2017

Annual Group HSQE Report

This report covers the period from the 1st January 2017 to the 31st December 2017 and utilises data from ALE group business units to include contractor performance data where appropriate.

Prepared By: Pierre De Villiers Group Health, Safety, Quality and Environmental Manager

31st December 2017Date:

Board of Directors All ALE Regional HSQE Managers/Advisors External Stakeholders

Distribution:

Executive Summary

Message from Group Managing Director

Introduction

Highlights

Performance

Key Performance Indicators

Conclusion

Appendix

3

4

4

5

6

7

8-9

10

Contents

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Annual HSQE Report

HEADLINE HSQE NEWS FOR 2017:

• ALE achieved another growth year with over 4.42 million-man hours

• ALE has expanded its ISO certifications to more global branches

• ALE delivered a global ‘Time-out for Safety’ to reinforce safety accountability

• ALE delivered new engineering innovations to reduce industry risk

• ALE structured the new ALE – Wind Services division, focused in the wind sector

• ALE completed the acquisition and merger of a new business – Conbit

• ALE moved our group functions and services into a new head office building in Stafford

Number of HSQE Observations

Recorded Training Events

Number of Site Inspections

External Assurance Audits

Regional Internal Audits

Regional Director Audits

Leading Indicators – 2017 (16)

24 (21)

255 (221)

18 (16)

345 (286)

107 (82)Near Misses

First Aid Treat

Medical Treat

Restricted Work

Lost Time Injuries

Fatalities

Lagging Indicators - 2017 (16)

0 (0)

5 (3)

2 (8)

9 (10)

64 (26)

126 (171)3437 (3352)

Executive SummaryWelcome to ALE’s Annual HSQE Performance Report for 2017. The business has achieved mature progress throughout 2017, as we engaged with both internal and external stakeholders on a more personal level with safety – ensuring we focus on the people when it comes to the data.

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Message from Group Managing Director

“As we reflect on 2017, I’m proud to say that we have improved the management of our risks. By working together to manage our risks, we can better protect our people, clients, communities and improve our business with the aim of achieving world-class performance. We have taken actions and implemented initiatives to address those areas where process breakdowns have hurt our people, damaged our equipment or caused an impact to the environment.

Looking to 2018 and beyond, we will continue our improvement momentum and challenge the

business to perform better. We will continue to be proactive, show strong leadership and secure buy-in at all levels. We see strong risk management as an essential building block of our vision and strategy for the future.”

“We will continue to be proactive, show strong leadership and secure buy-in at all levels.”

IntroductionAs we have matured through the changes delivered into the business over the previous years, we have seen a shift in risk management to more proactive actions. Being able to see past the obvious challenges to address, we are now looking towards indirect causes that result in business process breakdowns and to widen our mitigation strategies.

HighlightsALE has expanded its ISO and OHSAS certifications to further branches across the globe, this has reinforced the consistent high standards that we drive both internally and externally in every branch. We have seen the improvement in customer satisfaction and incident rates that have correlated to this extension of our certifications and a more robust internal audit process.

ALE structured the new ALE - Wind Services division, which is focused on the wind sector and managing risk in this market. After building on a foundation of already credible experience in this industry, we have further invested in managing risk by dedicating strategic resources to understanding the client’s needs and project risks in the wind energy market. This has been reinforced by ALE working closely with industry leaders to create new innovative solutions to reduce risks.

ALE moved our group functions and services into a new head office building in Stafford, enabling the heads of supporting and central functions at ALE to add a more collaborative approach to managing risk in the business. This has also allowed us to create a hub for new business initiatives as well as host group events and training, while having direct access to the senior business leaders.

“...we have further invested in managing risk by dedicating strategic resources to understanding the client’s needs and project risks in the wind energy market.”

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Performance Key Performance IndicatorsThe key industry performance indicators are Lost Time Incident Frequency Rate (LTIFR) and Total

Recordable Incident Frequency Rate (TRIFR). Even with an increase of working hours, which equates to risk exposure, we did have a reduction from 21 Recordable Incidents (RIs) to 16 in 2017. This was made up of 5 LTIs, 2 Restricted Work Cases (RWCs) and 9 Medical Treatment Cases (MTCs).

After reviewing the risk management performance during 2017 as well as the new sectors that the business has grown into, we have nominated strategic Key Performance Indicators (KPIs) for 2018. These have been nominated as part of the ongoing external assurance that we have from DNV GL, which is risk-based and allows us to have goals that will proactively reduce risk for our business and our clients.

Of course, we do not expect that incidents will occur, nor do we accept that they do occur, but when they have occurred we have ensured that in-depth and accurate investigations have led to proactive lessons learnt to prevent reoccurrence. The LTIR rate for 2017 was 0.22, compared to 0.14 in 2016, and the TRIR was 0.73, compared to 0.95 in 2016.

“...we have ensured that in-depth and accurate investigations have led to proactive lessons learnt to prevent reoccurrence.”

The ALE business continues to grow and is organised in geographic regions, each region has its own regional management team led by a General Manager and/or a Director. The 55 regional HSQE Managers and Advisors work together with the Regional Directors to ensure that they set their own KPIs at a regional level, and allocate resources to meet the global strategic HSQE KPI. These KPIs are then monitored periodically via the Group HSQE Manager’s audits of each region and reported into the Group Managing Director and the Executive Board.

THESE KPIS WILL BE REVIEWED ON A REGULAR BASIS, CONSIDERING:

• Current trends in ALE global HSQE performance

• Changes to any legal, government or stakeholder requirements

• Market conditions and clients’ needs

• Improvements in software and equipment technology

• Financial, operational and strategic business requirements relating to ALE’s activities

Rolling TRIFR1.2

1

0.8

0.6

0.4

0.2

001 02 03 04 05 06 07 08 09 10 11 12

Rolling Average Target

Rolling LTIFR0.25

0.2

0.15

0.1

0.05

0

01 02 03 04 05 06 07 08 09 10 11 12

Rolling Average Target

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Annual HSQE Report

ConclusionLooking back at what we have achieved in 2017 we have made some tangible progress in our safety culture improvements. We have met and exceeded many of our KPIs set for 2017, and we have just missed meeting the target of some KPIs – these are the areas we will push hard in 2018. We will now capitalise on the improvements and progress to further increase our quality of service delivery, while reducing risk to our stakeholders.

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Annual HSQE Report

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