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 DevelopmentQatar 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 DevelopmentTable 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 163I 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 7Welcome 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 9The 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 11Sector 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 13Sustainability
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 15International 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 17SDIR 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 19Sector 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 21SDIR 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 23Support 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 25SDIR 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 27Data 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 29Sustainable 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 31Sustainability 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 33Health 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 35The 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 37Health
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 39The 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 41You can also read