Qatar Energy Industry Sector - Sustainability Report 2012 Contributing to Qatar's Sustainable Development

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Qatar Energy Industry Sector - Sustainability Report 2012 Contributing to Qatar's Sustainable Development
Qatar Energy
       Industry Sector
       Sustainability Report 2012

    Contributing to Qatar’s Sustainable Development
Qatar Energy Industry Sector - Sustainability Report 2012 Contributing to Qatar's Sustainable Development
Qatar Energy and
                                                             Industry Sector
                                                             2012 Sustainability Report

About This Report
Welcome to the third sustainability report of the energy
and industry sector in the State of Qatar. The report
focuses on the consolidated 2012 performance of 35
companies, covering a range of sustainability topics,
and highlighting their contribution to the sustainable
development ambitions of Qatar.

The report has been produced by the Qatar Petroleum’s
HSE Regulations and Enforcement Directorate (DG),
custodians of the Sustainable Development Industry
Reporting (SDIR) programme, a sector-wide initiative
lead by His Excellency the Minister of Energy and

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                     Contributing to Qatar’s Sustainable Development
Qatar Energy Industry Sector - Sustainability Report 2012 Contributing to Qatar's Sustainable Development
His Highness
Sheikh Tamim Bin
Hamad Al-Thani
Emir of the State of Qatar
Qatar Energy Industry Sector - Sustainability Report 2012 Contributing to Qatar's Sustainable Development
Table of Contents

                    Message from the Minister of Energy and Industry                    6

                    Message from the HSE Regulations and Enforcement Directorate – DG   8

                    Executive Summary                                                   10

                    Overview, Context and Stakeholders                                  14

                    SDIR Programme and Sector Performance                               20

                    Health and Safety                                                   34

                    The Environment                                                     60

                    Climate Change and Energy                                           84

                    The Economy                                                         106

                    Society                                                             120

                    Workforce                                                           132

                    Appendix A – Participating Companies                                149

                    Appendix B – Case Study Reference                                   153

                    Appendix C – SDIR Indicators                                        158

                    Appendix D – GRI and IPIECA Alignment                               159

                    Appendix E – Acronyms, Glossary and References                      160

                    Feedback and Contact Details                                        163
Qatar Energy Industry Sector - Sustainability Report 2012 Contributing to Qatar's Sustainable Development
I am very pleased that our          For the next reporting cycle,
                                                            sector Sustainable Development      I would like the sector to
                                                            Industry Reporting (SDIR)           consolidate and improve on
                                                            programme has emerged as one        the progress already achieved,
                                                            of the most effective initiatives   and I expect to see participating
                                                            advancing the State of Qatar’s      companies:
                                                            ambitions for sustainable

Message from the
                                                                                                • Reinforce performance reports
                                                            development.                          and assessments by basing
                                                                                                  them on company specific
                                                            The Energy and Industry Sector        five-year sustainable

Minister of Energy and   H.E. Dr. Mohammed                 2012 Sustainability Report            development strategies and
                                                            consolidates the remarkable           plans.
                           Bin Saleh Al-Sada                progress of this initiative in
                                                                                                • Report health, safety,
                                                            driving sector-wide performance

                          Minister of Energy and Industry                                         environment, and overarching
                                                            and transparency. We witnessed
                         Chairman and Managing Director                                          sustainable development
                                                            an increase in programme
                                         Qatar Petroleum                                          performance by using the
                                                            participation to 35 companies
                                                                                                  SDIR indicators and other
                                                            and improvements in their
                                                                                                  international guidelines.
                                                            systematic reporting against 33
                                                            sustainability indicators. Areas    • Assure the quality of
                                                            of notable progress include           performance data and
                                                            expanded coverage, improved           statements through verification
                                                            data quality, better presentation     processes, continuing to
                                                            of key performance insights and       enhance our collective ability to
                                                            trends, and the timeliness of the     determine trends and insights
                                                            report.                               for the sector and subsectors.
                                                                                                • Move towards publicly
                                                            From the data presented in this       releasing their sustainability
                                                            report we can see a number            reports before June every year,
                                                            of areas where the sector has         using various channels of
                                                            performed strongly, namely a          communication for meaningful
                                                            reduction in flaring, employee        engagement with a wide range
                                                            injury and illness rates, as well     of stakeholders.
                                                            as increases in Qatarization,
                                                            female employment, revenues         The SDIR initiative remains
                                                            and community contributions.        the cornerstone for advancing
                                                            Challenges remain as the sector     the Qatar energy and industry
                                                            experienced eleven fatalities in    sector’s performance and
                                                            2012. We need to continue to        leadership on sustainable
                                                            reduce environmental impacts        development and a key enabler
                                                            while also driving expansion and    of the Qatar National Vision 2030
                                                            growth.                             and the National Development
                                                                                                Strategy 2011-16. We shall take
                                                            The SDIR programme has              proactive steps for engagement
                                                            now established a platform          in an effort to learn and share on
                                                            for stakeholder engagement,         the international and national
                                                            baseline company and sector         stage. Our approach can be
                                                            wide reporting, and awards for      replicated by other sectors in
                                                            best performance. These are         Qatar and provide an example for
                                                            all elements of our envisioned      other parties to follow.
                                                            sector framework for sustainable
                                                            development that will also          I am appreciative of the
                                                            include a forum for collective      commitment and active
                                                            policy alignment and input,         participation of the entire sector
                                                            sector strategy development and     in making this vision a reality for
                                                            performance assessment.             our country.

                                                            H.E. Dr. Mohammed Bin Saleh Al-Sada
                                                            Minister of Energy and Industry
                                                            Chairman and Managing Director, Qatar Petroleum

                                                                                                                    Sustainability Report 2012 pg 7
Qatar Energy Industry Sector - Sustainability Report 2012 Contributing to Qatar's Sustainable Development
Welcome to the Qatar Energy and       As in previous years, the report has
                                                       Industry Sector 2012 Sustainability   focused on issues relevant to the
                                                       Report, a consolidated                State of Qatar, with the focus in
                                                       presentation and valuable source      2012 on the themes of health, and

Message from the                                       of information on the sector’s
                                                       sustainability performance.
                                                                                             on energy and water management.
                                                                                             Guidance on these topics was
                                                                                             provided to standardise and

HSE Regulations and
                                                       This year, the sector has risen to    improve reporting approaches.
                                                       the challenge of achieving higher
                                                       levels of disclosure by a larger      We will focus on offering
                                                       number of companies while also        participating companies the

Enforcement                  Saif S. Al-Naimi
                                                       producing the report much earlier
                                                       than in previous years. Areas of
                                                       particular improvement include:
                                                                                             tools and guidance through
                                                                                             documentation and workshops
                                                                                             on a range of important topics,

Directorate - DG
                                                       • Improvements in data quality:       including:
                                            Director     To better understand the quality    • Supporting the companies
                      HSE Regulations & Enforcement      of the data being provided,           in developing high quality
                                    Directorate (DG)     companies this year have              sustainability reports for public
                                                         been asked to state the basis         release, using international
                                                         on which their data has been          frameworks such as the GRI and
                                                         prepared (such as whether it is       IPIECA guidelines.
                                                         directly measured, calculated       • Providing guidance on reporting
                                                         or estimated) and what                of corporate five-year sustainable
                                                         process they have used for            development plans.
                                                         checking it. This will support
                                                                                             • Encouraging assurance
                                                         the establishment of future
                                                                                               processes of sustainability
                                                         guidelines on verification and
                                                                                             • 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
                                                                                             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

                                                       Saif S. Al-Naimi
                                                       HSE Regulations & Enforcement Directorate (DG)
                                                                                                                 Sustainability Report 2012 pg 9
Qatar Energy Industry Sector - Sustainability Report 2012 Contributing to Qatar's Sustainable Development
The SDIR Programme
                    The SDIR programme was                sustainability management, with
                    established in 2010 by His            the aim of delivering improved
                    Excellency the Minister for Energy    performance at a company and
                    and Industry with the purpose         sector level. The programme is

Executive Summary
                    of enhancing sustainability in        now also delivering value as a
                    the sector and optimizing its         reference point for other sectors
                    contribution to the State of Qatar.   and ministries.

                    This programme has evolved            The SDIR programme is the
                    from a voluntary initiative to a      foundation of the sector’s
                    mandatory requirement for all         sustainable          development
                    companies in the energy and           framework and approach, which
                    industry sector to produce a          is focusing on sector level
                    sustainability strategy and report    sustainability strategy creation,
                    on performance annually. The          national     and     international
                    annual    sector     sustainability   alignment, policy enhancement
                    report and awards have become         and performance assessment and
                    valuable tools for companies          benchmarking.
                    within the sector to learn about

                    SDIR Programme Performance
                    Company participation in the          Reliability and assurance of data
                    programme       has     increased     continues to become a greater
                    from 17 in 2010 to 35 in 2012,        priority. This year, 17 companies
                    with coverage of the 33 SDIR          (49%) provided information on
                    programme indicators (Appendix        the assurance level of the data
                    C) reaching 83% in 2012, a            they provided. This provides a
                    significant improvement from          good foundation for more focus
                    62% in 2010. The number of            on this topic in 2013.
                    companies issuing public reports
                    using international reporting
                    guidelines has also increased
                    year-on-year and is anticipated to
                    reach 13 for 2012.

                    SDIR Programme Performance
                                                                2010       2011       2012
                     Companies participating                       17        33          35
                     Total SDIR indicator coverage (%)          62%        80%        83%
                     Number of companies with
                     public reports                          4 (24%) 11 (33%) 13 (37%)
                     Companies providing information
                     on data assurance level                        -          -         17

                                                                             Sustainability Report 2012 pg 11
Qatar Energy Industry Sector - Sustainability Report 2012 Contributing to Qatar's Sustainable Development
Sector Sustainability Performance                                                                                   The Future of the SDIR and Sector SD Framework
                                           As coverage of the 33 core         companies that provided data                                  The commitments for the SDIR programme and overall sector sustainable
                                           indicators continues to improve,   from 2011 to 2012, but is not fully                           development framework in 2013-2014 include:
                                           initial    performance     trend   reflective of the sector’s complete
                                           assessment and analysis is         performance.       The percentage                             General SDIR Commitments
                                           possible, as captured in the       of coverage varies as not all
                                           performance table below, and       indicators are relevant for all
                                                                                                                                            Transition to a combination of web and print based sustainability
                                           detailed within each chapter of    reporting companies.
                                                                                                                                            reporting by 2014
                                           the report.     The performance
                                           for each indicator includes the
                                                                                                                                            Formulate a sector wide sustainable development strategy, based on the
                                                                                                                                            company five-year strategies
 Sector Sustainability Performance Highlights
                                                                                                                                            Formalise a sector-wide performance review process
                                            % Reporting             2011             2012            Change
                                               Coverage                                                                                     Formalise a multi-stakeholder engagement process for policy review,
 Occupational illness rate (employees)             57%              0.32             0.25              -22%                                 recommendations and formation

 Occupational illness rate (contractors)           23%                nil              nil                  -                               Assess the company sustainability reports and present awards
 Fatalities (employees)                           100%                 1                2                 +1
                                                                                                                                            Take additional steps to learn and share the SDIR experience
 Fatalities (contractors)                          91%                 2                9                 +7
 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

                                                                                                                                                                                                       Sustainability Report 2012 pg 13
Qatar Energy Industry Sector - Sustainability Report 2012 Contributing to Qatar's Sustainable Development

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




                                            Social                    Economic


                                                                                  Sustainability Report 2012 pg 15
Qatar Energy Industry Sector - Sustainability Report 2012 Contributing to Qatar's Sustainable Development
International and National Context
                                                                                                             National Context                                The Qatar Energy
                                                                                                             Qatar’s proposed route to                       and Industry SDIR
                                                                                                             sustainability is contained within              Programme
                                                                                                             the Qatar National Vision 2030 and
                                                                                                             National Development Strategy                   The SDIR programme is focusing
                                                                                                             2011-2016. These national level                 on sector level sustainability
                                                                      In addition, many national             frameworks are based on four                    strategy creation, national and
                                                                      programmes have been developed         pillars of human, social, economic              international alignment, policy
                                                                      to drive the private sector towards    and environmental development,                  enhancement and performance
                                                                      a model of sustainability, with        and aim to harness Qatar’s current              assessment and benchmarking.
                                                                      governments, regulators and            rapid economic growth in a way
                                                                      stock exchanges beginning to           that ensures future generations                 The programme acts as a conduit
                                                                      mandate sustainability reporting       can prosper and enjoy a higher                  between the individual companies
                                                                      in an effort to promote sustainable    quality of life based on social and             that make up the sector, and
                                                                      business        performance.    For    environmental harmony.                          the national laws, regulations,
                                                                      example, state-owned enterprises                                                       frameworks, strategies and vision,
                                                                      in China must now report on their      This national framework for                     and international environment
2011 SDIR Launch during COP18
                                                                      sustainability performance, and        sustainable            development              that shape their operating
                                The United Nations Conference
                                                                      all companies registered on the        is guiding the actions of all                   environment. This is captured in
                                on Sustainable Development
                                                                      stock exchange in South Africa         sectors at       a governmental,                the SDIR alignment triangle which
                                (Rio+20) held in June 2012 in
                                                                      must produce integrated financial      non-governmental and private                    is presented in more detail for
                                Rio de Janeiro, Brazil, resulted
                                                                      and      non-financial      reports.   sector level.     It is catalysing              each of the six elements of the
                                in an outcome document with
                                                                      Similar mandatory and voluntary        the development of new laws,                    SDIR programme, at the start of
                                clear and practical measures
                                                                      schemes exist in other countries       regulations, policies and initiatives           each chapter.
                                for implementing sustainable
                                                                      in Europe and Asia.                    that embed the principles of
                                development.         Titled “The
                                future we want”, it reaffirms the                                            sustainable development with a
                                                                      The Global Reporting Initiative        focus on performance and results.
                                commitment from heads of states
                                                                      (GRI) is the most widely used
                                to existing frameworks such as the
                                                                      and internationally recognised         The SDIR programme is the energy
                                Millennium Development Goals
                                                                      guideline     for    sustainability    and industry sector’s vehicle for
                                (MDGs), the Charter of the United
“The ultimate objective                                               reporting, and is driving a ‘Report    demonstrating progress and is
                                Nations, existing United Nations
                                                                      or Explain’ approach, calling on       increasingly being seen as an
must be sustainable             conventions, and the Universal
                                                                      all companies globally to report       effective and important approach
                                Declaration of Human Rights. It
development”                    also sets out commitments to
                                                                      on sustainability, or explain why      in working towards the State of
                                                                      they do not do so. In May 2013,        Qatar’s sustainability ambitions.
                                create Sustainable Development
                                                                      the GRI released the latest version
H.H. Emir of the State          Goals, increase financing to
                                                                      of the reporting guidelines (the
                                enable the transition to a green/
of Qatar (Conference of         low carbon economy, and makes
                                                                      G4) which are due to be translated
Enhancing the Economic                                                and launched in Arabic in early
                                commitments       to      eradicate



Future of the Middle East       poverty.


                                                                                                                                                      Vision 2030
20th May 2012)



                                                                                                                                                 National Development


                                                                                                                                                  Strategy 2011-2016


                                                                                                                                                 Law, Regulations and


                                2012 also saw the 18th session of     G4 THE FUTURE OF                                                          Energy and Industry SDIR
                                the Conference of the Parties to      SUSTAINABILITY REPORTING                                                        Programme
                                the UNFCCC and the 8th session of
                                the Meeting of the Parties (COP18/    Regionally, programmes similar                                        SDIR Alignment Triangle
                                CMP8) held in Doha, Qatar.            to the SDIR exist in Abu Dhabi
                                The Doha climate conference           and Oman, with the oil and gas
                                successfully set the groundwork       sector as one of the main drivers.
                                for a 2015 global climate deal. It    The SDIR Programme continues
                                also saw a commitment of over         to learn and share from these
                                nine billion USD in climate funds.    initiatives.

                                                                                                                                                                                         Sustainability Report 2012 pg 17
SDIR Programme Stakeholders                                                                                      The Energy and Industry Sector
                                                                            The SDIR programme is a multi-                                                                                     The 35 energy and industry
                                                                            stakeholder platform, which                                                                                        sector companies participating
                                                                            means engagement is a critical                                                                                     in the SDIR programme represent
                                                                            factor in its success. Some of the                                                                                 some of the most significant
                                                                            most important stakeholders in                                                                                     companies in the country, as
                                                                            the programme are listed below,                                                                                    well as being important players
                                                                            together with information on                                                                                       in international markets. The
                                                                            methods of engagement. The                                                                                         companies have been grouped
                                                                            SDIR programme will continue                                                                                       into eight subsectors to allow for
                                                                            to formalise approaches and                                                                                        relevant comparison and analysis.
                                                                            channels for engagement in 2013.                                                                                   Companies with operations in
                                                                                                                                                                                               more than one subsector are
                                                                                                                                                                                               categorized by their major area of

                                             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
                         •   GSDP                                 • Dedicated meetings to advance
                                                                                                                  ORYX GTL Ltd Qatar Shell GTL Limited
 Other ministries        •   Ministry of Environment                collaboration
 and governmental        •   Ministry of Labour                   • Inviting them to speak at quarterly           Petrochemicals
 departments             •   Statistics Authority                   workshops and trainings
                                                                                                                  Qatar Chemicals Company Ltd (Q-Chem) Qatar Fertilizer Company (QAFCO) Qatar Fuel Additives Company Ltd (QAFAC)
                         •   Supreme Council of Health            • Sector sustainability report
                                                                                                                  Qatar Jet Fuel Company (QJet) SEEF Limited Qatar Petrochemical Company (QAPCO)
                         • International bodies (UN, EU, OECD,    • Hosting UN Climate Change                     Qatar Vinyl Company Ltd (QVC) Qatofin Company Limited (QATOFIN) Ras Laffan Olefins Company (RLOC)
                           WEF…)                                    Conference COP18 – Doha 2012
 International           • Millennium Development Goals           • Presentation at UN Conference on              Power and Utilities
 community                                                          Sustainable Development Rio+20 –              Mesaieed Power Company Ltd (MPower) Qatar Electricity and Water Company (QEWC)
                                                                    Brazil 2012                                   Qatar Power Company (Q-Power) Ras Girtas Power Company (RGPC) Ras Laffan Power Company (RLPC)
                                                                  • Sector sustainability report
                                                                                                                  Mining, Minerals and Other
                         • Regional sustainability forums         • Large stand and presentations in the
 National and regional   • General public                           Qatar Sustainability Expo at COP18            Qatar Aluminium (QATALUM) Qatar National Cement Company (QNCC) Qatar Steel
 community                                                        • Annual QP Environmental Fair
                                                                                                                  Transport, Storage and Distribution
                                                                  • Sector sustainability report
                                                                                                                  Qatar Fuel Company (WOQOD) Qatar Gas Transport Company Ltd (NAKILAT) Qatar Shipping Company (Q-Ship)
                         • Company sustainability focal points    • Quarterly workshops and training
 Sector workforce
                         • All 34,000+ sector employees           • Sector sustainability report                  Support Services
                         • Current partners with existing         • Sector sustainability report                  ConocoPhillips Qatar ExxonMobil Qatar Saipem Qatar
 Investors                 investments in the sector
                         • Future potential investors

                                                                                                                                                                                                                  Sustainability Report 2012 pg 19
Sector Sustainable
                 Development Framework
SDIR Programme   The SDIR programme has so
                 far proved successful as a
                                                        sector sustainable development
                                                        framework are to:

and Sector       multi-stakeholder platform for
                 catalysing sustainability strategy
                 development and performance
                                                        • Build and maintain a sector wide
                                                          sustainability strategy aligned
                                                          with company and national

                 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
                 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


                        National and                                     Policy
                        international                                  input and
                        engagement                                     formation

                                                Sector SD

                        Sustainability                              Sustainability
                        performance                                 performance
                         assessment                                   reporting
                         and targets                                    (SDIR)

                                                Awarding of

                                        Proposed Sector SD Framework

                                                                           Sustainability Report 2012 pg 21
SDIR Programme
                                                                          • The GRI Oil and Gas Sector                                                        SDIR Programme Cycle                        the future aims to ensure delivery
                                                                            Supplement                                                                                                                    of this sector and individual
                                                                                                                                                              As the programme continues
                                                                                                                                                                                                          company reports by June each
                                                                          • The IPIECA Oil and Gas sector                                                     to mature, the annual cycle has
                                                                            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
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
                                                                                                                 each year                                       guidance for reporting on the            5. Design and print company
                                                                                     Year            Year
                                    SDIR Focus Area                                                                                                                                                          report
                                                                                (Implementation)   (Reporting)                                                   focus areas
                                                                                                                                                              2. Determine theme and outline of           6. Launch company report and
                                    Climate change and safety                        2011            2012
                                                                                                                                                                 report (including the previous              engage in meaningful dialogue
                                    Health, energy and water management              2012            2013                                                                                                    with stakeholders
                                                                                                                                                                 year’s focus area)
                                    Governance                                       2013            2014
                                                                                                                                                              3. Compile and verify all company
                                    Workforce and social responsibility              2014            2015                                                        sustainability    performance
                                                                                                                                                                 data and case studies
The focus for                      Focus Areas                             assessment using international                                                     4. Prepare         the          sector
                                   Every year the SDIR programme           guidelines. The focus for 2012                                                        sustainability report
2012 was health,                   emphasises specific topics in           was health, energy and water
energy and water                                                           management. As a result, these                                                     5. Conduct assurance on the
                                   order to enhance attention and
                                                                           focus areas have been given                                                           sector sustainability report
management.                        improve the reporting on those
                                                                                                                                                              6. Design, print and launch the
                                   areas.     Topics are identified        emphasis in the company 2012
                                   through engagement with the             sustainability reports, and have                                                      sector sustainability report,
                                   participating companies, national       also been given additional                                                            and engage in meaningful
                                   level areas of focus and materiality    attention in this report.                                                             dialogue with stakeholders

                                                                                                                                                                                                                               Sustainability Report 2012 pg 23
Support and tools are                                 Support, Tools and                   Over the past 18 months, events
                                                                                           and workshops conducted under
provided to the companies                             Guidance                             SDIR include:
participating in the SDIR                             Support and tools are provided
                                                                                           • Feb-March 2012 – One-to-one
programme. The relevant                               to the companies participating in
                                                                                             meetings with all participating
                                                      the SDIR programme in the form
guidelines are available to                                                                  companies
                                                      of guidelines, hosting workshops
the public at                                         and events and day-to-day            • 25th April 2012 – Workshop on
                                                      guidance and communication.            reporting and award scheme
                                                      Information and guidelines are       • 17th September 2012 –
hse/hse.nsf/web/                                      available to the public at - www.      Workshop on sector report and
GBSustDev                                               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
                                                                                           • 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.
                                                                                                                               responsible for the          Each company is responsible for
                                                                                                                               governance and                                                     On a national level, the Qatar
                                                                                                                                                            the governance and management
                                                                                                                                                                                                  Financial Markets Authority has
                                                                                                                               management of                of sustainability related issues
                                                                                                                                                                                                  created a Corporate Governance
                                                                                                                                                            within their own organisation,
                                                                                                                               sustainability related       some having set up a cross-
                                                                                                                                                                                                  Code for public listed companies.
                                                                                                                               issues within their own                                            Furthermore, the “Draft Corporate
                                                                                                                                                            functional team, and others
                                                                                                                                                                                                  Social Responsibility Act” is
                                                                                                                               organisation, some having    having their board mandate the
                                                                                                                                                                                                  pointing companies in the
                                                                                                                                                            appointment of a sustainability
                                                                                                                               set up a cross functional    office or manager within the
                                                                                                                                                                                                  direction of good governance and
                                                                                                                               team, and others having                                            the representation of shareholder
                                                                                                                                                            organisation. The 2013 sector
                                                                                                                                                                                                  and stakeholder interests on a
                                                                                                                               their board mandate          report will cover governance
                                                                                                                                                                                                  management and board level.
                                                                                                                                                            within the sector in greater detail
                                                                                                                               the appointment of a         as one of the focus areas for the
                                                                                                                               sustainability office or     year together with management
                                                                                                                               manager                      systems.

                                                                                                  SD Workshop in May 2013

                                                                                                                                                                                                                     Sustainability Report 2012 pg 25
SDIR Programme Performance Highlights
                                                                              This year, the number of reporting                                                          Completeness
                                                                              companies, the average number                                                               Company reporting on the 33 SDIR programme indicators (listed in
                                                                              of reported indicators, and the                                                             Appendix C) has significantly increased in the years 2011 to 2012. As
                                                                              number of total indicators covered                                                          demonstrated by the graph below, in the 2012 reporting cycle, more
                                                                              have all increased.                                                                         companies have reported a higher number of indicators.

                                                                              From 2011 to 2012, the number                     Completeness of Company Reporting, 2011 vs 2012
                                                                              of    companies     participating
                                                                              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
SD Good Practice Sharing Workshop
                                    SDIR Programme Performance Highlights
                                    100                                                                                                                 0   1-5    6-10            11-15        16-20          21-25       26-30          31-33

                                                                                                                                                                  Number of indicators reported by company                                        2012

                                     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.
                                                                                                                                                                          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.

                                                          2010               2011                        2012                                                              Data Coverage                               2010        2011       2012
                                          Companies              Number of companies with        Total SDIR indicator
                                          Participating          public reports                  coverage (%)                                                              Total SDIR indicator coverage (%)           62%         80%            83%
                                                                                                                                                                           Economic indicator coverage (%)             62%         74%            78%

The number                                                                                                                                                                 Energy and climate change indicator
                                    SDIR Programme Participation                       2010         2011           2012
                                                                                                                                                                           coverage (%)                                63%         78%        80%
of companies                        Companies participating                                 17         33               35                                                 Environment indicator coverage (%)          63%         83%            85%
participating has                   By Subsector                                                                                                                           Health and safety indicator coverage (%)    65%         89%            89%
increased from
                                    LNG/NG                                                  3            3              3                                                  Workforce indicator coverage (%)            58%         74%            79%
33 to 35                                                                                                                       Reporting on health and
                                    Mining, minerals and others                             0            3              3
                                                                                                                               safety, environmental                       Social indicator coverage (%)               54%         64%            73%
                                    Power and utilities                                      1           4               5
                                                                                                                               and energy and climate
                                    Petrochemicals                                          6            8              9
                                                                                                                               change indicators is the
                                    Oil and gas (E&P)                                       4            7               7     most complete, with
                                    Refining                                                2            2              2      social indicators the least
                                    Transport, storage and distribution                      1           3              3      comprehensive over the
                                    Support services                                        0            3              3      past three years.

                                                                                                                                                                                                                                    Sustainability Report 2012 pg 27
Data Reliability                                                                                            Eleven (33%) companies issued                               the GRI for application of the
                                                                                                                                                       a public report in 2011 using the                           guidelines. In 2013, 13 companies
                                           This year, 17 companies (49% of participants) provided information on
                                                                                                                                                       IPIECA and GRI 3.1 guidelines.                              intend to release a public report
                                           the systems used to measure and collect data, and the methods used to
                                                                                                                                                       Eight of these were checked by                              for 2012.
                                           gain assurance on the quality of that data. A summary of the results is
                                           provided below. It is encouraging to note that direct measurement of data
                                           is improving.
                                                                                                                                                       Companies Issuing Public Reports Covering 2012*
This year, 17 companies                     Data Reliability of 17 Companies                                   2012
(49% of participants)                                                                                                                                   Dolphin Energy                     RasGas                      Qatargas                 Maersk Oil
                                            % of data that has been estimated                                  15%
provided information
                                            % of data that has been measured directly                          44%
on the systems used to
                                            % of data covered by an international certification                28%
measure and collect data
                                           Information has also been provided on whether data has been assured by
                                           internal or external teams, as shown below.                                                                         2012                          2012                         2012                       2012

                                            Data Assurance of 17 Companies                                    2012                                            QAFCO                        QAPCO                         QAFAC
                                            % of data that has been verified by an internal team              46%
                                            % of data that has been verified by an external auditor           20%

                                           Public Reporting                           transparency and accountability.
                                           As companies gain experience of            Publishing the report to the public
                                           producing sustainability reports,          can enhance reputation, and                                              2012                          2012                         2012
                                           more companies are making their            improve the ability to compete
                                           reports available to the public.           for talent, improve employee                                     Companies Issuing Public Reports Covering 2011
                                           This is helping them to engage             engagement and retention, and
                                           a wider range of stakeholders,             stimulate improved performance.                                       Dolphin                    RasGas                  Qatargas                   Qatalum
                                           promoting higher levels of

 Public Reporting                                                              2010              2011            2012
 Companies participating                                                         17                33               35
 Number of companies with public reports                                  4 (24%)            11 (33%)       13 (37%)*                                                                                             2011
                                                                                                                                                             2011                        2011                                                 2011
 Number of reports GRI checked (for application of guidelines used)               3                 8                 9
 Number of reports achieving application level A                                  3                 3                 4                                       Oryx                  Qatar Steel                  Nakilat                ExxonMobil

 Number of reports achieving application level B                                 0                  5                 5
 Number of reports achieving application level C                                 0                  0                 0
 Number of public reports with third party assurance                              1                 0                 1
 *Anticipated number

                                                                                                                                                              2011                      2011                      2011                        2011
                                                                                                                            Eleven companies issued
                                                                                                                                                             QAFAC                    MPower                     Saipem
                                                                                                                            a public report in 2011
                                                                                                                            using the IPIECA and GRI
                                                                                                                            3.1 guidelines. Thirteen
                                                                                                                            companies intend to
                                                                                                                            release a public report
                                                                                                                            for 2012.                         2011                      2011                       2011
                                                                                                                                                       *Reports public at time of publication. Thirteen anticipated by the end of the year.

                                                                                                                                                                                                                                                Sustainability Report 2012 pg 29
Sustainable Development Awards
                                                                                                                                                               Award Winners in Excellence in Reporting Sustainability
                             The sustainable development          an award companies must be
                             awards were created as part of       transparent and produce an
                             the SDIR programme to recognise      engaging sustainability report,
                             excellence    in  sustainability     but they must also demonstrate
                             reporting and performance. As        performance and innovation on
                             captured in the assessment           the main elements of the SDIR
                             methodology below to win             framework.

  Profile        Sustainability disclosure and performance                Report Design and
   10%                              (70%)                                   Quality (20%)

                                                                       • Data/Information
            Disclosure         Performance           Innovation

                               Governance                              • Use of guidelines
                                                                       • Presentation and
                             Climate Change                              readability
                                                                                                    The sustainable                           In February 2013, His Excellency       For the 2012 SDIR awards, a
                            Health and Safety                                                                                                 the Minister of Energy and             similar methodology will apply,
                                                                                                    development awards                        Industry and Chief Executives from     with a winner and one runner
                               Environment                                                          were created as part of                   more than 30 SDIR programme            up for the large and medium
                                                                                                    the SDIR programme to                     participating          companies       sized organisations. The Special
                                                                                                                                              attended the first annual award        Recognition category will be
                                Workforce                                                           recognise excellence in                   ceremony to recognise excellence       changed to recognise one large
                                                                                                    sustainability reporting                  in     sustainability   reporting.     and one medium sized company
                             Socio-economic                                                                                                                                          with the best performance in the
                                                                                                    and performance.                          Awards were presented to
                                                                                                                                              seven companies for their              focus areas of the 2012 reporting,
                                                                                                                                              2011 sustainability reports and        namely health, and energy and
                                                                                                                                              performance.                           water management.

                                                                                                     Award for Excellence in Sustainability     Award for Excellence in Sustainability        Special Recognition
                                                                                                            Reporting-Large Scale                    Reporting-Medium Scale                 Award (Contribution to
                                                                                                                                                                                           Sustainable Development)
                                                                                                      Winner           Joint Runner Up           Winner           Joint Runner Up
                                                                                                                                                                                                  Large Scale
                                                                                                      RasGas        Dolphin     Qatar Steel     M Power        QAFAC           QVC
                                                                                                                    Energy                                                                      Qatar Petroleum

                                                                                                                                                                                                        Sustainability Report 2012 pg 31
Sustainability Performance Highlights                                                                                Future Plans
                                           Qatar’s energy and industry          much comparable company data                               Building on the success of the SDIR programme in 2012, DG, in consultation
                                           sector continues to take steps       as possible from 2011 to 2012,                             other stakeholders, has set a range of commitments for 2013-2014. These
                                           towards improved sustainability      but is not fully reflective of the                         are set out below.
                                           performance.       An indicative     sector’s complete performance.
                                           summary of the results is provided   Detailed analysis and comment is                           General SDIR Commitments
                                           below. The performance data          provided in each relevant chapter
                                           for each indicator is based on as    of the report.                                             Transition to a combination of web and print based sustainability
                                                                                                                                           reporting by 2014
 Sector Sustainability Performance Highlights
                                                                                                                                           Formulate a sector wide sustainable development strategy, based on
                                           % Reporting                                                                                     company five-year strategies
                                                                  2011             2012             Change
                                                                                                                                           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
                                                                                                                     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

                                                                                                                                                                                                      Sustainability Report 2012 pg 33
Health and Safety
Personal Safety
                                                                                                        QNV 2030
Process Safety                                                                                          Outcomes
                                                                                                      A skilled national
Emergency Response Preparedness                                                                     workforce capable of
                                                                                                providing high quality health
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: Legislation

                                                                                            SDIR Programme Measures
                                               Personal Safety:                           Occupational Health:                            Process Safety:
                                               • Employee and contractor fatalities       • Employee and contractor                       • Loss of containment incident
                                                                                            occupational Illness rate                     • Incident investigation completion
                                               • Employee and contractor LTIR
                                                                                          • Heat stress events (resulting in              Emergency Response Preparedness:
                                               • Employee and contractor TRIR               medical treatment)                            • Emergency response drills

                                                                                         2012 Achievements
                                                         13.6%                                           59.9%                                           42.9%
                                                   improvement in                                   improvement in                                   improvement in
                                                 employee LTIR in 2012                           employee TRIR in 2012                            contractor TRIR in 2012

                                                                                                                                               Sustainability Report 2012 pg 35
The Health and Safety Context

                                                                 National Context                                                   The Sector’s Health and                • Management of Change (MoC)
                                                                 The State of Qatar recognises the                                  Safety Approach                        • Pre-Start   up   Safety   Review
                                                                 importance of managing health                                                                               (PSSR)
                                                                                                                                    The energy and industry sector
                                                                 and safety issues, especially in                                   ‘Technical     HSE      Framework’     • Guidelines     For   Radiation
                                                                 the energy and industry sector.                                    and its associated regimes are           Protection and the Management
                                                                 The Qatar National Vision 2030                                     under development. The first             of Radioactive Waste in the Oil
                                                                 captures the importance of                                         workshop on the Framework                and Gas Industry
                                                                 ensuring a healthy population in                                   was held in June 2012. Following       • Guidance for DG directorate
                                                                 the Vision’s outcomes, as can be                                   this, designated companies were          technical inspectors to identify
                                                                 seen in the alignment triangle. The                                                                         compliance issue in the field of
                                                                                                                                    asked to nominate experts to
                                                                 National Development Strategy
                                                                                                                                    support the development of the           industrial radiation safety
                                                                 2011-2016 also emphasises the
                                                                                                                                    Framework and its four regulatory      • Occupational              Health
                                                                 need to manage health and safety
                                                                                                                                    regimes, with the participation          supervision checklist
                                                                 in all sectors, and identifies        QAFCO                        of 48 sector experts. This unique
                                                                 specific programmes and targets.      Safety Information                                                  • Heat Stress Management
                                                                                                                                    initiative in the GCC, to involve
                                                                 Achieving the best possible health    System (SIS)                 the sector in the development of
                                                                                                                                                                           Procedures under review and
                                                                                                                                    new regulations, aims to ensure
                           Managing occupational health          and safety results at a national      In 2012, QAFCO’s Safety      that new measures benefit the
                                                                                                                                                                           approval cover:
                           and safety is an essential            level requires the cooperation        Information System                                                  • Health Risk Assessment
                                                                                                                                    State and the sector, by being
                           component       of      corporate     and engagement of various
                           responsibility as it promotes         stakeholders, such as regulators,     was re-engineered on a       applicable and fit for purpose.        • Reporting Significant Industrial
                           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

                                                                                                                                                                                               Sustainability Report 2012 pg 37
                                                               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:
                                                                 (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

                                                                                                                                                                                      Sustainability Report 2012 pg 39
The average employee                       Employee Occupational Illness Rate                             2010        2011     2012                                Contractor Occupational Illness Rate                            2010       2011        2012
illness rate for seven                     Number of companies reporting                                     15         21        26                               Number of companies reporting                                       6          8          11
reporting companies                        Percentage of companies reporting*                              43%        60%       74%                                Percentage of companies reporting*                               17%       23%         31%
in the petrochemical                       Average company employee                                                                                                Average company contractor
subsector improved by                      occupational illness rate                                       1.10       0.30      0.48                               occupational illness rate                                       0.66       0.00        0.00
12.5% in 2012.                             Average company employee                                                                                                Average company contractor
                                           occupational illness rate                                                                                               occupational illness rate
                                           (20 comparable companies)                                          -       0.32      0.25                               (8 comparable companies)                                            -      0.00        0.00
                                           *35 companies were invited to report on this indicator                                                                  *35 companies were invited to report on this indicator

                                          The petrochemical subsector                               Contractor Occupational              Heat Stress              Heat Stress Events                                        reporting in 2012 was higher than
                                                                                                                                                                  Exposure to extreme natural                               in previous years.
                                          achieved the higher reporting for
                                                                                                    Illness Rate                         Events Reported          heat can cause illness and even
                                          this indicator with seven of the
                                                                                                    The SDIR programme supports             50                    death. Energy and industry sector                         The power and utilities subsector,
                                          nine companies providing data
                                                                                                    equal treatment of employees and                              companies work continuously to                            which had the best coverage for
                                          between 2011 and 2012. The
                                                                                                    contractors by requesting that                                mitigate the different types of heat                      this indicator (with 80% of the
                                          average employee illness rate for
                                                                                                    companies report on contractor                                related illnesses, and collaborate                        sector’s companies reporting
                                          the seven reporting companies
                                                                                                    occupational illness rate, in                                 with DG on achieving the best                             their      2012     performance),
                                          improved by 12.5% in 2012. The                                                                            23
                                                                                                    addition to employee rates. In                                results in this area. In May 2012,                        recorded six heat stress events
                                          support services subsector was
                                                                                                    2012, 11 companies reported on                         10     DG sent a circular on ‘Heat Stress                        in 2012, compared to seven in
                                          the only subsector where all
                                                                                                    their contractor occupational                                 Management in Oil and Gas                                 2011. The mining, minerals and
                                          companies reported their 2012
                                                                                                    illness rate, up from eight in                                Sector’ to all General Managers                           other, the transport, storage and
                                          performance, which was zero
                                                                                                    2011. The average contractor           2010     2011   2012   and CEOs in the sector. The Heat                          distribution and the support
                                          employee illness rate. The LNG/
                                                                                                    occupational illness rate in 2012                             Stress Guideline was issued to the                        services subsectors did not report
                                          NG subsector achieved improved
                                                                                                    was zero for the 11 reporting                                 Technical Health Committee for                            any data against this indicator in
                                          performance by 22.2% in 2012, for
                                                                                                    companies, and the same result                                review and feedback in July 2012,                         2011 and 2012.
                                          the two companies that reported
                                          data in 2011 and 2012.                                    of zero contractor occupational                               and is expected to be finalized
                                                                                                    illness rates was achieved for the                            and distributed in 2013.                                  An example of the action taken
                                                                                                    eight companies with data for                                                                                           is the Heat Stress Management
                                                                                                    2011 and 2012.                                                In 2012, 40% of the sector’s                              System that Ras Girtas Power
                                                                                                                                                                  companies reported their heat                             Company has implemented for all
                                                                                                                                                                  stress events, an improvement                             its activities including contractors.
 Employee Occupational Illness Rate by Subsector                                                                                                                  from 34% in 2011. The total                               A health risk assessment covering
                                                                                                                                                                  number of heat stress events in                           heat stress risks has been
                               Companies Reporting        Average Employee Occupational Illness Rate
                                                                                                                        % Change for                              2012 was 10 which represents                              prepared and communicated
 Subsector                                                                                                 2012 for      Comparable                               improved performance on 23                                to all working parties within
                                 2011      2012                  2011                  2012             Comparable        Companies
                                                                                                        Companies*                                                cases in 2011 and the 50 cases                            the plant. A flag system has
                                                                                                                                                                  in 2010. It should also be noted                          been implemented to warn the
 LNG/NG                           2           2                  0.09                   0.07                  0.07             -22%                                                                                         workforce about extremes of heat.
                                                                                                                                                                  that the number of companies
 Mining, minerals and others       1          2                  0.00                    3.59                0.00                0%
 Power and utilities              3           4                  0.00                   0.00                 0.00                0%
                                                                                                                                                                   Heat Stress Events                                              2010       2011        2012
 Petrochemicals                   7           8                  0.85                    0.61                 0.61              -13%
                                                                                                                                                                   Number of companies reporting                                     10          12          14
 Oil and gas (E&P)                4           4                  0.00                   0.00                 0.00                0%
                                                                                                                                                                   Percentage of companies reporting*                              29%        34%         40%
 Refining                          1          2                  0.28                    0.15                0.00      Decreased to 0
                                                                                                                                                                   Total number of heat stress events
 Transport, storage and
                                                                                                                                                                   for the sector                                                    50          23         10
 distribution                     0           1                        -                0.00                      -                 -
                                                                                                                                                                   Total number of heat stress events
 Support services                 2           3                  0.00                   0.00                 0.00                0%
                                                                                                                                                                   (12 comparable companies)                                           -         23          10
                                                                                                                                                                   *35 companies were invited to report on this indicator

                                                                                                                                                                                                                                                 Sustainability Report 2012 pg 41
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