1 EQUATE RESTRICTED - For internal use only Performance Metrics Guidance Document For GPCA Member Companies Asrar Mohammad EQUATE Petrochemical

Task Force Members Mr. Bader Al-Adwani- PIC MR. Manoel Fernandes- Borouge Dr. Ahmed Al-Hazmi- Sabic Mr. Mortaza K. AL-Yousef- Tasnee Mr. Naveed Khan- QAPCO Mr. Qasim Yunus- SABIC Ms. Asrar Mohammad- EQUATE Mr. Jassim Darwish- GPIC MR. Tariq Alauddin- Sipchem Mr. Albert E. Biggs- Sipchem Mr. Tahir Jamal Qadir- GPCA

Vision “To measure performance, openly report, make continual progress towards our goal of eliminating accidents, injuries or harm to human health and the environment from our products and operations”

Strategy Keep it simple by building on commonly reported performancemetrics Where applicable, align with global trade associations Phase in new “value added” metrics over time Use data for bench marking, targeting areas for improvement and sharing of best practices

Task Force Objectives Establish a standard template including definition and formulas for metrics Develop a guideline document for measuring and reporting performance metrics Ensure effective communication and understanding of performance reporting. Over time, realize value added benefits and industry performance improvements.

Benefits of Performance Metrics To improve community relations To meet customers’ expectations To give member companies a competitive advantage To share best practices among member companies To continually improve Responsible Care performance among member companies

Background Data was collected from member companies on The key Responsible Care performance measures that must be report to local regulators right now The key Responsible Care performance indicators that is being reported within each member company to management

Survey Design Surveyed Task Force Members Survey sent to 9 companies Response from 7 companies / 5 Countries

Survey Response Occupational Safety 70% of Companies polled are recording & reporting Fatalities Lost Time Injuries & Incidence Rates OSHA Recordable Injuries & Incidence rates For Employees and Contractors 30 % Companies not reporting this data for contractor employees Polled companies generally in alignment with ACC & CEFIC reporting requirements.

Survey Response Process Safety 70 % companies reporting Process Safety Incidents 33 % companies reporting Process Safety Total Incident Rate No company reporting Process Safety Total Incident Severity Rate Definitions of Process Safety Incident not aligned with the CCPS definition for all reporting companies.

Survey Response Waste All Companies reporting waste generated and disposed. 30 % companies not segregating waste into Hazardous and non hazardous. Waste Water Discharge 70 % companies reporting TOC in waste water

Survey Response Gaseous Emissions 90 % companies reporting NOx emissions in PPM 33 % companies reporting SO2 22 % Reporting CO2 emissions & CO2 Intensity 22 % Companies reporting Total Green House Gases Emissions 1 Company reporting total Emissions Significant gap from ACC & CEFIC Metrics

Survey Response Resource Utilization 100 % companies reporting energy consumption 78 % reporting specific energy consumption 78 % reporting water consumption Alignment with ACC & CEFIC Distribution Incidents No Company Reporting

Survey Conclusion Most companies are reporting or have data available for ACC/CEFIC metrics in. Occupational Safety Process Safety Waste Disposal Resource Utilization Gaseous emission data is scattered. No data on distribution Incidents.

Implementation Phases Phase I: 2010 data to be reported by September 2011

2010 Performance Metric & Reporting Employee Fatalities Lost Time Injury Incident Rate for Employees OSHA Recordable Cases Incidence Rate for Employees Contractor Employee Fatalities Occupational Safety Process Safety Incidents Process Safety Total Incident Rate (PSTIR) Process Safety

2010 Performance Metric & Reporting Hazardous Waste for Disposal Non‐Hazardous Waste for Disposal Quantity of Waster Water discharged to Environment Discharges to Water ‐ Chemical Oxygen Demand Emissions / Discharges to Environment Process Water Consumption Resource Utilization

Implementation Phases Phase II: 2011 data to be reported by March 2012

2011 Performance Metric & Reporting Lost Time Injury Incidence Rate for Contract Employees OSHA Recordable Cases Incidence Rate for C ontract Employees Occupational Safety Process Safety Total Incident Severity Rate (PSTIR) Process Safety

2011 Performance Metric & Reporting Sulfur Dioxide emission Nitrogen Oxides (NOX) emission Emissions / Discharges to Environment Use of Energy (Tons of Fuel oil Equivalent; TOE) Specific Energy Consumption Resource Utilization

Implementation Phases Phase III: 2012 Data to be reported by March 2013

2012 Performance Metric & Reporting No of Distribution Incidents Product Distribution

Implementation Phases Phase IV: Potential Metric for 2014

2014 Performance Metric & Reporting Total Green House Gas Emissions (GHG) Carbon Dioxide (CO2) Intensity Emissions / Discharges to Environment Reasons for the delay of this Metric: Climate change policy is handled by government. Governments have to report GHG emissions annually. Setting policy for GHG reduction will lose CDM benefits. Contradiction of data will create inconsistencies.

Path Forward TASKSACTIONS 1Review current local government policy Contact the local authorities on climate change in GCC 2Review the plan for annual reporting Work with focal points to understand the report 3Understand the latest directives on climate change Review the outcome of the COP 16 & 17 4Recommend the MetricsList the performance metrics to be reported

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