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1 THE ROAD TO DRIVER SAFETY Alan Hunter – Global Director Industrial Projects Mike Watson – Global Road Safety Manager, Shell Jay Zinser – VP Operations, Chemical & Energy Global Energy Conference | Houston | 7 October 2014

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1

THE ROAD TO DRIVER SAFETY

Alan Hunter – Global Director Industrial Projects Mike Watson – Global Road Safety Manager, Shell Jay Zinser – VP Operations, Chemical & Energy

Global Energy Conference | Houston | 7 October 2014

2 Global Energy Conference | Houston | 7 October 2014

Worldwide road deaths 1.3mn per year

0

1

2

3

Malaria WHO 2008

Road traffic WHO 2004

Tuberculosis WHO 2007

AIDS-related deaths UNAIDS 2008

1.3mn deaths 20–50mn injured

<1

1.8

1.3 1.3

Mill

ion

peop

le

3 Global Energy Conference | Houston | 7 October 2014

A growing problem – Predictions of global mortality

Source: WHO Global Burden of Disease 2008

0,0

0,5

1,0

1,5

2,0

2,5

2015 2008 2030

Road traffic injuries Tuberculosis HIV/AIDS Malaria

Dea

ths

(mn)

4 Global Energy Conference | Houston | 7 October 2014

G20 countries – Road traffic death rates – A concern for everyone

16,8

10,3

7,5

12,8

19,521,5

5,05,4

6,0

7,88,8

9,6

13,413,713,9

16,216,5

18,320,7

25,229,0

33,2

0 5 10 15 20 25 30 35

Middle-income countries High-income countries

Low-income countries

United States Indonesia

China India

Brazil Mexico Russia

Saudi Arabia South Africa

United Kingdom Germany

France

South Korea Turkey

Argentina

Australia Canada

Italy

Japan

Deaths per 100,000 population

Source: WHO Global Status Report, 2009

5 Global Energy Conference | Houston | 7 October 2014

Annual global road accident statistics (WHO)

Key facts from World Health Organisation (March 2013)

• RTA’s - leading cause of death among young people, aged 15–29 years

• 91% of RTA fatalities occur in low and middle-income countries

• Half the fatalities are “vulnerable road users”: pedestrians, cyclists, motorcyclists

• Without action forecast is fatality rise from 1.3M to 1.9M by 2020

• Only 28 countries have adequate laws that address all five risk factors (speed, drink-driving, helmets, seat-belts and child restraints)

6 Global Energy Conference | Houston | 7 October 2014

U.S. Oil and gas industry – MV deaths

• Motor vehicle death rate in O&G workers is 8.5x that of all workers

– 7.6 deaths per 100,000 workers

• Highest risk

– Small establishments <20 workers

– Young employees <35 years

– New employees < 1 year

• Crash characteristics

– Single vehicle/non-collision

– Lack of seat belt use

– Pickup trucks

– Fatigue

Source: Retzer, Hill, Pratt (2013). Motor vehicle fatalities among oil and gas extraction workers. Accident Analysis and Prevention. 51:168–74.

These risks are likely magnified for workers in low and middle income countries

7 Global Energy Conference | Houston | 7 October 2014

Global burden of road traffic injuries

8 Global Energy Conference | Houston | 7 October 2014

Economic cost of motor vehicle crashes

USD 518bn dollars annually worldwide

U.S. Oil and Gas Industry cost: USD 500k/death and USD 74k/injury

9 Global Energy Conference | Houston | 7 October 2014

Vehicle growth to 2020

Total vehicles in use

72%50% 40%

20%42%

50%

8% 8% 10%

2008 2013 2018

1.1bn 672mn

Lower-growth economies Rapidly emerging economies Mature economies

1.5bn

Source: Booz & Company

10

THE ROLE OF LEADERSHIP IN ACHIEVING ‘STEP-CHANGE’ PERFORMANCE IMPROVEMENT IN ROAD SAFETY

Global Energy Conference | Houston | 7 October 2014

Mike Watson - Shell Global Road Safety Manager

Shell’s safety journey: Goal Zero

Safety is always our top priority

We aim for Goal Zero = zero fatalities and no incidents that harm people, or put our neighbours or facilities at risk.

Supporting our Goal Zero journey and drive for a compliant safety culture:

—Leadership at all levels

—HSSE & SP control framework (requirements)

—12 Life-Saving rules; 4 related to road safety

Golden Rules

11

No alcohol or drugs while working or driving

Global Energy Conference | Houston | 7 October 2014

Safety leadership

Leaders face choices /dilemmas e.g. safety vs. costs vs. schedule

Leaders are role models – whether they choose to be or not.

A leader’s behaviour impact those around them and creates the culture of the organisation.

Leaders are judged by the things they do & say – not by their intent.

Good safety means good focus, good discipline, shared vision and the professionalism of our teams and our qualities as leaders

Intent vs behaviour You measure yourself versus your intent; others measure you against your behaviour Leaders of an organisation are role models. They have no choice - their behaviours are observed and copied by others However, they can choose which behaviours they model

“Safety is not only our number one priority and value, it is a fundamental reflection of our performance”

“Poor safety is nothing more than a lack of leadership.”

12 Global Energy Conference | Houston | 7 October 2014

Holistic approach to road safety

Leadership and commitment

Management controls

Driver behaviour

Vehicle specifications

Journey management

Assurance and sustainability

Hierarchy of controls:

1) Eliminate the journey

2) Change to a lower risk transportation mode

3) Apply driver, vehicle & journey controls

We drive 1.1 billion kilometers per year, 75 times round the world,

each day….

Most of our exposure is in some very challenging road transport

environments….

Why is road safety important to Shell?

Delivering products Building projects

Our people Local communities

13 Global Energy Conference | Houston | 7 October 2014

Shell Qatar road safety leadership example

Start of Pearl GTL project

Risk assessments indicated there could be 8

road related fatalities on the project

Management commitment to achieve goal zero

All staff & contractors would be bussed to the site

Contractor road safety made a key priority

Policies and controls put in place to drive

compliance.

Strict enforcement of life saving rules

Use of IVMS (5.000)

Defensive driver training (15.000)

Seat belt convincer (16.000)

Road safety compliance monitoring team

Driver forums

Review of life saving rules 14 Global Energy Conference | Houston | 7 October 2014

Shell Qatar Road Safety Leadership Example

Driver recognition (Driver of the Month award)

Road safety contractor of the year

Awareness campaigns

Management commitment programmes

Leadership were well known to drivers

At the end of the project

Wael Sawan, Managing Director of Qatar Shell congratulates driver of the month

15

340 M km driven without serious injury

Reduction of 40 M km potential travel in passenger cars by bussing up to 52.000 workers

Less vehicles on the road moving through villages

Reduction of vehicle emissions

Safe busing of employees to worksite 15 Global Energy Conference | Houston | 7 October 2014

16

ROAD SAFETY FOCUS DHL CASE STUDY

Global Energy Conference | Houston | 7 October 2014

Jay Zinser – VP Operations, Chemical & Energy

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DHL/Exel current areas of safety focus

Transport Safety

Cuts Prevention

Slips/Trips Prevention

Manual Handling

MHE Control

HSE Management system in new

operations

Global standards

Reporting & investigation system

Distribution Centre Safety BBS

We are currently focusing upon the following aspects for improving our safety performance

Compliance assurance

Global Energy Conference | Houston | 7 October 2014

18 Global Energy Conference | Houston | 7 October 2014

Transport safety plan

Transport Safety Risk

Management Architecture

Driver: Recruitment Competence

Fitness Risk Profile

Vehicle: Specification

Repair & Maintenance

Inspection Loading

Journey: Planning

Risk Assessment Environment

Security

Organization: Determine Policy &

Legal Arrange, Organise,

Plan, Check Reactive/ Proactive

Measuring Investigate, Review,

Recommend Communicate &

Develop

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DHL/Exel transportation safety strategic objectives

• Identify, develop, implement a driver resource strategy to minimize driver shortage risk and leverage existing labor force.

Enhance Driver Resource Strategy

• Implement a developed new driver on-boarding program that provides and evaluates critical job performance knowledge and skills of new hires

Implement and Continuously Improve On-boarding program

• Implement a developed program to analysis key driver safety performance metrics and prioritize driver’s risk profiles for appropriate safety intervention

Improve identification and intervention of At-risk drivers

• Increase site management demonstrated safety leadership through associate focused safety surveys and roundtable discussions

Enhance the role of site leadership in promoting a culture of safety

• Implement and continuously improve driver BBS program; identify opportunities to leverage cross-sector support with local geographic overlap presence

Improving Driver BBS Program

Global Energy Conference | Houston | 7 October 2014

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Exel case study- Tactics utilized

• Cultural assessment of all drivers • Implemented “fit for purpose” driver physicals • Increased BBS observations and ride alongs • JHA’s at delivery points • Driver safety committee participation • Specific driver safety training sessions conducted • Vehicle safety modifications

Global Energy Conference | Houston | 7 October 2014

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LET’S DISCUSS…

Global Energy Conference | Houston | 7 October 2014

How can we as employers in the Energy industry promote transport safety more broadly?