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Responsible Care @ SABIC Raf Bemelmans Mathijs Ploumen

ECTA CONFERENCE

23 November 2011

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SABIC highlights

• Established in 1976, SABIC is one of

the top petrochemical companies in

the world

• Total assets over $84.5 billion and

annual revenue exceeding $40.5

billion

• 33,000 employees and operations in

more than 40 countries

• More than 60 world-class

manufacturing and compounding

plants in locations across the Middle

East, Asia, Europe and the Americas

• Vast array of products including

chemicals, polymers, specialty plastics

and chemicals, fertilizers and metals

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The story of growth since 2000

Acquisition

2002 – DSM Petrochemicals

2003 – Scientific Design

2006 – Huntsman

(petrochemical operations in the UK)

2007 – GE Plastics

Partnership

2010 – SINOPEC SABIC Tianjin

Petrochemical Company (China)

Organic

2004 – UNITED (Jubail, Saudi Arabia)

2009 – YANSAB (Yanbu, Saudi Arabia)

2010 – SAUDI KAYAN (Jubail, Saudi Arabia)

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Global operations

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Middle East (21)

Saudi Arabia, 18

Bahrain, 3

Asia (9)

China, 4

India, 1

Japan, 1

Korea, 1

Singapore, 1

Thailand, 1

Europe (13)

Austria, 1

Belgium, 1

Germany, 1

Netherlands, 5

Spain, 1

Italy, 2

UK, 2

Americas (17)

Argentina, 1

Brazil, 1

Canada, 2

Mexico, 2

USA, 11

Manufacturing and compounding companies

Global delivery system Supply chain project, EMDAD, ensures products reach global markets effectively

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SABIC’s dedication to Responsible Care in the Supply Chain

2008 Board member of SQAS

2009 EPCA representative in ECTA Board to sign RC global charter of ICCA

Adoption of RC principles and SQAS in freight contracts

GPCA chairman, adoption of RC from ICCA

2010 EPCA representative in ECTA Industry Advisory Council for bulk solids transport

2011 RC Award winner in NL by VNCI: “SABIC Trendsetter in Transport Safety”

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SABIC supports and relies on ECTA – CEFIC best practices

We refer to ECTA CEFIC guidelines in our contracts. We currently participate to develop new guidelines: • Maritime tipping • Working on height

• We require SQAS assessments and select partners based on these.

• Progress on SQAS improvements actively driven

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And we go beyond

All SABIC loading sites

are equipped with fall

stop systems

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And we go beyond

SABIC has driven the new load securing

standard for soft packaging, in

cooperation with competitors

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And we go beyond

Truck driver has to stay on a fixed spot,

so the forklift driver can always see him

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And we go beyond

All trucks are checked on cleaning

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And we go beyond

During the hauliers days, safety is the

main agenda point

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And we go beyond

We developed a unique visual communication aid,

and a test to help us make sure drivers have

understood the safety measures

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It is a journey

In order to keep drivers from climbing on

pallets, we prohibited tarpaulins.

Still, we need to remain vigilant.

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SABIC wins VNCI Responsible Care® Award 2011

From the Judging Panel report:

• “An excellent example of cooperation across the logistics chain”

• “SABIC has gone much further than the regulatory framework requires”

• “Panel was impressed by the company's awareness towards safety”

• “The company feels responsible and has taken the director’s role”

• “A breakthrough in an area that has been "closed“ for two decades because nobody had the courage or wanted to take responsibility”

• “SABIC has however made the difference”

• “A new standard has been set - capturing the spirit of the RC program exactly”

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SABIC vision: to be the benchmark for the safest supply chain

Objective: Zero accidents involving SABIC transport. How: • Implementing minimum requirements

for all transport modalities.

• Focus on EH&S and responsible care.

• Leading in the industry: • Active engagement of Logistic Service

Providers, fostering a Responsible Care attitude;

• To have zero Emission Tank Configuration; • Rail Safety Policy.

• Active and leading role in industry forums / organizations • VNCI; • CTGG (Commissie Transport Gevaarlijke Goederen); • Cefic; • CDI / SQAS / EBIS.

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2

10

0

1

2

3

4

5

2007 2008 2009 2010

Number of transport incidents1

1. According to Cefic criteria

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Creating a mindset of Chain Responsibility & Responsible Care

• SABIC regards our logistics service providers as an integral part of our supply chain.

• We involve our LSP’s through an active dialogue:

• LSP Day Theme; sharing best practices among the different modes of transport;

• Creating an atmosphere of open communication and responsible care attitude;

• Examples show that it works; improvements are being proposed by our LSP’s.

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Workshop on best practices showed difference in focus area’s

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Barge - Best Practice

10%

10%

50%

0%

30%

15%

15%

54%

0%

15%

0%

0%

67%

0%

33%

0%

0%

56%

0%

44%

15%

8%

23%

0%

54%

9%

0%

73%

0%

18%

Implementat...

ZERO Incide...

Development...

Development...

Risk manage...

Rail Barge Survey Road Shipping Terminal

1. Risk management program

2. Development of stability program on board

3. Development and implementation of TMSA (Tanker Management and Self Assessment) Software

4. ZERO Incident target

5. Implementation of quality policy

Barge - Best Practice

• Best Practices were supplied by all participants;

• Best practices were categorized in modalities;

• Discussion at the tables about the best “best practice”;

• Personal voting on best “best practice”.

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Best of Best Practice

1. 2. 3. 4. 5. 6.

3%

11%

14%

11%

39%

23%

1. Rail: Reduction of Reaction Accident Time by installing GPS on RTC’s

2. Barge: Development and implementation of TMSA (Tanker Management and Self Assessment) Software

3. Survey: Initiated safety platform with peers

4. Road: Effective and efficient training proven by # incidents and # near misses

5. Shipping: We focus on Safety, Environment and Health to comply with the highest standards in the industry

6. Terminal: Safety training program at all levels of the company

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Dutch Government sees SABIC as a frontrunner in transport safety

• Netherlands have highest population density in Europe

• Increased tension between spatial planning and transport of dangerous goods

• SABIC believes it is an industry responsibility to pro-actively co-operate with the governments to ensure safe transport

SABIC is actively participating in transport safety related

developments within the Netherlands, such as:

• Nota Vervoer Gevaarlijke Stoffen;

• Basisnet;

• Taskforce Robuustheid 2020-2040;

• Covenant ‘Warme BLEVE’-vrij rijden.

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Short Film: “SABIC Trendsetter in Transport Safety”

Start Film

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Behaviour is still the main source of accidents

Booklet, Video and Test

Current Site Programs like

Checks on Tank Cleaning,

Truck equipment checks

BBS Trend Report

And performance evaluation

In 2012 we will target our and your behaviour,

through a comprehensive BBS approach

Inform & Train

Inspect & Observe

Feed back to Driver

& Haulier

Evaluate

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SABIC’s vision: All Hauliers Responsible Care

• Long term partnership with our selected hauliers.

• Qualitative pre-selection based on high compliance to SQAS standards.

• On top of this we demand compliancy to the Responsible Care program of CEFIC / ECTA.

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Legal disclaimer

The products and services of SABIC are sold and rendered subject to SABIC’s standard terms & conditions of sale (GTCS), which are available free of charge upon request, by post or digital. Standard terms & conditions other than the GTCS are dismissed and do not apply. Although any information or recommendation contained herein is given in good faith, SABIC makes no warranty or guarantee, express or implied, (i) that the results or specifications described herein will be obtained under end-use conditions, or (ii) as to the effectiveness or safety of any design incorporating SABIC’s products, services or recommendations. This presentation or document does not contain any calculation, estimate or other warranty or representation that customers and third parties may rely on. Customers and third parties are responsible for making their own determination as to the suitability of SABIC’s products, services or recommendations for the customers’ particular intended use through appropriate end-use testing and analysis, and compliance with applicable laws and regulations. Except as provided in SABIC’S GTCS, SABIC shall not be responsible for any loss or damage resulting from any use of its information, products or services described herein and SABIC assumes no liability whatsoever in this respects. Nothing in any document or oral statement shall be deemed to alter or waive any provision of SABIC’s GTCS or this Disclaimer, unless it is specifically agreed to in a writing signed by SABIC. No statement by SABIC concerning a possible use of any SABIC product, service or design is intended, or should be construed, to grant any license under any patent or other intellectual property right of SABIC or as a recommendation for the use of such product, service or design in a manner that infringes any patent or other intellectual property right.