Sustainability Report 2010
Table of Contents 1 I Message from the General Manager 11 I Social Performance 2 I FERTIL Philosophy 11 I TRI Frequency 3 I FERTIL Overview 11 I Occupational Health Performance 12 I Health Training 4 I QHSE Policy 13 I Simulator Training 5 I Sustainability Objectives 14 I Red Tag Exercise 6 I HSE Risk Management 15 I Intensive Fire Fighting Training 9 I Environmental Performance 16 I 17 I ICS Training Hazardous Gas Awareness Campaign 9 I Emissions 18 I Slips, Trips and Falls Campaign 9 I Process Effluents 19 I QHSE Activities 9 I Waste 20 I Loyal Employees are Committed Employees 10 I Water Footprint 21 I Investment in Environment 21 I Environmental Expenditure 22 I Awards 22 I ADNOC HSE Awards 2010 23 I HSE Awards for FERTIL 24 I Definitions
Message from GM It is a great pleasure to present FERTIL s first Sustainability Report. The Company signed ADNOC s Sustainability Charter on November 11 th 2009 to demonstrate the full involvement of FERTIL in the sustainable approach. The Sustainability Report evolved from the Health, Safety and Environment Report and expands the scope of responsibility of our company within the UAE Community by including the environmental, social and economic aspects of the performance of FERTIL. FERTIL also addresses the social and ethical aspects of the business by building up its Social Accountability System, SA 8000. FERTIL s achievement of incident free operations for 12 million man-hours and 13 years without LTI, stands as a shining example of its total commitment to QHSE issues. The 2010 Sustainability Report shows that FERTIL is dedicated to developing new initiatives to improve its Sustainability Performance. We at FERTIL believe that the great developmental evolution that has taken place in the UAE over the last three decades is the realisation of a long cherished dream of the great visionary, the late Sheikh Zayed Bin Sultan Al Nahyan and H.H. Sheikh Khalifa Bin Zayed Al Nahyan, President of the UAE. FERTIL contributes to the completion of this dream and to the transformation of the UAE from a barren desert to a green and beautiful land through its sustainable industrial activities which continue expanding in complete harmony with nature. Lastly, looking ahead, I am convinced that FERTIL will successfully develop its activities in a sustainable manner while applying its core values: sustainability, high QHSE standards, community commitment, stakeholders and customer satisfaction. Mohamed R. Al Rashid General Manager Sustainability Report 2010 1
FERTIL Philosophy PEOPLE We take care of the people PLANT The people take care of the plant PRODUCT The plant takes care of the product
FERTIL Overview Ruwais Fertilizer Industries (FERTIL), a member of the ADNOC Group of Companies, was established in October 1980 as a joint venture between Abu Dhabi National Oil Company (ADNOC) and TOTAL, with a shareholding ratio of 2:1 respectively. Construction of a processing plant began in 1980 and production started in December 1983. The plant is located in the Ruwais Industrial Zone, about 250km from the city of Abu Dhabi. The prime objective behind establishing the company was to utilize the lean gas supplied from the onshore fields of BAB, ASAB and Thammama-C, to manufacture fertilizers and to market them locally and internationally. Although FERTIL is a profit-driven company, it has never lost sight of its bigger role in a world whose constantly growing population is striving to increase food production and ward off the prospect of hunger and famine. FERTIL is committed to working towards its global role and is fully conscious of its responsibility in environment protection and a greener and more beautiful world. It is comprised of an ammonia and urea processing plant. The installed capacity of the ammonia plant is 1,000 MTPD and 1,500 MTPD for urea. The plants have fully integrated utility units with storage facilities. The company has been continuously improving its technology and productivity. Today, Ammonia production stands at 1,310 MTPD and Urea 2,200 MTPD. The market for FERTIL s products has expanded considerably since its first shipment. Today, 6% of its annual production is marketed locally within the United Arab Emirates and 94% is exported to the Indian sub-continent, Far East, Africa, USA, Latin America and Australia. FERTIL is committed to working towards its global role and is fully conscious of its responsibility in environment protection and a greener and more beautiful world. Sustainability Report 2010 2-3
QHSE Policy It is the policy of FERTIL to ensure that its activities, and those of its contractors, are conducted with a full and strong sense of commitment to quality, thereby safeguarding the environment, health & safety of personnel, neighbouring communities and customers. No economic criteria shall override considerations of quality, health, safety at work, or concern for the environment. FERTIL is committed to the following objectives: Demonstrate visible and active leadership that engages both employees and service providers and manage Total Quality in health, safety and environmental performance as a line responsibility, with clear authorities and accountabilities, with an advisor appointed for overall responsibility for QHSE. Ensure that all our products and services meet the requirements of our customers at all times and commit to achieve continual QHSE improvement, through the Quality Management System (QMS), whilst complying with all applicable regulatory requirements as a minimum standard. Demonstrate that plant and processes are operated with full regard to Process Safety and that these processes are periodically reviewed, to ensure continuity of safety compliance. Ensure that all employees and contractors are fully aware that working safely is a requirement of employment, and that they are each responsible for their own safety and the safety of those around them. Provide resources and appropriate QHSE training and encourage the participation of all employees and contractors to safely perform their duties with the objective of preventing occupational injuries, illnesses and accidents. Consult with employees on matters related to their health and safety. Provide relevant safety and health information to employees and contractors and require contractors to provide proper training for the safe and environmentally sound performance of their work. Provide competent QHSE advisors to assist the company in complying with legislation and best practices. Ensure that emergency procedures are periodically tested - drills carried out and systematically kept up-to-date to ensure applicability of the Emergency Response Plan and readiness of resources. Review the design of old and new installations periodically, to reduce HSE risks. Ensure all operational activities, regular inspections of equipment and modifications, are conducted in a manner that minimizes risks and hazards to workers, property and the community at large. Work with both government and stakeholders to develop effective, reasonable and equitable control programmes. Ensure that the selection of industrial partners and contractors is on the basis of their compliance with FERTIL s QHSE Policy, or similar Policies. Ensure that this policy is reviewed periodically for continuing relevance. Include information on QHSE performance in the company s annual report.
Sustainability Objectives Health & Safety 0 Fatality Total Recordable Injuries Frequency Rates (TRIFR) < 0.5 Completion of HSE actions 90% Loss of Containment zero M 3 /day Sustainability Objectives Flaring (Pilot only) 288 NM 3 /day Ammonia emission < 50 mg/nm 3 Urea dust emission < 50 mg/nm 3 NO X emission < 350 mg/nm 3 Total Suspended Particles < 250 mg/nm 3 CO 2 emission (10% reduction) < 1.0 MM NM 3 /day Other Objectives Carry out Employee QHSE Awareness Survey. Finalise external Risk Management Studies and report to ADNOC as per procedure. Hold intensive training courses for Emergency Response Team members by external Safety and Fire Fighting Training Provider. Conduct an HSEMS Audit for three contractors. Conduct an HSEMS Self Assessment in March and October 2010. Conduct one REFMAC Drill, participate in mutual aid drills, one Plant evacuation and fifteen In-Plant drills. Conduct Plant Noise Survey. Complete all listed HSE training for the year 2010. Participate in ADNOC, IFA, AFA and RoSPA HSE Awards. Organise Five Occupational Health Lectures yearly. Sustainability Report 2010 4-5
HSE Risk Management FERTIL implemented actions to control and minimize risks within the HSE management system. The following are some examples: ISOs Renewal The FERTIL Integrated Management System (IMS) is a reflection of the quality environment and occupational health and safety management system which are strictly followed in FERTIL. The Moody International Certification carried out a certification audit in 2010 in FERTIL, to verify and certify establishment of integrated management system compliance to ISO9001:2008, ISO14001:2004 and OHSAS18001:2007 standard requirements. The Integrated Management System was documented in a comprehensive manner and implemented thoroughly. Management commitment towards implementation of the integrated system is evident and the quality awareness throughout the company is commendable. High commitment on performance regarding environmental, occupational and process safety was reflected by the FERTIL teams which ensure the required continual improvement in the system. The audit team evaluated the preparedness of the management system through interview, record verification and sampling methodologies, it was evident that the organisation has established and documented an integrated management system which satisfies the requirements of ISO9001:2008, 14001:2004 and OHSAS18001:2007.
HSE Risk Management Health, Safety and Environmental Impact Assessments (HSEIA) for FERTIL-2 Project As per ADNOC requirements, the HSEIA has been completed for projects and existing facilities. The FERTIL-2 Project is of great significance to FERTIL because, after the start up, it will triple the original production capacity. In addition, this project is environmentally friendly: Process liquid effluents are nil. Best Available Techniques are applied, as for example, low NOx burners, condensates treatment and process gas recycling. Non Process buildings are designed according to the ESTIDAMA standard. According to the ADNOC Codes of Practice, HSEIA Phase 1, related to the design stage, was completed. HSE key procedures were validated. Safety reviews were conducted, including HAZOP studies, Safety Integrity Levels and Facility Siting. An HSE Audit was conducted by the Project Management Team and Project Management Consultancy. The findings were included in an action plan which will be strictly followed. The HSEIA Phase 2 is in progress and will be submitted in 2011. Sustainability Report 2010 6-7
HSE Risk Management Process Safety and Integrity In line with compliance to new developments, standards and guidelines, FERTIL decided to implement PSA and HAZOP for the 30 year old Fertilizer Plant running at around 130% load conditions. The existing facility was technically reviewed as per Best Available Techniques (BAT). A team of external consultants and fertilizer experienced experts carried out this study. A Process Safety Audit and BAT were carried out for the entire FERTIL facility and a HAZOP study was carried out for the Ammonia, Utility and Site Logistics Departments. The potential hazards in the complex are Ammonia, Natural Gas, Hydrogen, Nitrogen and Synthesis Gas, operated at a pressure of around 210 bar. FERTIL has listed 508 HAZOP recommendations, 40 Process Safety Audit recommendations and 16 recommendations as per the BAT (Best Available Techniques). This complies with norms, standards and best practices which are applied in the industry from the point of view of safety. It helps to improve the design in relation to principles of best engineering practices.
Environmental Performance Emissions Carbon Dioxide Sulphur Dioxide Nitrogen Oxides Methane Volatile Organic Compounds (excluding methane) 762522 t 79 t 825 t 8773 t 0.32 t FERTIL is keen to minimize the impact of its activities on the environment. The following are some examples of this initiative. The quantity of process effluent discharged to the sea per ton of combined production is being continually decreased. Nil chemical spill incident. Any end product or material is recycled according to the design of the process. Waste Process effluent discharged to the desert Nil Number of oil and chemical spill incidents Nil Total urea waste recycling 200 t Recycled, reused or reclaimed materials 120 t Ozone depleting substances released 187 kg (routine maintenance works fugitive emissions.) Flaring (Flare pilot only) 105120 m 3 /y Energy Consumption/t of combined production 22GJ/t Hazardous Waste 75 t Municipal Waste 250 t Effluents Process water discharged to the sea 256452 t Ton of Process Effluent to Sea/Ton of Combined Production 0.40 0.35 0.30 0.25 0.20 0.15 0.10 0.05 0.00 2004 2005 2006 2007 2008 2009 2010 Sustainability Report 2010 8-9
Environmental Performance Water Footprint FERTIL focused on actions to reduce its water footprint as it is a large consumer of desalinated water. However, water wastage may occur due to process upsets and system inefficiency. Since water conservation is KEY for SUSTAINABILITY it is therefore important to reduce water use and improve water efficiency. In view of this, comprehensive investigations were conducted to overview all sources of water consumption. One source, related to condensate and steam recovery, was detected and was particularly suitable as an example, because it combined both water and energy savings. The reduction of water and energy consumption was successfully completed by optimising the heat load of the concerned exchangers. The result is an annual saving of 130,000 m 3 of water being worth 300,000 USD.
Social Performance Occupational Health Performance Number of reportable occupational sickness cases reported Number of lost time days due to OH cases Nil Nil TRIF The graph shows that TRI Frequency is below, or equal to 1 for a five year period. None, or only one, LTI has occured per year since 2006. This success results from the permanent commitment of management and the full involvement of the employees and contractors. 4 TRI Frequency 2005-2010 3 3 2 1 1 1 0.4 0.7 0 2005 2006 2007 2008 2009 2010 0 Sustainability Report 2010 10-11
Training Programmes Training remains a high priority for FERTIL. The company permanently adapts its training programmes to develop the skills and careers of its employees. Efforts are made to increase the number of trained people as this directly impacts the efficiency of the company. More than 2 employees out of 3 are trained More than 12,000 training hours in 2010 Examples of new training developed within the year are as follows: Health Training FERTIL s attention to Hygiene and Sanitation was aimed at addressing these challenges by raising awareness of the benefit of good hygiene and speaking out for changes in hygiene behaviour. FERTIL conducted refresher training with the objective of enhancing hygiene and sanitation attitudes. As an example, a periodic schedule to sanitize common PPEs and communication equipment was established and implemented. Internationally proven biodegradable, non hazardous cleaning wipes were procured for this sanitizing initiative.
Training Programmes Simulator Training It is of prime importance to FERTIL to train operators to maintain the safe and reliable operation of the plants and facilities as the competence of operating personnel is a critical aspect for carrying out many tasks. In order to reach this objective, a simulator was commissioned and intensive training is being given to the trainees. The simulator was customized for FERTIL process plants operations and its malfunction creation ability gives a near to reality operational experience and in-depth knowledge of the plant. Apart from the default malfunctions and automated training, exercises are also incorporated in the system based on previous and potential incidents in order to train operators. The Trainee Performance Monitoring Facility in the system allows the trainer to test and record the results of the effective training of the concerned person, therefore improving skill and competency. Sustainability Report 2010 12-13
Training Programmes Training: Red Tag Exercise Another challenge for FERTIL is the readiness of operators for plant operation emergencies. New recruits and developees were even more challenged for quicker identification and isolation operations. Different scenarios based on QRA, pipeline failures and utility failures were identified for all operating units. Emergency pre-plans and expectation standards were prepared and drills conducted for all shift groups. A Red Tag exercise is an emergency exercise drill programme aimed at enhancing the emergency response skills of operators, the first responders, by putting them in different emergency scenarios in their area and making them take expected actions within the shortest possible time in order to mitigate impact. These exercises have enhanced the confidence and skill of the operation staff along with their preparedness for a fast response to unplanned shutdowns and emergencies.
Training Programmes Intensive Fire Fighting Training Two sessions of a five day intensive Fire Fighting Training course was held for all FERTIL Fire Crews and nominated Emergency Response Team Members of Plant Departments. The training covered a wide range of both theory and practical Emergency Response activities, such as real time fire fighting, search and rescue operations, HAZMAT Response, High Angle rescue operation and casualty handling. The training has enhanced the confidence and skills of personnel, especially ERT members of Plant Departments in reducing the impact of emergencies. Sustainability Report 2010 14-15
Training Programmes Incident Command System Training An ICS course was organised for Senior Management staff in the Head Office. In case of an emergency, the Facility Response Plan can be implemented by the Incident Management Team in Ruwais and the Crisis Management Plan by the Crisis Management Team in Abu Dhabi. The aim of the training required, as per ADNOC Codes of Practice, is to improve the knowledge of the system applied in the plant, in this case the Incident Command System and how to manage the emergency either in Ruwais or in Head Office. 72 key personnel in Ruwais and 9 in Head Office have already attended.
Hazardous Gas Awareness Campaign In line with management s commitment and a demonstration of Ruwais Industrial Area, ADNOC Group Companies coordination towards HSE, a joint campaign on Hazardous Gas Awareness was conducted under the slogan Ruwais Industrial Complex IS SAFE FOR YOU, FOLLOW HSE PROCEDURES. The gases covered were H 2 S, Ammonia, Benzene and Chlorine. More than 500 personnel attended presentations highlighting awareness on the physiological effects, safety measures, emergency response and initiatives taken by individual ADNOC Group Companies for minimising the impact of gases. Sustainability Report 2010 16-17
Slips, Trips and Falls Campaign FERTIL are concerned with the slips, trips and falls incidents which would be mostly avoidable if a little extra caution or attentiveness was displayed by employees. There were four incidents, two of them resulting in lost time injury. An internal, one day campaign on slips, trips and falls was conducted to highlight awareness to all employees with a view to prevent such incidents. FERTIL participated in the prevention campaign of ADNOC Group Companies.
QHSE Activities FERTIL organised a beneficial awareness campaign party for the families of employees: Safety on the Road and Children s Health at School The first awareness session was presented by a representative from Abu Dhabi Police: Safety on the Road The presentation explained the rules on crossing roads, how to buckle seat belts and information about safety in cars. Two speakers from the Health Authority presented an awareness session: Health at School and explained a healthy way of life, giving children tips on how to stay healthy and maintain a normal weight. Information was also given to encourage the children to perform exercises to keep their bodies flexible and to burn fat in order to keep their weight within a healthy range. Sustainability Report 2010 18-19
Loyal Employees are Committed Employees FERTIL is preparing the Social Accountability 8000 Certification. Companies are increasingly held accountable for the social and ethical aspects of their business. Customers want assurance that products are manufactured without exploiting workers. Experience has shown that implementing a social accountability system is a good way to prove to customers that FERTIL has taken steps to protect workers rights and ensure the ethical production of all goods. ethical shoppers. Consequently, it will improve our relationship with government and the public in general. A clear commitment to social and ethical principles will also make FERTIL a more attractive employer, as employees are increasingly looking to go to work for companies with which they can identify. Letting our employees know that we care about their welfare will also increase productivity. With a social accountability system, FERTIL can address social and ethical aspects of the business. Implementation of a social accountability system communicates that FERTIL ensures a humane workplace for all employees. The provisions of SA 8000, including restricting working hours, health & safety standards and integrated management systems, reduce disruption and improve employee and employer relationships, this may ultimately increase productivity and, therefore, profitability. Including corporate responsibility into our operations means that we strive for a balance between the environmental, social and economic performance of our business. It means that we commit to working with employees, the community and society at large to improve their quality of life. Implementing a social accountability system can give an advantage, as consumers are increasingly becoming
Investment in Environment Environmental Expenditure FERTIL, fully conscious of its responsibility in environmental protection, maintains its effort to achieve its activities in a sustainable manner. Waste Disposal Emission treatment Prevention Environmental Management Costs 300,000 AED 2,240,971 AED 375,000 AED 500,000 AED 11% 15% 9% 65% Sustainability Report 2010 20-21
Awards ADNOC HSE Awards 2009 FERTIL again won an ADNOC HSE Award, category Special Recognition, for its submission PROTECTION against WELDING SMOKES and FUMES. FERTIL implemented a Fume Extraction System to remove welding fumes from the welder s breathing zone. A mobile fume extractor is fitted with suitable filters to discharge purified air in the workshop which ensures protection against health hazards caused by welding fumes and is also useful in preventing the general build up of welding fumes in workshops and confined spaces. This creative and proactive approach towards the protection of employee s health resulted in local extraction as an aspect of safety in welding.
Awards FERTIL received several HSE Awards from various worldwide organisations in the last two years, showing the deep commitment of the company on HSE matters and also demonstrates the cohesion of its HSE Management System. ADNOC HSE Awards 2009 Special Recognition for Protection against Welding Smokes and Fumes RoSPA Awards 2009 Winner of Chemical Industry Sector Award 2010 Commendation Award Other Awards 2010 ISO 9001:2008 Quality Mgt System ISO 14001:2004 Environmental Mgt System BS OSHAS 18001:2007 Occupational Safety Mgt System 2010 AFA & IFA Safety Benchmark Survey Sustainability Report 2010 22-23
Definitions ADNOC Abu Dhabi National Oil Company Near miss AFA Arab Fertilizer Association LTI CO 2 Carbon dioxide. NO X Nitrogen Oxide ERT Emergency Response Team Occupational Sickness HAZMAT Hazardous Material OHSAS 18001 HAZOP Hazard and Operability Study PSA Process Safety Analysis HSEIA Health, Safety and Environmental Impact Assessment QRA Quantitative Risk Assessment. HQ Headquarters REFMAC IFA International Fertilizer Industry Association SO 2 Sulfur dioxide. ISO 14001 ISO 9001 International Organisation for Standardisation regarding the Environment. International Organisation for Standardisation regarding quality. TRIFR An event or chain of events that could have resulted in fatality, injury, illness and /or damage (loss) to assets, the environment, company reputation or third parties. The situation was avoided or reduced by the circumstances at the same time or under slightly different circumstances would have been more serious. Number of Lost Time Injury. A Lost Time Injury is any absence from work related to fatalities, permanent total disabilities, permanent partial disabilities and lost workday cases. Restricted work cases and medical treatment cases are not included in LTIs. Any work-related abnormal condition or disorder, other than an injury, which is mainly caused by exposure to environmental factors associated with the employment. It includes acute and chronic illness or diseases that may be caused by inhalation, absorption, ingestion or direct contact. Whether a case involves a work-related injury or an occupational illness is determined by the nature of the original event or exposure that caused the case, not by the resulting condition of the affected employee. An injury results form a single event and cases resulting from anything other than a single event are considered occupational illness. Occupational Health and Safety Assessment Series for health and safety management systems. Ruwais Emergency and Fire Mutual Aid Committee. Total Reportable Injury Frequency rate is the number of reportable injuries (fatalities + permanent total disabilities + partial total disabilities + lost workday causes + restricted work cases + medical treatment cases) per 1,000,000 hours worked. TRIFR does not include first aid cases.
I am convinced that FERTIL will successfully develop its activities in a sustainable manner while applying its core values: sustainability, high QHSE standards, community commitment, stakeholders and customer satisfaction. Mohamed R. Al Rashid General Manager