Quality, Health, Safety and Environment

Quality

During 2013, Saipem top management chose to emphasise and reinforce the Company’s commitment to delivering products and services that meet the highest standards of quality, which it has identified as the key to maintaining and sustaining long-term competitive advantages.

To ensure the effective promotion and dissemination of a company culture based on a sound, proactive management of quality issues which recognises their importance for achieving the desired operating results, Quality Assurance and Quality Control operations have been placed under the direct supervision of the Chief Executive Officer.

July saw the roll out of the ‘Bring quality to the next level’ programme, which aims to provide a tool to further enhance the Company’s quality system, promote a company culture oriented towards the pursuit of excellence and the highest quality standards and to bring increased competitiveness and improved commercial success.

Implementation of the programme, which has a two-year time horizon, is being overseen by a Steering Committee composed of managers from a number of different Company functions, which reports periodically to Saipem’s Executive Committee on progress made.

The programme’s priority areas, which were identified on the basis of an initial phase of assessment of the quality management system, are being worked on by a number of interdepartmental workgroups, each of which is managed by a Workstream Leader and supervised by a Workstream Sponsor.

5 workstreams, each with a six-month duration, have been launched:

  • ‘Cost of non-quality’, which aims to define methods and tools for identifying and monitoring the costs associated with a lack of quality on individual projects as well as on a more general company-wide level, thus enabling Company management to identify corrective actions, improvement programmes and areas of priority.
  • ‘Lessons Learned’, which aims to define and implement methods and systems for capitalising on experience acquired on projects and disseminating information to all levels/areas of the Company with regard to both successful and unsuccessful practices, thus providing guidelines for handling events and situations that have already been encountered in the past.
  • ‘Supply Chain of Materials’, involving an analysis of the entire Saipem materials supply chain, including an evaluation of recurring causes of non-conformities, so that areas for intervention and process optimisations can be identified. The suitability/effectiveness of the actions identified will be subjected to a preliminary assessment in which they will be applied to a number of selected strategic commodity classes.
  • ‘Offshore Fabrication Subcontractor’, consisting of an analysis of the process of supervision implemented for construction works carried out by subcontractors at third party fabrication yards, with a view to identifying methods, procedures and tools for ensuring that the objectives are met.
  • ‘Top management critical metrics - Drilling’, whose aim is to develop an integrated system of key performance indicators that will allow Company and Business Unit management to systematically monitor the economic and operating results achieved by the Drilling business and to set corrective actions where required.

In parallel with the five workstreams, a communications plan was launched which aims to ensure the involvement of all Saipem personnel in the various initiatives.

Additional workstreams are due to be launched in April 2014 based on the results achieved in the first phase of the programme.

2013 also saw the continuation of many initiatives worked on during 2012, including:

System Quality:

  • issue of a new Management System Guideline for the company’s regulatory system, the definition of Company Work Processes and the designation of the Process Owners;
  • training for Managing Directors and Branch Managers regarding the Quality initiatives currently underway and their impact on the Operating Companies;
  • definition of a certification model for the new Corporate Governance Model by a third party body;
  • publication and dissemination of a set of Corporate Standards governing Group Quality Assurance and Quality Control activities;
  • implementation of a new reporting system on the Quality Management Systems (QMS) implemented at Group Operating Companies;
  • Customer Satisfaction surveys conducted on all projects currently underway.

Project Quality Management:

  • integration of the Project Quality Management methodologies for Onshore and Offshore projects;
  • updating of the Document Systems used on vessels in line with new Corporate guidelines currently in the process of being issued;
  • application on projects of the new Project Quality Management reporting system.

Quality Control:

  • implementation of standardised Quality Control Plans for Onshore and Offshore E&C projects;
  • creation of a library of best practices related to advanced ultrasonic weld testing methodologies;
  • completion of qualification of NDT Phased Array methodologies at the Petromar and Star fabrication yards;
  • issue of dedicated criteria for the maintenance and testing of BOP systems used on drilling projects;
  • dissemination at all yards of uniform Quality Control requirements based on past experience, and reorganisation of Quality Control teams;
  • implementation of new reporting system on the Quality Control management Systems implemented on Onshore and Offshore projects.

Safety

The Total Recordable Incident Frequency Rate for 2013 was 1.16, which was above the target set for the year of 1.06.

Overall, there was a drop in Lost Time Injuries, which are injuries that cause absences from work, and an increase in minor incidents, or Total Recordable Incidents. The year unfortunately saw a total of six fatal accidents. Two members of contractor staff were killed when the walls of a trench collapsed on them, a Saipem employee was crushed by a pipe during lifting and moving operations on board a barge, another Saipem employee fell into the sea during equipment handling operations on board a vessel, while a third Saipem employee died from electrocution. In addition to these incidents, 2013 also witnessed the sinking of the Perro Negro 6, which occurred when the seabed the rig was resting on collapsed. One person is currently missing as a result of the incident.

Activities and initiatives carried out during 2013 with the aim of maintaining high workplace health and safety standards included:

  • HSE training in accordance with a plan that encompasses both the recent State-Regions Agreement and the Saipem HSE training protocol. An International HSE Training Protocol is also currently being developed in order to ensure that all Saipem companies and branches are fully aligned in terms of planning and delivery of HSE courses. A key element in this drive are the ongoing developments being made on the new ‘Delphi’ training portal, whose principal aims are to standardise and share teaching materials and to provide a reference point for HSE trainers and all types of training initiatives;
  • particular attention was paid to emergency management, with workers attending dedicated courses dealing with the psychological and behavioural aspects of emergency situations as well as operational issues. The training was delivered in conjunction with the Italian Civil Protection authority (Protezione Civile);
  • a significant effort was also directed at developing and enhancing software applications designed to improve HSE business and management processes. The year in fact saw the launch of the software application ‘Corinth’, which is used to manage the HSE audit process at Saipem SpA as well as of the ‘Nike’ application, which is designed to ensure the standardisation of Personal Protective Equipment;
  • meanwhile, the roll out of the Leadership in Health and Safety programme and its adaptation to suit the requirements of the various local companies continued apace. The year opened with a change in the tools and materials used on the programme (e.g. films, workbooks, manuals, posters), following the change in Saipem’s top management team;
  • the ongoing roll out of the various phases of the programme continued, encompassing all levels of the Company:
    • senior and junior managers and supervisors attended the first phase workshops, which are designed to raise awareness among the top levels of the Company with regard to the importance of their role in ensuring safety within their organisations and to provide them with the tools they need to act as leaders;
    • a number of the leaders who attended the first phase, selected based on their positions and personality type, took responsibility for the delivery of the programme’s second phase, which consisted of a series of cascading events designed to disseminate the basic principles of the programme to all Saipem employees;
    • the third phase of the programme, consisting of the ‘Five Stars’ courses, which deal with the most appropriate ways for intervening in situations of unsafe behaviour, was attended by thousands of Saipem operatives, who have direct first-hand contact with the risks associated with the Company’s business;
    • meanwhile, the drive continued to promote the five ‘Leading Behaviours’ – non-negotiable behaviours that Saipem aims to ensure become a part of the DNA of all its employees – via the implementation of dedicated communications campaigns as well as by leveraging the positive influence that a group of employees selected for their natural charisma and who already practice the Leading Behaviours are expected to have on their colleagues. The campaign has received the prestigious Eni Safety Award which is given to the best safety initiative implemented at Eni Group companies;
  • in addition to providing Eni with support with the roll out of its ‘Eni in Safety’ programme, the activities conducted by the LHS Foundation during the year included a Flashmob contest to celebrate ‘World day for Safety and Health at work’, participation at the ‘Ambiente e Lavoro’ (Work and Environment) trade exhibition held in Bologna and the organisation of a series of ‘Piccoli Leader in Safety’ (Little Leaders in Safety) events at a number of elementary schools.

Finally, the year saw Saipem SpA enhance its levels of governance by achieving OHSAS 18001 (Health and Safety) and ISO 14001 (Environment) certifications issued by the independent certification body Det Norske Veritas (DNV). A further 18 Group companies and branches also obtained the certification.

Environment

Numerous activities and environmental initiatives were pursued during the year, including:

  • the development of effective response plans for dealing with accidental spills for all sites and projects, as well as the organisation of training initiatives and periodic drills for personnel involved in all relevant activities. Saipem also offered its cooperation with and took part in a number of drills organised by Eni;
  • the promotion of the ‘Reduce Your Foodprint’ initiative organised in connection with World Environment Day June 5, 2013, which aims to reduce food wastage;
  • with regard to energy saving, the year saw Saipem complete energy efficiency analyses for a number of its offices in accordance with ISO 50001:2001 ‘Energy Management Systems’. It also took part in a project organised by Mimprendo Italia under which an energy assessment was conducted for the Saipem 7000, with the aim of identifying efficient methods for reducing on board fuel consumption;
  • the review of the environmental controls in place pursuant to Legislative Decree No. 231/2001, which is nearing completion, led to an update to the Company’s environmental regulatory documentation. The Company’s environmental document system represents a useful tool for helping to prevent environmental crime;
  • organisation of ‘Environmental Train the Trainer’ courses aimed at international personnel working in the field of HSE who have been identified as potential environmental trainers;
  • consolidation of the company’s new environmental communication tools, including the environmental magazine ‘eNews’, which illustrates the principle environmental initiatives occurring within Saipem, ‘Breaking eNEWS’, which covers global initiatives and lessons learned, and ‘Italian eNEWS’, which provides

Health

With regard to health-related issues, the year saw Saipem continue with its normal activities and promote a series of new initiatives:

  • 6,018 preventive medical check-ups were carried out for Italian and international personnel; 391 people required further examination and 11 were alcohol and drug tested;
  • the diffusion of the ‘Pre-Travel Counselling’ programme for all personnel due to work abroad continued during the year. 1,081 employees received training, including updates based on international health alerts. Since its launch in 2008, the programme has provided in the region of 5,000 employees with precise, accurate information concerning the risks connected with their destination, as required under the applicable legislation. Health protocols and pre-travel training have been validated by the Institute of Occupational Medicine at the Università Cattolica del Sacro Cuore in Rome;
  • the drive to raise vaccine awareness in relation to both mandatory and strongly recommended vaccines for Italian and foreign sites proceeded throughout the year, with a total of 1,370 vaccines administered, while, the agreement signed with the local health authority ASLMI2 in Milan for yellow fever vaccination also continued;
  • the ‘Sì Viaggiare’ international travellers’ handbook application was launched for the Apple and Windows 8 platform, while an Android version is currently under development. The application is available in two versions: an Enterprise version for Saipem employees and a Customer version for general use by all international travellers;
  • the year also saw work take place under agreements with a variety of medical facilities and hospitals on a wide range of issues. The partnership with Rome’s La Sapienza University involving an epidemiological study of 10 years of preventive check-ups under the overseas health protocol for Italian employees ended in December, while the partnerships with the IRCCS Policlinico di San Donato Milanese for health promotion initiatives, with the CIRM (Centro Internazionale Radio Medico) for the provision of radio medical advice to employees working on board Saipem’s offshore fleet and with Milan’s Sacco hospital for infectious disease testing of employees returning from work abroad all continued;
  • work also continued on a number of established programmes such as the healthy diet initiative ‘H-factor’, ‘Choose Life’, which is designed to promote a healthy lifestyle, and the telecardiology programme. Significant efforts were also directed at a number of new initiatives, including a Weight Control and Obesity Prevention Program, an anti-smoking campaign based on behavioural change tools called ‘Don’t take my breath away’ and a programme which aims to create a culture of cardiovascular disease prevention;
  • finally, Saipem also organised events to coincide with a number of international awareness days celebrated by the World Health Organisation, namely World Hepatitis Day, World Diabetes Day and World AIDS Day. Presentations, posters and leaflets were produced to publicise all of the above events and initiatives.