Qatar Energy Industry Sector - Sustainability Report 2012 Contributing to Qatar's Sustainable Development
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Qatar Energy Industry Sector Sustainability Report 2012 Contributing to Qatar’s Sustainable Development
Qatar Energy and Industry Sector 2012 Sustainability Report About This Report Welcome to the third sustainability report of the energy and industry sector in the State of Qatar. The report focuses on the consolidated 2012 performance of 35 companies, covering a range of sustainability topics, and highlighting their contribution to the sustainable development ambitions of Qatar. The report has been produced by the Qatar Petroleum’s HSE Regulations and Enforcement Directorate (DG), custodians of the Sustainable Development Industry Reporting (SDIR) programme, a sector-wide initiative lead by His Excellency the Minister of Energy and Industry. In producing the report, the sector has used the reporting framework of the SDIR programme which has been developed in line with a range of international corporate sustainability reporting guidelines as summarised in the report. The reference guidelines include the Global Reporting Initiative (GRI) G3.1 reporting guidelines, the GRI Oil and Gas Sector Supplement and the oil and gas sector specific IPIECA reporting guidelines. The performance data and information presented in this report has been supplied to DG by the 35 companies within the sector, and has gone through a review process. Companies are being encouraged to conduct assurance on their statements and data. This report has been subjected to review by a range of stakeholders, but no formal third-party assurance has been conducted on the information contained within it. For more information on the SDIR programme and this document, please contact patel@qp.com.qa Contributing to Qatar’s Sustainable Development
Table of Contents Message from the Minister of Energy and Industry 6 Message from the HSE Regulations and Enforcement Directorate – DG 8 Executive Summary 10 Overview, Context and Stakeholders 14 SDIR Programme and Sector Performance 20 Health and Safety 34 The Environment 60 Climate Change and Energy 84 The Economy 106 Society 120 Workforce 132 Appendix A – Participating Companies 149 Appendix B – Case Study Reference 153 Appendix C – SDIR Indicators 158 Appendix D – GRI and IPIECA Alignment 159 Appendix E – Acronyms, Glossary and References 160 Feedback and Contact Details 163
I am very pleased that our For the next reporting cycle, sector Sustainable Development I would like the sector to Industry Reporting (SDIR) consolidate and improve on programme has emerged as one the progress already achieved, of the most effective initiatives and I expect to see participating advancing the State of Qatar’s companies: ambitions for sustainable Message from the • Reinforce performance reports development. and assessments by basing them on company specific The Energy and Industry Sector five-year sustainable Minister of Energy and H.E. Dr. Mohammed 2012 Sustainability Report development strategies and consolidates the remarkable plans. Bin Saleh Al-Sada progress of this initiative in • Report health, safety, driving sector-wide performance Industry Minister of Energy and Industry environment, and overarching and transparency. We witnessed Chairman and Managing Director sustainable development an increase in programme Qatar Petroleum performance by using the participation to 35 companies SDIR indicators and other and improvements in their international guidelines. systematic reporting against 33 sustainability indicators. Areas • Assure the quality of of notable progress include performance data and expanded coverage, improved statements through verification data quality, better presentation processes, continuing to of key performance insights and enhance our collective ability to trends, and the timeliness of the determine trends and insights report. for the sector and subsectors. • Move towards publicly From the data presented in this releasing their sustainability report we can see a number reports before June every year, of areas where the sector has using various channels of performed strongly, namely a communication for meaningful reduction in flaring, employee engagement with a wide range injury and illness rates, as well of stakeholders. as increases in Qatarization, female employment, revenues The SDIR initiative remains and community contributions. the cornerstone for advancing Challenges remain as the sector the Qatar energy and industry experienced eleven fatalities in sector’s performance and 2012. We need to continue to leadership on sustainable reduce environmental impacts development and a key enabler while also driving expansion and of the Qatar National Vision 2030 growth. and the National Development Strategy 2011-16. We shall take The SDIR programme has proactive steps for engagement now established a platform in an effort to learn and share on for stakeholder engagement, the international and national baseline company and sector stage. Our approach can be wide reporting, and awards for replicated by other sectors in best performance. These are Qatar and provide an example for all elements of our envisioned other parties to follow. sector framework for sustainable development that will also I am appreciative of the include a forum for collective commitment and active policy alignment and input, participation of the entire sector sector strategy development and in making this vision a reality for performance assessment. our country. H.E. Dr. Mohammed Bin Saleh Al-Sada Minister of Energy and Industry Chairman and Managing Director, Qatar Petroleum Sustainability Report 2012 pg 7
Welcome to the Qatar Energy and As in previous years, the report has Industry Sector 2012 Sustainability focused on issues relevant to the Report, a consolidated State of Qatar, with the focus in presentation and valuable source 2012 on the themes of health, and Message from the of information on the sector’s sustainability performance. on energy and water management. Guidance on these topics was provided to standardise and HSE Regulations and This year, the sector has risen to improve reporting approaches. the challenge of achieving higher levels of disclosure by a larger We will focus on offering number of companies while also participating companies the Enforcement Saif S. Al-Naimi producing the report much earlier than in previous years. Areas of particular improvement include: tools and guidance through documentation and workshops on a range of important topics, Directorate - DG • Improvements in data quality: including: Director To better understand the quality • Supporting the companies HSE Regulations & Enforcement of the data being provided, in developing high quality Directorate (DG) companies this year have sustainability reports for public been asked to state the basis release, using international on which their data has been frameworks such as the GRI and prepared (such as whether it is IPIECA guidelines. directly measured, calculated • Providing guidance on reporting or estimated) and what of corporate five-year sustainable process they have used for development plans. checking it. This will support • Encouraging assurance the establishment of future processes of sustainability guidelines on verification and reports. assurance. • Providing clarity on future focus • Greater performance insights: areas for reporting, enabling the Better and more comprehensive sector to take action and report data covering longer time back on achievements and frames is helping to illustrate progress made. performance trends and areas of opportunity. Most importantly, in line with the • Improved timeliness: An proposed framework, we shall emphasis on the principle of promote the SDIR programme and timeliness has resulted in this sector on the national stage, using report being released earlier the data and information gathered than last year. to inform policymakers, generate • Expanded coverage: Despite dialogue and engagement on the accelerated timeline sustainable development. for reporting, coverage has increased, with the report I would like to thank all the encompassing more companies, companies in the sector for their who in turn are reporting on continued participation and their more indicators. commitment to the goals we are all working to achieve. Participation in the SDIR programme has increased from I would also like to take this 33 to 35 companies. The number opportunity to thank His Excellency of companies reporting on more Dr. Mohammed Bin Saleh Al-Sada, than 75% of the indicators has Minister of Energy and Industry, also increased, from 14 to 25. Chairman and Managing Director, Overall coverage of all 33 SDIR Qatar Petroleum for his leadership indicators was 83% in 2012, to this programme and vision for enabling us to discern emerging the sector. trends and identify areas of strength and weakness for the sector as a whole. It also provides useful comparative information on performance for each reporting company. Saif S. Al-Naimi Director HSE Regulations & Enforcement Directorate (DG) Sustainability Report 2012 pg 9
The SDIR Programme The SDIR programme was sustainability management, with established in 2010 by His the aim of delivering improved Excellency the Minister for Energy performance at a company and and Industry with the purpose sector level. The programme is Executive Summary of enhancing sustainability in now also delivering value as a the sector and optimizing its reference point for other sectors contribution to the State of Qatar. and ministries. This programme has evolved The SDIR programme is the from a voluntary initiative to a foundation of the sector’s mandatory requirement for all sustainable development companies in the energy and framework and approach, which industry sector to produce a is focusing on sector level sustainability strategy and report sustainability strategy creation, on performance annually. The national and international annual sector sustainability alignment, policy enhancement report and awards have become and performance assessment and valuable tools for companies benchmarking. within the sector to learn about SDIR Programme Performance Company participation in the Reliability and assurance of data programme has increased continues to become a greater from 17 in 2010 to 35 in 2012, priority. This year, 17 companies with coverage of the 33 SDIR (49%) provided information on programme indicators (Appendix the assurance level of the data C) reaching 83% in 2012, a they provided. This provides a significant improvement from good foundation for more focus 62% in 2010. The number of on this topic in 2013. companies issuing public reports using international reporting guidelines has also increased year-on-year and is anticipated to reach 13 for 2012. SDIR Programme Performance Highlights 2010 2011 2012 Companies participating 17 33 35 Total SDIR indicator coverage (%) 62% 80% 83% Number of companies with public reports 4 (24%) 11 (33%) 13 (37%) Companies providing information on data assurance level - - 17 Sustainability Report 2012 pg 11
Sector Sustainability Performance The Future of the SDIR and Sector SD Framework As coverage of the 33 core companies that provided data The commitments for the SDIR programme and overall sector sustainable indicators continues to improve, from 2011 to 2012, but is not fully development framework in 2013-2014 include: initial performance trend reflective of the sector’s complete assessment and analysis is performance. The percentage General SDIR Commitments possible, as captured in the of coverage varies as not all performance table below, and indicators are relevant for all Transition to a combination of web and print based sustainability detailed within each chapter of reporting companies. reporting by 2014 the report. The performance for each indicator includes the Formulate a sector wide sustainable development strategy, based on the company five-year strategies Sector Sustainability Performance Highlights Formalise a sector-wide performance review process % Reporting 2011 2012 Change Coverage Formalise a multi-stakeholder engagement process for policy review, Occupational illness rate (employees) 57% 0.32 0.25 -22% recommendations and formation Occupational illness rate (contractors) 23% nil nil - Assess the company sustainability reports and present awards Fatalities (employees) 100% 1 2 +1 Take additional steps to learn and share the SDIR experience Fatalities (contractors) 91% 2 9 +7 internationally Lost Time Injury Rate (employees) 100% 0.88 0.76 -14% Lost Time Injury Rate (contractors) 89% 0.17 0.25 +47% Support and Tools Related Commitments Water consumption (million m ) 3 81% 38.76 43.16 +11% Produce guidance for companies to support their reporting on five-year Number of oil spills 88% 11 16 +45% sustainable development strategies and plans Waste disposal (tons) 76% 372,217 369,175 -0.8% GHG emissions (tons CO2e) 80% 76,389,392 80,591,709 +5.5% Update the SDIR Programme company sustainability performance reporting guidelines, including improved definitions of the SDIR Flaring (mmscm) 67% 4,802 4,325 -9.9% programme indicators Revenues (billion USD) 69% 125 138 +11% New jobs created 60% - 596 - Produce a guidance note for companies about sustainability performance assurance processes Social investment (million USD) 49% 19 31 +60% Workforce size 89% 31,978 32,574 +2% Produce guidelines to support reporting on the 2013 focus area of governance, and the 2014 focus area of social responsibility and workforce Qatarization (%) 86% 23.6% 25.0% +8% Female employment (%) 83% 9.7% 9.9% +4% Host technical training sessions on sustainability strategy and reporting Average hours of training per employee 69% 37.3 36.2 -3% using international guidelines Create an online data and case study submission system, including a benchmarking feature Participating Company Specific Commitments Take additional steps to learn and share Publish 2013 sustainability report by June 2014 the SDIR experience Produce and report on a five-year sustainable development strategy internationally Sustainability Report 2012 pg 13
Sustainability Overview, Context and Sustainable development was bold actions are urgently required defined by the Brundtland in order to create the transition Commission as “development needed for future wellbeing. that meets the needs of the Stakeholders present without compromising the ability of future generations to meet their own needs”. At a company and sector level, sustainability management - the integrated management of economic, environmental and Moving to a sustainable model social performance to create of development is a pressing value for all stakeholders - and global challenge that requires reporting are increasingly seen as collaboration, coordination essential tools in presenting and and innovation by individuals, enhancing a company or sector’s organisations, states, regions and contribution to the international the international community as a sustainable development agenda. whole. Transparency, vision and Stakeholders Environmental Value Social Economic Stakeholders Sustainability Report 2012 pg 15
International and National Context National Context The Qatar Energy Qatar’s proposed route to and Industry SDIR sustainability is contained within Programme the Qatar National Vision 2030 and National Development Strategy The SDIR programme is focusing 2011-2016. These national level on sector level sustainability In addition, many national frameworks are based on four strategy creation, national and programmes have been developed pillars of human, social, economic international alignment, policy to drive the private sector towards and environmental development, enhancement and performance a model of sustainability, with and aim to harness Qatar’s current assessment and benchmarking. governments, regulators and rapid economic growth in a way stock exchanges beginning to that ensures future generations The programme acts as a conduit mandate sustainability reporting can prosper and enjoy a higher between the individual companies in an effort to promote sustainable quality of life based on social and that make up the sector, and business performance. For environmental harmony. the national laws, regulations, example, state-owned enterprises frameworks, strategies and vision, in China must now report on their This national framework for and international environment 2011 SDIR Launch during COP18 sustainability performance, and sustainable development that shape their operating The United Nations Conference all companies registered on the is guiding the actions of all environment. This is captured in on Sustainable Development stock exchange in South Africa sectors at a governmental, the SDIR alignment triangle which (Rio+20) held in June 2012 in must produce integrated financial non-governmental and private is presented in more detail for Rio de Janeiro, Brazil, resulted and non-financial reports. sector level. It is catalysing each of the six elements of the in an outcome document with Similar mandatory and voluntary the development of new laws, SDIR programme, at the start of clear and practical measures schemes exist in other countries regulations, policies and initiatives each chapter. for implementing sustainable in Europe and Asia. that embed the principles of development. Titled “The future we want”, it reaffirms the sustainable development with a The Global Reporting Initiative focus on performance and results. commitment from heads of states (GRI) is the most widely used to existing frameworks such as the and internationally recognised The SDIR programme is the energy Millennium Development Goals guideline for sustainability and industry sector’s vehicle for (MDGs), the Charter of the United “The ultimate objective reporting, and is driving a ‘Report demonstrating progress and is Nations, existing United Nations or Explain’ approach, calling on increasingly being seen as an must be sustainable conventions, and the Universal all companies globally to report effective and important approach Declaration of Human Rights. It development” also sets out commitments to on sustainability, or explain why in working towards the State of they do not do so. In May 2013, Qatar’s sustainability ambitions. create Sustainable Development the GRI released the latest version H.H. Emir of the State Goals, increase financing to of the reporting guidelines (the enable the transition to a green/ of Qatar (Conference of low carbon economy, and makes G4) which are due to be translated Enhancing the Economic and launched in Arabic in early commitments to eradicate t Int Qatar en 2014. Future of the Middle East poverty. ern nm National ati o Vision 2030 20th May 2012) vir on En al National Development al En on Strategy 2011-2016 vir ati nmo ern Law, Regulations and en Int Frameworks t 2012 also saw the 18th session of G4 THE FUTURE OF Energy and Industry SDIR the Conference of the Parties to SUSTAINABILITY REPORTING Programme the UNFCCC and the 8th session of the Meeting of the Parties (COP18/ Regionally, programmes similar SDIR Alignment Triangle CMP8) held in Doha, Qatar. to the SDIR exist in Abu Dhabi The Doha climate conference and Oman, with the oil and gas successfully set the groundwork sector as one of the main drivers. for a 2015 global climate deal. It The SDIR Programme continues also saw a commitment of over to learn and share from these nine billion USD in climate funds. initiatives. Sustainability Report 2012 pg 17
SDIR Programme Stakeholders The Energy and Industry Sector The SDIR programme is a multi- The 35 energy and industry stakeholder platform, which sector companies participating means engagement is a critical in the SDIR programme represent factor in its success. Some of the some of the most significant most important stakeholders in companies in the country, as the programme are listed below, well as being important players together with information on in international markets. The methods of engagement. The companies have been grouped SDIR programme will continue into eight subsectors to allow for to formalise approaches and relevant comparison and analysis. channels for engagement in 2013. Companies with operations in more than one subsector are categorized by their major area of activity. SDIR Workshop in May 2013 SDIR Stakeholders Stakeholder Groups Stakeholders Engaged Channels of Engagement Liquid Natural Gas/Natural Gas • The Minister for Energy and Industry • QP DG website Dolphin Energy Qatargas RasGas • Qatar Petroleum • Sector sustainability report The energy and • All 35 participating companies • Quarterly workshops and trainings Oil and Gas (Exploration and Production) industry sector • Annual one to one meetings Gulf Drilling International (GDI) Maersk Oil Qatar A/S (Maersk) Occidental Petroleum of Qatar (OPQL) • Award ceremony Qatar Petroleum (QP) Qatar Petroleum Development Co. Ltd (QPD) TOTAL E&P Qatar (Total) • The banking sector • Formal and informal meetings Wintershall Holding GmbH Qatar Other sectors • The tourism sector • Sector sustainability report Refining • GSDP • Dedicated meetings to advance ORYX GTL Ltd Qatar Shell GTL Limited Other ministries • Ministry of Environment collaboration and governmental • Ministry of Labour • Inviting them to speak at quarterly Petrochemicals departments • Statistics Authority workshops and trainings Qatar Chemicals Company Ltd (Q-Chem) Qatar Fertilizer Company (QAFCO) Qatar Fuel Additives Company Ltd (QAFAC) • Supreme Council of Health • Sector sustainability report Qatar Jet Fuel Company (QJet) SEEF Limited Qatar Petrochemical Company (QAPCO) • International bodies (UN, EU, OECD, • Hosting UN Climate Change Qatar Vinyl Company Ltd (QVC) Qatofin Company Limited (QATOFIN) Ras Laffan Olefins Company (RLOC) WEF…) Conference COP18 – Doha 2012 International • Millennium Development Goals • Presentation at UN Conference on Power and Utilities community Sustainable Development Rio+20 – Mesaieed Power Company Ltd (MPower) Qatar Electricity and Water Company (QEWC) Brazil 2012 Qatar Power Company (Q-Power) Ras Girtas Power Company (RGPC) Ras Laffan Power Company (RLPC) • Sector sustainability report Mining, Minerals and Other • Regional sustainability forums • Large stand and presentations in the National and regional • General public Qatar Sustainability Expo at COP18 Qatar Aluminium (QATALUM) Qatar National Cement Company (QNCC) Qatar Steel community • Annual QP Environmental Fair Transport, Storage and Distribution • Sector sustainability report Qatar Fuel Company (WOQOD) Qatar Gas Transport Company Ltd (NAKILAT) Qatar Shipping Company (Q-Ship) • Company sustainability focal points • Quarterly workshops and training Sector workforce • All 34,000+ sector employees • Sector sustainability report Support Services • Current partners with existing • Sector sustainability report ConocoPhillips Qatar ExxonMobil Qatar Saipem Qatar Investors investments in the sector • Future potential investors Sustainability Report 2012 pg 19
Sector Sustainable Development Framework SDIR Programme The SDIR programme has so far proved successful as a sector sustainable development framework are to: and Sector multi-stakeholder platform for catalysing sustainability strategy development and performance • Build and maintain a sector wide sustainability strategy aligned with company and national Performance reporting, consolidation and level five-year sustainable assessment, incentivised through development plans. awards for good performance. • Act as a forum for collective These elements are all essential policy dialogue, input and components of a wider sector formation. sustainable development framework which is currently • Provide a mechanism for under development. This individual companies and the overarching framework aims to sector as a whole to report build on the progress made by back annually on sustainability the SDIR programme to further performance. enhance sector-wide sustainable • Award companies for good development through strategy sustainability performance and creation and alignment, target reporting. setting, policy input and national • Conduct continuous and international engagement. performance assessment, benchmarking and short and The sector sustainable long term target setting. development framework, as • Be a model for other sectors represented below, consists of to contribute to national six main components; the items sustainable development shaded a darker red are already ambitions, and act as a point of active through the existing SDIR reference internationally. programme. The objectives of the Sector Sustainability Strategy National and Policy international input and engagement formation Sector SD Framework Sustainability Sustainability performance performance assessment reporting and targets (SDIR) Awarding of good performance Proposed Sector SD Framework Sustainability Report 2012 pg 21
SDIR Programme • The GRI Oil and Gas Sector SDIR Programme Cycle the future aims to ensure delivery Supplement of this sector and individual As the programme continues company reports by June each • The IPIECA Oil and Gas sector to mature, the annual cycle has year. voluntary reporting guidelines evolved to make reporting more timely. The proposed cycle for • The chemical industry Responsible Care initiative SDIR Programme Components and Cycle The framework is comprised of six elements which capture the wide range of material sustainability Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec issues applicable in such a Main Engagements 1 2 3 4 diverse sector. The elements Sector Report 2 3 4 5 6 1 are underpinned by governance, an essential component of Company Reports 2 3 4 5 6 1 successful corporate sustainability The numbers in the table represent the sequence of activities listed below management. Presentation of the SD Industry Report 2011 to COP18 President SDIR Engagement Cycle/ Company Sustainability Reporting Framework Further details on the material At the core of the programme issues captured under each topic, Events (not exhaustive) Reports as well as the indicators used to 1. Workshop on data and 1. Release data templates and is the SDIR framework which measure performance, can be information submitted, engage departments internally has been developed in line found in Appendix A. reviewing strategy and overall for data and key stories with internationally recognised frameworks and guidelines for progress 2. Collect data and key stories, sustainability management (as 2. Public launching of sector and determine report theme and shown in Appendix D), including: company sustainability reports outline (with extra guidance • The Global Reporting Initiative 3. Award ceremony and launch for reporting on the focus (GRI) G3.1 and G4 Guidelines of next focus area with areas), begin company report commitments preparation 4. Technical workshops and 3. Submit data and case studies Energy and individual meetings with each by the 15th of March to DG, Health and The The finalize company report Climate Society Workforce company Safety Environment Economy The proposed content Change 4. Complete company report, GRI future cycle aims to Sector Sustainability Report and IPIECA index, assurance Governance ensure SDIR report 1. Release data and information and senior management sign gathering templates (online) publishing by June to the companies with specific off each year guidance for reporting on the 5. Design and print company Year Year SDIR Focus Area report (Implementation) (Reporting) focus areas 2. Determine theme and outline of 6. Launch company report and Climate change and safety 2011 2012 report (including the previous engage in meaningful dialogue Health, energy and water management 2012 2013 with stakeholders year’s focus area) Governance 2013 2014 3. Compile and verify all company Workforce and social responsibility 2014 2015 sustainability performance data and case studies The focus for Focus Areas assessment using international 4. Prepare the sector Every year the SDIR programme guidelines. The focus for 2012 sustainability report 2012 was health, emphasises specific topics in was health, energy and water energy and water management. As a result, these 5. Conduct assurance on the order to enhance attention and focus areas have been given sector sustainability report management. improve the reporting on those 6. Design, print and launch the areas. Topics are identified emphasis in the company 2012 through engagement with the sustainability reports, and have sector sustainability report, participating companies, national also been given additional and engage in meaningful level areas of focus and materiality attention in this report. dialogue with stakeholders Sustainability Report 2012 pg 23
Support and tools are Support, Tools and Over the past 18 months, events and workshops conducted under provided to the companies Guidance SDIR include: participating in the SDIR Support and tools are provided • Feb-March 2012 – One-to-one programme. The relevant to the companies participating in meetings with all participating the SDIR programme in the form guidelines are available to companies of guidelines, hosting workshops the public at and events and day-to-day • 25th April 2012 – Workshop on guidance and communication. reporting and award scheme www.hse-reg-dg.com/ Information and guidelines are • 17th September 2012 – hse/hse.nsf/web/ available to the public at - www. Workshop on sector report and GBSustDev hse-reg-dg.com/hse/hse.nsf/ assurance web/GB-SustDev - and includes: • 26th November 2012 – Launch • Guidelines on Sustainability of 2012 sector sustainability Reporting report - Link • Good practices in reporting • Jan-Feb 2012 – One-to-one (case studies) meetings with all participating • An overview of sustainability companies reporting assurance • 28th February 2013 – Excellence • Proposed sustainable in Sustainability Reporting Appreciation for Reporting Award Ceremony Sustainability Governance Approaches to company GUIDELINES ON SUSTAINABILITY REPORTING development policy governance vary depending on FOR ENERGY AND INDUSTRY SECTOR • 9th May 2013 – Good practice The SDIR programme is a multi- • Guidance on SD Awards legal requirements, ownership sharing and SDIR programme stakeholder collaborative and location. On an international development workshop initiative driven by the 35 level, guidelines such as the participating companies within OECD Principles of Corporate the sector, the Ministry of Energy Governance 2004 are regarded and Industry and the DG. Overall (Dec 15, 2010) as one of the international Doha, Qatar control of the programme falls benchmarks for companies under the Minister for Energy and worldwide.1 OECD Guidelines Industry who has entrusted the on Corporate Governance of day-to-day management of the HSE Regulations and Enforcement Directorate State-Owned Enterprises is also programme to DG, given its role relevant for Qatar and the sector.2 as a focal point for sustainability The new GRI G4 sustainability in the sector. DG is engaging reporting guidelines also provide the CEOs and focal points of the guidance on how companies participating companies for SD can report on their corporate Each company is reporting. governance. responsible for the Each company is responsible for governance and On a national level, the Qatar the governance and management Financial Markets Authority has management of of sustainability related issues created a Corporate Governance within their own organisation, sustainability related some having set up a cross- Code for public listed companies. issues within their own Furthermore, the “Draft Corporate functional team, and others Social Responsibility Act” is organisation, some having having their board mandate the pointing companies in the appointment of a sustainability set up a cross functional office or manager within the direction of good governance and team, and others having the representation of shareholder organisation. The 2013 sector and stakeholder interests on a their board mandate report will cover governance management and board level. within the sector in greater detail the appointment of a as one of the focus areas for the sustainability office or year together with management manager systems. SD Workshop in May 2013 Sustainability Report 2012 pg 25
SDIR Programme Performance Highlights This year, the number of reporting Completeness companies, the average number Company reporting on the 33 SDIR programme indicators (listed in of reported indicators, and the Appendix C) has significantly increased in the years 2011 to 2012. As number of total indicators covered demonstrated by the graph below, in the 2012 reporting cycle, more have all increased. companies have reported a higher number of indicators. Participation From 2011 to 2012, the number Completeness of Company Reporting, 2011 vs 2012 of companies participating 16 has increased from 33 to 35, Number of companies incorporating one additional 14 company in the power and utilities, 12 and one in the petrochemicals 10 subsectors. 8 6 4 SD Good Practice Sharing Workshop 2 SDIR Programme Performance Highlights 0 100 0 1-5 6-10 11-15 16-20 21-25 26-30 31-33 2011 Number of indicators reported by company 2012 80 60 Coverage Coverage of the 33 SDIR indicators has increased for 2010, 2011 and 2012 with many companies also providing data in 2012 on 2011 performance. 40 This has resulted in 80% coverage for 2011 performance and 83% for 2012. Reporting on health and safety, environmental and energy and 20 climate change indicators is the most complete, with social indicators being reported least in the past three years. 0 2010 2011 2012 Data Coverage 2010 2011 2012 Companies Number of companies with Total SDIR indicator Participating public reports coverage (%) Total SDIR indicator coverage (%) 62% 80% 83% Economic indicator coverage (%) 62% 74% 78% The number Energy and climate change indicator SDIR Programme Participation 2010 2011 2012 coverage (%) 63% 78% 80% of companies Companies participating 17 33 35 Environment indicator coverage (%) 63% 83% 85% participating has By Subsector Health and safety indicator coverage (%) 65% 89% 89% increased from LNG/NG 3 3 3 Workforce indicator coverage (%) 58% 74% 79% 33 to 35 Reporting on health and Mining, minerals and others 0 3 3 safety, environmental Social indicator coverage (%) 54% 64% 73% Power and utilities 1 4 5 and energy and climate Petrochemicals 6 8 9 change indicators is the Oil and gas (E&P) 4 7 7 most complete, with Refining 2 2 2 social indicators the least Transport, storage and distribution 1 3 3 comprehensive over the Support services 0 3 3 past three years. Sustainability Report 2012 pg 27
Data Reliability Eleven (33%) companies issued the GRI for application of the a public report in 2011 using the guidelines. In 2013, 13 companies This year, 17 companies (49% of participants) provided information on IPIECA and GRI 3.1 guidelines. intend to release a public report the systems used to measure and collect data, and the methods used to Eight of these were checked by for 2012. gain assurance on the quality of that data. A summary of the results is provided below. It is encouraging to note that direct measurement of data is improving. Companies Issuing Public Reports Covering 2012* This year, 17 companies Data Reliability of 17 Companies 2012 (49% of participants) Dolphin Energy RasGas Qatargas Maersk Oil % of data that has been estimated 15% provided information % of data that has been measured directly 44% on the systems used to % of data covered by an international certification 28% measure and collect data Information has also been provided on whether data has been assured by internal or external teams, as shown below. 2012 2012 2012 2012 Data Assurance of 17 Companies 2012 QAFCO QAPCO QAFAC % of data that has been verified by an internal team 46% % of data that has been verified by an external auditor 20% Public Reporting transparency and accountability. As companies gain experience of Publishing the report to the public producing sustainability reports, can enhance reputation, and 2012 2012 2012 more companies are making their improve the ability to compete reports available to the public. for talent, improve employee Companies Issuing Public Reports Covering 2011 This is helping them to engage engagement and retention, and a wider range of stakeholders, stimulate improved performance. Dolphin RasGas Qatargas Qatalum promoting higher levels of Public Reporting 2010 2011 2012 Companies participating 17 33 35 Number of companies with public reports 4 (24%) 11 (33%) 13 (37%)* 2011 2011 2011 2011 Number of reports GRI checked (for application of guidelines used) 3 8 9 Number of reports achieving application level A 3 3 4 Oryx Qatar Steel Nakilat ExxonMobil Number of reports achieving application level B 0 5 5 Number of reports achieving application level C 0 0 0 Number of public reports with third party assurance 1 0 1 *Anticipated number 2011 2011 2011 2011 Eleven companies issued QAFAC MPower Saipem a public report in 2011 using the IPIECA and GRI 3.1 guidelines. Thirteen companies intend to release a public report for 2012. 2011 2011 2011 *Reports public at time of publication. Thirteen anticipated by the end of the year. Sustainability Report 2012 pg 29
Sustainable Development Awards Award Winners in Excellence in Reporting Sustainability The sustainable development an award companies must be awards were created as part of transparent and produce an the SDIR programme to recognise engaging sustainability report, excellence in sustainability but they must also demonstrate reporting and performance. As performance and innovation on captured in the assessment the main elements of the SDIR methodology below to win framework. Profile Sustainability disclosure and performance Report Design and 10% (70%) Quality (20%) • Data/Information Disclosure Performance Innovation assurance Governance • Use of guidelines • Presentation and Climate Change readability The sustainable In February 2013, His Excellency For the 2012 SDIR awards, a Health and Safety the Minister of Energy and similar methodology will apply, development awards Industry and Chief Executives from with a winner and one runner Environment were created as part of more than 30 SDIR programme up for the large and medium the SDIR programme to participating companies sized organisations. The Special attended the first annual award Recognition category will be Workforce recognise excellence in ceremony to recognise excellence changed to recognise one large sustainability reporting in sustainability reporting. and one medium sized company Socio-economic with the best performance in the and performance. Awards were presented to seven companies for their focus areas of the 2012 reporting, 2011 sustainability reports and namely health, and energy and performance. water management. Award for Excellence in Sustainability Award for Excellence in Sustainability Special Recognition Reporting-Large Scale Reporting-Medium Scale Award (Contribution to Sustainable Development) Winner Joint Runner Up Winner Joint Runner Up Large Scale RasGas Dolphin Qatar Steel M Power QAFAC QVC Energy Qatar Petroleum Sustainability Report 2012 pg 31
Sustainability Performance Highlights Future Plans Qatar’s energy and industry much comparable company data Building on the success of the SDIR programme in 2012, DG, in consultation sector continues to take steps as possible from 2011 to 2012, other stakeholders, has set a range of commitments for 2013-2014. These towards improved sustainability but is not fully reflective of the are set out below. performance. An indicative sector’s complete performance. summary of the results is provided Detailed analysis and comment is General SDIR Commitments below. The performance data provided in each relevant chapter for each indicator is based on as of the report. Transition to a combination of web and print based sustainability reporting by 2014 Sector Sustainability Performance Highlights Formulate a sector wide sustainable development strategy, based on % Reporting company five-year strategies 2011 2012 Change Coverage Formalise a sector-wide performance review process Occupational illness rate (employees) 57% 0.32 0.25 -22% Occupational illness rate (contractors) 23% nil nil - Formalise a multi-stakeholder engagement process for policy review, Fatalities (employees) 100% 1 2 +1 recommendations and formation Fatalities (contractors) 91% 2 9 +7 Assess the company sustainability reports and present awards Lost Time Injury Rate (employees) 100% 0.88 0.76 -14% Lost Time Injury Rate (contractors) 89% 0.17 0.25 +47% Take additional steps to learn and share the SDIR experience LNG Facilities internationally Water consumption (million m3) 81% 38.76 43.16 +11% Number of oil spills 88% 11 16 +45% Support and Tools Related Commitments Waste disposal (tons) 76% 372,217 369,175 -0.8% GHG emissions (tons CO2e) 80% 76,389,392 80,591,709 +5.5% Produce guidance for companies to support their reporting on five-year sustainable development plans Flaring (mmscm) 67% 4,802 4,325 -9.9% Revenues (billion USD) 69% 125 138 +11% Update the SDIR Programme company sustainability performance reporting guidelines, including improved definitions of the SDIR New jobs created 60% - 596 - programme indicators Social investment (million USD) 49% 19 31 +60% Workforce size 89% 31,978 32,574 +2% Produce a guidance note for companies about sustainability performance assurance processes Qatarization (%) 86% 23.6% 25.0% +8% Female employment (%) 83% 9.7% 9.9% +4% Produce guidelines to support reporting on the 2013 focus area of Average hours of training per employee 69% 37.3 36.2 -3% governance, and the 2014 focus area of social responsibility and workforce Host technical training sessions on sustainability strategy and reporting using international guidelines Create an online data and case study submission system, including a DG, in consultation benchmarking feature with other Participating Company Specific Commitments stakeholders, has set a range of Produce a 2013 sustainability report by June 2014 commitments for Produce and report on a five-year sustainable development strategy 2013-2014 Sustainability Report 2012 pg 33
Health and Safety Health Personal Safety QNV 2030 Process Safety Outcomes A skilled national Emergency Response Preparedness workforce capable of providing high quality health services. Workforce Engagement on Health and Safety An integrated system of health care offering high-quality services through Health and Safety Supervision and Compliance public and private institutions operating under the direction of a national health policy that sets and monitors standards for social, economic, administrative and technical aspects of health care. NDS 2011-2016 Targets National Health Strategy 2011-2016 and National Cancer Strategy Complete a national emergency preparedness plan. Establish a national set of regulations, laws, and standards on occupational health and safety for all sectors. Reduce the rate of injuries lasting more than three days to 3,000 or less per 100,000 workers Ensure that 100% of healthcare facilities are licensed by the Supreme Council of Health. Ensure that 100% of healthcare professionals are licensed by the Supreme Council of Health. Create a comprehensive approach to building safety, and halve the number of fire accidents. Laws, Regulations and Frameworks HSERA Emiree Decree HSE Legal Framework in Oil and Gas Sector Health and Safety National Legislations: http://www.hse-reg-dg.com/hse/hse.nsf/web/GR-National Legislation SDIR Programme Measures Personal Safety: Occupational Health: Process Safety: • Employee and contractor fatalities • Employee and contractor • Loss of containment incident occupational Illness rate • Incident investigation completion • Employee and contractor LTIR • Heat stress events (resulting in Emergency Response Preparedness: • Employee and contractor TRIR medical treatment) • Emergency response drills 2012 Achievements 13.6% 59.9% 42.9% improvement in improvement in improvement in employee LTIR in 2012 employee TRIR in 2012 contractor TRIR in 2012 Sustainability Report 2012 pg 35
The Health and Safety Context National Context The Sector’s Health and • Management of Change (MoC) The State of Qatar recognises the Safety Approach • Pre-Start up Safety Review importance of managing health (PSSR) The energy and industry sector and safety issues, especially in ‘Technical HSE Framework’ • Guidelines For Radiation the energy and industry sector. and its associated regimes are Protection and the Management The Qatar National Vision 2030 under development. The first of Radioactive Waste in the Oil captures the importance of workshop on the Framework and Gas Industry ensuring a healthy population in was held in June 2012. Following • Guidance for DG directorate the Vision’s outcomes, as can be this, designated companies were technical inspectors to identify seen in the alignment triangle. The compliance issue in the field of asked to nominate experts to National Development Strategy support the development of the industrial radiation safety 2011-2016 also emphasises the Framework and its four regulatory • Occupational Health need to manage health and safety regimes, with the participation supervision checklist in all sectors, and identifies QAFCO of 48 sector experts. This unique specific programmes and targets. Safety Information • Heat Stress Management initiative in the GCC, to involve Achieving the best possible health System (SIS) the sector in the development of Procedures under review and new regulations, aims to ensure Managing occupational health and safety results at a national In 2012, QAFCO’s Safety that new measures benefit the approval cover: and safety is an essential level requires the cooperation Information System • Health Risk Assessment State and the sector, by being component of corporate and engagement of various responsibility as it promotes stakeholders, such as regulators, was re-engineered on a applicable and fit for purpose. • Reporting Significant Industrial Accidents and maintains the physical, authorities, companies and web-based platform. It The DG has drafted the following service providers. The energy and • Investigation Significant mental and social well-being of industry sector interacts regularly consists of a flexible set HSE guidelines applicable to the Industrial Incidents workers and the surrounding communities who may be at risk with the Supreme Council of of software applications energy and industry sector which will help to fulfil the requirements from business activities. Effective Health (SCH), the Ministry of to manage all aspects of the Technical HSE Framework. By promoting transparency Labour (MoL), the Ministry of and accountability, the SDIR health and safety management Business and Trade and QP Ports, of QAFCO’s safety The guidelines under review and programme represents one of a minimizes costs on employers (by maintaining reliable Ministry of Environment and HSE programme. approval cycle are: range of efforts within the energy Regulations and Enforcement • Hazards Identification and Risk and industry sector to promote operations and production, and Directorate (DG), through: Assessment (HIRA) and manage health and safety reducing fines, rehabilitation The system manages, risks. costs, curative services, and • Support of the implementation • HSE Risk Management compensatory damages). of relevant laws and regulations tracks, and reports all Programme • Participation in task forces and QAFCO safety metrics in • Contractors HSE Management in In 2012, 21 companies reported that they had a well-established Health and safety Health and safety risks vary working groups real-time, streamlines the Energy and Industry Sector significantly between sectors, and health and safety management risks vary significantly depend on the nature of particular • Coordination of committees, incident and OSHA • Emergency Response system in place, ten of which were workshops and trainings Preparedness between sectors, and company operations. Risks also reporting, and enables certified against the occupational • Investigations of incidents and • Emergency Exercise and Mutual health and safety system standard depend on the nature depend on the requirements of outbreaks seamless compliance with Aid individual jobs and the specific OHSAS 18001. of particular company tasks that individuals perform. In standards such as OHSAS DG is the regulatory entity in 18001, ISO 14001, and operations. the energy and industry sector, relation to health and safety which deals with varied processes matters, overseeing the RC 14001. It also drives and inherently hazardous substances, organisations implementation of national continuous improvement policies and strategies in the across the organization. manage a complex portfolio energy and industry sector. DG of risks. Health and safety also develops specific HSE management systems provide a guidance and administrative framework for the identification, measures and monitors assessment, mitigation and implementation and compliance. management of these risks - from DG has published ‘Health, Safety the possibility of major accidents and Environment (HSE) Legal to the control of specific tasks Framework for the Oil and Gas carried out by individuals in their Sector’ in both Arabic and English. day to day activities. It is considered an easy-to-use legal reference for all HSE related regulations. Sustainability Report 2012 pg 37
Health The companies of the energy and Sector 2012 Health • Pandemic Planning Guideline industry sector work closely with Rollout: the final guideline DG and the Supreme Council Highlights was issued to the energy and 2012 has seen excellent progress of Health (SCH) to ensure the industry sector in 2012, and on various health subjects with sector meets or exceeds national was circulated to all companies emphasis placed on developing regulations and goals on health and other stakeholders for health guidelines, increasing matters, including: implementation. It includes stakeholder engagement • Health-risk and health-impact checklists for self assessment and supervisory activity, and assessments and planning. For the 20 companies active surveillance, incident • Occupational health, public investigation and compliance health, environmental health that provided data in with State healthcare licensing Energy and Industry and industrial hygiene, food both 2011 and 2012, the requirements. Some of the main Sector’s Health sanitation and hygiene, employee occupational health highlights during 2012 are International Health Regulations listed below: Performance (IHR) including pandemic illness rate improved to Employee Occupational planning, communicable 0.25 in 2012, from 0.32 • Industry Health Advisors Forum Illness Rate diseases, food safety, chemical in 2011. (IHAF): under the patronage The SDIR programme guidance disasters, and others of the Director of DG, Mr. Saif note on health management and Health risks in the energy and • Travel health Al Naimi, the 15th IHAF was reporting requested all companies industry sector are greater than opened. The aim of the forum to report their employee in many other sectors, given the • Medical emergency response was to update the energy occupational illness rate. routine handling of hydrocarbons planning and industry sector’s HSE and other chemicals, the • Healthcare providers and managers, health advisors The coverage level of the sector’s hazardous work environment healthcare facility assurance and industrial hygienists on companies on this indicator (including work offshore), and framework (healthcare licensing the current issues relating to was improved in 2012 with 26 exposure to other hazards such assurance) health and healthcare within companies reporting on this as noise. In Qatar, these factors • Medical evacuation and the sector in order to achieve indicator, 74% of all companies, are accompanied by operating in continued medical care synergy, cooperation and compared to 60% in 2011. extreme temperatures, wind, dust • Health performance measures compliance with state legal and humidity. requirements and sector best The sector’s average employee • Incident investigation and HSE practices. occupational illness rate was The responsibility of companies monitoring for health extends beyond their 0.48 in 2012 – based on the • Health audits and health • International Health own employees to encompass 26 companies averages that inspections Regulations (IHR 2005): The contractors, the surrounding reported; a deterioration in • Health performance review, energy and industry sector performance of 60% compared community, and the natural sector key performance and DG representatives sit on to the rate of 0.30 achieved environment. Given its indicators (KPIs), and trends the technical task teams for in 2011. However, for the 20 importance, health was selected analysis food safety, communicable companies that provided data as one of the SDIR programme diseases, chemical disaster, in both 2011 and 2012, the focus areas for 2012. nuclear and radiology and employee occupational illness Pandemic Planning points of entry (POE) reporting rate improved to 0.25 in 2012, Guideline Rollout: back to the National IHR from 0.32 in 2011. committee. The National IHR the final guideline was committee conducted several issued to the energy meetings in 2012 to review and industry sector in progress on IHR 2005 in the State of Qatar for the multi- 2012, and was circulated sectoral parties. to all companies and other stakeholders for implementation. Sustainability Report 2012 pg 39
The average employee Employee Occupational Illness Rate 2010 2011 2012 Contractor Occupational Illness Rate 2010 2011 2012 illness rate for seven Number of companies reporting 15 21 26 Number of companies reporting 6 8 11 reporting companies Percentage of companies reporting* 43% 60% 74% Percentage of companies reporting* 17% 23% 31% in the petrochemical Average company employee Average company contractor subsector improved by occupational illness rate 1.10 0.30 0.48 occupational illness rate 0.66 0.00 0.00 12.5% in 2012. Average company employee Average company contractor occupational illness rate occupational illness rate (20 comparable companies) - 0.32 0.25 (8 comparable companies) - 0.00 0.00 *35 companies were invited to report on this indicator *35 companies were invited to report on this indicator The petrochemical subsector Contractor Occupational Heat Stress Heat Stress Events reporting in 2012 was higher than Exposure to extreme natural in previous years. achieved the higher reporting for Illness Rate Events Reported heat can cause illness and even this indicator with seven of the The SDIR programme supports 50 death. Energy and industry sector The power and utilities subsector, nine companies providing data equal treatment of employees and companies work continuously to which had the best coverage for between 2011 and 2012. The contractors by requesting that mitigate the different types of heat this indicator (with 80% of the average employee illness rate for companies report on contractor related illnesses, and collaborate sector’s companies reporting the seven reporting companies occupational illness rate, in with DG on achieving the best their 2012 performance), improved by 12.5% in 2012. The 23 addition to employee rates. In results in this area. In May 2012, recorded six heat stress events support services subsector was 2012, 11 companies reported on 10 DG sent a circular on ‘Heat Stress in 2012, compared to seven in the only subsector where all their contractor occupational Management in Oil and Gas 2011. The mining, minerals and companies reported their 2012 illness rate, up from eight in Sector’ to all General Managers other, the transport, storage and performance, which was zero 2011. The average contractor 2010 2011 2012 and CEOs in the sector. The Heat distribution and the support employee illness rate. The LNG/ occupational illness rate in 2012 Stress Guideline was issued to the services subsectors did not report NG subsector achieved improved was zero for the 11 reporting Technical Health Committee for any data against this indicator in performance by 22.2% in 2012, for companies, and the same result review and feedback in July 2012, 2011 and 2012. the two companies that reported data in 2011 and 2012. of zero contractor occupational and is expected to be finalized illness rates was achieved for the and distributed in 2013. An example of the action taken eight companies with data for is the Heat Stress Management 2011 and 2012. In 2012, 40% of the sector’s System that Ras Girtas Power companies reported their heat Company has implemented for all stress events, an improvement its activities including contractors. Employee Occupational Illness Rate by Subsector from 34% in 2011. The total A health risk assessment covering number of heat stress events in heat stress risks has been Companies Reporting Average Employee Occupational Illness Rate % Change for 2012 was 10 which represents prepared and communicated Subsector 2012 for Comparable improved performance on 23 to all working parties within 2011 2012 2011 2012 Comparable Companies Companies* cases in 2011 and the 50 cases the plant. A flag system has in 2010. It should also be noted been implemented to warn the LNG/NG 2 2 0.09 0.07 0.07 -22% workforce about extremes of heat. that the number of companies Mining, minerals and others 1 2 0.00 3.59 0.00 0% Power and utilities 3 4 0.00 0.00 0.00 0% Heat Stress Events 2010 2011 2012 Petrochemicals 7 8 0.85 0.61 0.61 -13% Number of companies reporting 10 12 14 Oil and gas (E&P) 4 4 0.00 0.00 0.00 0% Percentage of companies reporting* 29% 34% 40% Refining 1 2 0.28 0.15 0.00 Decreased to 0 Total number of heat stress events Transport, storage and for the sector 50 23 10 distribution 0 1 - 0.00 - - Total number of heat stress events Support services 2 3 0.00 0.00 0.00 0% (12 comparable companies) - 23 10 *35 companies were invited to report on this indicator Sustainability Report 2012 pg 41
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