Foundation for Safety Culture Improvement – in Pursuit of Safety Excellence Vineesh Kochhar Business Director, South Asia 4 th October, 2012

2 1.WHO WE ARE? 2.WHY DO IT? 3.WHAT IS IT ABOUT? 4.HOW DO WE DO IT? 5.HOW DO WE KEEP IT GOING? AGENDA

3 Safety and Health Highest Ethical Behavior Respect for People Environmental Stewardship Safety and Health Highest Ethical Behavior Respect for People Environmental Stewardship The Foundation of DuPont CORE VALUES

4 Belief that all injuries are preventable developed in the 1940s Safety statistics began in 1912 First safety rules established in 1811 “Safety is a line management responsibility. … No employee may enter a new or rebuilt mill until a member of top management has personally operated it.” – E. I. du Pont Powder mill operation began in 1802 Off-the-job safety began in the 1950s PSM Focus mid 60s “Goal is Zero” 1990s Over 200 years, Safety has become part of our DNA The DuPont Safety Culture Sustainability early 1990s

5 1.WHO WE ARE? 2.WHY DO IT? 3.WHAT IS IT ABOUT? 4.HOW DO WE DO IT? 5.HOW DO WE KEEP IT GOING? AGENDA

6 Drivers for Safety Excellence Performance Assets OD Sustainability

7 What we see v/s what it is! THE BULK OF THE ICEBERG Additional Costs of Injuries Damaged equipment & goods Lost production and quality Process Interruptions/Yield Losses Replacement Labor / Overtime Litigation Damage to Customer Relations & Public Image THE TIP OF THE ICEBERG Direct Costs of Injuries Medical costs Wage indemnity Claims administration fees

8 1.WHO WE ARE? 2.WHY DO IT? 3.WHAT IS IT ABOUT? 4.HOW DO WE DO IT? 5.HOW DO WE KEEP IT GOING? AGENDA

9 In our experience… The majority of process and personal incidents, injuries and accidents are caused by unsafe acts and behaviors, not conditions and equipment. Unsafe Acts Unsafe Conditions Unsafe Condition or Act?

10 Consequence Frequency Process Safety v/s Personnel Safety HF/LC LF / HC Implement PSRM LF/LC Implement a safety culture “The Goal is Zero” No Future here ! HF / HC

11 Safety Paradox Time Perception of risk Serious accident/incident Rules violated when perceptions decay over time Companies with SMS

12 - Unsafe Acts - Employee-Created Unsafe Conditions Near Misses or First Aid Cases Recordable Injuries Majors (LWCs and RWCs) Fatality Trailing Indicator Safety Hazard Pyramid Leading Indicator Reactive Efforts Proactive Efforts Gap in Thinking / Knowledge / Implementation

13 Creating Organisational Ownership = Management Standards Operational Discipline Operational Effectiveness x Current State of Client Safety Standards Current State of Implementation Operational Effectiveness

14 Copyright © 2010 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates. 1.WHO WE ARE? 2.WHY DO IT? 3.WHAT IS IT ABOUT? 4.HOW DO WE DO IT? 5.HOW DO WE KEEP IT GOING? AGENDA

15 Copyright © 2010 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates. DuPont Approach to Safety Three Key Ingredients for Excellence* 1.Risk Anticipation (how risks are understood by people and systematically addressed) 2.Maturity of the Organisation (how people work together and support each other) 3.Operational Discipline (how following the rules is transformed into organizational pride) * in Safety and Other Business Quality Parameters e.g.: Productivity, Quality, Customer Service, Compliance, etc.

16 Zero is difficult Zero by chance Zero by choice Zero is impossible Dependent Independent Reactive Natural Instincts Supervision Self Teams Injury Rates Interdependent Safety Culture Transformation Process Reactive (Lagging)Proactive (Leading)

17 Copyright © 2010 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates. We assist clients to improve safety performance by providing integration of DuPont know-how into client operating environment Our clients have existing management systems that embody certain values and philosophies, and reflect certain organizational priorities. Our goal is to help our clients develop people behaviors by applying our know-how to their situation using sound consulting methods to create positive change. Consulting methodology Transformation Client Management System DuPont Owner-Operator Knowledge & DSR Client Experience Client Positive Change

18 Building Blocks of Safety Culture

19 1.WHO WE ARE? 2.WHY DO IT? 3.WHAT IS IT ABOUT? 4.HOW DO WE DO IT? 5.HOW DO WE KEEP IT GOING? AGENDA

20 How Do we Keep it Going Visible, “felt” leadership commitment Safety is not just a ‘priority’...it is a ‘VALUE’ Foster ‘will’ and ‘passion’ for change Employee involvement & “ownership” Belief that all incidents are ‘preventable’ ‘Good safety is all about people’ Continuous improvement ‘What gets measured gets done’ – focus on leading and lagging indicators Improvement is a …‘moving target’ – need to keep raising the bar

21 As Leaders, we need to ask ourselves these questions 1.At times, do business goals compete with the safety focus? 2.Where is our organization on the culture curve? 3.Do we drive demonstrated leadership commitment? Is safety a line management responsibility? 4.What is the level of engagement of employees for safety? 5.How can we drive continuous improvement? …… GOAL ZERO!

22 Role of Leadership Production Schedule Safety Profit

23 In closing….some food for thought! “You get the level of safety that you demonstrate you want!” “We must become the change that we want to see!”

24 Copyright © 2009 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.

25 The Vision of DuPont Our vision is to be the world’s most dynamic science company, creating sustainable solutions essential to a better, safer, healthier life for people everywhere. M ARKET -D RIVEN S CIENCE © National Geographic image

26 DuPont 2011 Segment Sales * Total company sales exclude transfers. Agriculture Electronics & Communications Performance Chemicals Performance Coatings Performance Materials Safety & Protection Industrial Biosciences Nutrition & Health $38B * $9.2B $2.5B $4.3B $6.8B $3.9B $3.2B $7.8B $0.7B

27 DuPont – 22 Essential Elements of Safety

28 Safety Priority or Value? Safety is a PRIORITY when working safely is a condition of employment, your boss insists you do it and you do what you are asked to do. It affects an individual’s behavior. Safety is a VALUE when you work safely without being told to do so. It is at the center of who you are; it defines who you are and the way you work and live. It affects how you think. Going from priority to value is a process. It takes time and effort on your part.

29 Safety Management Concept Leadership Management Commitment Policies & Principles Goals, Objectives, & Plans Procedures & Performance Standards Management Commitment Policies & Principles Goals, Objectives, & Plans Procedures & Performance Standards Structure Line Management Accountability & Responsibility Safety Personnel Integrated Organization Structure Motivation & Awareness Line Management Accountability & Responsibility Safety Personnel Integrated Organization Structure Motivation & Awareness Processes & Actions Effective Communication Training & Development Incident Investigation Safety Observations Contractor Safety Management Effective Communication Training & Development Incident Investigation Safety Observations Contractor Safety Management REACTIVEPROACTIVE IncidentInvestigations Learn From What Happened SafetyObservations Learn From What Has Not Yet Happened PREVENT Managing & Accountability Structure (Line Organization) The Driving Force for Change is Strong Visible Leadership, the Will & Commitment to Change, Rigorous Execution and Enthusiastic Employee Involvement The Driving Force for Change is Strong Visible Leadership, the Will & Commitment to Change, Rigorous Execution and Enthusiastic Employee Involvement

30 Culture change needs collective efforts and time Awareness / Training & Coaching / Involvement / Motivation / Consequence ManagementStatusRituals TotemsTaboos

31 India Experience

32 Partners to Safety Cultural Transformation Chemicals DuPont Methodology & Approach Works in India