ORLEN ORLEN Group 2017
Integrated Report

Safety of Employees and Contractors

GRI INDICATORS:
Capitals:

Care for people’s health and safety is a natural and inherent element of the ORLEN Group’s business. In practice, it means that the Group does everything it can to prevent accidents, industrial failures, fires and other unwanted incidents. This approach to safety management follows from the business philosophy adopted by the Group: 'People are our most valuable asset and must be provided with safe working conditions'.

Strategy in the area of safety

The ORLEN Group treats issues related to the safety of its employees, contractors and processes as a priority and has included measures aimed at continuous improvement of personal and process safety in its OHS Strategy for 2017–2021.

The key objective of these measures is to ensure the highest levels of safety in all operational areas of the ORLEN Group. In 2017, the ‘Safety Plus+’ project was initiated, comprising implementation of 15 standards at the ORLEN Group, representing the highest safety standards identified in the fuel and energy industry. The project will be completed in 2020.

The Group’s OHS priorities also include revision and implementation of the Process Safety Management System compliant with the OSHA 1910 standard in order to more effectively work towards operational excellence by ensuring technical safety of the process, storage and auxiliary units, and thus preventing any unwanted incidents that could potentially affect safety of its employees or processes.

Safety management system

The ORLEN Group operates a segment-based safety management system.

The main areas of the system are:

  • Management and leadership.
  • Personal safety.
  • Process safety.
  • Commitment and responsibility.

The ORLEN Group’s safety management system is based on the Safety Standards and Guidelines,  providing uniform requirements for the Group’s safety area. They have been formulated on the basis of best practices applied by global oil and gas concerns.

The Group companies have their own well-developed systems of internal safety regulations, which are based on internal organisational documents relating to occupational health and safety, fire and chemical safety, as well as radiation, technical and process safety. Knowledge of their contents is a requirement applicable not only to the Group’s employees but also to the contractors performing work on the ORLEN Group’s premises.

The ORLEN Group companies have Occupational Health and Safety Management Systems in place, certified by entities accredited by the Polish Center for Accreditation (applicable to Polish companies).

The ORLEN Group organises mandatory training programmes on safety for its employees and contractors to familiarise them with the safety standards applicable at the Group companies. The programme focuses on raising the employees’ and contractors’ awareness of the importance of correct assessment of the situation, knowledge of potential risks and risk mitigation methods, adherence to OHS rules and procedures, proper use of protective systems and equipment, and the need to report potentially dangerous incidents.

Regular emergency drills are conducted at the ORLEN Group companies with the use  of the necessary services and resources, so that employees know how to behave in an emergency. The drills are also an opportunity to improve cooperation with a view to minimising the potential consequences of industrial failure.

The employees’ and contractors’ work stations are inspected on a regular basis. Such inspections may for instance take the form of ‘Safety Walks’, safety reviews by management staff, and inspections by the OHS Service.
Audits carried out at the Group companies include internal audits, audits by certification bodies, and audits by risk management consultancies. Moreover, representatives of the Group companies regularly conduct safety audits of the contractors who perform work for the Group. The ORLEN Group has put in place an internal system of consulting and coordination visits. Results of the assessments and observations made during such visits serve as the basis for formulating and implementing correction and refinement plans, workplace health and safety improvement plans, and individual companies’ OHS strategy targets.

Continuous improvement of the safety culture

In an effort to enhance accident-free safety culture at the ORLEN Group, we put a strong focus on building the awareness of safe work procedures and on creating proactive attitudes among our employees and contractors.

One of the programmes in place at the Group is PKN ORLEN’s Employee Support System, dedicated to improving the personal safety culture and thus limiting risky behaviour among the Company’s employees and contractors. The programme employs the Behavior-Based Safety (BBS) approach used at production companies, in a form adapted to our needs. The approach consists in reinforcing safe behaviours during work. In the case of the Employee Support System, the objective is to reduce risky behaviour both among the employees of PKN ORLEN and those of its external contractors, and to promote best OHS practices. The system includes a number of measures to correct hazardous behaviours, prevent dangerous practices, develop safe habits, reinforce desirable conduct, and improve work safety awareness.

In addition, research work was carried out in 2017 in collaboration with the Central Institute for Labour Protection – National Research Institute, to investigate issues relating to shift work at PKN ORLEN. The aim of the project was to formulate sets of practical recommendations and best practices that would contribute to the improvement of safety and reduce the onerousness of the 12-hour shift work at the ORLEN Group.

In parallel, a number of preventive programmes, incentive schemes and competitions for employees and contractors are organised as part of the wide range of initiatives pursued at the ORLEN Group to foster a work safety culture. In 2017, the Group also continued some of its best practices, including the ‘Report a Safety Hazard’ initiative, the OHS incentive programme, and the ‘Safety First’ project. The Occupational Health and Safety Week was also held across the ORLEN Group. This annual event is dedicated to promoting work safety and healthy lifestyles among the Group’s employees and contractors, as well as among customers of the PKN ORLEN service stations.

Key information and indicators regarding safety at the ORLEN Group

Accidents at work involving ORLEN Group employees and contractors:

  2017 2016
  Women Men Women Men
Total number of accidents at work involving ORLEN Group employees1 5 42 3 42
Total number of accidents at work involving ORLEN Group contractors2 10 24 10 19
Total number of accidents at work involving OLREN group employees and contractors 15 66 13 61

1Number of accidents at work involving ORLEN Group employees which were acknowledged by the employer and were the direct cause of the injured employee’s taking sick leave.
2Number of acknowledged accidents at work involving employees of the ORLEN Group’s contractors who performed work for a Group company on premises owned or leased by a Group company, which accidents were the direct cause of the injured employee’s taking sick leave. The definition of ‘contractor’ covers also employees of the PKN ORLEN service stations.

  2017 2016
  Women Men Women Men
Number of fatalities involving ORLEN Group employees 0 0 0 0
Number of minors accidents involving ORLEN Group employees 5 42 3 41
Total number of accidents at work involving ORLEN Group employees 5 42 3 42

 

  2017 2016
  Women Men Women Men
Number of fatalities involving ORLEN Group contractors 0 0 0 0
Number of minors accidents involving ORLEN Group contractors 10 24 9 18
Total number of accidents at work involving ORLEN Group contractors 10 24 10 19

All of the accidents at work involving the ORLEN Group employees and contractors in 2017 were minor accidents.

Combined Total Recordable Rate (TRR) for employees and contractors3

In accordance with the adopted principle that “Contractor safety is as important as the safety of the ORLEN Group’s own employees”, since 2015 the Group has used the Combined Total Recordable Rate covering also its contractors.

  2017 2016
Combined Total Recordable Rate (TRR) for employees and contractors 0.95 0.87

3Counted as the total number of accidents at work involving employees and contractors of ORLEN Group companies and resulting in the injured person taking sick leave in a given period x 1,000,000 / number of man-hours worked by the employees and contractors in this period.

Based on CONCAWE reports, in 2017 the ORLEN Group’s Combined Total Recordable Rate (for employees and contractors) reached a level comparable with the average value of this indicator for the European refining industry.

TRR for ORLEN Group employees4

Total Women Men
2017 2016 2017 2016 2017 2016
1.36 1.37 0.56 0.46 1.64 1.60

4Total number of accidents at work involving employees of ORLEN Group companies and resulting in the injured person taking sick leave in a given period x 1,000,000 / number of man-hours worked by the employees in this period.

The TRR for the ORLEN Group employees has remained relatively unchanged for the last few years, reflecting the process of stabilisation of the Group’s accident rate, which has continued since 2014 following a series of strong decreases in TRR values for the ORLEN Group employees.

Severity rates and number of days lost due to post-accident absenteeism at the ORLEN Group in 2017

Severity rates for accidents at work involving ORLEN Group employees5
Total Women Men
60.23 71.80 58.86

5Quotient of the number of days lost due to post-accident absenteeism of ORLEN Group employees and the number of accidents at work involving ORLEN Group employees, acknowledged by the employer and resulting in the employee’s using sick leave.

Number of days due to post-accident asenteeism at the ORLEN Group in 20176
Total Women Men
2831 359 2472

6Number of days on which ORLEN Group companies’ employees were on sick leaves in the period concerned as a result of an accident at work acknowledged by the employer.

Ensuring work safety and health protection for employees of external contractors performing work on the ORLEN Group premises is one of the Group’s priorities. In order to continuously enhance their safety we have taken a consistent, long-term approach to raising their awareness of the importance of proper risk assessment, potential hazards, risk mitigation methods, OHS rules and procedures, proper use of protective systems and equipment, and the need to report potentially dangerous situations. Besides analysing work accidents suffered by contractors, the ORLEN Group also studies data on sick leaves resulting from the accidents occurring in connection with work carried out by contractors on the premises of Group companies.

However, the Group is not legally authorised to publish such data.

Number of occupational disease cases in each employee group7

  2017 2016
Office and administrative staff 0 0
Higer-rank and mid-level technical staff 0 0
Operators of process units and equipment 3 4
Repair and maintenance employees 0 2
Transport and storage employees 0 0

Total (*ORLEN Lietuva)

3* 6*

7Number of acknowledged occupational disease cases is the number of decisions issued by the State Sanitary Inspector to confirm recognition of an occupational disease of a current or former employee of an ORLEN Group company.

Workers with high incidence or high risk of occupational diseases

The ORLEN Group constantly monitors and identifies factors that may cause occupational diseases among its employees. Work environment surveys are performed on a regular basis and their results are analysed to assess the risk of potential impact on the health of the Group’s employees. With respect to all factors identified for jobs with a high risk of occupational disease, systemic preventive measures have been implemented in the form of technical and organisational solutions offering personal and collective protection. The use of such solutions eliminates the risk of employees developing occupational diseases as a result of harmful factors in their work environment.

The measures implemented by the Group helped reduce the number of occupational disease cases among the ORLEN Group employees by a half in 2017 compared with the previous years.

Number of process safety events, by business activity

In 2017, the number of fires reported at the ORLEN Group stayed largely unchanged compared with 2015–2016. 77% (21 fires) of all fires in 2017 were caused by technological processes, but there were no fires requiring action by the National Fire Service.

Number of fires at the ORLEN Group in 2015-2017

 Number of fires* at the ORLEN Group

  2017 2016 2015
Total number of fires 27 26 25
Of which: relating to technological processes 21 20 18
Of which: requiring action by external fire-fighting services 0 4 6

* Number of reported fires relating to processes operated by ORLEN Group companies, only on the premises owned or leased by the companies, excluding service station premises.

Process safety and Process Safety Management System

Process safety is a state where organisational, operating and technical conditions ensure the safety of industrial processes and effectively prevent any substance and/or energy release into the environment. This in particular refers to process units containing and processing a wide range of chemical substances. Process safety encompasses both occupational safety of employees and safety of technological processes, which, in accordance with applicable laws, is to be ensured on a continuous improvement basis.

Rising to strategic challenges of a modern energy conglomerate and national requirements for the prevention of major accidents, continuous improvement of the efficiency and effectiveness of prevention measures, and mitigation of potential impacts of such accidents, requires that effective and systematic management of process safety be put in place, in keeping with the highest standards set out in the OSHA 1910 regulations. The system guarantees performance of tasks related to building safety awareness and competences of the organisation’s employees, risk analysis, risk management, and drawing on experience gained in-house and from occurrences elsewhere in the world. Presented below are the key elements of the PKN ORLEN’s continuously improved process safety management system.

  1. SAFETY CULTURE – fostering safe behaviours and safety leadership at the Company through management’s decisions and activities aimed at ensuring the highest possible safety standards for the employees and processes.
  2. SAFETY LEADERSHIPinvariably the key aspect of building a safety management system and a safety culture − strong, forward-looking leadership and the prominent role of qualified teams and management personnel influencing attitudes and everyday operating activities.
  3. ROLES AND RESPONSIBILITIESdefining emergency roles and responsibilities at all levels of the organisation and taking measures to build awareness of the need for continuous improvement and prevention, through developing training programmes and providing training to employees responsible for proactive and preventive activities, as well as emergency response training at all levels of the organisation and to other employees on site, including subcontractors.
  4. INFORMATION – ensuring availability of information on process safety as the knowledge needed to identify and implement activities facilitating achievement of the organisation’s objectives; this information must be up to date and easily available in the decision making processes.
  5. MECHANISMSdeployment of mechanisms facilitiating a systematic analysis of the risk of major accident and probability of its occurrence, and therefore enabling its avoidance.
  6. DESIGNING – at any stage of an industrial unit’s life, desigining must be based on the applicable standards and guidelines, and should take into account the possibilities and ways of reducing the likelihood of an emergency.
  7. INSTRUCTIONS AND PROCEDURESdefining instructions for safe operation of process units that use hazardous substances during normal operation, maintenance, shutdowns, and industrial process adjustments.
  8. Supervision over MECHANICAL INTEGRITY – continuous monitoring of the technical condition of plant and equipment, performed through periodic inspections, reviews and tests, in accordance with the regulatory requirements and industry standards.
  9. SAFE WORK PRACTICES – performing work at a unit in conformity with the highest standards and requirements in order to ensure safety at the work stations and continuity of technological processes, and prevent emergencies.
  10. CHANGE AND PROJECT MANAGEMENT – using a systemic approach when changes to an industrial process are necessary, in order to identify whether and how the planned changes may impact process safety.
  11. CONTRACTOR MANAGEMENT – making and abiding by arrangements concerning safe performance of work on the PKN ORLEN premises by contractors’ employees so as to ensure the highest possible safety standards at all stages of such work.
  12. RESPONDING TO FAILURESimplementing the requirement to monitor, in accordance with best available practices, the operation of process units using hazardous substances so that corrective measures can be implemented should any deviation from normal operation occur, including due to normal wear and tear or corrosion.
  13. ANALYSIS assessing the emergency events that have occurred on a regular basis and applying the knowledge gained from incidents at the ORLEN Group or other plants globally, including putting in place mechanisms that foster learning from past experience (lessons learned).
  14. AUDITING AND COMPLIANCE ASSESSMENT – analysing and reviewing regularly the process safety system in terms of its compliance with the relevant requirements; reviewing the Accident Prevention Programme, being one of the key documents and a systematic programme for the implementation of the overriding goal of proactive accident prevention, and the safety management system in terms of their validity and effectiveness, including information on how the validity and effectiveness is documented and approved, as well as the internal operating emergency response plans that are mandatory for upper-tier and lower-tier establishments (i.e. establishments posing a high or increased risk of a major accident).

A synthetic description of the scope and type of activities carried out as part of the individual System elements is contained in the Company’s internal regulations. As the Process Safety Management System comprises periodically updated internal procedures, internal regulatory documents, specific area guidelines and standards in force at PKN ORLEN, a List of Process Safety Management System Regulations has been compiled. The List identifies, for each of the 14 System elements, the most important internal regulations effective at the Company which define the detailed procedures for the individual areas of the System requirements.

ORLEN Group facilities with a high and increased risk of a major accident (upper-tier and lower-tier establshments)
POLAND
PKN ORLEN 6 upper-tier establishments 11 lower-tier establishments
ORLEN PALIWA 6 upper-tier establishments 1 lower-tier establishments
BOP 1 upper-tier establishments ---
ANWIL 1 upper-tier establishments ---
ORLEN Południe 2 upper-tier establishments ---
ORLEN Aviation --- 1 lower-tier establishments
IKS SOLINO 1 ZDR ---
CZECH REPUBLIC
UNIPETROL RPA 3 upper-tier establishments ---
UNIPETROL DOPRAVA 5 upper-tier establishments ---
PARAMO 1 upper-tier establishments ---
SPOLANA 1 upper-tier establishments ---
LITHUANIA
ORLEN Lietuva 2 upper-tier establishments ---
The infographic above illustrates the broad scope of the process safety function. At the ORLEN Group as many as 29 establishments (facilities) are classified as upper-tier, and a number almost half of that are lower-tier establishments, as per the classification framework under the Seveso III Directive applicable across Europe and implemented into national law by all EU member states in 2015. In Poland, the relevant regulations are laid down in the Environmental Protection Law. It should be noted that the establishments of both types have in place modern and constantly improved process safety management systems as an organised method for managing safety, encompassing all the vital safety components referred to above.

To describe the current status of process safety at the ORLEN Group production companies, the Group uses various process safety indicators, including leading and lagging ones, in accordance with the API754 standards. Those indicators are monitored and measured to help achieve the overarching objective of process safety management, which is preventing and minimising the risk of major accidents. These indicators also serve as the basis for benchmarking against the best companies in the industry and thus contribute to achieving process excellence.

TIER 1 and TIER 2 emergencies

TIER 1 emergencies
Emergencies with a significant impact related to a sudden and unexpected substance release due to ineffective protection layers. Such emergencies include a sudden and unexpected release of hazardous substances or non-toxic and non-flammable substances (steam, condensate, hot water, nitrogen, compressed air, CO2) during ongoing industrial processes, having one or more of the following consequences:

  • Injury to an employee of the ORLEN Group or of a contractor or subcontractor, resulting in a sick leave or death;
  • Hospital admission and/or death of any other person;
  • Officially announced evacuation of local residents or recommendation for them not to leave their homes;
  • Fire or explosion resulting in losses in the form of direct costs of at least USD 100 thousand (USD 100,000 x ~3 PLN/USD = ~PLN 300,000);
  • Release of excessive pressure into the atmosphere with the use of pressure relief devices in an amount equal to or higher than the threshold amount in any one hour period;
  • Release of a substance in an amount equal to or higher than the threshold amount in any one hour period.

TIER 2 emergencies
Events of lesser consequence related to a sudden and unexpected substance release due to ineffective protection layers. Such emergencies include a sudden and unexpected release of hazardous substances or non-toxic and non-flammable substances (steam, condensate, hot water, nitrogen, compressed air, CO2) during ongoing industrial processes, having one or more consequences not classified as TIER1, including:

  • Injury to an employee of the ORLEN Group or of a contractor or subcontractor;
  • Fire or explosion resulting in losses in the form of direct costs of at least USD 2,500 (USD 2,500 x ~3 PLN/USD = ~PLN 7,500);
  • Release of excessive pressure into the atmosphere in an amount equal to or higher than the threshold TIER2 amount in any one hour period;
  • Release of a substance in an amount equal to or higher than the threshold TIER2 amount in any one hour period.

Number of TIER1, TIER2 and TIER3 emergencies

TIER1 emergencies

TIER2 emergencies

In 2017, the ORLEN Group continued reporting the T3 (TIER31) process safety indicator referring to near-miss events.

1It has been assumed that TIER3 emergencies are emergency shutdowns of installations or process nodes triggered by active or passive protections (automatic or mechanical). TIER3 ratio is calculated as follows:
- TIER3 production emergencies – number of emergency shutdowns of installations or process nodes triggered by active or passive protections (automatic or mechanical).
- TIER3 logistics emergencies – ratio of the number of emergency shutdowns of product loading to rail tank cars and road tankers triggered by active or passive protections (automatic or mechanical) to the total number of loading operations performed at a given time.

TIER3 PRODUCTION emergencies

T1 PSER2 and T2 PSER3

TIER1 and TIER2 events reported for 2017 involved only emissions into the environment coming from fires and leaks. There were no emergencies causing serious damage to the natural environment. Liquid leaks were collected and properly disposed of.

2T1 PSER = number of TIER1 emergencies (of greater consequence, related to substance release into the environment) * 1,000,000 / number of man-hours worked by employees and contractors.
3T2 PSER = number of TIER2 emergencies (of lesser consequence, related to substance release into the environment) * 1,000,000) /number of man-hours worked by employees and contractors.

Process hazard analyses and reviews of the analyses

One of the measures taken as part of the Process Safety Management System is identification of potential hazards and assessment of process risk as part of the conducted analyses*. Additionally, every five years the analyses are reviewed to check how recommendations are implemented and whether the risk assessment made is still valid.

Number of hazard analyses* and analysis reviews carried out at PKN ORLEN

*The majority of the analyses have been performed using the HAZOP method, and in a few cases the PHA method has been applied.



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