Foundation for Safety Culture Improvement in Pursuit of

Foundation for Safety Culture Improvement – in Pursuit of Safety Excellence Vineesh Kochhar Business Director, South Asia 4 th October, 2012

AGENDA 1. WHO WE ARE? 2. WHY DO IT? 3. WHAT IS IT ABOUT? 4. HOW DO WE DO IT? 5. HOW DO WE KEEP IT GOING? 2

The Foundation of Du. Pont CORE VALUES Safety and Health Highest Ethical Behavior Respect for People Environmental Stewardship 3

The Du. Pont Safety Culture Powder mill operation began in 1802 First safety rules established in 1811 “Safety is a line management responsibility. … No employee may enter a new or rebuilt mill until a member of top management has personally operated it. ” – E. I. du Pont Safety statistics began in 1912 “Goal is Zero” 1990 s Sustainability early 1990 s Off-the-job safety began in the 1950 s PSM Focus mid 60 s Belief that all injuries are preventable developed in the 1940 s Over 200 years, Safety has become part of our DNA 4

AGENDA 1. WHO WE ARE? 2. WHY DO IT? 3. WHAT IS IT ABOUT? 4. HOW DO WE DO IT? 5. HOW DO WE KEEP IT GOING? 5

Drivers for Safety Excellence Performance OD Sustainability Assets 6

What we see v/s what it is! THE TIP OF THE ICEBERG Direct Costs of Injuries l Medical costs l Wage indemnity l Claims administration fees THE BULK OF THE ICEBERG Additional Costs of Injuries l Damaged equipment & goods l Lost production and quality l Process Interruptions/Yield Losses l Replacement Labor / Overtime l Litigation l Damage to Customer Relations & Public Image 7

AGENDA 1. WHO WE ARE? 2. WHY DO IT? 3. WHAT IS IT ABOUT? 4. HOW DO WE DO IT? 5. HOW DO WE KEEP IT GOING? 8

Unsafe Condition or Act? In our experience… The majority of process and personal incidents, injuries and accidents are caused by unsafe acts and behaviors, not conditions and equipment. Unsafe Acts Unsafe Conditions 9

Process Safety v/s Personnel Safety No Future here ! LF / HC HF / HC Implement PSRM Consequence HF/LC LF/LC Implement a safety culture “The Goal is Zero” Frequency 10

Perception of risk Safety Paradox Serious accident/incident Rules violated when perceptions decay over time Companies with SMS Time 11

Safety Hazard Pyramid Fatality Reactive Efforts Majors (LWCs and RWCs) Trailing Indicator Recordable Injuries Near Misses or First Aid Cases Proactive Efforts - Unsafe Acts - Employee-Created Unsafe Conditions Gap in Thinking / Knowledge / Leading Indicator 12

Creating Organisational Ownership Management Standards Operational Discipline x Current State of Client Safety Standards Operational Effectiveness = Current State of Implementation Operational Effectiveness 13

14 AGENDA 1. WHO WE ARE? 2. WHY DO IT? 3. WHAT IS IT ABOUT? 4. HOW DO WE DO IT? 5. HOW DO WE KEEP IT GOING? Copyright © 2010 Du. Pont. All rights reserved. The Du. Pont Oval Logo, Du. Pont™, and The miracles of science™ are registered trademarks or trademarks of Du. Pont or its affiliates.

15 Du. Pont Approach to Safety Three Key Ingredients for Excellence* 1. Risk Anticipation (how risks are understood by people and systematically addressed) 2. Maturity of the Organisation (how people work together and support each other) 3. Operational Discipline (how following the rules is transformed into organizational pride) * in Safety and Other Business Quality Parameters e. g. : Productivity, Quality, Customer Service, Compliance, etc. Copyright © 2010 Du. Pont. All rights reserved. The Du. Pont Oval Logo, Du. Pont™, and The miracles of science™ are registered trademarks or trademarks of Du. Pont or its affiliates.

Safety Culture Transformation Process Reactive (Lagging) Na tu ra sti nc ts Injury Rates l In Proactive (Leading) Sup erv is ion Self Reactive Zero is impossible Dependent Zero is difficult Independent Zero by chance Teams Interdependent Zero by choice 16

17 We assist clients to improve safety performance by providing integration of Du. Pont know-how into client operating environment Transformation Client Management System Du. Pont Owner-Operator Knowledge & DSR Client Experience Client Positive Change Consulting methodology l Our clients have existing management systems that embody certain values and philosophies, and reflect certain organizational priorities. l Our goal is to help our clients develop people behaviors by applying our know-how to their situation using sound consulting methods to create positive change. Copyright © 2010 Du. Pont. All rights reserved. The Du. Pont Oval Logo, Du. Pont™, and The miracles of science™ are registered trademarks or trademarks of Du. Pont or its affiliates.

Building Blocks of Safety Culture 18

AGENDA 1. WHO WE ARE? 2. WHY DO IT? 3. WHAT IS IT ABOUT? 4. HOW DO WE DO IT? 5. HOW DO WE KEEP IT GOING? 19

How Do we Keep it Going Visible, “felt” leadership commitment Safety is not just a ‘priority’. . . it is a ‘VALUE’ Foster ‘will’ and ‘passion’ for change Employee involvement & “ownership” Belief that all incidents are ‘preventable’ ‘Good safety is all about people’ Continuous improvement ‘What gets measured gets done’ – focus on leading and lagging indicators Improvement is a …‘moving target’ – need to keep raising the bar 20

As Leaders, we need to ask ourselves these questions 1. At times, do business goals compete with the safety focus? 2. Where is our organization on the culture curve? 3. Do we drive demonstrated leadership commitment? Is safety a line management responsibility? 4. What is the level of engagement of employees for safety? 5. How can we drive continuous improvement? …… GOAL ZERO! 21

Role of Leadership Schedule Safety Profit Production 22

In closing…. some food for thought! “You get the level of safety that you demonstrate you want!” “We must become the change that we want to see!” 23

24 Copyright © 2009 Du. Pont. All rights reserved. The Du. Pont Oval Logo, Du. Pont™, and The miracles of science™ are registered trademarks or trademarks of Du. Pont or

The Vision of Du. Pont MARKET-DRIVEN SCIENCE © National Geographic image Our vision is to be the world’s most dynamic science company, creating sustainable solutions essential to a better, safer, healthier life for people everywhere. 25

Du. Pont 2011 Segment Sales $2. 5 B $9. 2 B Agriculture Nutrition & Health Performance Coatings $3. 2 B Electronics & Communications $6. 8 B $38 B* $7. 8 B Performance Chemicals $4. 3 B Performance Materials $3. 9 B $0. 7 B Safety & Protection Industrial Biosciences * Total company sales exclude transfers. 26

Du. Pont – 22 Essential Elements of Safety 27

Safety Priority or Value? Safety is a PRIORITY when working safely is a condition of employment, your boss insists you do it and you do what you are asked to do. It affects an individual’s behavior. Safety is a VALUE when you work safely without being told to do so. It is at the center of who you are; it defines who you are and the way you work and live. It affects how you think. Going from priority to value is a process. It takes time and effort on your part. 28

Safety Management Concept Leadership l l l l Management Commitment Policies & Principles Goals, Objectives, & Plans Procedures & Performance Standards Structure Line Management Accountability & Responsibility Safety Personnel Integrated Organization Structure Motivation & Awareness Processes & Actions l l l Effective Communication Training & Development Incident Investigation Safety Observations Contractor Safety Management The Driving Force for Change is Strong Visible Leadership, the Will & Commitment to Change, Rigorous Execution and Enthusiastic Employee Involvement Managing & Accountability Structure (Line Organization) REACTIVE PROACTIVE Incident Investigations Safety Observations Learn From What Happened PREVENT Learn From What Has Not Yet Happened PREVENT 29

Culture change needs collective efforts and time Status Totems Taboos Rituals --------------------------------------------Awareness / Training & Coaching / Involvement / Motivation / Consequence Management 30

India Experience 31

Partners to Safety Cultural Transformation Chemicals Du. Pont Methodology & Approach Works in India 32