driver. Safe Passenger’ campaign was also organised last year for the customers at PKN ORLEN service stations.

The ORLEN Group’s ambition is to drive down the number of accidents at work involving its employees and contractors, fires and industrial emergencies to zero. This poses a challenge for PKN ORLEN in the area of occupational safety, with the need to develop and implement a uniform safety standard across the Group. To that end, the ORLEN Group must ensure on-going identification and dissemination of best practices, as well as experience sharing across the ORLEN Group, and build on the lessons learned by other oil and gas companies with global footprint.

Because we adhere to the principle that „Contractor safety is as important to us as the safety of our own employees”, sharing best practices also with contractors is one of the cornerstones of PKN ORLEN’s OHS management model.

Communication of near misses, accidents and emergencies across the Group is based on ‘Safety Alerts’. In the case of emergencies, ‘Lesson Learned’ actions are organised based on checklists designed to identify preventive measures in different ORLEN Group locations.

Objectives and challenges expected in the years to come

The ORLEN Group’s OHS Strategy for 2017−2021 assumes the delivery of strategic objectives in four key areas:

The overriding objective of the PKN ORLEN’s OHS Strategy for 2017−2021 is the implementation of Safety Standards at ORLEN Group companies. Their aim is to achieve uniform requirements in the area of ​​corporate security. The requirements were established upon the identification, analysis and selection of best initiatives and good practices implemented by the ORLEN Group production companies and by global oil and gas leaders.

Invariably, the ORLEN Group’s ambition is to reduce the number of accidents at work involving its employees and contractors, fires and emergencies. The main challenge faced by PKN ORLEN is to achieve the target work safety culture in which employees and contractors are fully aware of their responsibility for occupational safety, always bearing in mind their own safety and the safety of others. To that end, PKN ORLEN will need to attain the highest occupational safety management standard - ‘I protect others, not just myself’.

The measures to be taken under the ORLEN Group’s OHS Strategy for 2017−2021 are meant to achieve synergies which will raise safety awareness across the Group and allow PKN ORLEN to remain one of the occupational safety leaders in the industry.

 

OHS commissions

Year Percentage of ORLEN Group companies
that appoint OHS commissions1)
Percentage of employees that have their representation on OHS commissions2)
2015 100% 100%
2016 100% 100%

1) (Number of ORLEN Group companies that appoint OHS commissions/ Number of companies which are required to appoint OHS commissions for a given year)*100%
2) (Number of employees at companies that appoint OHS commissions/ number of employees at companies which are required to appoint OHS commissions for a given year)*100%

Key issues addressed by the OHS commissions were as follows:

  1. Implementing changes in the work organisation system and work station equipment, implementing new technological processes and chemical substances which can pose a threat to the employees’ life or health;

  2. Analysing the findings of occupational risk assessments;

  3. Accepting standards for providing the employees with personal protection equipment, working clothes and footwear, and personal care products;

  4. Making periodic assessments of the OHS status;

  5. Formulating conclusions and accepting OHS improvement plans, involvement in their implementation;

  6. Assessing the implementation of the working conditions improvement programme, including measures designed to prevent accidents at work and occupational diseases, and in particular the OHS improvement plans;

  7. Holding consultations in connection with selecting employees to be responsible for administering first aid and performing specific activities related to fire protection and employee evacuation;

  8. Formulating conclusions concerning laws of general application and internal regulations relating to social issues and occupational health and safety (employee meals, work performed in special conditions, etc.);

  9. Discussing and analysing accident rate and occupational disease incidence statistics;

  10. Assessing the implementation of post-inspection recommendations from institutions inspecting particular issues.

OHS issues are provided for in the applicable internal regulations of ORLEN Group companies:

They concern the organization of safe and hygienic working conditions.

Key OHS indicators

Under the ORLEN Group’s safety policy, measures are implemented in all areas of the Group companies’ operation to steadily reduce the accident rate. Statistical analysis of the TRR rate among employees3) and the number of accidents at work involving employees4) of the ORLEN Group reported in the last six years shows that their levels have been more or less flat over the last three years, after a series of major declines in 2014. In other words, PKN ORLEN’s accident rate is now flattening out after being significantly reduced compared with previous years.

TRR for ORLEN Group employees3) in 2009−2016

3)TRR (Total Recordable Rate) = (number of recordable injuries sustained by the ORLEN Group employees in a given year x 1,000,000)/number of hours worked by the ORLEN Group employees in the year

Number of accidents at work involving ORLEN Group employees4) in 2011−2016

4) Number of accidents at work involving ORLEN Group employees is the number of accidents acknowledged by the employer and being the direct cause of the injured employee’s taking sick leave

One of the keystones of the ORLEN Group’s safety management system is the occupational health and safety area, which covers also the Group’s contractors. A number of initiatives have been undertaken to upgrade the safety culture of the contractors performing work for the Group companies and on their premises. These include regular safety inspections of the contractors to verify compliance with the uniform Group-wide standard. In addition, proactive initiatives are rolled out in order to raise occupational safety awareness and encourage proactive attitudes among the contractors’ personnel7). As a result, the number of accidents at work involving contractors stayed more or less unchanged over the past three years, and the combined TRR rate5) at the ORLEN Group came close to that reported for 2015.

Combined TRR5) for employees and contractors of the ORLEN Group in 2015−2016

5)Combined TRR = number of recordable injuries of the ORLEN Group employees and employees of external contractors performing work for and on the premises owned or leased by ORLEN Group companies in a given period * 1,000,000/number of man-hours worked during that period
 

Total number of accidents at work involving ORLEN Group employees and contractors6) in 2014−2016

*2014: 40 accidents involving employees and 30 accidents involving contractors
2015: 44 accidents involving employees and 28 accidents involving contractors
2016: 45 accidents involving employees and 29 accidents involving contractors
6)Total number of accidents at work involving ORLEN Group employees and contractors is the number of accidents at work suffered by employees of the ORLEN Group and of external contractors, acknowledged by the employer and being the direct cause of the injured employee’s taking sick leave

Types of accidents at work involving ORLEN Group employees4): 2016

Number of accidents at work involving ORLEN Group employees4)
Year total fatal minor
2016 45 0 44

Types of accidents at work involving ORLEN Group contractors7): 2016

Number of accidents at work involving contractors of the ORLEN Group7)
Year total fatal minor
2016 29 0 27

7)Number of accidents at work involving contractors is the number of acknowledged accidents at work involving employees of external contractors performing work for and on the premises owned or leased by a company of the ORLEN Group and being the direct cause of the injured employee’s taking sick leave. Employees of PKN ORLEN service stations are also defined as contractors

Among workers reported occupational accidents in 2016, in 98% of cases workers suffered minor injuries. On the other hand, 93% of contractors accidents at work were light cases.

Number of days lost due to post-accident absenteeism8) of employees 4)at the ORLEN Group in 2016

8)Number of days lost due to post-accident absenteeism is the number of days on which the employee is on a sick leave as a result of an accident at work acknowledged by the employer

Severity indicator 9) for workplace accidents involving ORLEN Group employees in 2016:

9) Severity rate is the quotient of the number of days lost due to post-accident absenteeism of ORLEN Group employees and the number of accidents at work involving ORLEN Group employees, acknowledged by the employer and resulting in the employee’s taking sick leave.
Health and safety of contractors’ employees is a strategic priority for the Company. In order to continuously enhance the safety of our contractors, we have taken a consistent, long-term approach to raising their awareness of the importance of proper risk assessment, potential hazards, risk mitigation methods, OHS rules and procedures, proper use of protective systems and equipment, and the need to report potentially dangerous situations. Besides analysing work accidents suffered by contractors, the ORLEN Group also studies data on sick leaves resulting from work accidents occurring in connection with works carried out by contractors on the premises of Group companies. There is no applicable law or regulation under which the requested information could be disclosed to the public.

Number of occupational disease cases10) involving Grupa ORLEN employees in 2015–2016

* PKN ORLEN (1), ORLEN Lietuva (3), Paramo (1), ANWIL (1)
** ORLEN Lietuva (6)
10)Number of acknowledged occupational disease cases is the number of decisions issued by the State Sanitary Inspector to confirm recognition of an occupational disease of a current or former employee of an ORLEN Group company

Those employees were exposed to harmful agents in the workplace during the years when their work conditions were not under the control of ORLEN Group companies.

Number of occupational disease cases10) in each employee group
Employee groups at the ORLEN Group in which occupational diseases have been recognised 2015 2016
Office and administrative staff 0 0
Higher-rank and mid-level technical staff 0 0
Operators of process units and equipment 2 4
Repair and maintenance employees 3 2
Transport and storage employees 1 0
Total 6 6
 10)The number of recognized occupational diseases is determined by the number of decisions issued by the State Sanitary Inspector for occupational diseases in employees who work or work in ORLEN Group companies

Employee groups exposed to a high risk of occupational diseases

The ORLEN Group constantly monitors and identifies factors that may cause occupational diseases among employees. Work environment surveys are performed on a regular basis and their results are analysed to assess the risk of potential impact on the health of the Group’s employees. With respect to all factors identified for jobs with a high risk of occupational disease, systemic preventive measures have been implemented in the form of technical and organisational solutions offering personal and collective protection. The use of these solutions eliminates the risk of occupational diseases among employees as a result of harmful factors in the work environment.

Number of process safety events, by business activity

In 2016, the number of fires reported at the ORLEN Group stayed largely unchanged compared with 2015. Out of all fires reported in 2016, 77% (20 fires) were related to technological processes, and four required action by the State Fire Service.

Number of fires11) at the ORLEN Group in 2015−2016

Number of fires11) at the ORLEN Group
Year total number of fires of which: relating to technological processes of which: requiring action by the State Fire Service
2015 25 18 6
2016 26 20 4

11)Number of process-related fires at the ORLEN Group companies, affecting only the premises owned or leased by them, with the exception of service station areas

Process safety and Process Safety Management System

Process safety is a state where the organisational, operating and technical conditions in place ensure the safety of industrial processes and effectively prevent any substance and/or energy release into the environment.

Rising to strategic challenges of modern energy conglomerates and domestic requirements for the prevention of serious industrial accidents, continuous improvement of the efficiency and effectiveness of the applied prevention measures, and mitigation of potential impacts of industrial accidents requires that effective and systematic management of process safety be put in place in keeping with the highest standards set out in the OSHA 1910 regulations. Some of the tasks the system is expected to deliver is to raise safety awareness, analyse and manage risks, and use internal experiences and lessons learned from past events occurring around the world. Presented below are the key elements of PKN ORLEN’s process safety management system that is subject to continuous improvement:

  1. SAFETY LEADERSHIP − invariably the key aspect of building a safety management system and a safety culture − strong, forward-looking leadership and the prominent role of qualified teams and management personnel influencing attitudes and everyday operating activities.

  2. ROLES AND RESPONSIBILITIES − defining emergency roles and responsibilities at all levels of the organisation and measures taken to get across the need for continuous improvement and prevention.

  3. TRAINING − developing training programmes and providing training to employees responsible for proactive and preventive measures, as well as emergency response training at all levels of the organisation and to other employees on site, including subcontractors.

  4. MECHANISMS − deployment of mechanisms enabling systematic analysis of the risk of a serious industrial accident and probability of its occurrence, and therefore enabling its avoidance.

  5. INSTRUCTIONS AND PROCEDURES − defining instructions for safe operation of process units using hazardous substances during normal operation, as well as instructions on maintenance, shutdowns, and industrial process adjustments.

  6. MONITORING AND OVERSIGHT − recognising the need to apply the best available practices to monitor the operation of process units containing hazardous substances so that corrective measures can be implemented should any deviation from normal operation occur, including due to normal wear and tear or corrosion.

  7. ANALYSIS − regular assessment of validity and effectiveness of the process safety management system in place and the Accident Prevention Programme as a principal document and the key intermediate task helping to achieve the overriding goal of proactive accident prevention, with the method of documentation and approval defined, and regular assessment of internal operating emergency response plans that are mandatory for upper-tier and lower-tier establishments.

  8. EXPERIENCE − lessons learned from past emergencies occurring at the ORLEN Group and globally, including mechanisms supporting the need and requirement to learn from past events.

Upper-tier and lower-tier plants of the ORLEN Group

The infographic above illustrates the broad scope of the process safety function. At the ORLEN Group as many as 27 establishments (facilities) are classified as upper-tier, and a number almost half of that are lower-tier establishments, as per the classification framework under the Seveso III Directive applicable across Europe and implemented into national law by all EU member states in 2015. It should be noted that both types of establishments face the challenge of implementing an up-to-date and effective process safety management system as an organised method for managing safety, encompassing all vital safety components presented above.

To illustrate the current state of process safety in production companies of the ORLEN Group, we use various process safety leading and lagging metrics in accordance with the API754 standards, which are monitored and measured to help achieve the overarching goal of process safety management, which is to prevent or minimise the risk of major accident hazards. These metrics also serve as a benchmark we use to compare our performance against the best in our industry in pursuit of process excellence.

TIER 1 and TIER 2 events

TIER 1
Emergencies with a significant impact related to a sudden and unexpected substance release due to ineffective protection layers. Those emergencies include a sudden and unexpected release of hazardous substances as well as non-toxic and non-flammable substances (water vapour, condensate, hot water, nitrogen, compressed air, CO2) during on-going technological processes, having one or more of the following consequences:

  • Injury to an employee of the ORLEN Group or of a contractor or subcontractor, resulting in a sick leave or death;

  • Hospital admission and/or death of any other person;

  • Officially announced evacuation of local residents or recommendation for them not to leave their homes;

  • Fire or explosion resulting in losses in the form of direct costs of at least USD 25 thousand (USD 25,000 x ~3 PLN/USD = ~PLN 75,000);

  • Release of excessive pressure into the atmosphere with the use of pressure relief devices above the threshold amounts for a period longer than 1 hour;

  • Release of a substance above the threshold amounts for a period longer than 1 hour.

TIER 2
Emergencies with a smaller impact related to a sudden and unexpected substance release due to ineffective protection layers. Those emergencies include a sudden and unexpected release of hazardous substances as well as non-toxic and non-flammable substances (water vapour, condensate, hot water, nitrogen, compressed air, CO2) during on-going technological processes, having one or more of the following consequences not classified as Tier 1 events:

  • Accident involving an employee of the ORLEN Group or of a contractor or subcontractor;

  • Fire or explosion resulting in losses in the form of direct costs of at least USD 2.5 thousand (USD 2,500 x ~3 PLN/USD = ~PLN 7,500);

  • Release of excessive pressure into the atmosphere above the threshold Tier 2 amounts for a period longer than 1 hour;

  • Release of a substance above the threshold Tier 2 amounts for a period longer than 1 hour.

In 2016, the ORLEN Group continued reporting the T3 (TIER3) process safety indicator referring to near-miss events. In 2017, another leading indicator is to be introduced with the support of the Technology Office − at the TIER4 level.

TIER 3 emergencies represent the number of emergency shutdowns of installations or process nodes triggered by active or passive protections (automatic or mechanical).

TIER3 ratio is calculated as follows:

  • TIER 3 production emergency represents the number of emergency shutdowns of installations or process nodes triggered by active or passive protections (automatic or mechanical);

  • TIER 3 logistics emergency represents the ratio of the number of emergency shutdowns of product loading to rail tank cars and road tankers triggered by active or passive protections (automatic or mechanical) to the total number of loading operations performed at a given time.

Number of T1 and T2 events

T1 PROCESS SAFETY EVENTS NUMBER

T2 PROCESS SAFETY EVENTS NUMBER

T1 PSER12) and T2 PSER13) indices

12) Number of events with high impact due to release of the substance to the environment * 1000 000 / man-hours
13) Number of events with minor effects due to release of the substance to the environment * 1000 000 / man-hours
14) Association formed by a group of leading oil companies to conduct research on environmental issues related to the oil industry. Its scope of activities include Areas such as fuel quality and emissions, air quality, water quality, soil contamination, waste, occupational health and safety, oil product liability. T1 PSER and T2 PSER Concawe indicators represent the number of recorded failures in member enterprises, multiplied by one million and divided by the total number of man-hours worked (https://www.concawe.eu/wp-content/uploads/2017/06/Rpt_17-6.pdf).

Reported T1 and T2 events for 2016 involved emission to the environment from fires and spills. On the other hand, there were no events that caused serious damage to the environment. Liquid leaks were collected and disposed of.

Monitoring integrity of production assets and maintenance programme

Asset integrity relies on timely internal equipment and pipeline inspections and pressure tests, as well as on keeping process parameters within operating windows. Monitoring of compliance with inspection and oversight deadlines is supported by the SZEOR system. In most cases internal equipment inspections and pressure tests are carried out during planned maintenance under long-term schedules. Inspections of safety valve settings are subject to a separate procedure to ensure integrity. Automatic control and security systems are also subject to a dedicated programme setting the dates for tests and functionality checks. In parallel, the Risk Based Inspection (RBI) programme is being implemented in partnership with and under the supervision of the Polish Office of Technical Inspection. The programme offers the added value of continuous improvement of availability and safety of process units with the integrity of production assets maintained.

The production plant in Płock operates the Reliability Management System, which analyses all unplanned unit shutdowns, significant volume losses and other major reliability-related incidents. The system is a key building block of the continuous organisational and technical improvement and excellence process. Selected data illustrating the operation of the Reliability Management System is presented in the charts below.

Number of investigative teams assembled to investigate reliability-related events

Number of recommendations issued by investigative teams

Number of events affecting unit availability per annum

  1. PKN ORLEN S.A.

  2. AB ORLEN Lietuva

  3. ORLEN KolTrans Sp. z o.o.

  4. ORLEN Południe S.A.

  5. ORLEN Asfalt Sp. z o.o.

  6. ORLEN Upstream Sp. z o.o.

  7. PARAMO, a.s.

  8. ORLEN Deutschland GmbH

  9. ORLEN Centrum Usług Korporacyjnych Sp. z o.o.

  10. ORLEN Projekt S.A.

  11. ORLEN Wir Sp. z o.o.

  12. UNIPETROL a.s.

  13. Ventus-Nafta, AB

  14. ORLEN Centrum Serwisowe Sp. z o.o.

  15. ORLEN Administracja Sp. z o.o.

  16. ORLEN OIL Sp. z o.o.

  17. ANWIL S.A.

  18. Basell Orlen Polyolefins Sp. z o.o.

  19. ČESKÁ RAFINÉRSKÁ, a.s.

  20. UNIPETROL RPA, s.r.o.

  21. UNIPETROL DOPRAVA, s.r.o.

  22. PETROTRANS, s.r.o.

  23. ORLEN Paliwa Sp. z o.o.

  24. ORLEN Aviation Sp. z o.o.

  25. IKS SOLINO S.A.

  26. ORLEN Transport S.A.

  27. ORLEN Laboratorium S.A.

  28. ORLEN Serwis S.A.

  29. ORLEN Eko Sp. z o.o.

  30. ORLEN Ochrona Sp. z o.o.

  31. ORLEN Budonaft Sp. z o.o.

  32. Ship-Service S.A.


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