2009 Orica Sustainability Report

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  • Sustainability Report 2009

    Registered Office: 1 Nicholson Street, East Melbourne, Victoria, Australia 3002

    Telephone: +61 3 9665 7111

    Facsimile: +61 3 9665 7937

    Email: companyinfo@orica.com

    ABN 24 004 145 868

  • Table of Contents Our Approach

    Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

    CEO Message . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

    Sustainability Vision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

    SH&E Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

    Our Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

    Key Challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

    Targets & Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

    Ten Priority Actions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

    Stakeholder Engagement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

    Recognition & Awards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

    Our Approach to Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . .

    24

    Governance

    Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

    Leadership & Accountability . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

    Organisational Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

    Management Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

    SH&E Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

    Training . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

    Risk Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

    Incident Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

    Due Diligence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

    Code of Conduct . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

    46

    2009 Case Studies

    2009 Case Studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

    48

    Product Stewardship

    Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

    Our Performance in 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

    Working with Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

    Industry Partnerships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

    57

    Product Stewardship Case Studies

    Duluxs Sustainable Products . . . . . . . . . . . . . . . . . . . . . . . . . . 60

    Chemicals Duty of Care . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62

    Waste Paint Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

    Latin America Wins Award . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

    Minova Reduces Waste . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67

    Recycling Packaging at OMS . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

    Dulux Wins Supplier Award . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

    Reusing Packaging at Yarwun . . . . . . . . . . . . . . . . . . . . . . . . . . 70

    A Power Coated Promise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

  • Safety & Health

    Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

    Targets & Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74

    Injuries & Illnesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

    Learning Incidents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78

    Process Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

    Product Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81

    Occupational Health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83

    Hygiene Monitoring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85

    Travel Safety & Health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

    86

    Safety & Health Case Studies

    One Million Hours Injury Free . . . . . . . . . . . . . . . . . . . . . . . . . . 87

    SH&E Focus Day at Lae . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88

    Keeping Safety Top of Mind . . . . . . . . . . . . . . . . . . . . . . . . . . . 89

    Rocklea Rocket Reduces Risk . . . . . . . . . . . . . . . . . . . . . . . . . . 90

    Driver Training in Argentina . . . . . . . . . . . . . . . . . . . . . . . . . . . 92

    Selleys Cuts Manual Handling. . . . . . . . . . . . . . . . . . . . . . . . . . . 93

    0-5-30 Wellness Programme . . . . . . . . . . . . . . . . . . . . . . . . . . . 94

    The 10,000 Steps Challenge . . . . . . . . . . . . . . . . . . . . . . . . . . . 95

    Blasting by Remote Control . . . . . . . . . . . . . . . . . . . . . . . . . . . 96

    Fire Safety in Poland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97

    Melbourne Safety Conference . . . . . . . . . . . . . . . . . . . . . . . . . . 98

    Environmental Sustainability

    Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99

    Targets & Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100

    Losses of Containment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102

    Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103

    Environmental Management . . . . . . . . . . . . . . . . . . . . . . . . . . 104

    Legacy Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105

    Energy & Greenhouse Gases . . . . . . . . . . . . . . . . . . . . . . . . . . . 106

    Water . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110

    Waste . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112

    Sustainability Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115

    Green Office & Resource Hunt . . . . . . . . . . . . . . . . . . . . . . . . . 116

    Chemical Releases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

    117

    Environmental Sustainability Case Studies

    Abatement in the Philippines . . . . . . . . . . . . . . . . . . . . . . . . . . . 120

    OMS Indias IMS Certification . . . . . . . . . . . . . . . . . . . . . . . . . . 121

    Dulux NZs ISO Certification . . . . . . . . . . . . . . . . . . . . . . . . . . . 123

    Spring Cleaning at Yarwun . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124

    The Beaver Test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125

    AcraTexs Green Challenge . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126

    Introducing Moss the Kiwi . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129

    Saving More Than Steam . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130

    Padstows Clean Up Milestone . . . . . . . . . . . . . . . . . . . . . . . . . . 131

  • MIEXs Maine System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132

    More Heat for Minova . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133

    Turning Trash Into Treasure . . . . . . . . . . . . . . . . . . . . . . . . . . . 134

    Gracefields Garden . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135

    Lavertons Significant Savings . . . . . . . . . . . . . . . . . . . . . . . . . . 136

    Our New Eco Warriors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137

    Energy Efficiency at KI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138

    Alkali Tank Farm Completion . . . . . . . . . . . . . . . . . . . . . . . . . . 140

    Smarties at Head Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141

    People & Community

    Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

    142

    Our People

    Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143

    Labour Practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144

    Human Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146

    Our People in 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

    147

    Community

    Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149

    Targets & Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150

    Community Relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151

    Community Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152

    Distribution Incidents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153

    Emergency Response Service . . . . . . . . . . . . . . . . . . . . . . . . . . 154

    Community Complaints . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

    156

    People & Community Case Studies

    Helping Habitat for Humanity . . . . . . . . . . . . . . . . . . . . . . . . . . 157

    Batanns Coastal Clean Up . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158

    Our Community in India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159

    Oxfam Biggest Coffee Break . . . . . . . . . . . . . . . . . . . . . . . . . . . 160

    Gracefields Beach Day . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162

    Our Values in Venezuela . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164

    Chiles Community Ties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165

    Yates Launches Kids Website . . . . . . . . . . . . . . . . . . . . . . . . . . 166

    Sharing Deliver the Promise . . . . . . . . . . . . . . . . . . . . . . . . . . . 167

    Global Graduate Programme . . . . . . . . . . . . . . . . . . . . . . . . . . . 168

    Our Women in Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170

    Meet Oricas Oldest Employee . . . . . . . . . . . . . . . . . . . . . . . . . . 171

    The Watermelon Challenge . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172

    Employees Run For Home . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174

    Sweet Deal for Locomotives . . . . . . . . . . . . . . . . . . . . . . . . . . . 175

    ERS Takes 25,000th Call . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176

    Economy

    Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177

  • Our Performance in 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178

    Climate Change Implications . . . . . . . . . . . . . . . . . . . . . . . . . . . 180

    Global Reporting Initiative (GRI) Index

    GRI Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182

    Download Reports

    Download Reports. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188

    Feedback

    Feedback . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189

  • Orica 2009 Sustainability Report

    Page 1 of 189

    Overview Welcome to Orica's 2009 Sustainability Report. Our Sustainability Report aims to provide an overall picture of our safety, health and environment (SH&E) and sustainability performance during the reporting period.

    At Orica, SH&E and sustainability is embedded in our organizational culture. Our performance-based culture programme is called "Deliver the Promise" (DTP) and is driven by personal accountability for delivering results.

    DTP is defined by four key principles that guide how we act and behave:

    Safety, Health and Environment - Ensuring Our Future

    No injuries to anyone, ever Value people and the environment

    Working Together

    Success as a team and success as an individual

    Commercial Ownership

    Run the business as if its your own

    Creative Customer Solutions

    Think differently, deliver swiftly and capture the value

    DTP means that we hold true to our commitments to customers, shareholders, the communities in which we operate and each other. We aim to always keep learning from others, challenging ourselves and striving to have a positive impact on our customers, our colleagues and our stakeholders.

    We believe that DTP encourages a truly holistic, sustainable approach to considering our organisation's risks and opportunities with regards to our people, profit and planet.

    We value your feedback on this Report.

  • Orica 2009 Sustainability Report

    Page 2 of 189

    CEO Message

    Welcome to Orica's Sustainability Report. The Report outlines Orica's approach to and vision for sustainability, and details our achievements against key performance targets for 2009.

    Orica aims to be a business that does no harm to people and the environment. We have operations in around 50 countries, and many of them are resource intensive. The industries in which we work face a range of sustainability challenges but also many opportunities to make a great deal of positive difference. Making such a difference is integral to our success as a business.

    For many years now Orica employees around the world have collectively worked towards our "Deliver the Promise" principles, which are: commercial ownership; creative customer solutions; working together; and valuing people and the environment. At the core of these principles is a commitment to do the very best for our colleagues, customers, shareholders and the many communities in which we work around the globe.

    Workplace health and safety, environmental protection, resource efficiency and product safety are areas in which we seek to excel and continuously improve. They are also key opportunities for market differentiation as our efforts, and the benefits to our customers, are recognized.

    We have had some encouraging successes, and disappointing failures with respect to our Challenge 2010 safety, health and environmental (SH&E) performance milestones in 2009.

    It is with regret that I report four fatalities to employees, each in separate incidents in different parts of the world in October and November 2008. Each fatality has been fully investigated and lessons learned have been shared across the organisation. We remain fully committed to our goal of No Injuries to Anyone, Ever and will continue to review and improve our approach to safety across our organisation.

    Climate change is a serious global issue that is now considered in our business risk and planning processes. Followi...