THE 2015 DUPONT SAFETY & SUSTAINABILITY AWARDS

2015 DUPONT SAFETY

& SUSTAINABILITYAWARDS BEST PRACTICE FORUM

Discussion Summaries

In a business climate defined by continued uncertainty and volatility, business leaders are increasingly cutting cost in order to increase agility and profitability. Within this context, safety and sustainability can be overshadowed and under-funded. And yet, if pursued with vigor, improved safety and sustainability have great potential to increase competitive advantage and drive results, both through the optimization of operational efficiency and a reduction of cost. For this reason, DuPont is proud to sponsor the DuPont Safety & Sustainability Awards, an initiative that celebrates organizations of all sizes from around the world that have found innovative ways of making an enduring difference to the safety and health of workers, to the environment and to productivity.

In October of 2015, DuPont convened the winners of this prestigious award to provide insight on current trends, the latest innovations and best practices in HSE and operations management. The following executive summaries capture the key takeaways that came out of this Best Practice Forum.

THE 2015 DUPONT SAFETY & SUSTAINABILITY AWARDS BEST PRACTICE FORUM | SUSTAINABILITY

Moderator Davide Vassallo – Managing Director, Consulting Solutions, DuPont Sustainable Solutions

Panelists Sundar Muruganandan – Managing Director, Versa Drives Seriena Bal – QASHE Advisor Sustainability, Heerema Marine Contractors David Auge – Manager, Environmental, Safety and Sustainability, Grifols Therapeutic Inc.

The concept of sustainability has been evolving over the last few decades and yet the approach to it has been one of paradoxes. While some see sustainability challenges as reasons to be worried, there are others who view them as tremendous opportunities. Some see sustainability as trying to do less harm by reducing footprint, while the more evolved organizations view it as a call to do more good by increasing the positive contribution to the environment and society. There are some organizations that are compliance-driven and are happy if they tick all the boxes, and are in line with the regulation and other minimum requirements around the globe. On the other end of the spectrum are those who are leveraging sustainability to differentiate themselves from the competition.

We are now observing a new generation of leaders that are combining entrepreneurial spirit and long term thinking. They are concurrently meeting the expectations of stakeholders and shareholders alike.

The panel discussion on sustainability brought together winners of the DuPont Sustainability Award in order to learn more about the context, the content and the learnings from their experience in implementing their winning project.

TO SUCCEED, ONE MUST ADAPT What makes an organization succeed or fail is its ability to transform continuously. It is not the strongest, but the most adaptable that ultimately wins. The experiences shared by the panel members confirmed this; in each case, the companies found ways to apply innovation and entrepreneurialism to generate business value and serve the communities in which they operate.

GOING BEYOND REGULATIONWhile being able to adapt and transform is critical, being able to push against constraints, perhaps counterintuitively, may be required to make progress. Regulations are often created in a certain context and may not consider the nuances and the balance required to deal with the practical challenges that accompany such regulations. Thus, there is a need to engage stakeholders and to drive change as conditions evolve.

“ There is a nullification of your creativity when you feel like- well that’s the rule, that’s the regulation. We can’t push any further from it. The thinking outside the box is sometimes also about thinking outside the regulatory box that has been drawn for you and to question whether that regulatory box is too tight or too stringent, or now with these new technologies, if the regulatory box should be questioned once again.”

David Auge – Manager, Environmental, Safety and Sustainability, Grifols Therapeutics Inc.

Sustainability Panel Discussion

THE 2015 DUPONT SAFETY & SUSTAINABILITY AWARDSBEST PRACTICE FORUM | SUSTAINABILITY

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PUTTING THE PUZZLE TOGETHER THROUGH CROSS-SECTORAL COLLABORATION

“ This is what happens when you have, for example, a biologist with a marine engineer. Normally they wouldn’t work together, but if you provide them with a platform and a problem or an idea, then they start thinking and really cool things come out.”

Seriena Bal – QASHE Advisor Sustainability, Heerema Marine Contractors

Often the solution to a sustainability challenge can be found when people from diverse backgrounds, industries, technologies and experiences come together. For instance what would a pharmaceutical industry producer of blood plasma-based products and a hog farm have in common? Apparently a lot when it comes to disposal of bio waste. As in the case of one of our panel members, cross-sectoral collaboration not only helped solve a sustainability challenge, but also solved a business challenge by providing an opportunity for a closed-loop process in which the waste of one process became input for another.

MARKETING COULD BE THE MEANS TO TAKE THE IDEA MAINSTREAM We all have come across brilliant products and technologies that were designed to address a sustainability challenge that somehow failed to take off. These did not fail because of lack of resources, or technology or will. They often fail because they have not been thought through from a marketing perspective. Seeking answers for questions such as “is the market there?”, “what market need does it meet?”, and “what is the value proposition of our product or service?”, are critical for organizations to scale up.

CONCLUSIONOrganizations react to sustainability challenges differently. The difference lies in how creativity, leadership, innovation and capability are applied. It is up to leaders to decide whether sustainability is viewed as a challenge or an opportunity, and to mobilize their organization to act upon their vision. The sustainability journey can be quite a challenge, but those who apply innovation and a spirit of entrepreneurialism are more likely to succeed.

Sustainability Panel Discussion

THE 2015 DUPONT SAFETY & SUSTAINABILITY AWARDS BEST PRACTICE FORUM | SAFETY

Safety Panel Discussion

Moderator Mark Wagner – Managing Director, North America, DuPont Sustainable Solutions

Panelists Eduardo Lima de Rozendo Pinto – CEO, Ethylene XXI Contractors S.A.P.I. Conor Browne – Global Head of Capital Strategy and Services, Diageo Neil Backer – Vice President, Safety, Health and Environment, Aurizon Holdings

Safety and health of employees and contractors is a major component of operational risk that companies must manage. Failure has ramifications with right to operate, employee morale and achieving business objectives. In light of this, DuPont Sustainable Solutions organized a panel discussion on safety to better explore this topic. Panelists included the winners of the 2015 DuPont Safety Award, who shared their experiences and expertise with the audience. On the panel were Ethlyene XXI (the largest greenfield petrochemical project in Mexico), Diageo (the world’s largest producer of spirits) and Aurizon (a rail company in Australia).

The sheer diversity of winners and the projects in which they were involved, brought out some interesting insights around safety and operational risk management.

SAFETY REQUIRES CONSTANT ATTENTIONNo matter how well an organization has performed in the past, or the maturity of their existing management systems, there is no room for complacency when it comes to safety. This truth was highlighted by the winner of the global safety award by sharing a recent personal off-the-job incident. Safety is too important to be relegated to the bottom of the priority list or taken for granted.

“ HSE requires 24/7, every minute attention.”

Eduardo Lima de Rozendo Pinto – CEO, Ethylene XXI Contractors S.A.P.I.

LEADERSHIP COMMITMENT IS KEY

“ It is key to have sponsors aligned and committed.”

Eduardo Lima de Rozendo Pinto – CEO, Ethylene XXI Contractors S.A.P.I.

“ All stakeholders and sponsors were required to sign off on the design and detail before any construction work was started.”

Conor Browne – Global Head of Capital Strategy and Services, Diageo Primacy of People

Leadership sets the tone at the top. One common theme consistent throughout the discussion was the leadership commitment demonstrated early in the process. This commitment is expressed through the allocation of resources, time and even willingness to stop work to ensure safety.

THE 2015 DUPONT SAFETY & SUSTAINABILITY AWARDSBEST PRACTICE FORUM | SAFETY

“ The leadership that came from the senior management was to involve and engage with the staff. The project itself took a little longer than we had originally planned, because as we rolled out the project in each area, we trained the staff from that area to teach and educate the next group of people that went through the project launch. So from a cultural change point of view, the staff themselves could see that the organization was serious about safety.”

Neil Backer – Vice President, Safety, Health and Environment, Aurizon Holdings

PEOPLE FIRST

“ We want everybody, whether they are direct employees or contractors, to go home safe, every day, everywhere.”

Conor Browne – Global Head of Capital Strategy and Services, Diageo Primacy of People

The secret to engaging people is for leaders to authentically convey that the lives of employees matter. Employees need to feel and believe that management is committed to keeping them safe and not just concerned with the systems and procedures. Communication, training, standards and infrastructure all support the leadership commitment and people engagement.

AN INTEGRATED APPROACH IS MORE EFFECTIVEThe panelists agreed that the success of their safety improvements was based on the adoption of an integrated approach. Within an operating environment, it is tempting to focus on only technical solutions to safety problems or to risks that arise. Neither technical solutions nor behavioral solutions are independently sufficient to address operational risks. An integrated approach gives appropriate emphasis to developing and implementing managing process and procedures, technical standards, training, and company-wide culture of safety and performance.

The integrated approach was reflected in very creative ways: through the use of visual signage, retraining, biometric scan for entry, radio-frequency identification (RFID) tags for tracking people’s location, data management systems, e-learning, leadership walk-through, managing structures, behavior-based safety or building a culture of operational discipline.

THE 2015 DUPONT SAFETY & SUSTAINABILITY AWARDS BEST PRACTICE FORUM | SAFETY

Safety needs to be on everyone’s agenda. Often this is a challenge with the use of contractor employees who may be unskilled or come from multilingual backgrounds. Leading organizations keep the bar high, communicate expectations and follow through with a screening and certification process. They may often be required to help the contractor develop the necessary systems, processes and capabilities to meet the required criteria. Hence, contractor engagement should be viewed from a long-term perspective.

This commitment to meeting higher standards of safety pays off for the owner organization as they ensure incident-free projects and operations, and thus avoid the costs of an incident. The contracting company benefits, as they then automatically become a preferred contractor in the industry, paving the way for their future success.

CONCLUSIONSafety and operational risk management need to be embedded within the culture and core values of an organization. The real strength of a management system is reflected in the cultural maturity. Indeed, an organization that has reached a mature and elevated safety culture has all the ingredients of an engaged workforce, including problem solving and innovation capabilities, to achieve competitive advantage.

Safety Panel Discussion

EVERYONE IS ACCOUNTABLE FOR SAFETY

“ Everybody in the organization needed to know what we meant by safety. We wanted to go right through to everybody coming in – contractor, sub-contractor, from the janitor through to the site foreman.”

Conor Browne – Global Head of Capital Strategy and Services, Diageo Primacy of People

“ We did have DuPont to assist us, but I think it was more about making it personalized for the staff, like really letting them own the process. It is not good enough to have the systems unless it is owned and felt and believed on the ground.”

Neil Backer – Vice President, Safety, Health and Environment, Aurizon Holdings

THE 2015 DUPONT SAFETY & SUSTAINABILITY AWARDSBEST PRACTICE FORUM | OPEX

Moderator Garrett Forsythe – Solutions Architect, Operational Excellence, DuPont Sustainable Solutions

Panelists Dr. Vincent Presepe – Senior Director, Quality, Health, Safety and Environmental Excellence, Firmenich North America Mubarak Al-Hajri – CEO, Gulf Drilling International

Given the current business environment, companies must find innovative ways to establish a competitive advantage. One way to stand out from the competition is to drive operational excellence by balancing two key areas: minimization of risk and optimization of performance. Risk minimization often focuses on the prevention of incidents that negatively impact safety, the environment, assets, supply chains, the right to operate, reputation and communities. At the same time, leaders are being challenged to maximize operations’ performance and create shareholder value.

In this panel session, the winners of the DuPont Sustainable Solutions Operational Excellence Award – given to organizations that show sustainable improvements in operating efficiencies – discussed how they were able to minimize risk and maximize performance in a sustainable way.

The following themes emerged from the session:

• A client-centric approach is critical to success

• Capability building within an organization is crucial

• Standardized and sustainable management processes, systems and tools must be developed

• A focus on mindsets and behaviors and building a culture of excellence is paramount

CLIENT FOCUSAs leaders, we are faced with many competing priorities and are currently operating in a volatile environment. Despite these challenges, one theme that emerged from the discussions time and again was a focus on clients – an area that should remain steadfast regardless of market conditions.

“ When you continue with a high standard, clients are comfortable with your capability and you are able to build trust over a number of years.”

Mubarak Al-Hajri – CEO, Gulf Drilling International

Client feedback and communication can also help organizations to prioritize areas for continuous improvement. At Gulf Drilling, meeting client requirements, while also learning and advancing client best practices, has helped the company to grow rapidly.

Likewise, Firmenich emphasized the importance of having a client focus. Since more than 2 billion people in the world will use a Firmenich product every day, the focus on operational excellence to deliver on client expectations is critical to their business.

OpEx Panel Discussion

THE 2015 DUPONT SAFETY & SUSTAINABILITY AWARDS BEST PRACTICE FORUM | OPEX

CAPABILITY BUILDING WITHIN AN ORGANIZATIONThe panelists also discussed how building internal capability was critical to achieving operational excellence. Without a qualified workforce, it is impossible to deliver on client expectations. Not only is it important to build competencies, but it’s also important to recognize people for their achievement. Listening to feedback from internal teamsand using this knowledge to improve processes was a common theme.

At Firmenich, they took the challenges presented by one supplier relationship as an opportunity to create a new investigative and problem-solving template based on root cause analysis (RCA). Through use of this tool, the company was able to engage groups, bring people together, break down silos, and find greater success by using a team effort. The company also launched a global training program for the tool, which has helped to improve overall performance and build capability across the organization.

Gulf Drilling also echoed the importance of capability building. The company has a very diverse workforce, representing 50 different cultures. In order to succeed, the company focuses on both building workforce competency and balancing availability of manpower, while also ensuring that their equipment and machines are in compliance with high international standards.

USE OF STANDARDIZED AND SUSTAINABLE MANAGEMENT PROCESSES, SYSTEMS AND TOOLSIn order to achieve operational excellence, it’s important that companies choose a few key processes, and focus on running these processes really well. The Firmenich problem-solving tool was designed to be simple to deploy and sustainable over time.

“ You have the flavor of the month solution and it quickly wears out. We wanted something that was going to be sustainable. [Companies] need to develop management systems that are geared toward zero defects, zero incidents, and zero failures.”

Dr. Vincent Presepe – Senior Director, Quality, Health, Safety and Environmental Excellence, Firmenich North America

Not only should these systems be standardized and sustainable, but they also need to be linked to key metrics that can be tracked over time. These metrics enable companies to monitor progress, focus on key areas for improvement, and raise accountability for performance. For example, Gulf Drilling’s advanced commercial management system operates in concert with warehouse and maintenance management systems, and has been critical to the company’s operational effectiveness.

THE 2015 DUPONT SAFETY & SUSTAINABILITY AWARDSBEST PRACTICE FORUM | OPEX

OpEx Panel Discussion

FOCUS ON MINDSETS AND BEHAVIORS TO BUILD A CULTURE OF EXCELLENCEThis panel session also emphasized that culture is critical to achieving a high level of performance and operational discipline. By engaging the organization and aligning on goals, companies are able to drive continuous improvement. In addition, strong leadership commitment is essential and helps set the tone for a culture of excellence.

The session also highlighted the link between safety and operational performance. Both of these companies have a very strong commitment to safety which extends into other operational excellence parameters. At Firmenich, safety became a model for improvement and was leveraged to further develop a quality culture. At Gulf Drilling, incidents are studied and findings are presented back to the group and shared globally so that everyone can share in the learnings. In both of these examples, the culture helps drive performance and business strategy.

CONCLUSIONAt DuPont, we believe that operational excellence can be achieved through an integrated model which includes four elements: managing process, technical model, capability building, and mindsets and behaviors. The winners of the Operational Excellence award not only demonstrate their expertise in these areas, but prove that they excel in moving these elements forward.

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