SGS GLOBAL VISION IN OPERATIONAL INTEGRITY

SGS GLOBAL VISION IN OPERATIONAL INTEGRITY

Alain DENIELLE – CORPORATE VICE-PRESIDENT, SAFETY – HEALTH - ENVIRONMENT

ANTOFAGASTA, CHILE – MINSEG 2017

2

AGENDA

SGS as a global company

SGS Operational Integrity: Vision and strategy

OI KPIs, tools and programmes

History and dynamics

Conclusions

SGS AS A GLOBAL COMPANY

4

GLOBAL SERVICES TAILORED TO INDIVIDUAL INDUSTRIES

INSPECTION

VERIFICATION TESTING

CERTIFICATION

CONSULTANCY TRAINING

OUTSOURCING

5

SGS AT A GLANCE

Nº1

WORLD LEADER

90,000

EMPLOYEES

2,000

OFFICES AND LABORATORIES

11

GLOBAL INDUSTRIES

GLOBAL SERVICE LOCAL EXPERTISE

6

VALUES

PASSION INTEGRITY ENTREPRENEURIALISM INNOVATIVE SPIRIT

7

CHEMICAL CONSUMER GOODS AND RETAIL

MINING OIL AND GAS PUBLIC SECTOR LIFE SCIENCES

TRANSPORTATION

ENERGY

INDUSTRIAL MANUFACTURING

CONSTRUCTION AGRICULTURE AND FOOD

8

EXPLORE Our testing ensures project value is determined in line with industry standards

DEVELOP We provide proven technical solutions to advance projects through the development stages

OPERATE Our reliable in-plant and production services deliver optimal recovery and product quality

TRADE Our analysis, inspection and sampling supports the international trade of commodities

RECLAIM We have the capabilities and expertise to ensure site closures have minimal impact

IMPROVING SPEED TO MARKET, OPTIMISING RECOVERIES

SGS AND THE MINING INDUSTRY

SGS OPERATIONAL INTEGRITY:

VISION AND STRATEGY

10

OPERATIONAL INTEGRITY AT SGS

Operational Integrity definition at SGS:

« Not only Health, Safety and Environment

compliance »

Our goal:

AN AMBITION TO

HSE EXCELLENCE

SGS BUSINESS PRINCIPLES

SGS HSE POLICY STATEMENT

The most stringent of HSE

regulations / laws, and SGS HSE

standards

Continuous improvement towards

ZERO accident

Stop-work authority

State-of-the-art technologies and best

practices

YEARLY OBJECTIVES DEPLOYED THROUGH A CASCADED “TOP -PAGE” PROCESS (EFQM* MODEL)

* EFQM: European Foundation for Quality Management

THE CURRENT OPERATIONAL INTEGRITY STRATEGY

OPERATIONAL INTEGRITY VICE-PRESIDENT REPORTING TO CEO

Technical Safety

& Analytics

Chemicals

Industrial Hygiene

Health

Environment

Management

Systems

Learning & Development

Resources & Skills

BBS

Audits

Communication

Regional Operational Integrity Managers

Business Operational Integrity Representatives

Regional, Country & Site Structures

EXECUTIVE OPERATIONAL INTEGRITY STEERING COMMITTEE - 6 Chief Operating Officers (6 regions)

- 2 Executive Vice-Presidents (OGC, Minerals)

- Human Resources Vice-President

- Operational Integrity Vice-President

1

2

OPERATIONAL INTEGRITY STRUCTURE

Quarterly

meetings

OI KPIS, TOOLS AND PROGRAMMES

5 SAFETY LAGGING INDICATORS

Lost time accidents

Recordable cases

Severity rates

Fires and explosions

Motor vehicles incidents

17

LOST TIME INCIDENT RATE*

0,88

0,72 0,69

0,64

0,59 0,60

0,38

0,27

0,18

0,00

0,10

0,20

0,30

0,40

0,50

0,60

0,70

0,80

0,90

1,00

2009 2010 2011 2012 2013 2014 2015 2016 Q1 2017

LT

IR

FTE 58000 61000 68000 77000 81000 84000 86000 90000 92000

* OSHA Definition (200 K Hours)

New OI strategy

18

RECORDABLE INCIDENT RATE*

1,7

1,5 1,4

1,2

1,1 1,1

0,7

0,5

0,3

0,00

0,20

0,40

0,60

0,80

1,00

1,20

1,40

1,60

1,80

2,00

2009 2010 2011 2012 2013 2014 2015 2016 Q1 2017

TR

IR

* OSHA Definition (200 K Hours)

19

SEVERITY RATES

13,2

7,3

4,4

0

2

4

6

8

10

12

14

2014 2015 2016

Lo

st

Day S

ev

eri

ty R

ate

22,2

18,9

16,6

0

5

10

15

20

25

2014 2015 2016

Lo

st

Days p

er

LT

I

LOST DAYS SEVERITY RATE* LOST DAYS / LOST TIME INCIDENT

* OSHA Definition (200 K Hours)

3 KEY LEADING INDICATORS

Trainings and awareness

Leadership visits

Hazard hunting

12,6 12,5

18,2

0

2

4

6

8

10

12

14

16

18

20

2014 2015 2016

HS

E T

rain

ing

Ho

urs

per

Em

plo

yee

* Company average

- Classroom trainings,

- E-learnings,

- Safe Talks

Including Management:

- Managing Directors sessions

- E-learning for all Managers

TRAINING & AWARENESS HOURS*

Training matrix

9,0

12,2

21,6

0

5

10

15

20

25

2014 2015 2016

Lead

ers

hip

OI

Vis

its p

er

100 E

mp

loyees

OI App since 2016

LEADERSHIP VISITS

Version 2 in 2017

5,000

22,000

40,000

0

5

10

15

20

25

30

35

40

45

2014 2015 2016

Nu

mb

er

of

Hazard

s i

n C

rysta

l

Milla

res

by INTELEX

HAZARD HUNTING

3 ADDITIONAL KEY “TOOLS”

15 Rules for Life

Safety Month

STELLAR Self-assessments

2015 - 3 NEW RULES FOR LIFE 2012 - 12 RULES FOR LIFE Concept of Line of Fire

- Dedicated e-learning

(45,000 people YTD)

- E-learning in 10 languages

- Included in SHINE

induction programme

15 SGS RULES FOR LIFE

26

SAFETY MONTH

Every September

All sites

Everybody

One leading message,

up to 3 themes

One video

Various supportive materials

CONTENTS

1. Presentations

2. Contests / Games

3. Guest speakers

4. Partnership with authorities /

associations

5. Dedicated training sessions

6. Safety challenges

7. …….

SEPTEMBER SAFETY MONTH

2015 CAMPAIGN

SEPTEMBER SAFETY MONTH

2016 CAMPAIGN

SEPTEMBER SAFETY MONTH

2017 CAMPAIGN

SAFETY MONTH 2017

YOUR BEHAVIOUR KEEPS YOU SAFE

BBS, PEER-TO-PEER AND BOTTOM-UP

„‟EMOTIONS‟‟

CASE STUDIES

*Safety Tool Evaluation List (for) Leadership Assessment Rating

GOAL: All SGS sites self-assessing their HSE „‟level‟‟, on a regular

basis

HOME MADE “PROTOCOL”:

• 15 HSE sections (Y or N or NA answers)

• Up to 400 questions

• Specific contents for Low, Medium and High Risks sites

• Green, Orange & Red results status from assessments

• Auto-rating from 1 star („‟Full basics‟‟) to 5 stars (Best in class)

CONTINUOUS SELF-ASSESSMENTS AND ACTION PLANS

• Dedicated IT Solution

• Through Top-page yearly objectives

1. Communication

2. Contractor & Service Management

3. Emergency Management

4. Health, Industrial Hygiene & Well- Being

5. Incident Reporting, Investigations

6. Inspections & Task Observations

7. Management & Effective Leadership

8. Management of Change

9. Materials & Environmental Management

10. Operating Rules & Work Permits

11. Personal Protective Equipment

12. Purchasing & Supply Management

13. Risk Assessment

14. System Monitoring & Continuous Improvement

15. Training & Competency Management

STELLAR* SELF-ASSESSMENTS

IT GIVES A SHORT-TERM, MID-TERM AND LONG-TERM VISION TO EACH INDIVIDUAL SITE

HISTORY AND DYNAMICS

Corporate

HSE Group

2010-2011 2012 2013 2014 2015 2016 2017

12 Rules

for life

OIMS

Regional

OI Managers

Crystal

Safety

Day

Business

OI Managers

Yearly EFQM

Top-pages

New OI Strategy

based on 7 pilars

Extended OI

Steering Committee

Quarterly Reporting

Global/Region//BL/Country

Quarterly

Campaigns

Crystal 2.0

Corporate OI L&D

Corporate OI Comm.

Corporate IH/OH

15 Upgraded

Rules for Life

Safety Month

Executive OI

Steering Committee

HSE Analytics

group

STELLAR

Self-assessments

Crystal 3.0

Corporate HSE

Auditing

Check Status

(JHA)

BBS Pilots

BBS

Launch

(phase 1)

OPERATIONAL INTEGRITY AT SGS

Quality Programmes

(accident investigations,

risk assessments, …)

ProcessMap

(IH/OH)

Chemwatch

Webinars

Best practices

& Safe-talks

33

OTHER AREAS OF FOCUS

Motor Vehicles Accidents

In-Vehicles Monitoring Systems

Communication, Visual identity, Q. campaigns

Fires and Explosions

Resources and Skills

Risk Assessments

Accident Investigations

Chemical Management

Management Systems

Audits

Industrial Hygiene and Occupational Health

Technical safety (machines, marine ops, …)

PPE

….…

CONCLUSIONS

YEARLY OBJECTIVES DEPLOYED THROUGH A CASCADED “TOP PAGE” PROCESS

(EFQM* MODEL) * EFQM: European Foundation for Quality Management

THE CURRENT OPERATIONAL INTEGRITY STRATEGY

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THE KOTTER PROCESS

John P. KOTTER

US citizen (1948)

Economist

Professor at Harvard Business

School

Regarded as one of the

authorities in Leadership and

Change

37

KOTTER PROCESS : 8 STEPS TO LEADING CHANGE

STEP HEADING

1 Establish a Sense of Urgency

2 Forming a Powerful Guiding Coalition

3 Creating a Vision

4 Communicating the Vision

5 Empowering Others to Act on the Vision

6 Planning for and Creating Short-Term Wins

7 Consolidating Improvements and Producing Still More

Change

8 Institutionalizing New Approaches

THANK YOU FOR YOUR ATTENTION

WWW.SGS.COM

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THE RULES OF 3 FOR RISK ASSESSMENTS

Identify the hazards

Prioritize the risks

Implement the

corrective actions

The person who does

the job

A supervisor

An OI expert

At least every 3 year

After each change or

modification

After each incident or

accident

RISK ASSESSMENTS CHECK STATUS

RED status: STOP WORK

AMBER status: Risk could

be there

GREEN status: Everything

is OK

3 STEPS 3 KEY PEOPLE 3 CASES FOR EACH

JOB & POSITION 3 MINUTES