0. Responsible Care Implementation The Sipchem Story

1. Purpose & Values Purpose:
Sipchem aims to be a responsible, innovative and globally recognized petrochemical company providing competitive and quality products to satisfy our customers, motivate our employees and meet Shareholders' expectations.
Values:
Adhere to highest ethical standards, embracing integrity, trust and taking responsibility for Sipchem's actions.
Strive for operation excellence in delivering products and services.
Embrace innovation and adapt to changing conditions.
Care for the well being of Sipchem's employees, community and environment.

2. Sipchem Responsible Care and Quality Policy

3. Sipchem December 2001
25 employees
Grass Roots Plants
Grass Roots Company
No policies, No standards, No procedures…. just a vision
We Started with a blank Sheet of Paper, Industry Standards and Experienced Leaders 3

4. Responsible Care Journey
2003
Systems Needed for a Safe Startup
PSSR
Permit to Work
Emergency Response
MOC
2004
High Priority Systems implemented
Commissioned Methanol Plant ahead of schedule
No Process Safety Incident
No Safety Incident
2005
PSM Vision
Achieve World Class PSM Performance through:
Operational Discipline
Line Management Responsibility
Employee Participation
Use the OSHA PSM Standard as guide
In house development
Build & Reinforce on existing systems
2006
Quality and Environmental Vision
Integrate Quality and Environmental initiatives.
Achieving;
Continual improvements
International Standard Recognition thru ISO 9001 and certification 4

5. Sipchem Management Systems in 2010 Before Integration & Transformation
Security Procedures
Process Safety Management
(Included “Employee Health & Safety”)
Quality and Environmental Management System
Linkage between the three Silos not well defined
No formal procedures/system for;
Distribution
Product Stewardship
Community Awareness & Emergency Response outside the fence 5

6. Documentation Structure
Defined the Document Hierarchy
Established guidelines for Sipchem PSM Management System Standards
Written in the end state
Included Element KPI’s
Established review & Approval Process 6

7. Process Safety Management Quality and Environmental Management System
Integration and Transformation
Security Procedures
Process Safety Management
Quality and Environmental Management System
Security Procedures
Process Safety Management
Quality and Environmental Management System 7

8. Responsible Care and Quality Management System Policy Statement
Sipchem Management System in After Integration & Transformation
Responsible Care and Quality Management System Policy Statement
Security
Responsible Care and Quality Management System “Roadmap”
PSM
Employee Health & Safety
QEMS
Employee Health & Safety
Product Stewardship
QEMS
PSM
CAER
Distribution
CAER
Security
Distribution
Product Stewardship 8

9. Documentation Structure
Strategic Goals
Objectives
& Policies
Management System Standards
Technical Standards
Functional Standards
Departmental Work Processes,
Departmental Functional Procedures
Work Instructions
Records
Level 1
Level 2
Level 3
Level 4
Figure 1
Guide Lines
Corporate Work Processes,
Corporate Functional Procedures
Defined the Document Hierarchy
Established guidelines for Sipchem Responsible Care and Quality Management System Standards
Written in the end state
Established review & Approval Process 9

10. How did we do it? Where did we start?
Commitment by CEO
Appointment of Responsible Care Manager and full time Responsible Care Coordinator
Appointment of Executive to GPCA Responsible Care Committee
Capital funding made available
“World Renowned” consultants utilized 10

11. Management of Change Process Implemented:
Executive Sponsors and Subject Matter Experts (SMEs) identified for Codes and GAP analysis completed
EH&S Committee redesign ----Over 100 employees directly involved
Selection and use of SME Consultants to help close specific GAPS
New Committees formed to address Gaps
Integration Process Launched with focus on RC&QM Roadmap Development with New Standards / Procedures
Build on Deputy Management Representative (DMR) organization created for QEMS
Training
Communication, Communication, Communication 11

12. Management System Structure
Roadmap and Scope of Document Changes
Management System Structure
New
Revised
Minor / Major
Impacts
General
Minor
No or little
Policy 1
Major
All Employees
Aspects and Impacts
Responsible Care and Affiliate DMRs
Legal and other requirements
Objectives and Targets
N/A
Roles and Responsibilities 2
Responsible Care, Distribution and DMRs
Training
Communications
Responsible Care
Documentation
DMRs and Management
Control of Documents
Operational Control 6
Procurement, Distribution and Responsible Care
Emergency Response
Monitoring and Measurement
Compliance Evaluation
No or Little
Nonconformance’s
Record Management
Responsible Care and Affiliate DMRs
Internal Audit
Management Review
Management, Responsible Care and Affiliate DMRs 14 12 12

13. Audit Strategy Developed
Implemented an Integrated Internal Audit Process
Auditor Training
PSM Auditor
QEMS Auditor
RC14001 Auditor
Bundled certifications with single registrar
Minimum 5 years experience required for RC14001 Lead Auditor 13

14. New Responsible Care and Quality Management Documents
Policy Statement
Responsible Care and Quality Policy Statement
Standards
Development and Control of Management System Documents
Responsible Care and Quality Roles and Responsibilities
Product Stewardship
Commercial Partner Standard (Procurement) 14

15. New Responsible Care and Quality Management Documents
Nine Distribution Safety Standards 
Sipchem Distribution Safety Management System
Distribution Safety Roles and Responsibilities
Distribution Risk Management
Complying with Distribution Safety Regulations
Securing Chemicals in the Distribution Chain
Chemical Handling in the Distribution Chain
Selection and Management of Distribution Service Providers
Preparation and Response to Distribution Incidents
Managing Chemical Deliveries and Customer Provided Transportation 15

16. General Orientation and Specific Training
Executive Team Orientation – 30 minute overview/refresher plus reading materials
General Orientation included in Corporate Safety meeting materials – Mandatory for all Departments and Employees ….Approximately 1 hour
“Inside the Fence Line” Specific training revised standards and 4 new Standards – Mandatory for DMRs and Managers …..1/2 day.
Distribution Safety Specific training - 9 new standards – Mandatory for Distribution functions, Marketing, Procurement, Responsible Care, Security, Training and Public Relations / Communications 16

17. Areas Improved in 2012 Awareness of Aspects & Impacts
Management ownership and support
Affiliates and departments participation
Monitoring and reporting
Monitoring and Measurement Standard
Employee reporting
Stakeholders communications
Distribution, Product Stewardship and Care Codes
System improvement such as SAP-EHS & Stature 17

18. Focus Areas for 2013
Cascading of objectives/targets and action planning by functional areas
Audit program improvements including RCA and corrective action planning
Monitoring and measurements – Inspection, test, and PM programs for Safety and PSM equipment
Compliance with procedures
Emphasis on accountability for RC&Q Management from Executives down to employees
Use of leading indicators such as CAMEL 18

19. Thank You