ECTA CONFERENCE. Responsible SABIC. Raf Bemelmans Mathijs Ploumen. 23 November 2011

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1 ECTA CONFERENCE Responsible SABIC Raf Bemelmans Mathijs Ploumen 23 November 2011 v

2 SABIC highlights Established in 1976, SABIC is one of the top petrochemical companies in the world Total assets over $84.5 billion and annual revenue exceeding $40.5 billion 33,000 employees and operations in more than 40 countries More than 60 world-class manufacturing and compounding plants in locations across the Middle East, Asia, Europe and the Americas Vast array of products including chemicals, polymers, specialty plastics and chemicals, fertilizers and metals 2

3 The story of growth since 2000 Acquisition 2002 DSM Petrochemicals 2003 Scientific Design 2006 Huntsman (petrochemical operations in the UK) 2007 GE Plastics Partnership 2010 SINOPEC SABIC Tianjin Petrochemical Company (China) Organic 2004 UNITED (Jubail, Saudi Arabia) 2009 YANSAB (Yanbu, Saudi Arabia) 2010 SAUDI KAYAN (Jubail, Saudi Arabia) 3

4 Global operations Manufacturing and compounding companies Middle East (21) Saudi Arabia, 18 Bahrain, 3 Asia (9) China, 4 India, 1 Japan, 1 Korea, 1 Singapore, 1 Thailand, 1 Europe (13) Austria, 1 Belgium, 1 Germany, 1 Netherlands, 5 Spain, 1 Italy, 2 UK, 2 Americas (17) Argentina, 1 Brazil, 1 Canada, 2 Mexico, 2 USA, 11 Global delivery system Supply chain project, EMDAD, ensures products reach global markets effectively 4

5 SABIC s dedication to Responsible Care in the Supply Chain 2008 Board member of SQAS 2009 EPCA representative in ECTA Board to sign RC global charter of ICCA Adoption of RC principles and SQAS in freight contracts GPCA chairman, adoption of RC from ICCA 2010 EPCA representative in ECTA Industry Advisory Council for bulk solids transport 2011 RC Award winner in NL by VNCI: SABIC Trendsetter in Transport Safety 5

6 SABIC supports and relies on ECTA CEFIC best practices We refer to ECTA CEFIC guidelines in our contracts. We currently participate to develop new guidelines: Maritime tipping Working on height 6 We require SQAS assessments and select partners based on these. Progress on SQAS improvements actively driven

7 And we go beyond All SABIC loading sites are equipped with fall stop systems 7

8 And we go beyond 8 SABIC has driven the new load securing standard for soft packaging, in cooperation with competitors

9 And we go beyond 9 Truck driver has to stay on a fixed spot, so the forklift driver can always see him

10 And we go beyond 10 All trucks are checked on cleaning

11 And we go beyond 11 During the hauliers days, safety is the main agenda point

12 And we go beyond 12 We developed a unique visual communication aid, and a test to help us make sure drivers have understood the safety measures

13 It is a journey 13 In order to keep drivers from climbing on pallets, we prohibited tarpaulins. Still, we need to remain vigilant.

14 SABIC wins VNCI Responsible Care Award 2011 From the Judging Panel report: An excellent example of cooperation across the logistics chain SABIC has gone much further than the regulatory framework requires Panel was impressed by the company's awareness towards safety The company feels responsible and has taken the director s role A breakthrough in an area that has been "closed for two decades because nobody had the courage or wanted to take responsibility SABIC has however made the difference A new standard has been set - capturing the spirit of the RC program exactly 14 14

15 SABIC vision: to be the benchmark for the safest supply chain Objective: Zero accidents involving SABIC transport. How: Implementing minimum requirements for all transport modalities. Number of transport incidents Focus on EH&S and responsible care. 2 4 Leading in the industry: Active engagement of Logistic Service Providers, fostering a Responsible Care attitude; To have zero Emission Tank Configuration; Rail Safety Policy. Active and leading role in industry forums / organizations VNCI; CTGG (Commissie Transport Gevaarlijke Goederen); Cefic; CDI / SQAS / EBIS According to Cefic criteria

16 Creating a mindset of Chain Responsibility & Responsible Care SABIC regards our logistics service providers as an integral part of our supply chain. We involve our LSP s through an active dialogue: LSP Day Theme; sharing best practices among the different modes of transport; Creating an atmosphere of open communication and responsible care attitude; Examples show that it works; improvements are being proposed by our LSP s. 16

17 Workshop on best practices showed difference in focus area s Best Practices were supplied by all participants; Best practices were categorized in modalities; Discussion at the tables about the best best practice ; Personal voting on best best practice. Barge - Best Practice 1. Risk management Risk manage... program 2. Development of stability program Development... on board 3. Development and implementation of TMSA (Tanker Development... Management and Self Assessment) Software 4. ZERO Incident targetzero Incide Implementation of quality Implementat... policy 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Barge - Best Practice 18% 44% 33% 15% 30% 23% 8% 15% 10% 9% 15% 15% 10% 54% 56% 54% 50% 67% 73% Best of Best Practice 1. Rail: Reduction of Reaction Accident Time by installing GPS on RTC s 2. Barge: Development and implementation of TMSA (Tanker Management and Self Assessment) Software 3. Survey: Initiated safety platform with peers 4. Road: Effective and efficient training proven by # incidents and # near misses 5. Shipping: We focus on Safety, Environment and Health to comply with the highest standards in the industry 6. Terminal: Safety training program at all levels of the company 39% 23% 14% 11% 11% 3% Rail Barge Survey Road Shipping Terminal

18 Dutch Government sees SABIC as a frontrunner in transport safety Netherlands have highest population density in Europe Increased tension between spatial planning and transport of dangerous goods SABIC believes it is an industry responsibility to pro-actively cooperate with the governments to ensure safe transport SABIC is actively participating in transport safety related developments within the Netherlands, such as: Nota Vervoer Gevaarlijke Stoffen; Basisnet; Taskforce Robuustheid ; Covenant Warme BLEVE -vrij rijden. 18

19 Short Film: SABIC Trendsetter in Transport Safety Start Film 19

20 Behaviour is still the main source of accidents Evaluate BBS Trend Report And performance evaluation Inform & Train Booklet, Video and Test Feed back to Driver & Haulier Inspect & Observe Current Site Programs like Checks on Tank Cleaning, Truck equipment checks 20 In 2012 we will target our and your behaviour, through a comprehensive BBS approach

21 SABIC s vision: All Hauliers Responsible Care Long term partnership with our selected hauliers. Qualitative pre-selection based on high compliance to SQAS standards. On top of this we demand compliancy to the Responsible Care program of CEFIC / ECTA. 21

22 Legal disclaimer The products and services of SABIC are sold and rendered subject to SABIC s standard terms & conditions of sale (GTCS), which are available free of charge upon request, by post or digital. Standard terms & conditions other than the GTCS are dismissed and do not apply. Although any information or recommendation contained herein is given in good faith, SABIC makes no warranty or guarantee, express or implied, (i) that the results or specifications described herein will be obtained under end-use conditions, or (ii) as to the effectiveness or safety of any design incorporating SABIC s products, services or recommendations. This presentation or document does not contain any calculation, estimate or other warranty or representation that customers and third parties may rely on. Customers and third parties are responsible for making their own determination as to the suitability of SABIC s products, services or recommendations for the customers particular intended use through appropriate end-use testing and analysis, and compliance with applicable laws and regulations. Except as provided in SABIC S GTCS, SABIC shall not be responsible for any loss or damage resulting from any use of its information, products or services described herein and SABIC assumes no liability whatsoever in this respects. Nothing in any document or oral statement shall be deemed to alter or waive any provision of SABIC s GTCS or this Disclaimer, unless it is specifically agreed to in a writing signed by SABIC. No statement by SABIC concerning a possible use of any SABIC product, service or design is intended, or should be construed, to grant any license under any patent or other intellectual property right of SABIC or as a recommendation for the use of such product, service or design in a manner that infringes any patent or other intellectual property right. 22