May 5, 2015

Covanta

STEP-UP to World Class Safety

Beth Hurley, Vice President, Safety & Health

What to Expect

•A Few Things About You!

•Where’s My Silver Bullet?

•STEP-UP!

•SHEC?

•Then What Happens?

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Final John Henshaw, Assistant Secretary of Labor, OSHA

ht… “ Establishing a safety and health culture that leads to

superior performance is not only the right thing to do or the socially responsible thing to do…

It is also the right economic approach.

Reducing workplace injuries and illnesses conserves critical resources and improves the use of those resources. It saves money, avoids unnecessary costs and ultimately maximizes returns on business investments.”

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Covanta OSHA Recordable by Year 2004-2008

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4 Key Elements of Success

Note:

If you’ve plateaued,

you’re not getting

better

“The Silver Bullet”

The Logo

• Colored lines create an abstract hand that signifies heeding safety and caution before acting or moving forward.

• The staggered lines also create a sense of motion, reinforcing the fact that safety awareness is an active pursuit in all aspects of life – both in the workplace and in personal life.

• The transition from blue to green represents acting responsibly before moving forward, and also the migration of safety awareness outside the work environment.

• The lines of the hand could easily be integrated as a design element throughout all of the STEP-UP graphics.

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2009 Program Enhancements 1. All OSHA recordable accidents phoned into CEO or COO

2. Safety contact implemented at the beginning of every meeting

3. Monthly Facility Manager and staff meeting solely for safety review

4. Corporate and facility management leadership training

5. Add resources to support lagging facilities and speed integration of

safety culture and programs at acquired sites

6. Annual regional safety meetings with senior management in attendance

7. Elevate construction and contractor management programs

8. Add Leading Indicator Program

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Covanta OSHA Recordable by Year 2004-2012

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Leading vs. Lagging Indicators

• Best metric to use to predict and demonstrate safety performance

• Are proactive actions taken to prevent events

• Shows unacceptable performance – allows for modifications to prevent accidents

Leading Indicators-Proactive Lagging Indicators-Reactive

• Provides “after the fact” information such as accidents, injury and illness rates, fatalities, regulatory citations, worker’s comp claims and cost

• Provides experience modification rate (EMR) and other related events

Leading vs. Lagging Indicators, cont.

• Focus on the process not the end result by being proactive vs. reactive

• Greater success is realized when more leading indicators are used

Leading Indicators-Proactive Lagging Indicators-Reactive

• Easy to manage, calculate and compile the events

• Used by most companies for many years

Why Measure Performance?

• Ensure worker skill and knowledge

• Identify at risk behaviors

• Implement corrective actions

• Identify what works

• Identify what doesn’t work

• Enhance training as needed

Who Participates at Covanta – “EVERYONE!”

• Executive Leadership • Senior Management and Corporate Employees • Regional Leadership • Facility Management and Staff • Supervisors and Employees • Safety/VPP Committee Members • Safety, Health and Environmental Employees • Engineering Employees • Purchasing Employees • Administrative Personnel • Contractors and Sub-Contractors

Leading Indicators at Covanta • Daily Inspection Program • Job Observations • Pre-job Plans/Reviews • Safety and VPP Audits • Use of JSAs/JHAs • Safety and Hazard

Recognition Training • Incident Review Calls • SHE - Near Miss Program

• Contractor qualifications • STEP-UP Meetings • Management of Change • Emergency Preparedness • Return to Work Physicals • Process Hazard Analysis • Safety Snapshot Program

1. Quarterly Safety and Health Snapshot Program

1. 40% Facility Walkdown

2. 10% Employee Interview

3. 10% Target Inspection

4. 20% Job Review

5. 20% Near Miss Program Added as New Component (2 Near Misses/Employee/Month)

SnapShot Score Results Given to Facility Every Quarter.

Quarterly Comparisons made throughout the Year.

2. Covanta SHE Communications Form Updated

Conditions and Behaviors

Originator Near Miss /

Safety Suggestion Generation

Supervisor Immediate Review and

MGMT Team Review

Timely Feedback Corrective Actions Identified /

Recognition Given

SAFETY W.O. Generated

Database Entry Originator/Location Behavior / Condition Hazard or Suggestion

Required Action / Responsible Party

Approved and Scheduled via

Maximo

EXECUTION Prioritization , Tracking and

Reporting

3. Near Miss Report Life Cycle Developed Step Up Reports

Facility Posting/

EBB

Safety Committee

Updates

Tailgate Topics

Closeout

4. Near Miss Reports Graded

• Regional Safety Administrators (RSAs) grade Near Miss Reports during quarterly snapshot

o RSAs rotate around regions for consistency

• Grading worksheet developed based on near miss life cycle

SHE Communications Form Grading Scoresheet v 3.6 Complete a separate Grading Scoresheet for each SHE Communications Form to be Graded. Conditions are graded using the column on the left below and Behaviors are graded using the column on the right below. Facility Manager and RSA should sign the Scoresheet when done. Attach the Scoresheet to the

SHE Communications Form that was graded and scan all SHE Communications Forms, Grading Scoresheets and Final Snapshot together as a package prior to posting on the Covanta Safety and Health website.

Type of SHE Communications Form (List one, Condition or Behavior): SHE Communications Form Number:

Facility: Review Date/Quarter:

Facility Manager Approval: RSA Signature:

Additional Review Team Members: Comments:

Risk/Points* Grading Criteria - Condition

SHE Communi

cations Form Score Grading Criteria - Behavior (Positive/Negative)

SHE Communications

Form Score Points*/Risk

Low: No Work

Order Needed

2 2 1 Relevance Relevance 1 2 2

Low: No

Trends ID

4 2 1 Supervisor/Originator Review Supervisor/Originator Review 1 2 4

4 2 2 Immediate Corrective Action Immediate Corrective Action 2 2 4

4 2 2 Actions to Eliminate Recurrence/Supervisor Response

Actions to Eliminate Recurrence/Supervisor Response 2 2 4

4 2 2 Communication Employee/Facility-Wide Communication Employee/Facility-Wide 2 2 4

2 2 2 Entered into Database or Other Tracking System Entered into Database or Other Tracking System 2 2 2

Medium: Work Order

Needed

2 2 Enter Work Order Statistical Analysis/Trending of Behavior 2 2 Medium: Trending ID,

Training Needed

3 2 Assign Priority/Plan/Schedule Plan/Schedule Training (Tailgate) 2 3

3 2 Communication of Status Facility-Wide Communication of Status Facility -Wide 2 3

High: Serious Near

Miss Procedures

Needed

1 SNM: Notification & Submission of 24 Hr Rpt. SNM: Notification & Submission of 24 Hr Rpt. 1 High:

Serious Near Miss

Procedures Needed

1 SNM: Initiate Incident Investigation SNM: Initiate Incident Investigation 1

1 SNM: ID & Initiate Incident Inv. Corrective Actions

SNM: ID & Initiate Incident Inv. Corrective Actions 1

1 SNM: Schedule Mgmt Review w/Corp & Regional

SNM: Schedule Mgmt Review w/Corp & Regional 1

Totals 20 20 20 Maximum Score - Condition 0 Maximum Score - Behavior 0 20 20 20 Totals

*Partial Points Breakdown: 0% = Does not meet criteria, no documentation or action

50% = Partially meets criteria, in documentation or action (time sensitive)

100% = Fully meets criteria, in documentation and action (time sensitive)

5. Covanta SHE

Communications

Form Grading

Scoresheet

6. SHE Communications Tracked

Count of CATEGORY CATEGORY

MONTH Lighting

Pattern

of

Unsafe

Behavior

(PUB) Signage

Grand

Total

April 1 1 0 2

May 0 1 1 2

June 1 0 1 2

Grand Total 2 2 2 6

Q2

2 Near Misses/Employee/Month

0.0

0.5

1.0

1.5

2.0

Lighting Unsafe Behaviors Signage

Category

Line of Fire; 28%

Overexertion; 11%

Walking/Working Surfaces; 10%

Ladder; 7%

Brute Force; 6%

Mobile Equipment/Truck; 6%

Inadequate PPE; 5%

Falling/Flying Debris; 4%

Improper Tools; 3%

Stairwells/Steps; 3%

Grinders; 3%

Utility Knives; 3%

Equipment Failure; 1%

Fall from Elevation; 1%

Fall on Same Level; 1%

LOTO; 1%

Scaffold; 1% Abnormal Ops; 1%

Heat Stress/Exhaustion; 1%

Motor Vehicle; 1%

Rigging; 1% Shoveling; 1% Welding; 1%

7. Trends: Covanta OSHA Recordable by Accident Category 2011-2015 (March)

0

100

200

300

400

500

600

Covanta OSHA Recordable Type of Incident by Severity

2011-2015 (Mar)

Sum of DA Sum of DR

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1 1

PUBs Failure to Pay Attention Exceeding Capabilities Other (Equipment Failure)

Covanta OSHA Recordable by Safety Leadership Concept

2011-2015 (Mar)

2011 2012 2013 2014 2015

(79) (40) (32) (4)

8. New-SHEC Report New EMIS Reports

Print-Friendly Version of Electronic Form • Mimics hardcopy of

current form • Available via email and/or

on-demand • Filter Capabilities • Exportable

E-SHEC Report Examples Qlikview – Table Reports

Work Order Report

By Employee Report

Dade is now 100% using the Electronic SHE Communication Form!

Additional reports available

E-SHEC Report Examples Qlikview - Charts

Additional reports available

E-SHEC Report Examples EMIS Reports (via Email or On-Demand)

Daily Supervisor Report • Displays daily activity sorted by

Supervisor and Employee • Available via email and/or on-

demand • Filter Capabilities • Exportable

Leading Indicator Shift The Covanta Experience

• Move from Conditions to Behaviors

• Engineer corrective actions and controls oPermanent hoists (eliminate chain falls) oMaterial handling conveyors (eliminate manual

work)

• Employee feedback

• Continuous improvement

• Quicker response time

Covanta Leading Indicators Drive Results

• Clarify goal achievement • Identify program strengths and weaknesses • Modify and adjust conditions and behaviors before

an accident or event occurs • Enhance communication at all levels • Strengthen safety culture and safety committee

effectiveness • Increase employee involvement in hazard

identification, analysis and control • Improve facility and snapshot audit scores

75.0

80.0

85.0

90.0

95.0

100.0

Covanta Company-wide SnapShot Averages Q1-2006 – Q1-2015

Company-wide SnapShot Average

Covanta Leading Indicators Drive Results (3)

Industry leading performance

• World class safety programs

• In-house maintenance

91.2% 91.7%

92.3% 92.5% 92.5%

2010 2011 2012 2013 2014

• High boiler availability

• Increasing efficiency

VPP Sites (39)

2015+ Target Sites (11)

SECONN, CT

Bristol, CT

Wallingford, CT

Hempstead, NY

Huntington, NY

MacArthur, NY

Babylon, NY

Morristown, NJ

Essex, NJ

Union, NJ

WERC, NJ

Camden, NJ

CFS-Overlay

Alexandria, VA

Fairfax, VA

Niagara, NY

Onondaga, NY

ECOvanta

Harrisburg, PA

Delaware, PA

Lancaster, PA

Plymouth, PA

York, PA

Abington TS, PA

Kent, MI Hennepin, MN

Indianapolis, IN

Marion, OR

Stanislaus, CA

Long Beach, CA

Honolulu, HI

Huntsville, AL

Southeastern, FL

Pasco, FL

Lake, FL

Lee, FL

Hillsborough, FL

CFS-South

CFS-Shop

Tulsa, OK

Covanta Facility OSHA VPP Status by OSHA Region

May 2015 Jonesboro, ME

West Enfield, ME

Haverhill, MA

SEMASS, MA

Springfield, MA

Pittsfield, MA

Montgomery, MD

Montgomery TS, MD

CFS-Central

CFS-Mid-Atlantic

Covanta Industry Leader in VPP

• VPP - Top 7 of VPP Companies o 39 VPP Star Sites

• VPP - Number of SGE/STM Participants

o Top 4

Continuous improvements in safety and health performance requires a combination of management commitment and employee involvement from the CEO to all facility employees.

Systems and procedures analyze the root cause to achieve our goal of an injury-free workplace.

Employees are now mentoring each other, as they step up to improve the workplace, for themselves and for their peers. Our goal is for all of our valued workers to be injury-free while working at Covanta.

Covanta Accidents Per Employee

Year

Total Recordable

Accidents

% Employees

Involved in Accidents

2002 110 5.2%

2003 97 5.0%

2004 76 4.2%

2005 103 4.2%

2006 66 2.6%

2007 70 2.7%

2008 83 2.9%

2009 70 2.1%

2010 55 1.7%

2011 37 1.1%

2012 28 0.44%

2013 35 1.0%

2014 37 1.1%

World’s Leading Energy From Waste Company

• Operate 45 modern EfW facilities in North America, China and Europe.

• Annual capacity to convert 20 million tons of

waste into more than 9 million MWhrs—enough clean energy to power over 1 million homes.

• Annually recycle over 500,000 tons of metal - the

equivalent amount of steel that would be used to build 5 Golden Gate Bridges.

• 3,500 professionals employed in North America.

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Covanta OSHA Recordable by Year 2011-2015 (thru 4/23/15)

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REMEMBER…

You will achieve the level of Safety Excellence…

that YOU demonstrate you want to achieve...

Thank you!

Beth Hurley Covanta VP, Safety and Health 44 South Street Morristown, NJ 07960 862-345-5147