ENVIRONMENTAL STATEMENT. for year 2014 SAFICHEM PROJECTS Group. Chemoprojekt, a.s. CHEMOPROJECT NITROGEN a.s. TECHNOEXPORT, a.s.

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1 ENVIRONMENTAL STATEMENT for year 2014 SAFICHEM PROJECTS Group Chemoprojekt, a.s. CHEMOPROJECT NITROGEN a.s. TECHNOEXPORT, a.s.

2 INTRODUCTION This environmental statement documents the performance of SAFICHEM PROJECTS Group (Chemoprojekt, a.s., CHEMOPROJECT NITROGEN a.s., TECHNOEXPORT a.s. ) in conformance with European Parliament and Council regulation No. 1221/2009 which specifies in orders the voluntary participation of organizations in Environmental Management system and Audit Scheme. The statement is addressed to the public and other interested parties to provide brief intelligible information for all persons concerned on our environmental performance. The statement includes all the information required by Attachment IV, EMAS. Jiří Komínek EMS Representative of SAFICHEM PROJECTS Group Třebohostická Prague 10 tel

3 CONTENT 1. Introductory word SPG companies profile History Company History Chemoprojekt, a.s Company history TECHNOEXPORT, a.s Company history - CHEMOPROJECT NITROGEN a.s Company history - SAFINA Service a.s Office Locations Human resources Review of accidents in SPG Description of activity, products and services Production Raw materials HSE policy Basic description of environmental management system Environmental aspects and impacts Environment protection objectives in relation to environmental aspects and impacts on the environment Description of general objectives The most important objective Description of specific environmental objectives Review of specific environmental objectives on particularly projects Impact of offices operation to environment Administrative activities in Communication with public and authorities in Design activities in the year Environmentally significant projects that were completed in 2014: Construction site activities in Compliance with legislation Evaluation of compliance with legislation Certifications Next statement Abreviations Comments

4 1. INTRODUCTORY WORD Dear citizens, In company history, this is the fifth environmental statement, describing the fulfilment of our objectives and programs. SAFICHEM PROJECTS Group represents the proprietarily linked companies (Chemoprojekt, a.s. next as CHP, CHEMOPROJECT NITROGEN a.s. next as CHPN, TECHNOEXPORT, a.s. next as TEX), which implemented the management system of Chemoprojekt, a.s. Now, we try to respect the objectives of this company in the whole SAFICHEM PROJECTS Group. From the beginning of existence of CHP, the primary objective of our projects was to design and to provide such chemical processes for our customers, which are regardful for environment in the extent of legislative and of other valid regulations in the localities designated by customers. We have always achieved this objective and sometimes, due to the creative invention our employees and partners, we even exceeded our commitments by the application of economically acceptable equipment operating below the environmental limits. Our systematic effort was ratified by the Quality Management System (QMS) certification according to ISO 9001:2008, by the Environmental Management System certification according to ISO 14001:2004 and by Environmental Management and Audit Scheme (EMAS) certification according to Regulation (EC) No. 761/2001. Now, we have submitted the Environmental statement for you, in compliance with European Parliament and Council regulations no. 1221/2001, designating the voluntary participation of organizations in environmental management systems and audit scheme from the point of environmental protection (EMAS). Although we relinquished from the third party validation we prepare it in compliance with the EMAS. All the time, we demonstrate that Czech companies can be competitive in world markets. There were no environmental incidents in SPG offices and construction sites. We systematically keep down the negative impacts on environment. We respect the requirement of continual improvement and restriction of negative impacts to the environment and we support this effort by searching and designing of new technologies in the strategic process areas where the acceptable environmental impacts in customer s production localities can be achieved regarding to the resources of input raw materials. The specific characteristic of our products, our activities in primary phases of product life cycles, long innovative cycle periods over many years and a poor access to the information about real impacts on environment do not allow us to obtain the data for the convincing demonstration of our results. However, our products comply with legal requirements and appropriate standards. Our products often replace the old equipment which is not capable of satisfying environmental requirements. Publishing our environmental statement in 2013 is continuing the tradition of issuing objective information about the influence of SAFICHEM PROJECTS Group. Companies managements make commitment to provide the necessary resources for the effective operation of the system. Dear ladies and gentlemen, partners, company owners and representatives, we appeal to your own ideas for the establishing of ISO and EMAS systems and for the sending your results to us. Your ideas will be considerably taken into account by us when selecting the contractors for our projects. Ing. Tomáš Plachý, CSc. Ing. Jan Folk JUDr. Karel Kareta General Director Deputy General Director General Director CHEMOPROJECT NITROGEN a.s. Chemoprojekt, a.s. TECHNOEXPORT, a.s. 3

5 2. SPG COMPANIES PROFILE 2.1. History In year 2011, The SAFINA PROJEKTY Group was established from proprietarily linked companies Chemoprojekt, a.s., CHEMOPROJECT NITROGEN a.s., TECHNOEXPORT, a.s., and SAFINA Service a.s. (is not active since 31 st December 2013). SAFINA PROJEKTY GROUP was renamed to SAFICHEM PROJECTS Group on Recertification IMS of SAFICHEM PROJEKTY Group st March SAFICHEM PROJECTS Group was successfully assessed according to SMETA/ ETI Based Code Company History Chemoprojekt, a.s. CHP is a Czech project, consulting and engineering company, acting in the field of chemical industry since These years can be generally characterized by the construction boom in chemical industry, which stimulated the foundation of CHP the centrally controlled project organization, expanding up to about 2000 employees. The registered company office was in Prague and subsequently, the subsidiaries were founded in Brno, Pardubice, Přerov, Litvínov, Ostrava and Bratislava. Some of the subsidiaries were later rationalised. The basic scope of CHP activities covered the preparation of project documentation needed for industrial plant constructions, various project supervision activities and engineering services during construction. From the point of professional specialization, those were the constructions of chemical basic industry inorganic and organic chemistry, petro chemistry, refineries, gas and oil pipelines, product pipelines, biochemistry, paper industry and also chemical-technological processes in other industrial branches, e.g. pharmacy, power industry, nuclear industry and ecology. A great number of CHP projects are for foreign customers, both in neighbouring European countries and in Middle East countries, e.g. refineries in Syria and Iraq. After the privatization in 1992, CHP focused on all stages of project process activities and the realization of investment projects on turn-key basis. The following major successful projects can be mentioned: nitric acid production unit for Duslo a.s. in Šala, desulphurization of coke gas from plant for Nová huť, a.s., sulphuric acid production unit for Precheza, a.s. Přerov, polyolefin storage in Chemopetrol, a.s., Litvínov. Another completed major investment project was the nitric acid production unit for Lovochemie, a.s., Lovosice. The last completed projects are mentioned in the chapter no Company History Data Overview 1950 Foundation of Chemoprojekt (nationalized company) 1951 Subsidiaries in Bratislava, Ostrava, Záluží and Pardubice 1952 Chemoprojekt trade mark registered; Chemoprojekt, nationalized company was changed to National Project Institute for Chemical Industry with subsidiaries in Brno and Přerov Expansion in nuclear chemistry; project for Nuclear Institute in Rez near Prague 1956 Projects of new plant in Duslo Šala, chief design company on tire plant project for Indonesia 1957 Chief design company on oil refinery project for HOMS in Syria 1958 Department of paper industry established 1959 Pipeline projects Družba, Kaučuk Kralupy; project for plastics processing plant, subsidiary of Czech Scientific-engineering Society established; project for petrochemical plant Slovnaft; Central Committee for Anti-explosion Prevention and Safety established The first issue of magazine Chemical Engineering Practice; more intensive cooperation with research institutes and universities 1964 Software for project works 4

6 1966 Gold medal for fluid reactor design in Leipzig fair (East Germany) 1968 Institute of Automation in Chemical Industry joined Chemoprojekt 1971 Project for urea production unit with storage and shipment equipment 1976 Committee of experts for environmental protection established (emission measurement, noise measurement, waste water quality, prevention measures designing) 1977 Department of Automation in CHP completed the analyzer NAIADA II for water analysis. Chemoprojekt was commissioned by the sponsorship of Scientificengineering-economic Information Institute, supporting the project and design activities in chemical engineering, process equipment design for chemical industry 1979 Paper mill project for Paskov, oil refinery project for Salahuddin in IRAQ 1980 Ferrous pigment production unit for Přerov Chem. Plant; non-waste technology was used Major projects: antioxidant for CD-Duslo Šala, aniline production unit for MCHZ Ostrava, peppermill Paskov, polypropylene/ hydrocrack for Slovnaft Bratislava, petrochemical unit and new refinery for Chemopetrol Litvínov, lubricant production unit for Iraq, ethylene pipeline Boehlen-Záluží-Neratovice, Chemopharma Ústí nad Labem Established Chemoprojekt as nationalized company. Organizational structure/hierarchy: Central office, subsidiaries Praha, Brno, Litvínov, Přerov, Satalice, company offices in Kolín, Písek Plzeň, 1930 employees Chemoprojekt submitted the privatization project on the following structural basis: - transformation of offices/subsidiaries in Prague, Litvínov, Přerov, Kolín, Písek a Plzeň to joint-stock company with divisional organization - office Brno project sale to foreign company ABB LUMMUS Crest GmbH, - Satalice office separated privatization on the basis of restitution (claimed by former owners) 1992 In April, the privatization project was approved; Chemoprojekt, a.s. was founded on 1 st May, 1992 with the authorized capital CZK. Privatization method: voucher privatization 70 %, direct sale of shares 20 %, participation shares 7 %, RIF 3% of shares. The subject of enterprise was modified and extended, especially in engineering services. New Chemoprojekt, a.s. assumed all commitments, claims and rights of former Chemoprojekt On the basis of privatization project, Satalice subsidiary was separated and privatized 1992 Brno subsidiary was privatized acc. To the privatization project direct sale to ABB LUMMUS Crest GmbH. On the basis of licence agreement, the new company ABB Lummus Chemoprojekt spol.s r.o. used the name Chemoprojekt for a few of following years On 11 th November, 1995, French company KREBS, EURISYS GROUP, acting in the field of chemistry, petro chemistry, ecology, fertilizers and in another branches of industry, signed the contract with Chemoprojekt shareholder YSE fund.a.s. The contract was for the purchase of 51 % of shares. EURISYS GROUP had about 5000 employees and its year turnover in 1994 was 4,4 billion Frf The former nationalized company Chemoprojekt was liquidated and erased from the register Chemoprojekt, a.s. certified according to ISO 9001: 1994 (QMS) The organizational structure was changed. The divisions were cancelled and legal, financial, commercial, personal, QA and production departments were established. The production department was split in design and engineering section Technip company became 100%-owner of KREBS company. This led to Technip representation in the board of Chemoprojekt company. Chemoprojekt was incorporated in Technip Group In the end of year, the major shareholder Technip (90 %) merged together with the prominent American company Coflexip. Subsequently, the management of Coflexip 5

7 made a strategic decision about business activities, which resulted in sale of shares owned by Technip in Chemoprojekt, a.s Shareholders: SAFINA, a.s. (46,9%), UNIS, spol. s r.o. (34,5%), Cheminvex s.r.o.(14,5%), small shareholders (4,1%) Chemoprojekt, a.s. certified according to ISO (EMS) and according to Regulation (ES) No. 176/2001 (EMAS) Chemoprojekt, a.s. re-certified according to ISO 9001: Minister of the environment issued the verification about registration in the EMAS program Chemoprojekt, a.s integrated its management system and certified it according to quality management system standards ISO 9001:2000, and environmental management system standards ISO 14001:2004 Shareholder structure was changed: Majority shareholder is SAFINA, a.s. with 81,4%, minority shareholders hold 18,6 % shares 2009 Acquisition of Technoexport Inc Shareholder structure was changed: Holder is SAFINA, a.s. with 100% 2011 SPG IMS certification 2013 Projects personnel transferred to CHPN Shareholder structure was changed: Holder is SAFICHEM GROUP AG with 100% Company history TECHNOEXPORT, a.s. Technoexport was established by Decree No. 311/1953 of the Ministry of Foreign Trade on 18 September 1953, at that time as a foreign trade enterprise involved in the export of complete industrial plants, with its business activity being defined as foreign trade, especially the "export of complete industrial plants and equipment, namely power, mining, metallurgical, chemical, and food plants and equipment. Immediately after its establishment, Technoexport commenced its first export of supplies of operating sections for oil processing to the countries of the former Soviet Union as well as to China and Egypt; operating sections for sugar-beet factories to China, India, Syria, Egypt, and other countries; and complete tyre plants to Indonesia, India, and Cambodia. In the mid-1960s, Technoexport s initial broad export programme was streamlined to focus on the chemical, rubber, and food industries. This export programme was mainly focused at the production activity of its principal domestic partner at that time the prominently specialised company Chepos Brno. In the same period, an extensive programme of export expansion in the said commodities into a whole number of other countries got the green light. Another significant statutory and organisational change in the period of the so-called foreign trade monopoly came about in connection with implementation of Decree No. 243/49 of the Ministry of Foreign Trade, which transformed Technoexport into a joint-stock company on 1 January 1969 with a registered capital of 120,000,000 Czechoslovak crowns, this being set up with the founding members involving 58 major business partners of the original Technoexport. In 1969, a significant expansion in the export of turnkey oil refining plants to Iraq era was also launched when the company was awarded and entrusted with the construction of the first turnkey oil refinery in Iraq, and extensive import activity in the area of petrochemical and pharmaceutical industries throughout the former Czechoslovakia. Logically, an entirely different foreign trade environment appeared after 1989 as a result of the liberalisation of Czechoslovak foreign trade and transfer of the economy to a market economy. Technoexport a.s. was one of the few original foreign trade companies to have managed the transition successfully and survived challenging tough domestic and foreign competition. Over the course of its more than half-century of existence, TECHNOEXPORT join stock company has exported more than 2250 complete plants and technological lines to more than 40 countries around the world, with a good number of these investment projects still operating reliably, providing good references for our export activities in future years. 6

8 Technoexport, the majority owner of which until 2009 was the state, represented by the company Česká inkasní, s.r.o., and later by the Ministry of Finance of the Czech Republic, was privatised by the way of a tender for the purchase of the majority tranche of shares (98.85%). This tender was won by Chemoprojekt, a.s., a design and supplier company, which became the sole owner of 100% of the shares in the Technoexport in 2009 after purchasing the shares of the other minority shareholders. Company History Data Overview 1953 Foundation of TECHNOEXPORT foreign trade enterprise TECHNOEXPORT converted into a joint stock company 2009 Shareholder structure was changed: The holder is Chemoprojekt, a.s. with 100% 2011 Name changed to TECHNOEXPORT, a.s SPG IMS certification 2012 Shareholder structure was changed: The holder is SAFICHEM GROUP AG with 100 % Projects personnel transferred to CHPN Company history - CHEMOPROJECT NITROGEN a.s. CHPN was established in year CHEMOPROJECT NITROGEN a.s. staff recruited from Chemoprojekt, a.s. is nominated in the lead position in the EPC projects executed in cooperation with members of SAFICHEM PROJECTS Group. CHEMOPROJECT NITROGEN a.s. employees have been completing EPC projects in the chemical industry particularly in nitrogen fertilizer branch focusing on the complex engineering activities and EPC projects particularly in the areas of nitric acid, ammonium nitrate, urea wet, urea granulation and aniline. Company History Data Overview 2010 Foundation of CHEMOPROJECT NITROGEN a.s SPG IMS certification 2012 Shareholder structure was changed: The major holder is SAFICHEM GROUP AG with 98 %, minor holder is SAFINA, a.s. with 2% Shareholder structure was changed: The major holder is Casale Holding with 60%, minor holder is SAFICHEM GROUP AG with 40% Company history - SAFINA Service a.s. The company provides the whole SAFINA PROJECTS Group accounting, financial, banking and auditing activities, including personnel and payroll services. Company History Data Overview 2010 Foundation of SAFINA Service a.s SPG IMS certification 2013 SAFINA Service a.s. is not active since 31 st December Personnel transferred to CHP and CHPN. 7

9 2.2. Office Locations The main office of all SAFICHEM PROJECTS Group is in Prague 10, Třebohostická 14. Companies CHP and CHPN have their offices in Litvínov, Ruská 945 and CHPN has offices also in Brno, Karásek 1. Office buildings are situated in commercial areas (estates, shops, service establishments). Except office activities, the company management system allows to control and to supervise the activities on construction sites, which are generally located in the industrial areas. The distribution of employees in SPG offices is demonstrated in the enclosed diagram. The distribution of employees in each company: 8

10 2.3. Human resources In the year 2014, the average number of employees in SAFICHEM PROJECTS Group was 197 (in company CHP 31, in company CHPN 154 and in company TEX 12). Structure of employees regarding to particularly professions are illustrated in the following graphs. 9

11 2.4. Review of accidents in SPG Review of accidents in 2014 CHPN CHP TEX 1. Number of employees (average per year) Number of worked hours per year Number of fatal accidents Number of accidents with absence Number of accidents without absence Sum of accidents Number of days of absence Frequency of accidents [f] 7,9 14, Number of accidents per 1000 employees 13 32,3 0 f = No. of Sum of accidents x10 6 working hours for all employees 2.5. Description of activity, products and services The main program of the SAFICHEM PROJECTS Group is to provide complete services in business, design, engineering, financial, and ensuring the implementation of investment projects in the following industries. These services include: projects management (management, time schedule control, costs control, quality assurance, administrative activities, design control), designing (process including environment and safety, mechanical, piping, civil engineering, electrical, process control systems), procurement, construction management, start-up of units, operational personnel training and project documentation. Products strategy of SPG is focused on following areas with objective of keeping or creating continuously accessing to the best available technologies: inorganic chemistry, nitrogen chemistry (CHPN), refinery (TEX), energy (TEX), water treatment (CHP), bio fuels (TEX + CHP Brno), long-distance pipelines, storage, offsite units(chp), food chemistry, breweries, sugar factories (TEX), incinerator (CHP), gas treatment (TEX), services in the using of CZ and EU supporting funds Simultaneously, the company is aimed at application of new selected technologies and other areas of industry and infrastructure. More information you can find at Product strategy products, licensors, know-how owners: nitric acid (Borealis), ammonium nitrate (Borealis, Espindesa, INCRO), urea, granulation (Stamicarbon), polyphenylene ether (CHP Chemicals), aniline (BCZ), methylaniline (CHP Chemicals, BCM), butadiene (JSR), hydrogen (Haldor Topsoe) natural gas treatment (CHP, Sofregas) 10

12 plasma (Phoenix), water treatment (EKOFLUID), communal waste incinerators, toxic substances incinerators (CHP, Bresson), Semi finished technologies regarding to products: nitric acid weak acid and concentrated acid, (PLINKE), ammonia, hydrogen (Haldor Topsoe, Amonia Casale, UHDE), cyclohexylamine (BCZ), 11

13 2.6. Production The following diagram shows turn-over per employee in thousands of Czech crowns for companies of SAFICHEM PROJECTS Group in year 2014 and its history. CHPN starts its work at year Raw materials The raw materials we use can be divided to three basic groups: Raw materials for our office activities Our main raw material is paper, which we use for information s recording, and toner, which we use for printing documents. Raw materials for production the unit that we supply Raw materials for production are selected to respect client s specifications, agreed standards and legal requirements. The environmental impact of each raw material is considered. Special attention is given to the use to hazardous chemicals. Raw materials for production/ construction of production unit Project engineers in particular professions choose materials for production and plant construction considering the operating life and safety of whole production unit. The primary objective of offer-stage of project is to choose materials such as to chemicals and conditions, in which unit will be operated and consequently to calculate amounts of used materials. Project engineers optimize the process to provide consumption as low as possible. Data about material and quantity are during designing recorded in design documentation and it is possible to use it for determination of consumption until realization of construction begins. Data about material consumption during operation of handed-over units are mostly not available to us. Material choosing is accomplished according to suppliers recommendations of construction parameters (tightness, stability, attrition, corrosion and so on). Electrical plants are chosen according to environment, health and safety in extreme conditions of chemical plants, abnormal and emergency operation situations. Materials for control systems are designed to provide correct operation of measuring and sensors even during emergency operations in the aggressive surroundings of chemical plants. 12

14 3. HSE POLICY 13

15 3.1. Basic description of environmental management system The environmental management system is established according to ISO and the European Parliament and Council rule No. 1221/2009 from November 15 th, 2009 about the voluntary participation of organizations in the company management system and audit from the environmental point of view (EMAS). The environmental management system is a part of general management of SAFICHEM PROJECTS Group and is integrated with quality management system. Introduced system of document control is valid either for control of EMS documentation. Regular measuring and monitoring is provided on the basis of monthly reports of company and projects. There is a valid individual record for each employee that stores notes about passed trainings and induction to new company documentation for each employee, including the EMS documents. Training is the responsibility of the Head of unit. Environmental objectives of company are defined by the HSE policy and by the company strategy. Environmental objectives and programs of projects are defined by contract with customer, legal and other regulations, quality plan and HSE plan of construction. Environmental objectives and programs are defined carefully considering the significant environmental aspects and legal regulations and other related decrees, and the technological, financial and time scale options. Environmental aspects of the processes are defined by process owner. Environmental aspects of the projects are defined by project managers with the help of HSE representatives of the projects. Project manager selects projects which are important in relation to environment protection. For these projects, the project manager defines, with the help of Project HSE specialist, the environmental aspects and impacts. A register of environmental aspects and associated legal requirement is prepared for each selected project. HSE project specialist also defines environmental objectives for the project. Projects with important environmental aspects have environmental programs. The activities of SPG can be divided in three categories from the EMS point of view: - office activities, - design activities, - activity on the site. The EMS is a control system, which enables us to provide constant improvement of the environmental profile of SPG. The EMS audits are planned, executed and recorded according to ISO requirements. Quality management procedures are used for planning, executing and recording of EMS audits. The EMS review is executed in one year intervals unless the C.E.O.s of companies of SPG specifies otherwise. The review is executed simultaneously with the QMS review. In accordance with customer requirements, we are designing either emergency management system as an emergency control for the case of anomaly situations as fire, hazard of air pollution, release of hazardous chemicals to water, or high water. The external communication with the public is provided through our web sites. The communication with authorities concerning the environment is provided through regular annual waste-production reports and through the reports about introduction of the packages to the market. 14

16 HSE organization C.E.O.s SAFICHEM PROJECTS Group Management representative for EMS for group Process owners for Integrated Management System Project Managers HSE manager Employees in group member companies. HSE deputy In the project HSE deputy On site Process implementators in the project 15

17 4. ENVIRONMENTAL ASPECTS AND IMPACTS We identify direct environment aspects for the following processes: infrastructure control, document control, construction and installation control, commissioning and start-up. Indirect environmental aspects are identified for processes: design of technological process, mechanical design, civil design, piping design, electrical design, process control and instrumentation design, sub suppliers procurement. Considering the project objectives, the realized processes are selected and environmental aspects and impacts are defined. Heads of departments identify environmental aspects of processes realized by particular departments. Project managers in co-operation with HSE representative define environmental aspects for the project. Relevant processes realized within the project are introduced into the project quality plan. The basis for the identification and evaluation of the environment aspects of project are the balance charts of inputs and outputs defined in QMS design procedures. This provides the elaboration of environmental aspects register linked to the supplied technological process. For one aspect, we identify the conditions for standard, special and emergency operation, together with determining of the environmental impacts, time schedule, importance of aspect and the way of aspects management (direct/indirect). The evaluation of environmental aspect significance results from the importance and extent of its environmental impact. The significance of the project environmental aspects is evaluated according to interested parties requirements, law requirements and HSE policy requirements. The project managers can use the environmental aspects register and aspects related to the designed production unit to define the environmental project objectives. The following table identifies the most important direct environmental aspects and impacts: Activity Aspect Impact Objective resulting from the valuation of the aspect Administrative Consumption of raw Exhausting of Reduction of raw materials materials natural resources consumption Design Consumption of energies Reduction of energies Project Management (thermal and electrical) consumption Consumption of water Reduction of water Housekeeping Waste water production Pollution of consumption environment Reduction of solid waste Solid waste production produced/ Providing of Customer construction site Transport As above + Movement in area of hazardous chemicals As above + Endangering of environment by chemicals maximum waste recycling As above + Adhering of HSE Plans for construction sites Fuel consumption As above High efficiency and planning Air pollution of business trips 16

18 5. ENVIRONMENT PROTECTION OBJECTIVES IN RELATION TO ENVIRONMENTAL ASPECTS AND IMPACTS ON THE ENVIRONMENT 5.1. Description of general objectives General objectives represent continual improvement of the environment protection in the field of our actions and services. We publish our progress and environmental performance improvement as we see it as a source of competitive advantage for the company. We also seek new technologies for the strategic fields, which are able to achieve acceptable environmental impacts for our clients. 1. The most important is the staff awareness toward the responsibility for the company environment profile by participating to the process of continual improvement of the environment protection during performance of the company activities. 2. Alleviation of the impact of our products and services on the environment. a) Impact of operating units on the environment in the design stage assessed by data from detailed project documentation in relation to legal limitations. b) Impact of operating units on the environment assessed by data obtained in the project stage of construction, testing and start-up. 3. Environmental impact reduction, achieved through the participation of all staff, which is evaluated on the basis of measuring and monitoring related to the performance indicators. We will ensure the observance of the guaranteed parameters and environmental objectives through: - environmental considerations during the selection of the supplied equipment, - environmental requirements specified during the selection of vendors, - if it is possible for project, selection of the Best Available Techniques (BAT), - correct application of recommendations resulting from hazard assessment (HAZOP) and leading to the reduction of risks The most important objective Reduction of the impact of our products and services on the environment. Target: Determination by sum of impacts of designed or constructed customer s production units in one year (see project documentation). Deadline: The 31 st of December present year Responsible: All project managers Realization team: All members of project teams Item No Introduction of employees Evaluation of project Step with environment aspects and impacts of processes delivered to purchaser Indicator Review of entering data (input) Final month project report with refer documents Assembly of company environment status declaration Release of company environment status declaration Responsible employee Project Manager Project Manager The EMS Representative Personnel providing Members of the project Manager of the project HSE deputy for teams project Technical equipment - - Personal computers Deadline Economical and financial impacts According to contract with According time schedule 1 st quarter of next purchaser and project HMG of project year Evaluation of objective included in chapter 6.3 and

19 5.2. Description of specific environmental objectives Within every project, the significance of designed environmental aspects is reviewed. For projects, where significant environmental aspects are designed, the environmental objectives are noted to appropriate project Quality plan. The specific environmental objectives include the achievement of guaranteed parameters and parameters acceptance conditions, and they are realized through the implementation of pre-defined standards. For each design activity, the following specific objectives are watched: - optimal process design solution from the viewpoint of minimizing of consumption of raw materials and additives, minimizing of production of waste/ emissions, eventually waste recycling, - optimal equipment design from the viewpoint of materials economics, utilities and adequate level of HSE, - optimal design of piping from the viewpoint of materials economics and insulation with the application of process safety measures, - optimal design of civil constructions from the viewpoint of materials economics together with the achievement of hygienic, personal safety and fire safety standards, - optimal design of electricity system and selection of instrumentation/ process control system from the viewpoint of increased requirement for drive controls, process controls and accident prevention. The above mentioned activities lead to the reduced consumption of materials, utilities, additives and to the minimization of emissions to air, waste water, solid waste and noise emissions Review of specific environmental objectives on particularly projects The following chart illustrates environmental improvements we have designed to achieve the environmental objectives for the projects that were under progress in the year 2014 and were determined as environmentally critical. Designed arrangements: Environmental program (project) Positive biodiversity impact Minimisation of energy consumption (heat and power) Minimisation of fuel and water consumption Minimisation of air pollution Minimisation of waste water production Minimisation of solid waste production Prevention of hazardous chemicals releasing Improvement of environmental profile of the unit 1G0008C UREA REVAMP 900 T/D DUSLO note 1 N/A 1E0098C LDAN 900, HDAN 900 NOVOMOSKOVSK (1E0236N AN 1800 SUPPLIES note 2 NOVOMOSKOVSK) Russia 1E0115N REVAMP AZOMURES note 3 N/A N/A H0005N Urea Plant 1500 MTPD with Granulation Unit N/A Note 1: Project is completed and delivered to the customer, accounting still open. Guarantee test took place in 2014, handover and takeover of the work of Note 2: Project documentation handed, being built under the direction of the customer. Environmental targets cannot be assessed yet. Note 3: Project works started at Project is in design stage. Environmental targets cannot be assessed yet. Explanation: Environmental objective was achieved, X Environmental objective was not achieved, N/A Mentioned environmental objective is not applicable on project 18

20 Conclusion: All of the above mentioned projects were designed with as many environmental considerations as possible, while considering client requirements and legal requirements. 6. IMPACT OF OFFICES OPERATION TO ENVIRONMENT 6.1. Administrative activities in 2014 The administration activities represent daily operation of CHP buildings (offices Prague and Litvínov) and daily operation of SPG offices in Brno and Hradec Králové. 1. In Prague office the average number of persons in building was 254 (154 employees of SPG and 100 persons in subleased offices). 2. In Litvínov office the average number of persons in building was 43 (32 employees of SPG and 11 persons in subleased office). 3. In Brno office the average number of SPG employees was 11. The average number of SPG employees in 2014 was 197. Key indicators: Water Energy efficiency Material efficiency Water demand (m 3.y -1 ) Electricity demand (MWh.y -1 ) Heat demand (GJ.y -1 ) Gas demand (MWh.r -1 ) Paper demand (t.y -1 ) Toner demand (t.y -1 ) Fuel demand (l.y -1 ) Prague (per person) Litvínov (per person) Brno* *See - - (per person) Prague TOTAL (per person)

21 Evaluation of key indicators: Water consumption, power consumption and heat consumption is mainly dependent on the weather, 2014 had contrary to previous years a very mild onset of winter. In 2012, it was failure of one heating line in Prague and therefore higher power consumption, which was also used for heating. In recent years mainly thrives reducing paper consumption and fuel. Despite an increase in toner consumption with regard to the ongoing projects have managed to reduce paper consumption through better printing on both sides when the situation allowed. The CO 2 production key indicator is counted from total heat, electricity and gas demand of whole SPG: Heat consumption expressed as CO2 emission is: 177 t CO2 per year. Electricity consumption expressed as CO2 emission is: 378 t CO 2 per year. Natural gas consumption expressed as CO2 emission is: 14,3 t CO 2 per year. Car fuel consumption expressed as CO2 emission is: 84,8 t CO 2 per year. The total CO 2 production is 754 metric tons in SPG per year Evaluation of waste production: According to the internal directive procedure must be separated: paper for shredding and junk paper, plastics, glass, metals, batteries and other reusable waste. All kinds of waste are disposed by authorized companies. In Prague, the waste disposal is provided through the 513 department, which either provides coordination with other CHP office locations. The amount and type of produced waste is recorded and sent through yearly reports to the competent public authorities. 20

22 Wastes in Brno are included in lease agreements and cannot be evaluated. Waste production: Waste Paper (t.y -1 ) Plastic (t.y -1 ) Mix waste (t.y -1 ) Hazardous waste (t.y -1 ) Total (t.y -1 ) Prague (waste per person) Litvínov (waste per person) TOTAL (waste per person) Evaluation Total waste has been successfully decreased in recent years, with the exception of 2013 when the discarded documentation has been shredded. Metals and hazardous wastes are wastes generated fitfully especially at decommissioning of the installations. In SPG is an effort to minimize such waste Communication with public and authorities in 2014 No complaint or instigation was recorded from the public to any of companies of SPG regarding reminders about the environment. One waste-production report was sent to the authorities from CHP. 21

23 6.3. Design activities in the year 2014 The main responsibility for the evaluation of project influence to environment is on process engineer. The process engineer cooperates with HSE project manager who consults over special problems with external partners or eventually, with state authorities. Reduction of the impact on the environment is provided by the definition of the environmental aims: - Reduction of energy consumption - Reduction of fuel and water consumption - Reduction of air pollution - Reduction of waste water production - Reduction of solid waste production - Prevention of hazardous chemicals releasing - Improvement of environmental profile of the unit Environmentally significant projects that were completed in 2014: 1E0098C LDAN 900, HDAN 900 NOVOMOSKOVSK (1E0236N AN 1800 SUPPLIES NOVOMOSKOVSK) Russia - Project only 1G0008C UREA REVAMP 900 T/D DUSLO - Project, construction 6.4. Construction site activities in 2014 Our activities on construction sites and our impact of our sub-suppliers of civil works, steel structures, pipe-works, equipment installations, assemblies and all other services is in compliance with relevant legislation. The part of site-work organization is the environmental care documentation which is based on relevant laws and regulations applicable to the customer. On site, the checking procedures are organized (under supervision of responsible person appointed by the client) if the regulations and laws are kept and if the required documentation is maintained appropriately. Site activity: 1E0115N REVAMP AZOMURES, Romania 1E0098C - LDAN 900, HDAN 900 NOVOMOSKOVSK (1E0236N - AN 1800 DODÁVKY NOVOMOSKOVSK), Russia (construction under the direction of the customer) In 2014 were completed these constructions supply of Chemoprojekt, a.s. (environmentally significant projects): 1G0008C UREA REVAMP 900 T/D DUSLO, Slovakia 22

24 7. COMPLIANCE WITH LEGISLATION Legal and other requirements are included in the Register of Environmental QMS Processes Aspects maintained by process owner and in the Register of Environment Aspects by HSE project representative. Employees of SPG have the opportunity to use legal information system CODEXIS, which identifies laws, acts decrees and documentation of government. The information system is updated once a month. All employees have access to the online standard system on the web site of Department for technical Standardization, Metrology and State Quality Control: Project requirements are presented in the project contract and documentation. These documents are available in the project folder on PC network. These include: A. Summary of requirements relating to: - international regulations, - national legislation, - regional acts, - internal policies of customer, - procedures require by licensor, - directions and processes of SPG B. Requirements relating to safety and environment: - system of hazardous chemicals handling, - product wastes analysis, - emergency shut down and releasing valves, - analysis of procedure of the generated dangerous components reduction (solid, liquid and gaseous) in accordance to most developed techniques and standard customer facilities. Special attention is applied to design of closing circuits for disposal of continual or emergency waste from the chimneys or from emergency equipment, - methodologies of reducing the sound level are analyzed in the stage of selection of equipment and final sound level in the facility is evaluated by map-measuring, in accordance to the standards and legislative requirements, - Material safety data sheets for dangerous materials, - emergency processes for accidents, - documentation for emergency equipment, which is available. C. Process engineering requirements such as : - chemical and physical quality of the product, - analysis of the outputs and eventually side-products, - construction material data sheets, - design of the utilities systems is analyzed with special stress to achievement of reliability of critical circuits (e.g. electricity, cooling water, etc.), - operational manual for each unit. D. Mechanical design requirements such as : - analysis of equipment and piping to optimize plant safety, - additional safety requirements for design, E. Civil engineering design requirements such as : Analysis of design basis, with particular attention to the fire protection structure extent, application of safety criteria to layout of the buildings and deflagration protection in closed spaces (e.g. explosion control panels), safety analysis for air conditioning and ventilation system. The analysis also includes the construction site environmental conditions and the limitation of fire propagation (e.g. fire wall). F. Measuring & regulation design requirements: Analysis of the measuring & regulation with objectives to achieve the best safety. G. Electrical design requirements: Analysis of the electrical design is stressed to electrical equipment safety and to compliance of the special requirements with the legislative and standards. 23

25 Within the site activities, all of necessary restrictions, resulting from the legal requirements, are recorded on the construction HSE plan and continuously controlled by civil and construction supervisors. The construction site is visited by customer representatives and state authorities, as required by legal requirements. Evaluation of project requirements is recorded in the monthly reports and final reports. The summary of all project requirements is evaluated by the management of the company once a year for reviewing of the system Evaluation of compliance with legislation Evaluation of compliance with legislation is presented to the company management through Management Review once per year. The records are saved and available on computer network. In particularly compliance is evaluated: a) by office activities once per year through periodically audits, b) by design activities during the project stages EIA, Planning Permission, IPPC and Building Permission, c) by site activities - on periodic meetings of site management, - by site approval process. In 2014, there weren t found any disagreements in the area of compliance with legislation. 24

26 8. CERTIFICATIONS 25

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31 9. NEXT STATEMENT Our next statement will be issued in April

32 10. ABREVIATIONS BAT CHP CHPN EIA EMAS EMS FAME HAZOP HSE IPPC ISO KÚ M+R MTPD PPE QMS SMJ SP SPG TEX ÚŘ ŽP Best Available Technique Chemoprojekt, a.s. CHEMOPROJECT NITROGEN a.s. Environmental Impact Assessment Eco-Management and Audit Scheme Environmental Management System Fatty acid methyl ester Hazard and operability Health, safety and environment Integrated prevention and pollution control International Organization for Standardization Regional institution Measuring and regulation Metric tons per day Poly-phenylene ether Quality management system Quality management system Building permission SAFICHEM PROJECTS Group TECHNOEXPORT a.s. Regional process Environment 31

33 11. COMMENTS 32

34 Head office: Třebohostická 14 Prague 10 Czech Republic phone: