Group Health and SafetyAnnual Review 2017

team.

Contents

03 CEO Message04 Executive Summary05 Introduction06 Our Health and Safety Values07 Award-Winning Performance08 International Spotlight10 Health and Safety Campaigns11 OHSAS 18001 Certification12 Performance Summary14 Objectives 2018

02 PM Group

Singapore office presentation on “World Day of Health and Safety in the Workplace”

Cover – safety checks at the Alexion BDS Site, Ireland

Group Health and Safety Annual Review 2017

CEO Message

We deliberately put Health and Safety right at the centre of everything we do. This does not automatically mean that we always succeed and that is because it is not easy. This industry we all work in does not have a great track record on Health and Safety generally. We want to improve that.

We want to be leaders in our industry and we are constantly trying to raise awareness of Health and Safety issues. With that in mind I am appealing to all of you our employees as well as our clients, our partners and other stakeholders to work with us to make our business and our industry better and safer.

It is a huge challenge to look after the Health and Safety of the many thousands of people who come in to a PM Group office or site each day. In some respects it is our greatest challenge and I want to thank all of you for your continued support in meeting that challenge.

As well as people’s safety, we also focus on good physical and mental health which is an essential part of a happy and balanced lifestyle. We will continue to do more and invest more in promoting good health and well-being in the workplace.

I want to again pay tribute to PM Group’s front-line Health and Safety staff who do such a great job, often in difficult circumstances, to keep our sites and offices safe as well as promoting good health. Thank you all and please keep up the good work!

Please remember – Safety first, always!

Dave

03

Man-hours worked across our international operations

ExecutiveSummary

PM Group realised signifi cant successes and achieved several milestones on our continuing journey to health and safety excellence in 2017.

04 PM Group

12 million

Health and Safety CampaignsNumerous offi ce and site-based health promotionand safety awareness initiatives

OHSAS 18001Ireland, UK, Poland, Singapore and China re-certifi cation

OHSAS Campaigns

National Safety Awards NISO (Gold and Consistent High Achiever) IrelandConsiderate Constructors Scheme UKBritish Safety Council Czech Republic Health & Safety Co-ordinators

Health and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awards

NISO (Gold and Consistent High Achiever) IrelandNISO (Gold and Consistent High Achiever) IrelandNISO (Gold and Consistent High Achiever) IrelandNISO (Gold and Consistent High Achiever) IrelandConsiderate Constructors Scheme UKConsiderate Constructors Scheme UKConsiderate Constructors Scheme UK

Czech Republic Health & Safety Co-ordinatorsCzech Republic Health & Safety Co-ordinatorsCzech Republic Health & Safety Co-ordinatorsCzech Republic Health & Safety Co-ordinatorsCzech Republic Health & Safety Co-ordinatorsCzech Republic Health & Safety Co-ordinatorsCzech Republic Health & Safety Co-ordinatorsCzech Republic Health & Safety Co-ordinators

Considerate Constructors Scheme UKConsiderate Constructors Scheme UK

Czech Republic Health & Safety Co-ordinators

Considerate Constructors Scheme UKConsiderate Constructors Scheme UKConsiderate Constructors Scheme UKConsiderate Constructors Scheme UKConsiderate Constructors Scheme UK

Health and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awards

Czech Republic Health & Safety Co-ordinatorsCzech Republic Health & Safety Co-ordinatorsCzech Republic Health & Safety Co-ordinators

Health and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awardsHealth and Safety awards

NISO (Gold and Consistent High Achiever) IrelandNISO (Gold and Consistent High Achiever) Ireland

Czech Republic Health & Safety Co-ordinatorsCzech Republic Health & Safety Co-ordinatorsCzech Republic Health & Safety Co-ordinators

DART Rate

0.35TRI Rate

0.66Incident rates

For multi-national organisations one of the biggest challenges faced is to ensure a consistent approach across all aspects and regions of operations. This was never more so the case with our health and safety management processes in PM Group as it was in 2017. Our Health and Safety Teams in Europe and in Asia in particular invested considerable energy to ensure that our Group policies and procedures were optimised for safe project delivery by taking account of specifi c, local cultural considerations, while at the same time never compromising on the PM Group principle of safety as a value.

Visible leadership continues to be fundamental to our twin objectives of exemplary health and safety performance and zero incidents. In 2017, new safety leaders emerged to join the existing cohort across the PM Group organisation and these colleagues play a vital role in developing high-performing safety cultures by acting as the role-models for the behaviours and attitudes we wish others to emulate.

Our pursuit of excellence in health and safety performance will continue in 2018 and beyond and leadership will remain as a key determinant in whether we will achieve our stated objectives. However, what is assured is that the energy and resolve that PM Group people bring to the pursuit of those objectives will continue to strengthen.

Jonathan CuthbertGroup Head of Health and Safety

Introduction Safety leaders are active across the international PM Group organisation.

Group Health and Safety Annual Review 2017 05

PM Group CEO, Dave Murphy (4th from left) participates in a safety walk of the IFF Project Swan in Zhangjiagang, China with members of the PM Group Construction Management Team.

Our Health and Safety Values

Our core value in PM Group is to put Health and Safety at the heart of everything we do.

VALUEthe health and

safety of people above everything

else.

COMMIT to achieving

consistently high standards in design

and construction safety.

FOCUSon continuously improving our safety culture.Health

andSafety

Build positiveRELATIONSHIPS

with our project partners.

TakeRESPONSIBILITY

for creating safe places of work.

06 PM Group

Group Health and Safety Annual Review 2017

Award-WinningPerformance

During 2017 PM Group’s position as a leader in the fi eld of health and safety performance was recognised by both industry and regulatory bodies.

In the Czech Republic the Association of Health and Safety Coordinators awarded the Safe Construction Site 2017 Award to PM Group, recognising the efforts of the PM Group Construction Management Team to promote safety culture in construction through the implementation of technical innovations that increased safety standards.

In the UK, PM Group’s various project activities at the GSK Worthing site were once again recognised by the British Safety Council. Our several project teams on site at GSK Worthing also celebrated exceeding a combined two million consecutive hours worked without any lost time incidents.

In Ireland the National Irish Safety Organisation (NISO) awarded PM Group the prestigious Gold Award as well as a Consistent High Achiever Award for the fi fth year running.

07

Team members at the Alexion BDS site celebrate 1 million hours without lost time incident.

International Spotlight

PM Group’s safety culture is fl ourishing across our international business network.

ChinaOur mission in PM Group in China in 2017 was to continue to build the health and safety culture and capability of PM Group in the China market. It was an unprecedentedly busy year for our China team, safely delivering over one million man-hours across substantial Engineer / Procure / Construction Manage (EPCM) projects for clients including GSK, Merck, IFF and Givaudan.

Our proactive management of health and safety was recognised by our clients through the award of repeat business based in large part on our proven track record of safe delivery and by our external auditor, the National Standards Association of Ireland (NSAI) who re-certifi ed our China operations to the OHSAS 18001 standard following an audit that included a construction site visit.

Signifi cant investments of senior management time and effort were made in the year supporting the roll-out of the Safety Observation Reporting (SOR) programme, strong focus on developing an open intervention and reporting culture and promotion of a variety of health and safety campaigns. Our China design and construction teams have been greatly strengthened by all of these measures.

08 PM Group

GSK ABS Project, UK receives Silver Award in the National Considerate Constructors Scheme

Group Health and Safety Annual Review 2017

“AN QUAN DI YI! (Safety First!)” was the refrain led by PM Group China General Manager Derek Mowlds, at the celebration of 500,000 safe working hours on our large-scale, greenfi eld development for IFF in Zhangjiagang.

SingaporeDuring 2017 our Singapore business unit made further progress in bringing PM Group’s health and safety values to all stakeholders, including our design and construction teams and our clients. We safely delivered large-scale EPCM projects for multi-national clients in the Pharmaceuticals and Food sectors including GSK and Givaudan.

Progress was also made on safety training with a new Singapore Construction Legislation module added to our Passport Safety Training programme and the successful roll-out of our SOR programme on our sites and in our offi ce there. The Singapore team once again ran a highly successful health and safety week, featuring the ever-popular 5K family fun run.

Despite the challenges of safely delivering complex projects in a construction sector with a very culturally diverse workforce, PM Group Singapore Operations Manager Derek McConnell remains positive “As we continue to develop our EPCM capability and reputation, our focus remains fi rmly on ensuring that safety is at the forefront of everything we do. I continue to believe that all safety incidents are preventable once the correct resources and safety-fi rst attitude are in place.”

CEEIn the year in which PM Group celebrated the anniversary of our 20th year in business in Poland, our Polish operations also had much to celebrate in the fi eld of health and safety where today we are safely delivering projects for premium clients such as GE+Lufthansa Technik, Aero Gearbox International, 3M, Mondelez International, VW and Philip Morris International.

At the National Safety Coordinator's Annual Conference organised by the National Labour Inspectorate in Wrocław, PM Group Polska Health and Safety Manager Arkadiusz Swinarski presented a paper on some of the key safety tools in PM Group's construction safety management system. The intent of the presentation was to demonstrate and share best practice in the area of safety culture development on PM Group projects and it was very well received.

In the Czech Republic and Slovakia, Jiri Zondlak was appointed as Regional Health and Safety Manager. Jiri brings over 30 years of experience to PM Group and will be instrumental in leading our health and safety programmes in the region.

The Aspira project in Prague was recognised as the Safe Site of 2017 by the Association of Czech Safety Coordinators for raising the standard of construction safety culture.

In its fi rst full year of implementation in the region, the Safety Observation Report programme gained traction on a number of signifi cant construction projects including the Chodov shopping centre expansion and the Jaguar Land Rover Training Centre in Slovakia.

UKThe site activities of PM Group in the UK were predominantly focused on the GSK Worthing site in 2017 where our teams were recognised by the British Safety Council for the second year running.

The ABS Project on that site, which involved signifi cant construction, commissioning and qualifi cation activities, received the Considerate Constructors Scheme Silver Award. This award highlights the collaborative efforts of the entire project delivery team in achieving exceptional standards in the project’s relationships with and impact on local neighbours, the general public, the workforce and the environment.

Combined PM Group project activities on the GSK Worthing site attained a substantial cumulative milestone of 2,000,000 consecutive combined hours worked without any lost time incident.

Of these various achievements and awards, PM Group UK Health and Safety Manager, Stephen Youngman commented “At Worthing, we have introduced and are continuing to develop the right safety culture through the deployment of our Hearts and Minds behavioural programme involving PM Group, GSK and every member of the contractor team.”

09

Health and Safety Campaigns

Health and Safety campaigns have a central place in our yearly itinerary. They are an invaluable instrument in promoting our safety values and encouraging collaboration across PM Group’s international operations. The goal of our Health and Safety Days campaign in 2017 was to adopt globally applicable themes that could be easily adapted to the specifi c needs of our regional operations.

A number of events took place across all of our offi ces and many of our projects. Working under the Look Out for Each Other theme we made additions to our standard fi xtures of safety quizzes, competitions and town hall meetings featuring key note speakers. Health focused initiatives such as Sun Safety, Heart Health Awareness and Mental Health Day helped us to emphasise the importance of physical and emotional well-being as foundations for personal and professional success.

Following a great response in 2016, our Kid’s Art Competition continued in 2017. An unprecedented number of inspired and unique perspectives on different aspects of health and safety were submitted and the judges’ task of selecting only 13 entries to create our Safety Calendar 2018 was extraordinarily diffi cult. We hope that this initiative has sparked discussions about health and safety among the youngest members of the Safety Community!

Members of our Singapore team taking part in Health & Safety Week

10 PM Group1010 PM Group

OHSAS 18001 Certifi cation

PM Group is certifi ed to the world’s most recognised standard for health and safety management systems

Group Health and Safety Annual Review 2017

OHSAS 18001 is the standard for occupational health and safety management systems and the standard to which the PM Group safety management system has been certifi ed since 2010. Since 2016 we have also been preparing for the migration of our existing safety management system to the new ISO 45001 standard which will replace OHSAS 18001 in 2018.

During 2017, in addition to completing a programme of almost 70 internal audits of our offi ces and construction sites across all major operating regions, our safety management system (SMS) was audited on ten separate occasions by external auditors including the National Standards Association of Ireland (NASI), Business in the Community and Achilles on behalf of Jaguar Land Rover. These external audits covered our offi ces in Cork, Dublin, Birmingham, Warsaw and Shanghai and certain construction sites in Ireland and China. All external audits were completed with zero major non-compliances found. This is a huge achievement and refl ects the diligence with which our teams continue to apply the processes and tools in our SMS.

The internal Management Systems Integration team continued to meet to identify potential effi ciencies between the Quality, Environmental and Health and Safety Management systems. A new integrated audit schedule and corrective / preventive actions database was introduced from January 1st and was used to great effect to plan, track and report on all QHSE audits. The next phase of systems integration will focus on integrated internal audits and cross-system corrective actions.

11

Performance Summary

In PM Group our goal continues to be ZERO incidents and injuries. In pursuit of that goal we continue to track a range of leading and lagging indicators. Our 2017 corporate health and safety metric, tracked monthly on the PM Group Balanced Scorecard, comprised three leading indicator elements – audits, training and safety observations (SORs).

Leading IndicatorsInternal and external offi ce and construction site audits are completed in line with an annual audit schedule. A standard audit checklist is used by internal auditors to ensure consistency between auditors and across audit locations. A central corrective and preventive action (CAPA) database is maintained by the Group Health and Safety team and items are tracked to close-out. In 2017 Group Health and Safety completed 62 out of a planned programme of 67 internal audits. In addition, PM Group successfully undertook fi ve external re-certifi cation audits of our OHSAS 18001 certifi ed Health and Safety Management System covering offi ces and sites in Ireland, the UK, Poland and China. In 2017 our focus on PASSPORT Health and Safety Training was shifted slightly to emphasise training completions, as opposed to registrations which had been our focus in the previous year. Based on anticipated numbers of new starters, the expected number of training module completions in 2017 was 1,400. In fact almost 2,000 were completed in the year. PASSPORT training is now fi rmly embedded in the PM Group onboarding programme, ensuring that health and safety training is an important component of all new employees training. Safety Observation Reports (SORs) in all PM Group offi ces and project sites are recorded and reported. Group Health and Safety aggregates all individual SOR reports in an attempt to identify and highlight emerging trends to all affected personnel. Last year, a total of 110,000 SORs were submitted across PM Group projects and offi ces, which equates to one SOR per 110 man-hours across all operations. Positive observations, comprising 30% of the total, as well as opportunities for improvement were communicated and shared Group-wide with the intention of raising awareness and preventing incidents.

Our construction management teams invest huge energy in promoting the SOR programme on our projects and in order to better support that safety culture improvement effort, our standard SOR card was translated into an additional three languages – Hindi, Tamil and Bengali – bringing the total number of language versions to fourteen. In addition, the deployment of the offi ce SOR programme was completed and all offi ces in the PM Group network are now tracking and responding to concerns raised via the offi ce SOR process. Lagging IndicatorsPM Group continues to report lagging indicator performance using the categorisation system of the US Occupational Safety and Health Administration (OSHA). Our two principal lagging indicators are Days Away, Restricted or Transferred (DART) Rate and Total Recordable Incident Rate (TRIR). We log all incidents in our offi ces and construction projects, recording incidents that involve construction contractor personnel in the same way as we do incidents involving our own colleagues. Our lagging indicators thus include incidents on all PM Group controlled premises and sites. Unfortunately in 2017 both our DART and TRI rates worsened when compared to prior year. Signifi cant proportions of these poorer rates were attributable to a small number of large projects where an increase in the number of incidents resulting in the injured person requiring at least one day away from work to recover and a more signifi cant increase in the level of recordable incidents requiring medical treatment were reported. A range of different measures are being communicated in a concerted effort to halt the deterioration in our incident rates. These include ensuring that the highest standard of risk assessment is being carried out at all project life cycle stages, greater focus on capture and assessment of near miss incidents and increased levels of fi eld checking of adherence to approved safe systems of work.

12 PM Group

Group Health and Safety Annual Review 2017

PM Group OSHA TRI Rate 2017PM Group TRI Rate Benchmark = 0.5

2013 2014 2015 2016 20170.00

0.10

OSHA TRI Rate (200k hours)

0.20

0.30

0.40

0.50

0.60

0.70

0.80

0.490.44

0.540.51

0.66

PM Group OSHA DART Rate 2017PM Group DART Rate Benchmark = 0.25

2013 2014 2015 2016 20170.00

0.05

OSHA DART Rate (200k hours)

0.10

0.15

0.20

0.25

0.30

0.35

0.40

0.27

0.22 0.21

0.31

0.35

DART Rate

TRI Rate

Benchmark = 0.25

Benchmark = 0.50

0.35

0.66PASSPORT Health and Safety Training 2017

0

250

500

750

1000

1250

1500

1750

2000

1414

1961

Expected number of completed Modules

Actual number of completed Modules

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Objectives2018

The following is a summary of internal projects and initiatives that will be undertaken by Group Health and Safety in 2018. 01

Improving Safety Governance With a view to continual improvement, one of the signifi cant objectives for the group for 2018 is to ensure improved safety governance at all levels.

Throughout the year we will be launching a variety of initiatives aimed at enhancing the clarity and consistency of our design safety approach focussing particularly on our design risk management processes.

A signifi cant part of the overall process will include measures to improve project safety governance across our Commissioning/Qualifi cation and Managed Service activities on site. Health and Safety Key Performance Indicators Our

philosophy of improving consistency across the group will be further expanded with the development of an agreed common set of new health and safety Key Performance Indicators(KPIs). This will in turn lend itself to consistency in our monthly and annual reporting internally and externally.

A common set of KPI’s will further enable us to perform detailed qualitative analyses of trends across all our regions and operations. Ultimately, this will allow us to provide our teams with guidance on particular focus areas for each project phase.

01

02

14 PM Group

Enhance our Safety Community on scope. One of the most powerful tools we have at our disposal for communicating across the group is our Intranet, scope. The Safety Community on scope. has been a boon to Group Health and Safety since its introduction in 2016 and currently enjoys one of the most visited and content-rich sections of the system. In 2018 we will be working hard to deliver relevant content to all of our colleagues, regardless of their role or location. A key element of this initiative will be to encourage local creators in each region to add content specifi c to their country, site or discipline.

During 2017, the areas which achieved the best engagement across the system were the “Safety Moments” and “Good Practice Examples” sections. These areas will continue to be developed during 2018, allowing our colleagues to both contribute to and extract relevant, value-adding data.

15Group Health and Safety Annual Review 2017

OHSAS 18001 Certifi cation March 2018 is the expected publication date for the new global Safety Management System standard, ISO 45001. The new standard will replace OHSAS 18001 and is expected to be very closely aligned with the ISO 9001 Quality and ISO 14001 Environmental Management System standards.

A gap analysis exercise has already commenced to ensure that, on publication, the requirements of the new standard are understood and that PM Group is prepared to meet any novel requirements of the new standard. A full system migration review will then be conducted and a detailed migration plan and schedule for all of our currently certifi ed operations developed.

This objective will be a Group-wide effort over the course of 2018 – 2020 involving colleagues in all of our OHSAS 18001 certifi ed operations in China, Singapore, Poland, the UK and Ireland.

Management Systems Integration Since the inception of the systems integration project in 2016, one of the key objectives has been to identify and realise effi ciencies through greater integration of our management systems. 2018 will provide opportunities for more integrated project and site audits in conjunction with our Quality and Environmental Management Systems.

We will also focus on enhancing our existing audit reporting for-mats to combine and trend fi ndings, thus identifying areas where our performance is already strong as well as potential areas for improvement across the various management system disciplines.

OHSAS18001

ISO14001

ISO9001

03

04

05

EngineersArchitectsProject ManagersConstructors

Further Information For further information on PM Group or on our Health and Safety policies please contact: safety@pmgroup-global.com or visit our website.

www.pmgroup-global.com

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