3.6 HEALTH AND SAFETY PERFORMANCE

3.6 HEALTH AND SAFETY

PERFORMANCE

The Maire Tecnimont Group strongly supports a preventative approach to reduce the risk of accidents and their associated effects, safeguarding the health and safety of its employees and personnel under its responsibility and minimizing negative impacts at its headquarters and construction sites.

Over the last three years, a total of more than 301 million man hours were worked at the Maire Tecnimont Group’s home offices and construction sites worldwide30 .

The Occupational Disease Rate (ODR) measures the frequency of occupational diseases relative to the total time worked by all employees. No occupational diseases were recorded over the last three years (ODR=0).

PERFORMANCE AT HEADQUARTERS

At the Maire Tecnimont Group’s head offices, for the Hydrocarbons31 business unit, over the last three years a total of over 23.5 million man hours were worked. Including branches, man hours work amounted to 7,298,596 for 2018; 8,063,986 for 2019; and 8,151,755 for 2020. Four injuries32 were recorded in 2018 (with 127 lost days), four in 2019 (with 116 lost days), and zero in 2020. According to OHSA, over the three years of observation the Lost Time Injury Rate (LTIR)33 indicator fell, reaching 0.110 in 2018, 0.099 in 2019 and 0 in 2020. Again, according to OHSA, the same reduction was recorded for the Total Recordable Injury Rate indicator34, which was 0.137 in 2018, 0.149 in 2019 and 0 for 2020.

In Italy, commuting injuries, those occurring outside company headquarters, must be recorded according to domestic legislation. Commuting injuries over the last three years for the Maire Tecnimont Group’s Italian companies are 17 for 2018, 9 for 2019 and 3 for 2020.

Relating to the Green business unit35, over the last three years, a total of over 0.49 million man hours were worked on Headquarters. More in detail, man hours worked amounted to 187,268 for 2018; 105,161 for 2019; and 198,129 for 2020.

In 2018, one injury was recorded (with 50 working days lost); in 2019 the number of injuries recorded was zero; in 2020, one injury was recorded (with 53 working days lost). According to OHSA, the Lost time Injury Rate (LTIR) indicator stands at 1.068 for 2018, zero for 2019 and 1.009 for 2020. Also according to OHSA, the same trend was recorded for the Total Recordable Injury Rate indicator,

In the last three years, commuting injuries relating to the Green business unit amounted to three in 2018 (with 200 days lost) and zero in both 2019 and 2020.

CONSTRUCTION SITE PERFORMANCE

For the Hydrocarbons business unit, the Maire Tecnimont Group adopts the main performance indicators set out by OSHA (the US Occupational Safety and Health Administration) and IOGP (International Association of Oil & Gas Producers), in order to monitor and detect areas for improvement and to continuously promote a strongly HSE focused approach on worksites.

Over the last three years, a total of over 272 million man hours were worked in construction sites of the Maire Tecnimont Hydrocarbons business unit.

The table below shows the main safety indicators for the Maire Tecnimont Group as per IOGP criteria.

30 Details of the hours worked by personnel in the Offices and Construction Sites is shown in the “Appendix - Sustainability Performance”. 31 The Hydrocarbons business unit includes the companies that deal with petrochemical and Oil & Gas activities. 32 Commuting injuries are not included. 33 Lost Time Injury Rate (LTIR) is the number of injuries including at least one day lost divided by the hours worked in a year the year times 200,000. The LTIF indicator takes into account fatalities and injuries with lost days. 34 Total Recordable Injury Rate (TRIR) is the total number of recordable injuries divided by the hours worked in a year times 200,000. The indicator takes into account: fatal events, injuries with lost days, restricted work day cases and medical treatment cases. 35 The Green business unit includes the companies that deal with activities in the Renewables and Green Chemicals sectors.

2018

Man- hours worked in construction sites (employees + sub-contractors) - million

Lost time injury rate - LTIR36

Total recordable injury rate - TRIR37 129.9

0.015

0.062

2019

103.9

0.096

0.317

2020

38.7

0

0.077

The numbers and trends emerging according to these indicators are regularly compared with internationally recognized benchmarks, such as those provided annually by the IOGP for EPC (Engineering Procurement & Construction) contractors.

2020 data for IOGP is not available yet (as benchmark data will be published in the second quarter 2021) and for this reason the Maire Tecnimont Group will maintain the same 2019 benchmark data also for 2020.

In 2020, the Maire Tecnimont Group recorded 38.7 million LTI free man-hours worked in the

Hydrocarbons BU. This is evidence of the intense focus on health and safety issues, as documented by an average injury rate (LTIR) constantly below the sector average, with a peak of zero accidents in 2020. Furthermore, maintaining the same reference data of 2019 for 2020, the TRIR indicator recorded is 9 times lower than the benchmark38 .

365 DAYS WITH NO LTIs

Despite all the difficulties faced over the last months, activities at our sites and offices have continued, ensuring both full production and the prevention of incident for Clients, and this is thanks to the huge effort made by all of us. This year our ability to perform to high standards has not changed: we reached a remarkable safety milestone, one year without Lost

Time Injuries - LTI free in the

Group.

A total of 45 million man-hours were worked in the Maire Tecnimont Hydrocarbons Business Unit, which includes 23 construction sites across 8 time zones, from North America, Europe, Africa, the Middle East and Russia to South East Asia, with a global average on-site workforce of around 35 thousand people, including Maire Tecnimont’s construction teams and direct and indirect workers. To make this possible, on a daily basis, we adopt the correct behaviour on construction sites and at all times during our activities, to ensure that we all consistently make the right choices. We are implementing the very essence of the second Safethink campaign on “Behaviours”, within which we have defined and launched our “Safethink Rules for Life”.

36 Lost Time Injury Rate (LTIR) is the number of injuries including at least one day lost divided by the hours worked in a year times one million. The LTIF indicator takes into account fatalities and injuries with lost days. 37 Total Recordable Injury Rate (TRIR) is the total number of recordable injuries divided by the hours worked in the year times one million. The indicator takes into account: fatal events, injuries with lost days, restricted work day cases and medical treatment cases. 38 For more information on safety indicators see “Appendix – Sustainability Performance”.

By their nature, events categorised as LTIs39 have a very low rate of occurrence, therefore, in order to value their trend over time it is necessary to embrace a much longer observation period than the single year; for this purpose, the IOGP, whose statistical data we use as a sector

LTIF FIVE YEAR ROLLING AVERAGE (per million hours)

0.50

0.45

0.40

0.43

0.40

0.38

0.30

0.33

0.20

0.22

0.21 0.20

0.18

0.17

benchmark for HSE, has adopted a five-year rolling formula for the LTIR indicator and our organization has made similar processing.

MAIRE TECNIMONT HYDROCARBONS

IOGP - Construction Benchmark

IOGP Overall Benchmark

0.29

0.27 0.27

0.15 0.15 0.15

0.10

0.06

0.03 0.03 0.04 0.05 0.04 0.05 0.04

0.00

2009-2013 2010-2014 2011-2015 2012-2016 2013-2017 2014-2018 2015-2019 2016-2020

Analysis of the trends of the last few years shows the Maire Tecnimont Group’s commitment to excellence in injuries prevention. In fact our figures consistently remain well below the IOGP benchmarks, and over the last five years the trend is decreasing, as one can immediately see in the above graphic40 .

In 2020, no fatal accidents were recorded. Work hours for the Green business unit41 over the last three years totalled to over 4.6 million. Work hours on construction sites (employees in construction sites + sub-contractors) amounted to 2.685 million for 2018, 1.501 million for 2019 and 0.45 million for 2020. The recordable incident cases reported the following safety performance, calculated across 1 million hours worked times the Injury Frequency Index (INAIL) and across 1,000 hours worked times the Injury Severity Index (UNI: 7249).

The Injury Frequency Index42 was 12.29 for 2018, 6.66 for 2019 and 4.39 for 2020;

The Injury Severity Index43 was 0.128 for 2018, 0.353 for 2019 and 0.37744 for 2020.

In 2020, the Injury Frequency Index fell by one and a half times compared to 2019.

39 Lost Time Injury (LTI) is the sum of fatalities and lost work day cases. 40 The calculation was made on the basis of the subsidiaries Tecnimont S.p.A. and Kinetics Technology S.p.A. (KT), as they are the leading companies in the Maire Tecnimont Group by hours worked in construction. 41 The data does not include those relating to the MyReplast and Green Compound plants. 42 The Injury Frequency Index is the number of lost time injuries (fatalities + lost work day cases + restricted work day cases + medical treatment cases) divided by work hours worked times 1 million. The indicator takes into account: fatalities, injuries with lost days, restricted work day cases and medical treatment cases. 43 The Injury Severity Index is the number of lost days divided by work hours times 1,000. The indicator takes into account lost days due to injuries. Injury Severity Index is defined according to OSHA Forms 300 methodology. 44 In 2020, 114 lost days were also recorded due to the return of an injury that occurred in 2019.

HSE CELEBRATION DAY – HAOR PROJECT

Despite the critical issues related to the Covid-19 pandemic, the Maire Tecnimont Group continues to express its commitment to HSE issues also through specific events held on construction sites, in compliance with all the necessary prevention measures. Below we note the celebration day, an established practice in the Maire Tecnimont Group, of the important milestone reached in Azerbaijan, at the HAOR project construction site. In the project managed by the joint venture of subsidiaries Tecnimont S.p.A. and KT-Kinetics Technology S.p.A., 7 million man-hours were worked without LTIs (injuries with lost working days according to OSHA - Occupational Safety and Health Administration). This remarkable result was made possible thanks to an exceptional HSE commitment by both the HSE team and the Construction team. Maire Tecnimont top management continued to join in with the celebrations on each construction site to express its gratitude to everybody who made this significant result possible.

The HSE commitment expressed and disseminated by the Group has resulted in the Maire Tecnimont Group’s subsidiary KT - Kinetics Technology S.p.A. receiving significant recognition from an important Russian client, Lukoil. As part of the project within the Kstovo Refinery, KT won the competition as best contractor in the HSE field, thanks to its excellent statistics and proactive approach in fully applying the values of the Maire Tecnimont Group’s “SAFETHINK” culture. During the awards ceremony, Lukoil raised the KT flag at the refinery’s main entrance. There can be no better award for KT to celebrate the excellent milestone of (injuries with loss of working days according to OSHA - Occupational Safety and Health Administration). This is a very significant achievement in a difficult working environment, rewarding all the HSE team and the Construction team’s effort, who gave their full commitment to safety and showed incredible resilience during this critical historical period.

The Maire Tecnimont Group Site HSE Managers took part in the third edition of the Group HSE Workshop, held in the Auditorium at our Milan office. The event was successfully and jointly organised by the construction departments of Tecnimont, KT - Kinetics Technology and the Maire Tecnimont Group HSE department, with the Group’s Site HSE managers also having the opportunity to achieve the important certification of their skills as HSE managers, in accordance with UNI 11720:2018, and auditor certification, in accordance with the ISO 14001:2015 and ISO 45001:2018 international standards. Our Top Management launched the meeting on 29 January, welcoming participants, and then, with the support of presentations and videos, held a discussion on the

positive and negative experiences at the various construction sites and on the sharing of Lessons Le-

arned. In addition, Head Quarter representatives shared and discussed details on the Maire Tecnimont Group’s plans and expectations for 2020. The Workshop was closed on 30 January by Maire Tecnimont’s CEO, Pierroberto Folgiero, who underlined the importance of spreading and consolidating the Safety culture. HSE is not approached as mere rhetoric, but as a real value. With this in mind, the HSE communication campaign and the new Safethink brand were launched, both to make everyone increasingly aware of “actively thinking about safety” before taking action and to maximize our HSE culture.

SAFETY AWARD - LUKOIL PROJECT

Discover more about the award

WEBSITE

GROUP HSE WORKSHOP - 3RD EDITION