2.10 Process Safety

The life and health of each employee of Gazprom is an overriding priority for the Company. Activities aimed at ensuring safe labour conditions, protecting lives and health of employees, elimination or mitigation of fire, emergencies and accident risks at hazardous production facilities, establishing the process safety culture and improvement of the process safety management structure is based upon the Integrated System of Process Safety Management at PJSC Gazprom (hereinafter — the ISPSM).

PJSC Gazprom established the following occupational, industrial and fire safety targets for 2018:

• Protect lives and health of the employees of PJSC Gazprom and its subsidiaries (gas segment);
• Improve efficiency of the operational control of compliance with occupational and industrial safety requirements;
• Reduce workplace mortality due to cardio-vascular diseases;
• Ensure safe operation of hazardous production facilities;
• Ensure compliance with the fire safety requirements at the facilities of PJSC Gazprom and subsidiaries (gas segment).

Occupational, industrial and fire safety objectives were achieved at 106 subsidiaries, 6 subsidiaries failed to do that. At companies that failed to achieve occupational, industrial and fire safety objectives, the incentive variable part of the remuneration was introduced. It is governed by the Methodology for Assessing Delivery of Occupational, Industrial and Fire Safety Objectives at PJSC Gazprom Subsidiaries and Entities approved by PJSC Gazprom Executive Order No. 196 dated April 23, 2018.

PJSC Gazprom developed and implemented the programs aimed at achieving the set objectives. All subsidiaries carry out the programs aimed at improving the labour conditions and the action plans to ensure industrial safety at hazardous industrial facilities (HIF).

Gazprom Energoholding companies defined their occupational safety targets for 2018. Their progress and efficiency of the activities implemented were monitored on a quarterly basis; the Reliability Committees of the Boards of Directors of such companies reviewed and evaluated the activities aimed at reducing the injury rates and establishing safe labour conditions. The key targets achieved are zero fatalities during the reporting year, as well as 3% reduction of the serious injury rate vs the previous reporting year.

Gazprom Neftekhim Salavat set the following occupational safety targets in 2018:

• zero employee fatalities due to injuries,
• no breaches identified by the state supervisory bodies that were not identified previously in course of multi-tier control,
• 5% reduction of workplace mortality due to cardio-vascular diseases.

All stated targets were achieved.

In order to improve the Integrated System of Process Safety Management, PJSC Gazprom Industrial Safety Management System Development Strategy until 2020 has been developed and is currently implemented. Pursuant to the Strategy, the following priority development areas are implemented:

• Commitment and leadership;
• Staff motivation;
• Safety communications development;
• Incidents and micro injuries investigation;
• Occupational and industrial safety risks management.

In accordance with the Strategy:

• The Schedule of ISO 45001:2018 International Standard Requirements Implementation at PJSC Gazprom was developed;
• The PJSC Gazprom’s Program for the Development of Leadership Skills of Executives in Process Safety was drafted;
• Practical workshops were held for the Company executives as related to leadership in process safety;
• The Company is engaged in international cooperation with foreign oil and gas companies aimed at sharing process safety practices and process safety management systems improvement;
• Recommendations on engaging PJSC Gazprom employees in establishing healthy and safe labour conditions were developed;
• Corporate requirements to visual information (Gazprom Organization STO Standard 18000.2-007-2018 PJSC Gazprom Uniform Occupational and Industrial Safety Management System. Procedure for Using Safety Signage and other Visuals on Hazards at PJSC Gazprom Facilities) were established;
• The Company worked on improving the corporate control of compliance with the process safety requirements at PJSC Gazprom facilities;
• Internal assurance of pre-design and design documents was performed to establish compliance with PJSC Gazprom process safety requirements.

Since 2016, the Gazprom Group is switching from OHSAS 18001 standard to ISO 45001 international standard. OHSAS 18001 Compliance Certificates will also be effective till the end of the transition period. The management system shall be re-certified in Q4 2020.

An important component of the Gazprom Group's industrial safety system development is efficient corporate control of compliance with the legal industrial safety requirements at the Gazprom Group based upon implementation of the modern organizational approaches and information technologies.

The corporate control is based upon the professional accountability principles stipulating direct liability of the persons performing corporate control for completeness, accuracy and timeliness of performing the planned control activities.

Gazprom corporate control is in compliance with the established requirements of the effective legislation of the Russian Federation as related to industrial safety and the local regulations of the Company, which is evidenced by the declining dynamics of the number of incidents at Gazprom facilities and is in line with the Integrated System of Process Safety Management continuous improvement requirements aimed at improving the process safety performance.

At Gazprom Energoholding, occupational and industrial safety management is in compliance with the requirement of the Russian legislation and effective regulations. The general directors of the generating and heat supplying assets are responsible for compliance with such requirements, and activities are coordinated by the Chief Engineers of the companies and branches — power plants. Gazprom Energoholding occupational and industrial safety management system was developed and implemented in accordance with the requirements of OHSAS 18001:2007 standard.

At Gazprom Neftekhim Salavat, the Deputy Director General — Chief Engineer is in charge of the general management of occupational, industrial and fire safety system operation. Methodological guidelines are provided by the Environmental and Occupational Safety Department.

Occupational safety matters are covered by the Occupational Health section of the General Collective Agreement of PJSC Gazprom and its subsidiaries. The key occupational safety aspects formalized in the collective agreements are:

• Notification of the employees of the outcomes of the special assessment of the labour conditions and operations control, the existing health risk, activities carried out in order to improve labour conditions, benefits and compensations for work with harmful and/ or hazardous production factors;
• Regular control of the labour conditions and occupational safety status;
• Ensuring timely issue of protective clothing, protective footwear and other personal and collective protective equipment to the employees based on the outcomes of the special assessment of labour conditions carried out in compliance with the procedure stipulated in the effective legislation;
• Ensuring timely issue of detergents and decontaminants;
• Ensuring timely mandatory initial and regular medical check-ups (examinations) at the expense of the employer and in compliance with the effective regulations of the Russian Federation;
• Formalization of the benefits and guarantees in case of health damage and disability.

Gazprom Trade Union work inspectors and public labour inspectors (6,108 inspectors) control compliance with the labour legislation and other regulations containing labour law provisions, discharge of the collective agreements and labour protection agreements. Work Safety Protection Committees (Commissions) were established at all Gazprom Group entities operating in accordance with the legislation of the Russian Federation, pursuant to Article 218 of the RF Labour Code. Representatives of the employer and the elected body of the primary trade union organization are included in them on a parity basis.

PJSC Gazprom systemic work aimed at creating safe labour conditions resulted in a lower number of incidents, injuries and occupational diseased at the companies included in the ISPSM’s Perimeter.

Over 10 years, the number of injured at production sites became 2.6 times lower (in 2009, there were 230 people injured), the number of fatalities became 8 times lower (in 2009, there were 24 fatalities).

In 2018, there were 89 people injured at the companies included in the ISPSM’s Perimeter, including 3 fatalities.

Traffic accidents (47% of the total number of injured) and falls on the same-level surface (34% of the total number of injured) became the key injury risks.

The special labour conditions assessment (SLCA) is carried out at the companies included in the Integrated System of Process Safety Management Perimeter in accordance with the schedules updated annually. Based on its outcomes, the labour conditions classes are established, and activities aimed at the employees’ labour conditions improvement are developed and implemented.

In 2018, SLCA covered 33,885 workplaces.

In 2013 — 2019, the number of workplaces with harmful and hazardous labour conditions declined from 38.0% to 14.3% due to implementation of the activities aimed at labour conditions improvement at the companies included in the Integrated System of Process Safety Management Perimeter.

The key occupational risks, as related to occupational hazards affecting the employees, remain vibroacoustic factors (noise, vibration) and hardworking process.

In order to improve the labour conditions and make them healthier, the companies included in the Integrated System of Process Safety Management Perimeter carried out  6,000 activities in 2018 for the total amount of RUB 510 million, and labour conditions were improved for 12,300 employees.

In order to reduce the content of harmful substances in the working areas air, the companies included in the Integrated System of Process Safety Management Perimeter continued the following activities:

• Repair of the buildings and constructions at the production facilities;
• Procurement, installation and repair of the ventilation equipment;
• Maintenance of ventilation equipment and dust and gas collectors;
• Procurement and maintenance of the personal warning devices detecting hazardous and harmful chemicals, etc.

The following activities were carried out in order to eliminate noise:

• Equipment upgrading, including installation of pressure snubbers in the pressure control units;
• Applying noise-proof coating in the area of the safety relief valves beyond the pressure control units;
• Equipment repair and upgrading at GCUs.

At Gazprom Neft Group, the SLCA identified 5,200 workplaces referred to Hazard Class 3 and 40 workplaces referred to Hazard Class 4. At those workplaces, there are harmful and hazardous factors affecting the injury rates and the occupational diseases risk. In 2018, over 380 activities were implemented and as a result 82 workplaces were referred to a safer class. Labour conditions were improved for 254 employees.

At Gazprom Energoholding, 5,332 workplaces with harmful labour conditions were identified in 2018 with 13,907 employees working there. Due to the annual activities aimed at labour conditions improvement, there are no workplaces with hazardous labour conditions at Gazprom Energoholding, and the number of workplaces with harmful labour conditions declines steadily. The key occupational hazards are noise and microclimate at the production facilities.

At Gazprom Neftekhim Salavat, SLCA was carried out in 2018 at all newly created workplaces.

Proceeding from the SLCA outcomes, the commission developed the Lists of Recommendations for Labour Conditions Improvement and the appropriate activities are carried out in a timely manner.

Reduction of the number of accidents and incidents at the HIFs is one of the key Gazprom commitments as related to industrial safety.

Over the past 5 years, the number of accidents and incidents at the hazardous industrial facilities declined at the companies included in the organizational perimeter of the Integrated System of Process Safety Management (Gazprom Group gas business) from 56 in 2014 to 16 in 2018. No injuries resulting from accidents and incidents at the HIFs were registered in 2018.

Safety of Gazprom facilities operation depends to a large extent upon contractor organizations that provide services to and carry out repair and construction works on behalf of the Group.

Gazprom requires that the suppliers and contractors strictly adhere to the established occupational, industrial and fire safety standard and procedures while performing the works at Gazprom facilities. During the bidding and procurement procedures stage, the participants are checked for availability of the documents certifying their compliance with industrial and occupational safety requirements. The contractor companies that fail to meet the said criteria are not admitted to bidding and procurement procedures.

Prevention of accidents and workplace injuries is one of the key terms for collaboration with contractors. The contractor organizations are notified of and advised on the Integrated System of Process Safety Management requirements, the identified risks and changes affecting the safety during the introductory briefings, as well as when the work permits (safe work permits, clearance certificates) are issued. Representatives of the contractor organizations are invited to PJSC Gazprom meetings and workshops on implementation of the process safety policy, process safety culture improvement and the management leadership skills development.

In 2018, the Company developed and approved PJSC Gazprom Management Process Safety Leadership Skills Development Program. The purpose of the program is to promote the process safety culture and demonstrate personal commitment of the management at all levels to achieving the goals of PJSC Gazprom Occupational, Industrial and Fire Safety Policy.

Gazprom Neft continued implementation of the 3-year special-purpose process safety educational program. Over 29,000 Gazprom Neft employees and over 13,000 employees of the contractor organizations participated in the trainings.

Gazprom Energoholding implements the Safe Operations Culture Project aimed at improving the performance of the occupational safety management system as related to organization of continuous monitoring and identifying the risks arising in course of operations, establishing safe labour conditions and building employees’ awareness of workplace safety matters. Employees participate in trainings in accordance with Gazprom Energoholding proprietary Energy of Safety program and in Job-Order / Permit-to-Work System trainings.

No special-purpose projects or educational programs are carried out by Gazprom Neftekhim Salavat.