mol group hse management system

HSE Management System (HSE _1 Group Guideline)translates the Health, Safety and Enviromental principles into an outlineof practical activities that shall be executed to manage HSE at all levelsin MOL Group in order to achieve world-class performance.

HSE MSControlled document is on the CIP and SPS / HSE sitesDate of Effect: 15. 02. 2008

HEALTH, SAFETY & ENVIRONMENTMANAGEMENT SYSTEM(HSE MS)

HSE EBC & Panels

2008

FOREWORD

15th of February 2008

Dear Manager,

Effective Health, Safety and Environmental (HSE) management is more crucial than ever. Legislation is becoming more stringent and public expectations are high. Our commitment is strengthened by an increasing understanding that improvement in HSE performance enhances overall business efficiency and effectiveness.

We are very pleased that user friendly group guideline is now available on HSE Management System (HSE MS).

• Within the framework of new MOL Group Regulatory System, the Group guideline HSE_1_GG Health,Safety and Environment Management System (attached) is being issued these days. The guideline consistsof 15 elements, with clearly defined business rules that must be followed by each operation. This documentprovides direction and conceptual guidance to managers for embedding HSE into their business by describing a consistent HSE Management System of MOL Group.

• Implementation of HSE MS at site and company level, covering contractors as well, should give ownershipof HSE rules by all concerned. This must lead to activities where every person is accountable for imple-menting the agreed rules within his/her area of responsibility.

• The attached Group guideline (HSE MS) will be followed by series of HSE Global and Local Operative Regulations, which will be the key tools for implementation of 15 elements mentioned above.

We feel a sense of urgency because the full implementation of HSE MS according to Operational regulationRoad Map will involve considerable joint effort and take time.

Your role as a leader is to ensure that Group HSE Guideline is implemented and followed. You can do thisthrough taking a personal ownership of Element 1 – Leadership and Accountability.

Hereby we would like to ask you to create conditions for putting HSE Management System in place in your givenarea, with clear segregation of duties of multi-step implementation process.

• HSE is ready to provide professional support in implementation of HSE Group Guideline at your business.If you have any questions related to this issue, ask/send an e-mail to Group HSE Development ManagerPeter Varga ([email protected]) or contact your HSE business manager and/or HSE local coordinator.

We are confident that our common effort in implementation of Group HSE Guideline will bring positive resultscontributing to achieving our business strategic goals.

Thank you for your commitment.


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Zsolt HernádiChairman and CEO

György MosonyiGCEO

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INTRODUCTION

MOL Group owns and operates a range of oil and petrochemicals businesses in different EU countries and Non-EU regions and cultures that may affect the health and safety of people, the environment. As statedin the MOL Group HSE Policy we have an overriding commitment to business excellence and sustainable development and we pursue this through the effective management of HSE.

This Group Guideline is the basis for HSE management systems at all levels in MOL Group. Although HSE matters are interrelated and co-dependent, it is recognised that the skills and processes required to manageissues may vary according to the context.

We are going to introduce the Health, Safety and Environment Management System to focus on the respon-sibilities and accountabilities of line management with regards to turning our HSE Standard Principle/Policyand thematic policies (Road Safety Policy) into practice.

The HSE Policy is the highest Grouplevel commitment in our Health,Safety and Environment Manage-ment and applies to all our businessunits and controlled subsidiaries.

„Health, safety and environmentalprotection (HSE) is an integral partof the management philosophy of MOL Group. Considering HSE matters as any core business issuesenables us to implement our corpo-rate values and to achieve business excellence following the same approach wherever we do business.”

Mol Group HSE Policy, December 2004

HSE MS ELEMENTS AT GLANCE

ELEMENT 1 Page 11HSE Leadership & AccountabilityManagers, employees and contractors understand their accountabilities and demonstrate leadership and commitment to Group HSE Policy through effective HSE management.

ELEMENT 2 Page 12HSE Risk and Change ManagementHSE hazards are identified and associated risks assessed and managed. Planned and unplanned changes are identified and managed.

ELEMENT 3 Page 13HSE Training and CompetencesEmployees, contractors and visitors are aware of relevant HSE requirements, hazards, risks and controls, are competent to conduct their activities and behave in a responsible manner.

ELEMENT 4 Page 14HSE Planning and TargetsHSE planning is an integral part of business planning with strategic objective, goals and yearly targets expected to drive continual improvement in performance.

ELEMENT 5 Page 15Contractor and Supplier HSEContractors, suppliers and others doing work on the MOL Group’s behalf, impact our operation and reputation. The contracting of services, the purchase, hire or lease of assets and activities with partners, are carried out so as to minimise any adverse HSE consequences.

ELEMENT 6 Page 16Design and ConstructionManagement of HSE risks and opportunities is an integral part of all projects through design, approval, procurement, construction and commissioning.

ELEMENT 7 Page 17Safe OperationAll plant and asset is operated, maintained, inspected and tested using procedures and applying standards that manage HSE risks.

ELEMENT 8 Page 18Health Prevention and PromotionHealth risks shall be managed through prevention and protection, employee information and education initiatives.


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ELEMENT 9 Page 19Environmental Stewardship MOL Group requirements to prevent pollution and waste, improve environmental performance. Striving to minimise impact of our activities to the environment.

ELEMENT 10 Page 20HSE Legal Requirements and DocumentationRelevant legal, regulatory and other HSE requirements are identified, accessible, understood and complied with and an effective HSE document management system is in place.

ELEMENT 11 Page 21Product StewardshipThe lifecycle HSE impacts associated with MOL Group’s products and services, processes are minimized, managed and communicated to customers /users.

ELEMENT 12 Page 22HSE Communication and Consultation Open, proactive and effective communication and consultation is maintained with stakeholders regarding the HSE aspects of our business. Stakeholders are encouraged to participate in and contribute to sustainable development through HSE performance improvement initiatives.

ELEMENT 13 Page 23HSE Incident Reporting and InvestigationHSE incidents are reported, investigated and analysed. Effective corrective and preventive actions are taken and learnings shared to prevent future incidents.

ELEMENT 14 Page 24Emergency Preparedness and ResponseEffective emergency preparedness and response are in place to ensure that, in the event of an incident all necessary action are taken for the protection of the public, the environment and MOL’s workforce and assets.

ELEMENT 15 Page 25HSE Operation Assessment and Improvement HSE performance and systems are monitored, audited and reviewed to identify trends, measure progress, assess conformance and drive continual improvement.

GLOSSARY Page 27

OPEN SYSTEM - SOLVED STATE OF HSE CUBE


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Operation Elements(corners of cube)

System Driverss(centre of cube)

Global and/or Local Operative RegulationsOpen System (pictures)

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THE NEW REGULATORY SYSTEM

MOL Group Code of Ethics (CoE)It sums up and systematises all business-related ethical standardsand scopes of responsibilities which MOL Group established for itself.

It defines the MOL Group corporate governance philosophy, the Group operational model, the basic operational rules and describes MOL Group Standard Principles.

Governance Handbook – consists ofOOR

CoE

Group Guidelines

Codeof

Ethics

Code ofEthics

OOR

Standard Principles

LDADTR

Boa

rd o

f Dire

ctor

s,Ex

ecut

ive

Boa

rd

Gro

up-le

vel

Lea

ders

TIER 1 - Fram

ework

TIER 2-GG

s TIER 3 - O

perative regulations

Loca

l L

eade

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DTR LDA

Group Guidelines

Applicableeverywhere

Group Guidelines

CROSS GROUP COMMUNICATION & IMPROVEMENT

GLOSSARY Detailed rules KPIKCI

ENGLISH Councils Controlling handbook

Userfriendlyform

Subsidiary involvement

Required regulation list

Understandable for everybody

Measurable anytime

Global Operative regulations

LocalOperative regulations

OORStandardPrinciples

Glossary

LDA – MOL Group List of Decision-Making AuthoritiesDefines the most important decision-making points of the operation and managerial authorities related to decisions. Thus, it disposes the key control points required by efficient development and operation of MOL Group processes.

DTR – MOL Group Description of Tasks and ResponsibilitiesStipulates the key tasks and responsibilities of organisational units as well as organisational co-ordination mechanisms that support decision-making (committees, decision preparation teams), and their charter.

Global Operative regulationsRules valid for more than one MOL-Group member defined by Group-level leaders describing operational framework specific either to product, service, technology, geographic region or information technology system.

Local Operative regulationsRules connected to a MOL Group member defined by its Local leaders that describe local processes (with organisational responsibilities)and methodologies based on the framework set in Group Guidelines and Global Operative regulations by Group-level leaders.

Group GuidelinesRules defined by a Group-level leader in consensus with the responsible Council that describe the standardised operational requirements of the area managed by the Group-level leader and describe rules to be mandatory applied everywhere in the Group, where the activity is performed.

OOR – MOL Group Operational and Organisational Rules

Describe the position, the set of principles that directs business decisions and activities to carry out core values and behaviours held critical to MOL Group.

Standard Principles

METHODOLOGY OF NEW REGULATORY SYSTEM

1. GUIDELINE OBJECTIVES AND CONTEXT

1.1 Objectives To transform the principles expressed in the HSE Standard Principle/Policy1 into a practical activities inorder to manage HSE.To provide direction and conceptual guidance to managers on the embedding of HSE principles in their businesses by describing a consistent MOL Group HSE Management System (HSE MS) with clear segre -gation of duties.This Guideline describes the essential minimum elements of an HSE function, management system. It alsoincludes a requirement for system to be set up in such a way that it can be externally certified, in line with nternational systems standard.2

1.2 Date of effect: 02.15.2008. HSE Panels and frontline HSE BUs are available for consultation on the implementation of this Guideline. The Group HSE Unit is responsible for training and communication of this Guideline as needed, prior to its dateof effect.

1.3 Main requirementsIndividual HSE management tools and systems have evolved over many years but now a structured approachis required to provide managers with the assurance that they are discharging their HSE responsibilities effec-tively. A common framework is also needed, after decentralization of the HSE organisation, to ensure mutualreview of HSE functions and business issues.MOL Group HSE MS has been built upon broad experience in management systems in a number of MOLGroup companies and upon best practices. Although it will require extra efforts to put it into place, the rewardsin terms of better management, reduced risks and improved business efficiency will make it well worthwhile.Group Guidelines consist of mandatory rules (M) for the proper conduct of business. However, to develop operations and implement good practices in MOL Group, recommended rules (R)3 have also been included, the better to guide the development of processes.

1.4 ComplianceRules set out in this Guideline are mandatory requirements for all units operationally controlled by MOL Group.However, these business rules may not be automatically applicable to newly- acquired companies and entrybusinesses within their first 3 years.To enact HSE rules is a multi-step process requiring the assignment of specific implementation responsibilitiesand involving:1. Prior gap analysis (self-assessment with relevant the Divisional HSE Partner)2. An HSE Guideline compliance development program comprising training and/or coaching (submitted by

a CEO or accountable manager to then be endorsed by GHSE)3. Compliance level improvement or enhancement, including business integrity within 3 years. Progress must

be reported to GHSE and relevant superior business manager(s) at least annually.

1.5 RecommendationsThis Guideline may be used as an HSE MS template by any operating BU or contracting, joint entity. Further-more, this Guideline is intended to enhance rather than merely to suggest replacement of existing sound,workable and effective BU/entity systems and practices.

1. MOL Group HSE Standard Principle/Policy demonstrates the Board of Directors’ commitment to HSE, the core values and expectations required to achieveworld-class (top quartile) HSE performance.

2. Application for ISO 14001 and/or OHSAS 18001certificate(s) should be based on relevant business manager decision based on achievable business benefits or/and statutory requirements

3. Sentences with non-mandatory requirements are italicized.


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2. KEY PERFORMANCE INDICATORS

MOL Group uses a mix of both leading and lagging indicators to measure overall HSE effectiveness and performance4. Businesses can apply more specific leading or lagging indicator which will be used to measuretheir HSE performances on an international industry basis and among their peer groups.

2.1 Leading indicators are designed to drive and measure critical HSE activities. When measured and moni-tored actively, the data from leading indicators enable effective intervention to address or reverse a negativetrend before it results in injury, damage or loss. They comprise:1. Reported Near-misses, Unsafe Act and Conditions (numbers)2. Incident Inquiry Rate (IIR)3. HSE Behaviour Observations, Audits, Inspections versus planed (%)4. Fire cases (number)5. Spills > 1 m3 (number) 6. Loss of Primary Containment (LOPC number) 7. Freshwater intake/consumption (m3) 8. Recycled, Reused and Recovered Materials (tons) 9. Road Accidents Rate (RAR) 10. HSE Audit findings closure rate (%)11. HSE Training completion (%)12. Emergency drills (number)

2.2 Lagging Indicators measure outcomes of a company’s HSE activities. They provide an overall estimate ofthe progress required to achieve our vision of excellence, but they not measure the effective implementationof HSE programs, proactive action plans or on-the-spot self-assessment. They comprise:13. Fatalities (number)14. Lost Time Injury Frequency (LTIF) 15. Total Recordable Incident Rate (TRIR)16. Total Reportable Occupational Illness Frequency (TROIF)17. Hazardous Waste (tons)18. Controlled discharges to Water (tons)19. Direct GHG emissions (CO2 eq. t) 20. HSE non-compliances (number)21. HSE Fines/Penalties (m €) 22. Environmental Provision release (m €) 23. HSE Expenditure (m €)

3. KEY CONTROLS

Control indicators specify the most important functional controls of over the HSE from the integrated operation point of view such as reports, reviews and audits.

Ad-hoc Incident Report Weekly HSE ScorecardMonthly HSE Projects Review Quarterly HSE Management LetterMidyear HSE Performance Review Annual HSE Assurance Letter (Self-Assessment) and Audit Program

4. KPIs with non-mandatory requirements are italicized.

4. REQUIRED OPERATIVE REGULATIONS AND LOCAL DOCUMENTATION

4.1 Global Operative regulations 1. HSE_1_G1.1.1 see: Group Operation Management 2. HSE_1_G2.1.1 HSE Comprehensive Risk Assessment (COMPASS)3. HSE_1_G3.1.1 HSE Competencies &Training 4. HSE_1_G4.1.1 HSE Target Setting & Planning5. HSE_1_G5.1.1 Contractor and Supplier HSE Management6. HSE_1_G6.1.1 Process Safety Management (PSM) 7. HSE_1_G7.1.1 HSE Standards8. HSE_1_G7.2.1 Fire Prevention & Protection9. HSE_1_G8.1.1 Occupational Health Management (OHM)10. HSE_1_G8.2.1 Workplace Health Promotion (WHP)11. HSE_1_G9.1.1 Waste Management12. HSE_1_G9.2.1 Greenhouse Gas (GHG) Management13. HSE_1_G9.3.1 Risk Based Environmental Remediation (RBER)14. HSE_1_G10.1.1 HSE Document and Record Control15. HSE_1_G11.1.1 Product Stewardship (PS)16. HSE_1_G12.1.1 HSE Communications17. HSE_1_G13.1.1 Incident Reporting & Investigation System (IRIS)18. HSE_1_G14.1.1 Emergency Response System (ERS)19. HSE_1_G15.1.1 HSE Audit20. HSE_1_G15.2.1 HSE Self-Assessment21. HSE_1_G15.3.1 HSE Performance Monitoring and Reporting

4.2 Local Operative regulations1. HSE Management System and/or HSE Policy2. Fire Prevention & Protection and/or Emergency Response Plan3. (HSE) Training & Development 4. (HSE) Document & Record Management

4.3 Local documentation (electronic or paper) requirements1st element• Local language version of HSE Policy • HSE MS or Register of HSE Critical activities • Plan of HSE Site visits• HSE meeting(s) record(s)

2nd element• Risk Register/HSE Critical Activities

3rd element• HSE Training & Development Plan

4th element• Annual HSE Objectives & Targets• Annual HSE Action Plan

5th element• Contractors’ HSE Pre-Qualification Questionnaire

6th element• Records of Process Hazard Analysis (for critical process)

7th element • Local language version of Global HSE Standards

8th element• List of trained First Aid provider(s)• Medical Emergency contact list

9th element• Environmental Impact Assessment (for major projects)• Environmental Remediation Plan (regarding liabilities)• (Annual) Waste Management Plan • GHG Emissions Report (verified within EU)

10th element• List of applied HSE legislation• List of HSE permits and licences

11th element• List of Local MOL Product’s Risk Assessment

(regarding manufacture)• Local language version of MOL Product (M)SDS• Local (M)SDS Emergency Contact List

12th element• Local Annual HSE and/or SD Report

13th element• Records of Incident Investigation Reports

14th element• Emergency/Fire Response Plan

15th element• HSE Performance evaluation records• Local HSE Audit Plan


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Type Title of Business rules for HEALTH, SAFETY of regul. G/Land ENVIRONMENT MANAGEMENT (Global Operative

or Local) reg.

10 MOL Group maintains a Group HSE Standard Principles/Policy ❑ L HSE Policyappropriate to HSE impacts of Group activities, products, services and commitments. Where a MOL entity has operational control it must have a written HSE Policy covering Group HSE Standard Principles/Policy, as a minimum.

20 Site management must define and document the scope ❑ L HSE MSof the HSE MS and/or HSE Critical activities in their operations.

30 Managers must demonstrate visible leadership and proactive ❑commitment towards to HSE excellence through:• setting personal example• communicating HSE requirements to employees• discussing and reviewing progress against HSE targets• demonstrating personal participation in HSE initiatives

40 Managers must conduct frequent site inspections, reviews ❑and behavioural observation walkabouts at least on a quarterly basis.

50 Leaders must integrate HSE issues into management meetings ❑as the 1st agenda point or set up equivalent managerial HSE Forum /HSE (Sub)Committees

60 HSE is line management responsibility/accountability; ❑it can not be delegated to a staff member of group or an external service provider

70 Employees and contractors must be aware of proper ❑HSE behaviour expected of them and have a clear understanding of the consequences of inappropriate conduct. Systems are in place that recognise, reinforce and rewardHSE innovation, initiatives, desired behaviour and results.

80 Employees and contractors must understand that they have ❑the right and responsibility to stop work or refuse to work in circumstances that may cause HSE harm, and to immediately bring these situations to the attention of management.

Recommended Business rules are italicized.

ENVIRONMENTAL

STEWARDSHIP

HSE

LEADERSHIP

AND

ACCOUNTABILITY

HSE OPERATION

ASSESSMENT

AND

IMPROVEMENT

HSE INCIDENT

REPORTING

AND

INVESTIGATION

HSE

TRAINING

AND

COMPETENCES

ELEMENT 1.HSE Leadership & Accountability


12


or Local) reg.

10 Personnel at all organizational level must be appropriately involved ❑ Gin the identification of HSE hazards and effects on them,and the subsequent implementation of risk controland recovery measures.

20 HSE hazard and qualitative risk assessment ❑ G HSEmust be regularly conducted though: Comprehensive• identifying hazards Risk• assessing consequences and probabilities Assessment• controlling causes and implementing prevention measures (COMPASS)• recovering and mitigation stepsat existing facilities or operations and must be initiated if activities changing. HSE Critical Risks must be identified, evaluated and methods to control them put into practice.

30 A comprehensive quantitative HSE Risk assessment of health, ❑ G HSEsafety and environmental hazards must be conducted for hazardous Comprehensiveprocesses at existing facilities or operations. RiskQuantitative assessment must be updated at least every 5 years Assessmentor more frequently if the nature of a risk requires it. HSE risks should (COMPASS)always be reduced to an acceptable level (ALARP)

40 All significant changes (to organisation, personnel, processes, ❑equipment design, documentation etc.) must be evaluatedand managed to ensure that HSE risks arising from such changes remain at an acceptable level.

50 MOL Group member companies/Business Divisions should establish ❑ L Managementand implement written procedure to manage critical HSE changes of Changeto ensure that all necessary actions have been identified, authorized and completed and relevant documentation updated.

60 Management of Change (MOC) system must assure essential ❑ G See:communication and training so that all effected MOL and/or Groupcontractor employees and stakeholders can understand Operationand successfully manage new risk. Management

70 HSE Comprehensive Risk Assessment must be performed by ❑ G HSEtrained and qualified employees or contractor and include expertise Comprehensivefrom unit assessed. Risk Assessment

80 HSE risks must be evaluated by the appropriate level of management, ❑ G HSEconsistent with the significance of the risk. Risk management Comprehensivedecisions must be documented and the implementation Risk Assessmentof resulting actions tracked in a risk register. (COMPASS)


SAFE

OPERATION

HSE RISK

AND

CHANGE

PRODUCT

STEWARDSHIP

HSE DESIGN

AND

CONSTRUCTION

CONTRACTOR

AND

SUPPLIER HSE

ELEMENT 2.HSE Risk and Change Management

13


or Local) reg.

10 Recruitment criteria for employees must be reviewed ❑by HSE competence requirements.

20 Employee and contractor HSE competences should be identified, ❑ G HSE documented and periodically) reviewed. Competences(at minimum once a year) and Training

30 Employee and contractor training needs must be identified, prioritized, ❑ G HSE planed, documented and monitored. Staff must be developed Competencesfollowing structured competency assessment and training system. and Training

40 Initial/orientation, ongoing and periodic refresher HSE training to ❑ L HSE Trainingmeet job and legal requirements must be provided and documented. and Development

50 HSE Culture Change training should be undertaken ❑by all managers within the next 3 years.

60 Training of all mangers, leaders and employees should be ❑undertaken to demonstrate fully Group HSE MS requirements and its implementation.


ENVIRONMENTAL

STEWARDSHIP

HSE

LEADERSHIP

AND

ACCOUNTABILITY

HSE OPERATION

ASSESSMENT

AND

IMPROVEMENT

HSE INCIDENT

REPORTING

AND

INVESTIGATION

HSE

TRAINING

AND

COMPETENCES

ELEMENT 3.HSE Training and Competences


14


or Local) reg.

10 HSE Planning is an integrated part of Business Planning, ❑ G HSE Target and its schedule must always be harmonised with Settingthe MOL Group planning calendar. and Planning

20 MOL Group shall set Group-wide HSE goals, targets and leading ❑ G HSE Targetand lagging indicators that are measurable, documented, Settingcommunicated, monitored and reviewed. and Planning

30 MOL Group members and Business Divisions must annually set: ❑ G HSE Target • measurable HSE objectives and targets, leading and lagging Setting

indicators that are documented, communicated, and Planningmonitored and reviewed.

• They must be consistent with the MOL Group-wide HSE targets, take into account the HSE risks, legal requirements, and consider technological options, business requirements and the interests of stakeholders.

40 An Annual HSE Action Plan (tasks, projects and programs) must ❑ G HSE Target be put in place and include designated responsibilities, resources Settingand time frames to achieve HSE targets and objectives. To compile and Planningan annual HSE action plan the following inputs must be considered:• HSE policy, strategic goals and objectives,• HSE (liability) assessment reports, requirement

of relevant HSE legislations,• HSE risk map, HSE trainings,• HSE improvement plan,• Findings of previous HSE audits (internal and external),• Stakeholders’ expectations as well as the availability

of the company or BU resources. Annual HSE action plans must be updated and communicated as changes, modifications or new developments occur.


HEALTH

PREVENTION

AND

PROMOTION

HSE LEGAL

REQUIREMENTS

AND

DOCUMENTATION

EMERGENCY

PREPAREDNESS

AND RESPONSE

HSE

PLANNING

AND TARGETS

HSE

COMMUNICATION

AND

CONSULTATION

ELEMENT 4.HSE Planning and Targets

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or Local) reg.

10 Contractors must be HSE pre-qualified and evaluated for work ❑ G Contractorusing criteria that include assessment of capabilities & Supplierand competencies to perform work in a safe HSE Managementand environmentally sound manner.

20 Hazards and risks associated with contractor and procurement ❑activities in our businesses must be identified, managed and communicated.

30 Clear deliverables and performance indicators should be agreed ❑ G Contractorand systems put in place to ensure HSE and technical compliance. & Supplier

HSE Management

40 Interfaces between contract owner and suppliers of services ❑and/or products must be identified and effectively managed.

50 Purchased products and services should be verified meeting ❑ G Contractornational/international health, safety and environmental standards. & Supplier

HSE Management

60 Conduct HSE workshop for contractor to communicate ❑MOL HSE requirements / guidelines prior to start of every project.


SAFE

OPERATION

HSE RISK

AND

CHANGE

PRODUCT

STEWARDSHIP

HSE DESIGN

AND

CONSTRUCTION

CONTRACTOR

AND

SUPPLIER HSE

ELEMENT 5.Contractor and Supplier HSE


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or Local) reg.

10 Baseline safety-related technical, environmental and health data ❑ G Process Safety must be collected before the development phase of any Managementnew operation, facility or major modification. (PSM)

20 Design and construction of new or modified assets must be ❑ G Process Safetyformally approved by a PS Engineer or designated technical authority. Management

(PSM)

30 Deviation from approved design, standards and execution shall ❑ G Process Safetyonly be permitted after review and approval Managementby PS Engineer or designated technical authority. (PSM)

40 Integrated HSE and quality control/assurance must be put in place ❑ G Process Safetyto ensure that facilities meet design and procurement specifications Managementand that construction is in accordance with approved plan. (PSM)

50 The design and selection of new plant, equipment and processes ❑ G Process Safetycontrolled by MOL Group must take known and projected asset Managementlife cycles, HSE requirements, provision for decommissioning, (PSM)disposal and closure, into account.

60 Lessons learned from previous projects, current operations ❑and other relevant sources should be taken into account in project development phases to improve HSE performance. Best Available Technique (BAT) should be preferred.

70 HSE Critical equipments, systems (pressure vessels, piping, ❑ G Process Safetypressure relief and vent systems, controls, alarms, sensors etc.), Managementprocedures and hazardous substances must be identified (PSM)and documented prior to commissioning.

80 Prior to new/changed facility start-up final Process Hazards Analysis ❑ G Process Safety(PHA) must be conducted and all recommendations must be closely Managementstudied and approved by asset owner /site manager. (PSM)

90 Documented pre-start-up team-review must be carried out ❑ G Process Safetyas the final checkpoint for new and modified equipment to confirm that Managementall appropriate HSE requirements have been addressed (PSM)and the facility is safe to operate.


SAFE

OPERATION

HSE RISK

AND

CHANGE

PRODUCT

STEWARDSHIP

HSE DESIGN

AND

CONSTRUCTION

CONTRACTOR

AND

SUPPLIER HSE

ELEMENT 6.Design and Construction

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or Local) reg.

10 HSE operational procedures, local work instructions must be ❑ G HSEestablished, implemented and maintained to ensure that operations Standardsand maintenance activities are managed.

20 HSE critical processes and activities must be identified and executed ❑according to documented regulations to ensure minimum HSE risk and impact.

30 An appropriate fire prevention system must be established ❑ G Fireto prevent the evolvement of circumstances that may cause fires Preventionin operational areas. & protection

40 Where an operation is considered to be the cause of a major ❑ G HSEindustrial accident (as defined in the “SEVESO” act) Comprehensive the HSE Comprehensive Risk Assessment (COMPASS) Riskregulation should be implemented. Assessment

50 To prevent road accidents, Road Safety Policy requirements ❑ G HSEmust be met. Standards

60 To control hazards of MOL Group’s hazardous chemicals, ❑ G Process Safetymanufacturing and hazardous operational processes, ManagementProcess Safety Management System (PSM) must be used. (PSM)PSM related start-up, operating, maintenance and shutdown processregulations must be in place with identified designated authorities (e.g. permit to work, hand-over, equipment and process isolation, etc.)

70 Proposals to modify operating or design limits must be subject ❑ G See: Groupto Management of Change (MOC) processes. Operation

Management

80 Systems must be established, documented and maintained to ensure ❑ G Process Safetythe ongoing integrity of plant and equipment. These include procedures Managementfor maintenance, inspection, testing, calibration and certification (PSM)of equipment at frequencies that meet legal and manufacturer requirements.

90 The reliability and availability of protective systems and equipments ❑(critical alarm, shutdown, emergency-response, PPE) must be maintained through appropriate testing and maintenance programs, including management of temporary disarming or deactivation.


SAFE

OPERATION

HSE RISK

AND

CHANGE

PRODUCT

STEWARDSHIP

HSE DESIGN

AND

CONSTRUCTION

CONTRACTOR

AND

SUPPLIER HSE

ELEMENT 7.Safe Operation


18


or Local) reg.

10 Chemical, physical, biological, mental and ergonomic workplace ❑ G HSEhazards must be identified assessed and regularly revised based on Comprehensivethe degree of occupational exposure. Risk

Assessment

20 Health risks must be managed through preventative and protection ❑ G Occupationalmeasures, employee information and education initiatives. Health

Management(OHM)

30 Task/job related health screening of all employees, new hires ❑ G Occupationaland employees leaving MOL Group should be performed regularly. Health

Management(OHM)

40 Appropriate medical monitoring of all employees should be ❑ G (OHM)performed regularly.

50 Emergency medical service/support and resources must be ❑ G Occupationalavailable within 4 hours at every worksite. Health

Management(OHM)

60 First aid must be provided at each workplace by skilled person(s) ❑ G Occupationalwith appropriate sources, depending on the number of employees Healthand the level of worksite risk. Management

(OHM)

70 Health promotion program should be provided and designed ❑ G Workplaceto enhance employees’ well-being and productivity. Health

Promotion(WHP)


HEALTH

PREVENTION

AND

PROMOTION

HSE LEGAL

REQUIREMENTS

AND

DOCUMENTATION

EMERGENCY

PREPAREDNESS

AND RESPONSE

HSE

PLANNING

AND TARGETS

HSE

COMMUNICATION

AND

CONSULTATION

ELEMENT 8.Health Prevention and Promotion

19


or Local) reg.

10 For major projects (new activities, facility developments or significant ❑ G HSEmodifications) which require planning permission a Preliminary ComprehensiveEnvironmental Impact Study (PEIS) and/or Environmental Impact RiskAssessment (EIA) must be performed. Assessment

(COMPASS)

20 Where installations are covered by GHG emission trading scheme ❑ G Greenhouse(ETS), direct GHG emissions must be monitored, reported Gasand verified. Cost-effective actions must be taken wherever GHG Managementare emitted with the aim of decreasing such emissions. (GHG)

30 Generation of hazardous and non-hazardous wastes must be minimised. ❑ G WasteGenerated hazardous and non-hazardous wastes must first of all Managementbe treated by re-use, recycling, energy-recovery and/or final disposal.Hazardous and non-hazardous waste streams must be traced from generation up to final treatment which should take place as close to the point of generation as practicable.

40 Soil and groundwater contamination must be assessed and, where ❑ G Riskrequired, control or remediation must be taken in hand. Remediation Basedis a risk management issue, whereby technical and administrative Environmentalactions are adjusted to current and near-term future land use. RemediationMOL Group favours the in-situ natural or intensified-natural solutions (RBER)whereby energy consumption and/or the amount of remediation-generated waste is zero or minimal.


ENVIRONMENTAL

STEWARDSHIP

HSE

LEADERSHIP

AND

ACCOUNTABILITY

HSE OPERATION

ASSESSMENT

AND

IMPROVEMENT

HSE INCIDENT

REPORTING

AND

INVESTIGATION

HSE

TRAINING

AND

COMPETENCES

ELEMENT 9.Environmental Stewardship


20


or Local) reg.

10 Systems must be put in place to identify and access all applicable ❑ G HSEHSE laws, regulations, approvals, licences, permits, and other Documentrequirements (e.g. codes, policies, standards, protocols and Recordand commitments) and documented in a compliance register that Controlis reviewed and kept up-to-date and communicated to the workforce.

20 A compliance plan must be prepared and followed up for all external ❑ L HSEand internal HSE requirements and such plan must contain Documentthe precise description of a given action or task, its implementation and Recordtimetable, resources required and person(s) responsible. If minor Controlchanges in law occur, the preparation of such action plans is optional.

30 A system must be put in place to make secure drawings, design data ❑ L HSEand other documentation, including definition of responsibilities for Documentmaintaining such information. Current versions of relevant documents and Recordmust be made available and understandable to users, as required. ControlDocuments from external sources necessary for HSE MS planning and operation must be recorded and kept up-to-date.

40 Systems must be put in place to ensure that accurate, legible ❑ L HSEand identifiable HSE records are set up and maintained. Medical Documentrecords must be kept confidential by appropriate health experts and Record

Control

50 HSE documents and records must be identified, securely stored, ❑ L HSEreadily retrievable, with specified retention times based on legal Documentrequirements and/or knowledge preservation needs, and responsible and Recordcustodians assigned. Disposal of such documents must be in Controlaccordance with MOL operative regulations.

60 Every HSE related data/datum, figure and record should be ❑ G HSEstored in HSEINFO. Document

and RecordControl


HEALTH

PREVENTION

AND

PROMOTION

HSE LEGAL

REQUIREMENTS

AND

DOCUMENTATION

EMERGENCY

PREPAREDNESS

AND RESPONSE

HSE

PLANNING

AND TARGETS

HSE

COMMUNICATION

AND

CONSULTATION

ELEMENT 10.HSE Legal Requirements and Documentation

21


or Local) reg.

10 Product Stewardship must be applied at all product life cycle stages ❑ G Productrelevant to the MOL activities Stewardship

20 New product (uses and markets) assessments must be conducted ❑prior to marketing or distribution, to identify health, safety and environmental hazards and risks associated with their normal use and potential misuse.

30 Periodic reassessments must be conducted for all manufactured ❑and re-branded products and isolated intermediate streams. This includes collection and review of adverse effects reported or experienced by those handling such products. Records of assessment, background information and conclusions must be kept up-to-date throughout a product’s life and retained as appropriate.

40 Dangerous substances and products must be managed throughout ❑ G Producttheir life-cycles i.e. preparation, authorization, restrictions on their Stewardshipmanufacture, market distribution, use and disposal.

50 Material Safety Data Sheets (MSDS), labels, exposure scenarios, ❑ G Productchemical safety assessments and other information must be developed Stewardshipand made available to handlers and users in accordance with legal /MSDSand customer requirements, and when such information changes.

60 A system must be put in place to respond to emergency requests ❑for MOL product health, safety and environmental information.

70 An effective recall system must be put in place for MOL products ❑ G Productwhere defect could give rise to health, safety and environmental hazards. Stewardship

80 Dangerous goods should be handled during transportation according ❑to the requirements of the related (ADR, RID, IMO and IATA) regulations. The handling system should manage and focus on sender and receiver roles of MOL Group companies and BUs.


SAFE

OPERATION

HSE RISK

AND

CHANGE

PRODUCT

STEWARDSHIP

HSE DESIGN

AND

CONSTRUCTION

CONTRACTOR

AND

SUPPLIER HSE

ELEMENT 11.Product Stewardship


22


or Local) reg.

10 MOL Group HSE Policy, the HSE MS, HSE (business) rules, ❑ G HSEand relevant information on HSE matters, risks, plans Communicationsand performance must be communicated throughout the organisation to employees, and to external stakeholders, on a regular basis.

20 Proactive and open consultation and communication with ❑ G HSEgovernments, authorities and other organisations must be maintained Communicationsto contribute to the development of public policy, relevant legislation and educational initiatives in relation to Sustainable Development.

30 HSE critical information must be shared across the organisation ❑ G HSEand its operations as well as, where appropriate, Communicationswith external stakeholders.

40 Concerns, complaints and relevant external communications related ❑to HSE aspects of the organisation must be recorded in a register, acknowledged, investigated as incidents and outcomes reported back to relevant stakeholders.

50 The MOL Group Sustainability Report to all stakeholders ❑ G HSEaddressing HSE performance, initiatives, risks and stakeholder Performanceconcerns, must be produced on an annual basis. Monitoring

& Reporting

60 Elaboration in electronic form of Local SD reports in the context ❑of environmental, social and economic factors, may be considered.


HEALTH

PREVENTION

AND

PROMOTION

HSE LEGAL

REQUIREMENTS

AND

DOCUMENTATION

EMERGENCY

PREPAREDNESS

AND RESPONSE

HSE

PLANNING

AND TARGETS

HSE

COMMUNICATION

AND

CONSULTATION

ELEMENT 12.HSE Communication and Consultation

23


or Local) reg.

10 HSE incidents must be reported, investigated, analysed ❑ G Incidentand mitigated in a timely manner. Reporting &

InvestigationSystem

20 HSE near-misses should be reported, investigated, ❑analysed and communicated.

30 The root causes of incidents must be identified so that actions ❑ G Incidentmay be taken to prevent their recurrence. Reporting &

InvestigationSystem

40 Corrective and preventive actions must be identified and prioritised ❑ G Incidentand aim at eliminating or reducing the risk and recurrence of incidents Reporting &and near-misses (all recommendations should be in the form of Investigationmeasurable actions with clearly-defined parties responsible Systemand time scales for implementation) (IRIS)

50 High risk incidents must be investigated by a multi-functional/level ❑ G Incidentteam with participation and leadership from outside Reporting &the Business Unit concerned. Investigation

System

60 Major incident investigation reports must be submitted to MOL Group ❑ G IncidentEEB/BMT within 3 months of the occurrence of such incidents. Reporting &

InvestigationSystem

70 Information gathered from incidents must be analysed to identify ❑lessons learned and to monitor trends, and then reported to management to improve HSE MS practices.

80 Lessons learned must be shared across the organisation with ❑stakeholders, and others as appropriate, o prevent such incidents recurring.

90 Unsafe acts and unsafe conditions should be recorded in ❑a hazards register and mitigations measures adopted to eliminate such actions and conditions.


ENVIRONMENTAL

STEWARDSHIP

HSE

LEADERSHIP

AND

ACCOUNTABILITY

HSE OPERATION

ASSESSMENT

AND

IMPROVEMENT

HSE INCIDENT

REPORTING

AND

INVESTIGATION

HSE

TRAINING

AND

COMPETENCES

ELEMENT 13.HSE Incident Reporting and Investigation


24


or Local) reg.

10 Systems must be put in place to identify potential emergency ❑ G Emergencysituations and their likely impact, Responseincluding those on nearby operations. System

(ERS)

20 Emergency Response Plans that define responses (including ❑ L Emergencythe mitigation of impacts on HSE) to predictable emergency Responsescenarios must be documented, accessible, communicated Plansand reviewed. These plans should define roles and responsibilities of employees and contractors.

30 Emergency response plans must be aligned with the MOL Business ❑Continuity Management system (BCM), MOL Group business continuity requirements, and internal/external response organisations,taking into account their capabilities to respond.

40 Resources, including equipment and warning devices, ❑ L Emergencyrequired for emergency response and ongoing recovery activities, Responsemust be identified, maintained and tested at least annually. Plans

50 Employees, contractors, visitors and external stakeholders ❑as appropriate, must be trained in and understand emergency response plans, their roles and responsibilities, and the use of emergency response resources.

60 Emergency exercises and drills must be scheduled and conducted ❑ G Emergencyregularly (at least annually) including liaison with and the involvement Responseof internal/external response organisations and other stakeholders, Systemas appropriate. (ERS)

70 Follow-ups from emergency exercises and drills must be documented, ❑ G Emergencyincorporated into revisions of plans and resources, and shared Responsewith stakeholders and others, as appropriate. System

(ERS)


HEALTH

PREVENTION

AND

PROMOTION

HSE LEGAL

REQUIREMENTS

AND

DOCUMENTATION

EMERGENCY

PREPAREDNESS

AND RESPONSE

HSE

PLANNING

AND TARGETS

HSE

COMMUNICATION

AND

CONSULTATION

ELEMENT 14.Emergency Preparedness and Response

25


or Local) reg.

10 MOL Group Business Unit and company HSE performance must be ❑ G HSEmonitored and reported in a way that can be verified externally. PerformancePerformance must be continuously evaluated to support increase Monitoringin business value on the basis of approved HSE goals, & Reportingtargets and (leading and lagging) performance indicators

20 Annual management reviews must be conducted to determine ❑the continuing suitability, adequacy and effectiveness of the HSE MS. Information reviewed should include audit results, incident reports, performance reports and the opinions of relevant stakeholders. Findings from lessons learned processes (e.g. behavioural observation, audits, incident investigations, near-misses, HAZOPS, etc.) must be prioritised, tracked and followed up on.

30 Compliance with relevant (national) legal HSE requirements must be ❑ G HSE Auditassessed regularly - internally annually (unless a Group HSE audit is HSE Liability conducted within the same reporting year) and by an independent Assessmentexternal auditor every 5 years. For these liability assessments annual plans must be compiled and assessments conducted accordingly.

40 HSE Due Diligence must be an integral part of any proposal for ❑ G HSE Auditcompany acquisition, divestiture or merger. Such Due Diligence HSE Due must identify risks and potential costs related to all HSE issues Diligenceat the company concerned.

50 Risk-based Group audits must be conducted every 3 years ❑ G HSE Auditat HSE-critical Subsidiaries and of MOL Group processes based Checkliston a pre-defined set of questions / areas harmonised with the annual Internal Audit programme. Audits may be more frequent depending on an organisation’s HSE risk profile and performance history.

60 Performance improvement plans must be prepared, executed ❑ G HSE Targetand continuously monitored to address areas for improvement (AFI) Settingincluding non-conformities. The workforce must be actively involved & Planningin periodic self-assessments, audit findings as well as corrective and improvement actions as part of the Group Improvement Framework.

70 Based on mid-year HSE performance evaluations, Management ❑ G HSE Self-Letters might be issued identifying areas for improvement for Assessmentthe relevant year with necessary corrective actions/recommendations. ManagementSuch corrective actions must be implemented Letterand recommendations followed-up on.

80 Subsidiaries must conduct annual self-assessments to establish the ❑ G HSE Self-extent of their conformance with this Group Guideline and then send Assessmenttheir annual HSE Assurance Letter to the GCEO, GHSE and relevant ManagementManagers Appointed-for-Control (MAC) and Divisional Leader(s).


ENVIRONMENTAL

STEWARDSHIP

HSE

LEADERSHIP

AND

ACCOUNTABILITY

HSE OPERATION

ASSESSMENT

AND

IMPROVEMENT

HSE INCIDENT

REPORTING

AND

INVESTIGATION

HSE

TRAINING

AND

COMPETENCES

ELEMENT 15.HSE Operation Assessment and Improvement


26

5. INTEGRATION CRITERIA

This Guideline is relevant to all Business and Functional Units and MOL Group legal entities at Group, Divisionaland site levels where MOL has operational control.

They include:• Majority owned5 and/or operated sites and activities (from exploration and planning through to closure

and rehabilitation)• Development (R&D) projects and divestments• MOL Group management control (including construction activities prior to hand-over).

The table below explains compliance requirements for all types of operation.

Asset Owner Asset Operator Compliance level

1 MOL MOL Compulsory

2 MOL 3rd Party Not Compulsory6 - MOL does not have operational control

3 3rd Party MOL Compulsory - MOL has operational control

4 JV where MOL owns < 50% Joint Venture(JV) Not Compulsory - MOL does not have of the shares JV operational control

5 JV where MOL owns > 50% JV Not Compulsory - MOL does not have of the shares JV operational control

6 JV where MOL owns < 50% MOL Compulsory - MOL has operational controlof the shares

7 JV where MOL owns > 50% MOL Compulsory - MOL has operational controlof the shares

8 JV where MOL owns < 50% Partner Not Compulsory - MOL does not have of the shares operational control

9 JV where MOL owns > 50% Partner Not Compulsory - MOL does not have of the shares operational control

10 JV where MOL owns < 50% 3rd Party Not Compulsory - MOL does not have of the shares operational control

11 JV where MOL owns > 50% 3rd Party Not Compulsory - MOL does not have of the shares operational control

5 “Majority owned” means that MOL or a Subsidiary owns more than 50 percent interest in the entity.6 Where MOL Group does not have operational responsibility but has an equity stake, or where significant MOL Group assets are involved,

this Guideline is made available to the management of operator, so that comparable HSE MS may be applied.

27

GLOSSARY

Term Definition

ALARP Short for As Low As Reasonably Practicable. Reducing risks to ALARP means reducingrisks to a level at which the cost, effort, time and trouble of further risk reduction would begrossly disproportionate to the risk reduction achieved.

Assessment A systematic and documented review of the effectiveness of implementation of HSEprocesses, programs and process regulations, based on general process criteria and theprofessional judgment of experienced assessors.

Annual HSE This process is a key component of HSE Governance. It is conducted annually and requiresAssurance Letter sites /subsidiaries to complete an assessment of HSE performance using the Self

Assessment tool. The process is aimed at measuring and recording HSE MS process maturity at organisational level. Any deviations identified as a result of completing self assessments are then tracked to closure via corrective actions.

Audit A systematic, independent and documented process for obtaining audit evidence and evaluating it objectively to determine the extent to which the management systems auditcriteria set by the organization are fulfilled.

Change A deviation, either permanent, temporary, or incremental, from a currently established base-line, or anything that is or may be substituted for something else. This includes changes topersonnel, processes, systems, plant and equipment, technology, documents, risks, legislation, commitments, obligations, other requirements, and external environmental,physical and social factors affecting or affected by the organization.

Management of The systematic process for dealing with changes to manage HSE risk.change (MOC)

Closure The process and activities related to the cessation of the operating life of an operation following a decision to close the operation which ends following abandonment, decom-missioning, rehabilitation and, if required, remediation.

Compliance An up-to-date documented record of the regulatory and other requirements applicable register to an operation.

Contractor An individual, company or other legal entity that carries out work on MOL premises or performs services pursuant to a contract for service. This includes sub-contractors as well.

Controlled The sum of water effluents discharged to subsurface waters, surface waters and sewers.discharges to water

Controlled Documents pertinent to effective HSE MS planning, operations and risk control and existdocuments to ensure continual improvement.

These documents can be internal or external, and must be current, uniquely identifiable, and up-dated (with changes and revision status recorded) and can only be changed througha formal process to ensure that only current versions are

Corrective action Action designed to correct an undesirable HSE problem or defect in the management system. Examples may include breakdown of controls, non-conformance with MOL or regulatory requirements, accident, injury, illness, fire, release to the environment or otherHSE-related loss, undesirable trends in HSE metrics, etc.

Critical activity An activity or activities where conduct outside expected performance has the potential toresult in a high risk incident.

Critical HSE Information determined to be essential to the organization's workforce to ensure expectedInformation HSE performance is achieved and maintained. This information may include employee risks

and associated controls, HSE metrics, progress on key objectives, lessons from incidentinvestigations, customer concerns, responses to concerns communicated to leadership, etc.

Culture The whole complex of distinctive spiritual, material, intellectual and emotional features thatcharacterise a society or social group.

Critical HSE Information determined to be essential to the organization's workforce to ensure expectedInformation HSE performance is achieved and maintained. This information may include employee risks

and associated controls, HSE metrics, progress on key objectives, lessons from incidentinvestigations, customer concerns, responses to concerns communicated to leadership, etc.

Culture The whole complex of distinctive spiritual, material, intellectual and emotional features thatcharacterise a society or social group.

Term Definition

Dangerous Transported goods categorized by ADR that have the potential to pose a significant risk togoods the health and safety of people or the environment.

Design data Any information used during, or as a record of, the development of a facility that definesthe resource, process, product, equipment, operation, layout or control of the facility. Thismay include, but not be limited to: basis of design, process flow diagrams, piping and instrumentation drawings, models, plans, single line diagrams, isometrics, constructiondrawings, operations and control philosophies, layout drawings, design calculations, sitedata, design standards, specifications (including for feed/feedstock and product), designdatasheets, process media, materials, cause and effect diagrams, fire and safety studies,manufacturers’ data, manufacturers’ operating and maintenance manuals, emergency shut-down sequences and critical equipment registers.

Direct CO2 Emissions to air of carbon dioxide (CO2) from combustion of fossil fuels and from production process, from sources owned or controlled by MOL Group. Does not includeemissions from transport or indirect emissions.

Documents Structured units of recorded information, published or unpublished, in physical or electronicform, managed as discreet units in the HSE management system. Most records are documents; but not all documents are records. A document becomes a record when it ispart of a business transaction, is kept as evidence of that transaction and is managed withina record keeping system.

Due diligence A systematic, comprehensive and verifiable approach to the management of HSE issues,which is based on an assessment of their likely risks, potential legal liabilities and costs arising from the issues, and is reasonably designed and operated to control and reducethose risks and prevent those liabilities from being incurred.

Emergency An abnormal occurrence that can pose a threat to the safety or health of employees, customers, or local communities, or which can cause damage to assets or the environment.

Emergency drill An exercise intended to train people in duties and escape procedures to be followed incase of emergency.

Environment Surroundings in which MOL Group operates, including air, water, land, soil, natural resources, flora, fauna, habitats, ecosystems, biodiversity, humans (including human arte-facts, culturally significant sites and social aspects) and their interaction. The environmentin this context extends from within an operation to the global system.

Environmental Total amount spent on provision related projects. Provision (as specified by IAS 37.): provision release a present liability with uncertain timing and amount, which will, arising from a past event,

occur with high probability (greater than 50%), and will require a financial commitment.

Fall Incident caused by falling off, over or onto something.

Fatality Death resulting from work related injury or occupational illness, including the fatalities dueto accidents caused to third parties. Company employees, contractor employees and 3rd

parties to be planned/reported separately. At Group level 3rd party fatalities will not be reported externally.

Fatal Accident The number of company/contractor fatalities per 100 million hours worked.Rate (FAR)

Fatal Incident The number of fatal incidents per 100 million hours worked. Incidents involving a third partyRate (FIR) fatality are included, provided they directly result of company/contractor operations.

Fire An unplanned combustion. It includes electrical arcs that also involve a subsequent fire orevidence of combustion (flame, smoke or charring).

First Aid Case Case that are not sufficiently serious to be reported as medical treatment or more serious(FAC) cases but nevertheless require minor first aid treatment, e.g. dressing on a minor cut,

removal of a splinter from a finger. First aid cases are recordable incidents.

Fresh water The total volume of fresh water withdrawn from the environment (surface water / groundconsumption water / drinking water) used for technological purposes.

GHG The atmospheric gases responsible for causing global warming and climate change. Greenhouse The major GHGs are carbon dioxide (CO2), methane (CH4) and nitrous oxide (N20). Gases Less prevalent – but very powerful – greenhouse gases are hydrofluorocarbons (HFCs),

perfluorocarbons (PFCs) and sulphur hexafluoride (SF6). Reported as CO2 equivalent.


28

29

Term Definition

Harm A significant and/or long-lasting adverse impact on people, the environment or the community.

Hazardous Substances that have the potential to pose a significant risk to the health and safety ofmaterials people or the environment.

Hazardous Undesired, dangerous release of materials or energy (e.g., toxic or corrosive discharges,process fires, and explosions) with potential for causing serious injury to people and/or significant

property or environmental damage

Hazardous waste Waste featuring one or several hazardous characteristics listed in the local applicable (HW) legislation. In MOL Group HW is categorized according to source of waste production:

a) arising from normal operation b) emergency events c) resulting from construction/demolition d) from past operations.

Hazards Source or situation with a potential for harm in terms of injury or illness, damage to property, damage to the environment, or a combination of these.

Hierarchy A series of controls, which should be applied in the following order (a number of these of control options may be considered and applied individually, or in combination):

Eliminate – the complete elimination of the hazardSubstitute – replacing the material or process with a less hazardous oneRedesign – redesigning the equipment or work processesSeparate – isolating the hazard by collective guarding or enclosing itAdministrative – providing controls such as training, procedures, etc.PPE – Isolating the employees from the hazard with providing and obligation of usage of Personal Protective Equipment

HSE Behaviours Those behaviours that are expected to result from effective implementation of the organi-zation’s HSE MS. This includes the behaviours of employees, all levels of leadership, contractors and other non-employees with access to MOL operations.

HSE Competence A specific combination of attributes such as HSE knowledge, skills, abilities and attitudesthat is specified to perform a role within an occupation, staff position or job function providing adequate and safe assurance of successful performance.

HSE Documents HSE related documents, either electronic or paper (e.g. procedures, work instructions,checklists, training tools, etc.) developed and implemented to provide HSE direction, guidance and requirements and ensure organizations operate in a safe manner and in compliance.

HSE due diligence An HSE assessment and/or audit of a potential investment, including identification of HSErisks and related costs.

HSE expenditures Costs (CAPEX and OPEX) of any and all materials, assets, services and projects, which arearising from or related to ensuring compliance with HSE regulations, internal procedures orstandard requirements, or can mitigate HSE risks, or improve HSE performance.

HSE Impacts Any change that has adverse or beneficial effects on health, safety or the environment resulting from the organization’s aspects. Some examples of impacts include toxic effectsfrom exposure to chemicals, asphyxiation from confined spaces, resource depletion fromenergy usage, pollution from air emissions, and environmental release during product distribution.

HSE Liability The process of revealing HSE non-compliances of MOL Group and assessment of expen-Assessment diture need related to solving the revealed HSE non-compliances.

HSE A non-fulfilment of a requirement of a) HSE MS, policy, operational regulation and non-compliance b) HSE related laws, legislation.

HSE Penalty Monetary fines levied for violating HSE related laws & regulations.

Impact Any change to the health and safety of people, the environment, the community or property, whether adverse or beneficial, wholly or partially resulting from an organization’sactivities, products or services.

Incident An unplanned event or chain of events that has, or could have, resulted in injury or illnessor damage (loss) to assets, the environment or company reputation. Incidents do not include operations, maintenance, quality or reliability incidents which had no HSE consequence or potential.

Incident Inquiry Number of HSE incidents inquired by root cause analyses (TRIPOD approach) per numberRate (IIR) of all HSE incidents.


30

Term Definition

In-situ On-site treatment of contaminated materials to reduce the source volume or concentration.remediation It may include vacuum extraction for volatiles and semi-volatiles, air sparging or bioreme-

diation.

Job Hazard The job hazard analysis is a thorough, orderly, systematic approach for identifying, evalu-Analysis (JHA) ating, and controlling the hazards of executed jobs, works, duties and operations.

Loss of Primary The uncontrolled or unplanned release of a product from a process or storage that servesContainment as primary containment.(LOPC) Report separately according to the following three categories

1. LOPC Incidents that release from 10 up to 100 kg2. LOPC Incidents that release from 100 up to 1000 kg3. LOPC Incidents that release greater than 1000 kg

Lost Time Injury Work related injury which results in a person being unfit for work at least one shift. (LTI) Fatalities are included.

Lost Time Injury The number of LTIs per 1 million hours worked.Frequency (LTIF)

Material Safety A document that contains information on the potential health effects of exposure to Data Sheet chemicals, or other potentially dangerous substances, and on safe working procedures(MSDS) users should adhere to when handling chemical products.

Medical Cases that are not severe enough to be reported as LTI or RWC but are more severe thanTreatment Case requiring simple FAC.(MTC)

Near-miss A near-miss is an incident which potentially could have caused injury or occupational illness and /or damage (loss) to people, assets, the environment or company reputation,but which did not.

Non-conformance A non-conformance is any deviation from the organization’s management system. This includes deviation from MOL policy or standards, established HSE procedures, rules, regulations and voluntary commitments. A non-conformance is often an indication of weak-ness or a flaw in the management system that requires corrective and/or preventive actionsto improve the effectiveness of the management system.

Non-LTI A work related injury that do not require the injured person to be absent from work includ-ing FAC, MTC and RWC

Non The injury happening to an employee during or related to not-organized work by employer.Work-related Any injury taking place when employee is transported from home to workplace and from injury workplace to home is considered to be non-work related injury, except the injury happens

with a vehicle owned or leased by the employer.

Observation A systematic, independent and documented process for recognition of UA and UC duringexecution of the regular jobs by employees.

Occupational A work related abnormal condition or disorder , other than that resulting from a work injury,Illness caused by or mainly caused by exposures at work. Work injuries are caused by single event

in the working environment cases resulting from anything other than a single event are considered occupational illnesses. Occupational Illnesses include acute and chronic illnessor diseases that may be caused by inhalation, absorption, ingestion or direct contact.

Occupational Any injury such as a cut, fracture, sprain, amputation, etc. which results from a work Injury accident or from a single instantaneous exposure in the work environment. Conditions

resulting from animal bites such as inspect or snake bites, and from one-time exposure tochemicals are considered to be injuries.

Personal All equipment (including clothing) which is intended to be worn or held by a person at workProtective and which protects him against one or more risks to his health or safety (e.g. safety Equipment (PPE) helmets, gloves, eye protection, high-visibility clothing, safety footwear)

Preventive Action An action designed to prevent or reduce the probability of occurrence of an undesirable HSEincident such as the breakdown of controls, non-conformance to MOL or regulatory requirements, accident, injury, illness, fire or other HSE related loss, etc.

Procedure A formal and documented combination of methods, steps and actions established by an organization to achieve specific results, behaviour or activity.

Process Any activity or set of related activities (including storage, manufacturing, use, handling, on-site transfer) and the associated equipment and technology.

31

Term Definition

Process Hazard PHA is application of organized, methodical approaches to identify, evaluate, and controlAnalysis (PHA) the hazards associated with process facilities.

Product Product stewardship is a concept whereby health and environmental protection centresstewardship around the product itself, and everyone involved in the life-cycle of the product is called

upon to take up responsibility to reduce its health and environmental impact.

PSM PSM is a management system addressing all elements of the process safety to method-ologically identify, understand and reduce risks related to industrial processes. Its mainpurpose is to prevent serious incidents like major fires, explosions or toxic releases thatmight affect plant personnel, off-site populations, environment or result in significant material losses.

Requirements Requirements resulting from laws, regulations, judicial orders, administrative orders, consent decrees, municipal ordinances, etc. Identifying "legal" requirements means makingsure the organization knows which governing bodies (national, local) have authority as related to their activities and the full extent of what requirements apply.

Restricted Any work related injury other than LTI which results in a person being unfit for full Workday Case performance of the regular job on any day after the occupational injury. Work perform might(RWC) be an assignment to the temporary job, part-time work at regular job or continuation

full-time in the regular job but not performing all the usual duties of the job. Where no meaningful restricted work is being performed, the incident is recorded as an LTI.

Risk (HSE) Combination of the likelihood and consequence(s) of a specified hazard occurring undesirable HSE event.

Risk Assessment A systematic approach used to determine the degree of risk or vulnerability associated(HSE) with identified hazards.

Risk Assessment A practical tool that is used to qualitatively assess HSE and other business risks. Matrix (RAM) The result is referred to as a Risk rating.

Road accident Any event with involvement of a (registered) road motor vehicle (owned or leased by employer and employees’ owned vehicle) during execution of working duties resulting indeath, injury or damage to assets, if a vehicle was not properly parked. It is not relevant whowas injured, whose assets were damaged where an event happened or who was at fault.If no death/injury occurs, material damage arising from the following categories (regardlessof the repair cost) is also considered an accident. • Collision between vehicles in motion.• Collision of MOL driver/rider with stationary object.• Non-Collision accident - events that involve MOL driver/rider overturning, spinning,

skidding and/or running off the road.

Road Accident The number of road accidents per 1 million km driven.Rate (RAR)

Road Incident Any event with involvement of a (registered) road motor vehicle (owned or leased by employer and employees’ owned vehicle) during execution of working duties that result inmaterial damage only (apart from the three accident categories) is considered an incident.If the fleet vehicle was properly parked occurrences resulting in damage only will be considered an incident.

Road Incident The number of road incidents per 1 million km driven.Rate (RIR)

Site Geographically separated operational installation (e.g. Zala Refinery, ….). In case of Logistics depots, all depots in one country are considered as one site. The same appliesto Retail filling stations (all FSs in one country is one site). Therefore sites in Retail or Logistics are e.g. Hungary, Slovakia. In case of Upstream drilling activities all drilling platform is a separated site like all producing well of Upstream production activity is a separated site as well.

Spills > 1m3 Unintended or uncontrolled release of hazardous materials exceeding 1 cubic metre to theexternal environment (groundwater, surface water, soil), except spills contained in imper-vious containments.

Targets Detailed goals identified by an organisation as being necessary to achieve HSE strategicobjectives. Targets are usually short term and achievable within a year and carry the mostweight when integrated into the organisation's annual Business Plan. All targets should berealistic.


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Term Definition

Process Hazard PHA is application of organized, methodical approaches to identify, evaluate, and controlAnalysis (PHA) the hazards associated with process facilities.

Total Recordable The number of recordable incidents (FAC, MTC, LTI, RWC).Incident (TRI)

Total Recordable The number of TRI per 1 million hours worked (worked during the reporting period)Incident Rate (TRIR)

Total Reportable The number of all occupational illnesses, whether or not they resulted in LTI, disabilitiesOccupational or RWC.Illness (TROI)

Total Reportable The number of TROI per 1 million hours worked (worked during the reporting period)Occupational Illnesses Frequency (TROIF)

Trend Analysis The process of analyzing performance data to determine and understand current and pastconditions of performance used to predict and improve future results, e.g. incident inves-tigation data identifying numerous and similar root causes.

Unsafe Act (UA) UA: a behaviour which increases unnecessary the risk for injury, damage or loss; & Condition (UC) UC: which could lead to injury, damage or loss if not corrected.

Visitor A person visiting MOL site, who is not a MOL Group employee or contractor at that site.

Waste Materials listed in applicable local legislation which are disposed of, or are intended to bedisposed of or must be disposed of by their owner.

Work-related An occupational injury happening to an employee during or related to organised work injury (during travel for work purposes, materials handling or transport, performing personal

toilet, organised workplace catering, occupational health care or any other service providedby the employer during working hours), independent of its time, date and location and thedegree of involvement of the (injured) employee. Any injury taking place when an employeeis being transported from home to workplace or vice-versa is not considered to be a work-related injury, unless such injury happens in a vehicle owned or leased by the employer.

This publication is designed to provide user friendly solutionin regard to the subject matter covered.To obtain additional copies of this booklet:• send e-mail to [email protected]• download form HSE SPS site: http://molsps/sites/hse/default.aspxPublished by MOL Group HSE © 2008