SABIC EXPERIENCE IN IMPLEMENTING RESPONSIBLE CARE

11 December 2012

No. 2

OUR GLOBAL OPERATIONS

SABIC Global Headquarters (1)SABIC Global Headquarters (1)

Technology Centers (11)Technology Centers (11)

Application Centers (4)Application Centers (4)

SABIC Corporate Research SABIC Corporate Research and Innovation Center (1)and Innovation Center (1)Distribution, Storage Facilities Distribution, Storage Facilities and Logical Hubs (51)and Logical Hubs (51)International Subsidiaries and International Subsidiaries and Sales Offices (84)Sales Offices (84)Manufacturing and CompoundingManufacturing and CompoundingCompanies (60)Companies (60)

• SABIC is one of the world’s leading manufacturers of chemicals, fertilizers, plastics, and metals.

• We now operate in more

than 40 countries, with 40,000 employees around the world.

• SABIC is 2nd largest global diversified chemical company* (Forbes 2012)

• We have total 89 B$ total assets and 50 B$ annual revenue (Year 2011)

No. 3

SABIC overall is comparable to the industry best in-class.

SABIC VISION 2020

SABIC overall incident rate (Total Recordable Injury) Employees and Contractors

Fully integrated Management System managed by SABIC Safety, Security, Health and Environment Management Standards (SHEMS)

Management

Systems &

Processes

Professional

Excelle

nce

Measurem

ent &

Intelligence

Performance

Improvement

Key Imperatives

Leadership Beyond

Compliance

To be the preferred world leader in chemicals

No. 4

SABIC AND GPCA

• SABIC is a member of the Gulf Petrochemicals and Chemicals Association (GPCA) and proudly participates in Responsible Care program implementation.

• SABIC CEO is the Chairman of Gulf Petrochemicals and Chemicals Association.

• SABIC made a CEO-level commitment and signed declaration of support to implement RC program at our manufacturing facilities and corporate functions.

• SABIC actively involves in GPCA Responsible Care codes development process and other implementation programs.

No. 5

SABIC RESPONSIBLE CARE

The Responsible Care RC14001:2008 certification of SABIC reflects our commitment to the highest international standards of Environment, Health, Safety and Security

No. 6

OUR ACHIEVEMENTS

SABIC and all its KSA Affiliates achieved Responsible Care (RC14001:2008)multi-site certification in February 2012.

Achieving RC14001:2008 certification provides external validation that we are on the right path toward our aspiration of becoming the preferred world leader in chemicals by achieving the best-in-class EHSS performance in the industry.

No. 7

RESPONSIBLE CARE – HOW WE IMPLEMENTED IT?

• RC14001:2008 Multisite certification:

1. Cycle of recertification is 3 years

2. Periodic audit of 6 to 7 Affiliates and SABIC every year

3. RC 14001 certification is valid for SABIC and its all Affiliates for three years.

• Roles and Responsibilities defined for each functions and facilities

• Functional integration and overall program is managed by SABIC EHSS

• Responsible Care organization established at all level of organization

No. 8

RC IMPLEMENTATION STRATEGY – SABIC EHSS

SABIC Responsible

Care Program

Product Stewardship

CAER

Pollution

Prevention.

Distribution

Security

Process Safety

Health and Safety

– Suppliers to provide EHSS information and guidance for their product by Global Procurement

– To provide EHSS information to distributors, customers by concern SBUs, affiliates

– Employee Awareness (Affiliates)

– Community Awareness (By C.C)

– Emergency Response and preparedness as per SHEM 11 and SABIC Crisis Manual

– Evaluate Chemical distribution risk

– Compliance review and training

– Carrier Safety– Handling and

Storage

– All the requirements cover in SABIC SHEM Standards

– SABIC SHEM Standards meet all the intent of this code.

– Ongoing dialogue with employees and public regarding waste management (By Affiliates/ CC)

– All other requirements cover in SABIC SHEM Standards

– ISO-14001 OHSAS 18001 meet the intent of the code

– Security Requirements all cover in SHEM -14

No. 9

Sabic CEO Commitment

SABIC CEO’s Declaration of Support to GPCA’s Responsible Care initiative in early 2010

CEO signed GPCA Guiding Principles

Responsible Care initiative becomes Corporate Business Objective in year 2011

Detailed action plan with Roles and Responsibilities in early 2011

H1 2011

Res

po

nsi

ble

Car

e M

ilest

on

es

Assessment

Trained 27 personnel as internal auditors

RC Awareness training to around 3500 employees

Pre Assessment by Third party to do Gap Analysis

Responsible Care internal audits for Sabic and its Affiliates (16 Affiliates)

Closure of a number of gaps

External Audit in Sabic and Five Affiliates

Action plan for minor Non Conformance

Third Party Audit

Receiving of RC 14001 Certificate for SABIC and 16 Affiliates.

Detailed action plan prepared to sustain the implementation of Responsible Care program for 2012

Established RC coordinators committee to effective implementation and sharing Best Practices among SABIC Affiliates and corporate functions

H2 2012H1 2012H2 2011 2013

SABIC RESPONSIBLE CARE JOURNEY

RC internal audits and awareness

RC internal audits completed for all KSA Affiliates and SABIC

Total 36 RC general awareness sessions conducted for SABIC and its KSA Affiliates to cover around 2200 employees. Total 6500 SABIC employees trained so far.

RC awareness posters and Booklets published

RC Periodic Audit done by Third Party. Detailed action plan submitted for review and approval

Way Forward

Learn from last year’s audit experience and sustain our collective efforts

Enhance RC awareness among employees and support other regions in RC implementation

No. 10

COMMUNITY OUTREACH PROGRAMS- EXAMPLES

Community outreach programs

• SABIC recognized as “Responsible Company” leading in Responsible Care and sustainable development.

• Common platform with a local community through Corporate Communication function to establish dialogue process and to enhance EHSS awareness.

• Sharing, organizing and communicating EHSS programs to local community and inviting them to participate.

•    

•  

No. 11

WHY WE SUCCEED?

• SABIC CEO has signed Guiding Principles and declaration of support to implement RC program at our manufacturing facilities and corporate functions.

• Strong demonstrated commitment and leadership by SABIC Executive Management

• Responsible Care initiative becomes Corporate Business Objective in year 2011

• Participation in EHSS programs by leadership

• EHSS is a value not just a priority for us.

Management Commitment and Leadership

BENEFITS WE ARE GETTING IN IMPLEMENTING RESPONSIBLE

CARE

No. 13

BENIFITS WE ARE GETTING…

• SABIC recognized as “Responsible Company” leading in Responsible Care and sustainable development.

• Our Responsible Care implementation program becomes benchmark for other industries in the region.

• Improved EHSS performance and better compliance assurance

• Stakeholder expectation

• Improved community relations

• Competitive advantage in industries

• Recognition and positive perception from regulatory authorities

No. 14

SABIC and its KSA Affiliates made remarkable progress in this journey .. Our Responsible Care program will be Benchmark for other region and global companies... Largely due to our “Leadership Commitment and Team Work”..

Responsible Care is a journey, not a Race!

RESPONSIBLE CARE – A JOURNEY

No. 15

RESPONSIBLE CARE – WHY WE ARE DOING?

…To be the Preferred world leader in Chemicals

THANK YOU