Sustainability Report 2018
Content
1 Letter to stakeholders
Presentation
p.
6
p.
8
3
2 Our Company
p.
Sustainability at Halliburton
10
p.
18
4
5
6
About the Sustainability Report
Higher value
Strategy Zero
p.
24
p.
34
p.
42
7
p.
Sustainable use of resources Pollution prevention
p. 64 p. 66
8
9
Innovation
Customer Service p.
10 12
68
62
Sustainable resource use and pollution prevention
p.
86 96
Integral Welfare and Talent Development
p.
Our People Welfare, Training and Development Programs Learning, training and development
p. 102 p. 107
11 Transparency and Ethics p.
p. 109
116
Supply chain
p.
Our supply chain
p. 122
114
13 Community Relations and Human Rights p.
128
1.
INTRODUCTION
5
Presenting the results achieved in 2018 has a special meaning and value for Halliburton Latin America Colombia Branch. The premise “Play to Win” guided the company globally and was an additional ally to achieve the convergence of operational excellence and strategic and efficient business vision with the talent and knowledge of our team, our most important resource. Our presence in different parts of Colombia, characterized by an adequate management of the environment, by the vocation of service to our customers and by the observance of safety criteria towards people and the environment within the framework of our ZERO policy, were the essential factors that allow us to assure with peace of mind that we comply with the delivery of our project: We collaborate and create engineering solutions to maximize the value of our customers’ assets. Halliburton’s corporate values are not only the inputs that allow us to strengthen and maintain a dynamic of continuous improvement internally, they are also the hallmarks that frame the company’s actions worldwide. As a result of this reality, Halliburton’s commitment and responsibility in the economic, environmental and social spheres motivated the alignment of some of our actions with the Sustainable Development Objectives (SDO), as it is a common agenda that allows us to address some of the main problems in the country. The SDO, promulgated in 2015 by the United Nations, is a plan of action for people, planet and prosperity that also aims to strengthen universal peace within a larger concept of freedom and to advance the eradication of poverty in all its shapes and dimensions, including extreme poverty, understanding this as the greatest challenge facing the world and an essential requirement for achieving sustainable development.
Halliburton
s recognised by its stakeholders as one of the service sector companies that is best known for its adequate and suitable management of the environment
Halliburton is recognized by its stakeholders as one of the companies in the service sector that stands out for its appropriate and ideal management of the environment, made possible by the respectful and close relationship we have with the stakeholders in the areas where we operate, which tends to generate positive impacts under the framework of shared value and which consolidates us as a strategic ally of our clients in the aim of contributing to the sustainable development of the regions. In this regard, the Company is characterized by its full compliance of theNa-
SUSTAINABILITY REPORT
2018
tional legislation applicable to our activity: Decree 1072 of 2015, the unique regulation of the labor sector and Decree 1668 of 2016 on the hiring of local labor. Also, for its commitment to ensure and execute the contractual terms brought through the annexes of social responsibility of our customers. On the other hand, we have made progress in promoting an organizational culture conceived from diversity through a gender perspective, which has encouraged the inclusion of more women in the operational teams; we continue to pursue being one of the preferred employers in the service sector since our employees represent the key to success of our business in the country. We actively participate in the strategies that, as a guild, are being developed with the support of the Colombian Chamber of Petroleum Goods and Services, CAMPETROL, with state and private institutions to jointly face the challenges posed by the national situation. Likewise, we continue to promote a greater link with our national and local suppliers, leaving in front of the latter, installed capacities through the strengthening and development of local employees, within the framework of Colombian law, good business practices and the operational needs that each of our projects generate every day. Our third sustainability report informs about the Company’s performance in the country, in accordance with the Global Reporting Initiative (GRI) Standards, and is part of the path Halliburton has charted in its interest to grow and evolve as a Company.
Juan David Orozco Montoya Country Manager Colombia & Peru
7
LETTER TO STAKEHOLDERS
“Halliburton Latin America SRL, Colombia branch, has 75 years of experience in the country in specialized operations through its service lines; currently 13 PSL (Product Service Line) distributed in evaluation, drilling, completion and production activities, through which we deliver our value promise: We collaborate and create engineering solutions to maximize the value of our clients’ assets. The ethics and integrity embodied in our corporate values underpin our guiding principles and permeate all of the Company’s activities both at the operational level and in terms of our relationships with our internal and external stakeholders. In this sense, Halliburton is committed to contributing to the sustainable development of the countries in which it is present through economic, environmental and social balance. In line with the above, we published our third sustainability report under the parameters of the GRI Standards methodology, which has allowed us to measure our performance in 2018 against the most widely used indicators worldwide; additionally, and for the first time, we report the alignment of our activities with the Sustainable Development Objectives - SDO. In this document we share with our stakeholders the achievements, lessons learned and experiences through which we responded to the challenges posed by the economic, environmental and social context during 2018, which allowed us to move forward in fulfilling our commitments, in delivering our value proposal and in the growth of our Company, which is also the growth of the country.
SUSTAINABILITY REPORT
2018
Halliburton Sustainability Principles Our innovative technologies and former operational expertise allow us to
Minimize environmental impact
Manage social challenges successfully
Visualize the inherent risks that are present in our industry through our guiding principles
To create comprehensive environmental strategies for the viability of sustainable projects in the country based on a harmonious relationship that aims to balance the interests of our stakeholders
9
Guiding Principles Superior Value as a fundamental purpose, in which all the principles, material issues, actions and initiatives developed by Halliburton converge, aimed at generating profitability, growth and profit margins for shareholders; guaranteeing, in short, the sustainability of the business and the permanence of the Company in Colombia. Ensure operations are conducted under HSE standards and with minimal impact on the environment in which we operate. Our intention is to move towards the fulfilment of our Zero policy, which aims to register no incidents among our collaborators, either in terms of safety and environment or in terms of the quality of our service. Leading the industry in innovation, technological development and conscious management of our resources. Our goal is to develop technological solutions that maximize the value of our clients’ assets. To contribute through the management of the environment as a company that is an ally of our clients; by complying with their Corporate Social Responsibility policies, we support the development and socioeconomic well-being of the communities in the areas of direct and indirect influence where we operate. Likewise, within the framework of our relationship with our collaborators, our intention is to be the preferred employer of the country’s service companies Communicate and be transparent in our management. Providing our client groups with complete and timely information. Collaborate with our stakeholders to achieve results that are compatible with our stated principles. Our intention is to actively communicate with key stakeholders, supporting the achievement of multiple objectives wherever possible.
SUSTAINABILITY REPORT
2018
COMMUNICATE
Integral welfare. Human Rights. Talent development. Community relations
CONTRIBUTE
LEAD
11
Transparency. Ethics
COLLABORATE
ENSURE
Innovation. Customer services.
Commitment with the stakeholders. Value Chain.
Strategy Zero. Pollution prevention. Sustainable use of resources.
The sustainable development goals (SDG) of the United Nations, were adopted from the global community in 2015. Halliburton carried out an exercise to identify our relevant contributions to achieve the SDG, aligned with the material issues guiding sustainable management in our organization.
SUSTAINABILITY REPORT
2018
Halliburton Management System (HMS). It is the integrated set of policies, business practices, standards and procedures, which are used by the Company to define, plan and execute our work in a safe, consistent and effective manner.
HMS is: What do we do? How do we do it? Who is responsible? How do we know what we’ve done? How do we do it better?
COBC
HMS is aligned with: Policy Business Practice
Code of Conduct Policies Business Practices
Standartd
Process Map
Work Method
OneView™ is a unified system for HSE&SQ that consolidates all workflows and links activities to complete tasks. This approach helps us access information more quickly, to establish trends in HSE&SQ indicators in real time and, therefore, to be more effective in making preventive decisions to reach ZERO.
Streamline Processes & Efficiency Simplify and automate business operations and functional processes
Collaborate Centralization of data to promote collaboration at LSP/Regional level
13
Screening and Reporting
Integrate
Indicators Forecast and Historical Indicators to improve performance and
All data and systems in one HSE&SQ consolidated into one.
planning, being one step ahead.
Information Security
Customer Accurate and fast access to customer information and historical performance
Security for Halliburton and our customers, protection of our data and systems.
Mobility and Flexibility Work from the office, the field, or remote locations, offering connection to offline workflows.
SUSTAINABILITY REPORT
2018
HSE PROGRAMS
DESCRIPTION
Recreational Activities around Risk Prevention at Home and at Work Employees integration
WELLBEING Management of Chemical Products as part of the Environmental Management System: Transport, Storage, Handling and Labelling. Documentary design (Safety Data Sheets - MSDS, Labels and Emergency Transport Cards).
CHEMICAL RISK MANAGEMENT
Training ONsafe handling of chemical products. Carcinogenic and/or Chronic Effect Products Program.
Stress reduction. Promotion of the change of positions and routines. Release joint and muscle stress. Circulation stimulation.
PARTICIPATORY ERGONOMICS & HAND & FOOT CARE
Improved posture. Social integration and improved work performance. Reduced risk of occupational disease.
On-site hygiene measurements to determine the risk of personnel exposed to: hazardous chemicals - BTX, noise, lighting, thermal environment and vibration.
OCCUPATIONAL SANITATION PROGRAM AND ACTIVE BREAKS AND ERGONOMICS
Dissemination of occupational hygiene results Training program on chemical risk to groups occupationally exposed to products with carcinogenic potential and chronic effect. Identification of critical tasks with potentially carcinogenic products and products with chronic effect.
15
Results in HSE 2018 As a result of these actions, we recorded significant achievements in terms of HSE&SQ at the end of 2018, among which we can highlight We continued to reduce the frequency of health and safety incidents, achieving a reduction in our Total Recordable Incident Indicator (TRIR). Our Travel Management and Drivers Compensation Development programs have enabled us to improve our Road Safety performance over the past six years, and we have achieved a reduction in our Total Recordable Vehicle Event (RVIR) indicator.
Performance Indicators
2018 Target
2018 Act
TRIR
0.44
LTIR RVIR
YoY Trend
2017 Act
2017 Act Global
0.22
0.49
0.36
0.08
0.14
0.08
0.12
1.72
1.11
1.91
0.33
In terms of quality, we continue to lead the industry with API Q25 Certification of our Quality Management System in the Oil Sector (American Petroleum Institute-API, Q2 Specification for Quality Management System Requirements for Service Supply Organizations for the Oil and Natural Gas Industries).
API Q2 is a risk-based approach to the Quality Management System, focusing on competence, service design, contingency planning, supply chain controls, preventive maintenance, inspection, service quality plans and change management. It is the first international standard that describes the fundamental risk-based quality management systems for oil and natural gas service companies. Halliburton leads the industry with 38 API Q2 certified operating bases located in nine different countries. 5
SUSTAINABILITY REPORT
2018
Security in Figures 2018 We perform historical average analysis of recordable incidents, events, near misses and SWA (Stop Work Authority) reports, to determine the root cause of each situation, as well as the critical focus area, rule of life or standard that has been violated. From the Top 3 trends, alerts are generated and initiatives are developed to improve the performance of the indicator.
HSE&SQ / Safety in figures 2018 3´013.142 MAN-HOURS WORKED
74.114 JM (28/72) 8´323.161 KM 10.018 NIGHT TRIPS.
31,558 SECURITY 17,840 ENVIRONMENT 49,398 OBSERVATIONS
139 SWA
75 EVENTS
ST P WORK AUTHORITY
SWA
%
Safe driving
22%
Falling Objects
14%
Lifting and Hoisting
13%
Working at Heights
6%
Hand Tools
5%
Work Permits
4%
LOTO
4%
Pressure
4%
Equipment Damage
4%
Chemicals Management
4%
PPE
3%
Certifications
3%
Confined Space
2%
Other categories
12,9%
TOTAL
100%
60%
EVENTOS
#
%
Safe Driving
23
31%
Chemicals Management
10
13%
Lifting and Hoisting
6
8%
Slide
5
7%
Falling objects
5
7%
Hand Tools
4
5%
Equipment Damage
4
5%
Pressure
2
3%
LOTO
2
3%
Manual Lift
2
3%
Other Categories
12
16%
TOTAL
75
100%
64%
17
HSE&SQ / Safety in figures 2018 Type of incident
Incidents
Environmental Incident
9% Vehicle Incident
Contractors
19%
Halliburton
32% Property/ Equipment
Jan
65%
Events/month Les.Reg.
7 6 5 4 3 2 1 0
35%
Injury/ Injured
40%
Feb
Mar
Apr
May
Les.Reg./LTI
Jun
Jul
Les.Reg./LTI
Aug
Sep
SWA 7% Injury/Injured
Les.Reg./LTI
Oct
Nov
Dec
SWA 6%
Property/Equipment
Vehicle Incident
Environmental Incident
Event Classification NrMs
14
Inci. Rad Inc. Expl. 1
0
Reg Veh
LTI
Reo Injury
First Aid
Envir. Rep
Env. Reg
2
2
3
13
5
0
SUSTAINABILITY REPORT
2018 Care of the environment Environmental stewardship is an expression of the Company’s commitment to reduce environmental impacts throughout the value chain, including the direct impacts of our own activities. The environmental aspects discussed in this section include water, waste disposal, spills and our global chemical management processes
GRI 103-3 Our safe and sustainable operations have allowed us to reach Zero and achieve a reduction in our environmental indicators: Total Environmental Incident - TEIR), Recordable Environmental Incidents (REIR).
Performance Indicators
2018 Target
2018 Act
REIR
0.00
TEIR
0.54
YoY Trend
2017 Act
2017 Act Global
ZERO
ZERO
0.04
0.22
0.57
1.14
SUSTAINABLE USE OF RESOURCES Energy GRI 302-1; 302-4 In order to comply with the objectives proposed in our Integral Management System related to the care, protection and preservation of the environment, we have established the sustainable use of resources as one of our priorities, a framework of action within which we have implemented initiatives for each of the bases and socialization of environmental issues in the Zero meetings.
19 These actions had been showing positive results in terms of savings in energy consumption during recent periods, a trend that changed in 2018 due to the growth of the operation, a condition that represented an increase in energy consumption in the order of 35%.
Energy consumption Halliburton Colombia (Figures in KwH) 2016
1210,31
2017
934,215
2018
1256,77
Water GRI 303-3, 303-5 Water consumption in the Company continued during 2018 with the decreasing trend of recent years and reduced its volume by 10%. At Halliburton, interaction with water occurs both through consumption at the operating bases and through the extraction of groundwater, although the latter activity is only carried out at the Villavicencio base and has the corresponding concession permit, in compliance with our clients’ Environmental Management Plans (EMPs). The volume of water extracted at the Villavicencio base in 2018 amounted to 1.048 m3h
Water consumption Halliburton Colombia (figures in m3 ) 2016
7.458
2017 2018
7.203
6.456
SUSTAINABILITY REPORT
2018
We assume responsibility for providing a professional environment free from discrimination, harassment, intimidation or coercion related directly or indirectly to race, color, religion, gender, nationality, marital status, genetic information, age, sexual preference or orientation or any other status protected by law or existing regulations and are committed to promoting the development and hiring of local talent in the areas where we are present, while contributing to the economic growth of the areas of influence through the inclusion of local suppliers.
GRI 103-2 To promote comprehensive well-being of our employees and strengthen their competencies, we have the Learning Management System (LMS) composed of “My Curricula” and “Learning History” which provide the required level of flexibility necessary for the business units to manage their training in line with global standards, processes and systems. These trainings not only cover the technical learning required for each service line and support function, but also include training in health, safety and leadership development.
List of courses required for a collaborator according to their Job Title. There are basic certifications common to all HSE and Company-related employees
My Resume
Some of the certifications have expiration dates, and therefore must be renewed from time to time.
Learning History
Historical record of all the courses taken by an employee in the company, i.e.: certifications and courses.
21
We also have the Halliburton Global Competence Program which is accredited by the International Association of Drilling Contractors (IADC) and is aligned with our technical training programs, along with local government regulations and industry standards, including ISO 29001, API Q210 certification and API RP7511 standard. To strengthen the adherence of all employees, managers and administrators to the program, we have established a diagnostic mechanism that allows us to perform internal audits through the DCWF (Documented Competencies for the Workforce) metric, which is performed according to the percentage of competencies in which employees have reached the required level compared to the total number of competencies assigned. The human resources area also promotes the building of leadership competencies and the continuous development of our employees in current and future management roles, in order to strengthen our competitive advantage, as their contribution is fundamental to Halliburton’s short and long-term success.
10 API: American Petroleum Institute. En español: Instituto Estadounidense del Petróleo. Q2: Specification for Quality Management System Requirements for Service Supply Organizations for the Petroleum and Natural Gas Industries. En español: Especificaciones y requisitos del sistema de gestión de calidad para las organizaciones de suministro de servicios para las industrias de petróleo y gas natural. 11 API RP 75 “Recommended Practices for Development of a Safety and Environmental Management Program for Outer Continental Shelf (OCS) Operations and Facilities’. In Spanish: “Prácticas recomendadas para el desarrollo de un programa de gestión de seguridad y medio ambiente para operaciones e instalaciones de la plataforma continental exterior (OCS)”.