Governance of Operational/EHS Risks

November 2017

Holistic Approach to Managing Risk GPIC Experience

• Established in December 1979

• Joint-venture between NOGA Holding, SABIC & PIC.

• Utilizes Natural Gas as a raw material.

• Produces: Ammonia, Methanol and Urea.

• Started production in 1985.

• Production capacity: 1,500,000 tonnes annually.

• Manpower: 481 employees.

GPIC in Brief

Paid up capital : US$ 159,000,000.

Dividend Paid (cumulative) : US $ 2,250,940,000.

Net worth : US$ 2,500,000,000.

Replacement Value : US$ 1,600,000,000.

GPIC Vision & Mission

OUR VISION

To be a world-class petrochemical and fertilizer company of choice, recognized for excellence

To produce high quality petrochemical and fertilizer products.

To grow successful partnerships and joint ventures

To optimize the business in a safe, sustainable and cost effective manner

To embrace knowledge, harness innovation and utilize best applicable technologies and practices

Train and develop our human capital to realize their full potential

Boost Shareholder value

OUR MISSION OUR VALUES• Excellence

• Integrity

• Respect

• Transparency

• Safety

• Professionalism

• Social Responsibility

• Creativity

• Teamwork

1

GPIC Pillars of Sustainability

Social

Responsibility

Environmental

Stewardship Financial

Stability

People

Planet Profit

GPIC RISK Overview

Process Risk

ERM Risk

OHS Risk

PSM

PAS 99

HAZOP

RBI

PAS 99

ISO 31000

ISO 22301

ISO 27001

PAS 99

OHSAS 18001

ISO 14001

RC 14001

IFA P&S

An Integrated

Management System

Approach

GPIC Integrated EHS Governance

At GPIC we believe that the key components of an effective and integrated approach to EHS governance includes:

1 Leadership

2 Culture

3 Framework & System

4 Assurance & Improvement

5Obligations & Compliance Registers

GPIC Integrated EHS Governance

1 Leadership

2 Culture

3 Framework & System

4 Assurance & Improvement

5Obligations & Compliance Registers

Leadership Commitment & Engagement. Zero EHS Risk Appetite. Key Risk Indicator (KRI). Communication / Reporting. Resource Allocation. GPIC committees.

GPIC Integrated EHS Governance

1 Leadership

2 Culture

3 Framework & System

4 Assurance & Improvement

5Obligations & Compliance Registers

Sense of ownership of the EHS risks. Efficient staff induction and training. A culture of continuously learning, correcting and improving. Openness and respect. Actively encouraging, recognizing and rewarding the reporting of

hazards, incidents and issues.

Simply, “It’s the way we do things around here”. Within the overall business culture there is a sub-culture of safety expressed by staff, suppliers and contractors.

GPIC Integrated EHS Governance

1 Leadership

2 Culture

3 Framework & System

4 Assurance & Improvement

5Obligations & Compliance Registers

GPIC has integrated many Best Practices, Management

Systems and Accreditations into its operation system.

GPIC Integrated EHS Governance

1 Leadership

2 Culture

3 Framework & System

4 Assurance & Improvement

5Obligations & Compliance Registers

✓ Management Systems External Audits.✓ Management Systems Internal Audits.✓ Shareholder Audits.✓ Management Reviews✓ Insurance Audits and Recommendations.✓ Daily PTW audits programme.✓ BBS.✓ SHE inspections programme.✓ Cross Plants Audits.✓ Walkabouts

GPIC Integrated EHS Governance

1 Leadership

2 Culture

3 Framework & System

4 Assurance & Improvement

5Obligations & Compliance Registers

✓ Compliance Officer Role.✓ Circulation of applicable laws.✓ Bahrain Legislation Compliance Table.✓ SOP/SI/GL to address compliance.✓ Evaluation of compliance.

OHS Indicator

You cannot Manage what you cannot Measure

Work achieved safely without any Lost Time Accidents

2003 2004 2005 2006 2007 2008 2017

Contractors 1513256 145196 914036 1731306 235706 1015049 7,943,134

GPIC 1878337 3238403 4417848 739643 2037272 3184435 18,808,135

Total hours 3391593 3383599 5331884 2470949 2272978 4199484 26,751,269

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5000

10000

15000

20000

25000

30000

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san

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Combined LTA Performance as at 31/10/2017

Good results indicate effective and efficient management systems but also highlights the constant need for a sustainable approach to maintain that.

Awards & Achievements 2017 (Indicators)

Patron's Award from RoSPA.

For organizations who have

achieved a minimum of 25

consecutive Gold Awards.

H.H. Mohammed bin Rashid Al

Maktoum Outstanding Business

• Excellence Award.

• Business Innovation Award.

2nd consecutive year.

Awards & Achievements 2017 (Indicators)

Corporate Social Responsibility Award

HR Gold Standard of Excellence and Best Practice Affiliate Awards

Kingdom of Saudi Arabia Award for Environmental Management in the Islamic World

UAE – DUBAI Excellence Award

Arabian CSR Network

KSA – Excellence Award

Concluding Remarks

Never underestimate risk 1Plan for failure and don’t think unlikely events will not happen

Ensure you measure your risks And do it effectively, accurately and continuously

2

Risk doesn’t go away Even if you have mitigated, avoided or transferred it.

3

Its not just about implementing technology & systems

its about everyone being engaged, communicating and controlling it.

4

Risk Management starts from the top down

involvement of your organisation’s leadership empowers a culture of focus on the right things

5

THANK YOUNovember 2017

Holistic Approach to Managing Risk GPIC Experience