Health, Safety, Environment and Security 2015 Annual Report

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1 Health, Safety, Environment and Security 2015 Annual Report

2 A Letter From Our CEO Mike Fournier Dear Colleagues, Providing a safe working environment for Willbros employees is at the top of the Willbros Value Wheel. At times, it makes the job more complex, with processes that require additional resources and controls. However, beyond the moral imperative that makes safety a value rather than just a priority for us, our dedication to providing a sustainable, healthy and safe environment for our employees is vital to the quality of their employment with us the quality of our service to our customers and our ability to obtain work. As a responsible corporate citizen, we also need to keep sustainability in the forefront of our operational processes. In the long term, the Willbros safety culture also improves our operational abilities, and provides a dividend of reduced insurance premiums and the avoidance of incident costs was a year of market challenges, with rapid growth of demand in our power distribution business and restructuring of our oil & gas business due to a weakness in market conditions. Safety performance historically suffers in changing conditions, but a pro-active Willbros team led the company, as a whole, to steady state safety performance relative to OSH recordable incident rates. A number of business units achieved industry leading performance for substantial portions of the year. This year we began the process of revamping the C2 (Culture of Accountability) effort and integrating it with Safety Leadership training. Our objective is to enhance our progress toward meeting the end goals of both processes, providing Willbros management with the tools for leadership accountability with respect to safety and operations. Willbros is involved in many environmental recycling efforts ongoing in Canada, UTD and at corporate offices. UTD and Canada are tracking and subsequently reducing equipment idle time. This will reduce the Willbros footprint for greenhouse gas emissions. The Canadian and Houston offices both offer a 9/80 work schedule, which reduces the number of vehicles on the road on Fridays, thereby affording a reduction in emissions as well. Along with our continued improvement in safety, we believe that more improvements in our environmental processes could be the next big differentiator between us and our competitors. Safety is a forward-thinking value that thrives within a leadership driven culture. Creative ideas, top down devotion to the safety of employees and the intertwining of safe concepts into operational processes all contribute to superior safety performance. We are confident that Willbros has the operational leadership, desire, and commitment to build on the changes made in 2015, learn from business unit successes, and show the business units that make up Willbros the way to safety performance leadership. Mike Fournier CEO & President

3 Safety Safety The Willbros Safety Vision Effective Communications Vision & Innovation Superior Financial Performance VALUES Honesty & Integrity Our Customers Our People At Willbros, we believe that great safety is not a cost, but an investment with a high return across all Willbros Values and a key part of a high performance organization. We approach each and every safety incident with a mindset that it is preventable. We use six principles to guide our Value for safety and achieve our Vision for best-in-class safety performance: 1 2 Safety is about leadership and leadership isn t about what s in your title: it s about what is in your character. We will always strive to get better. When we fall short in our expecta- - duce that success elsewhere We will not compromise even in the face of great pressure on the time and discipline it takes to properly plan and execute our work in the safest way practical. Stopping unsafe work isn t a right given to us by someone else. Stopping unsafe work is an obligation that we hold ourselves and each other to. Production done in the absence of safety will not be valued or rewarded. Period. Great safety isn t about policies and procedures. Great safety is about openness, honesty, involvement, communication and caring for one another.

4 Health, Safety and Environment Policy Willbros has long-established core values associated with the safety and well-being of our people, honesty and integrity, continuous improvement, and understanding and being responsive to our customers needs. Our HSE Policy is a continuing commitment to these core values. Scope: This Policy applies to the operations of Willbros, including all of its divisions, Policy: Willbros is committed to protecting the health and safety of its workforce and to minimizing its environmental impact. In order to meet our policy commitment we will: Comply with all applicable laws, regulations and rules; Perform safely every single time for the protection of our people and stakeholders including our customers, suppliers and the community; Make sure every employee is empowered to stop any unsafe act; Minimize environmental impacts, and to the extent practical, use natural Identify and manage safety and environmental risks, identify hazards and evaluate risks posed by them, and implement solutions; Ensure adequate skills and training to work in a safe, healthy and environmentally responsible way; Verify that we have planned for and are able to respond to and recover from any emergency or crisis. Promote the implementation of responsible safety and environmental practices with our suppliers, contractors, and business partners; Support our customers efforts for a sustainable future. We are committed to strong leadership across our organization to achieve excellence and compliance in implementing this policy through our culture of accountability. Safety performance is one of the Key Results we will seek to achieve by adhering to our cultural beliefs of Own It, One Willbros, Process Matters and Improve Daily. To seek continual improvement in our HSE performance we will utilize a systematic company-wide HSE management system that provides a framework for compliance with our policies, legislation, regulation and other applicable requirements, setting objectives and targets, measuring performance and transparently reporting results. Compliance with this Policy enhances our performance and helps us to achieve our mission A Good Job on Time Done Right.

5 HSE Management System Key Elements Key elements of the Willbros HSE Management System begin with a strategy that positions the HSE function as a performance-based model. Under this model, Corporate HSE and the Segments establish, implement and maintain appropriate systems, processes and procedures to reasonably prevent incidents from occurring and to limit the consequences of those that are not prevented. Corporate performance standards set a governance framework designed to both guide and oversee the HSE performance across Willbros with accountability for implementation of the standards squarely in the sphere of control of the Segments. These key elements and associated core management tools are integrated into a logical, interrelated, mutually reinforcing system focused on achieving continuously improving performance across the company. Corporate Role Segment Role Vision and Governance HSE Management System Measurement & Assessment Learning & Mgmt Review Business Unit Role Compliance Requirement Risk Assessment Risk Controls Measurement & Audit Learning & Management Review

6 Health and Safety Performance Results Our primary goal is to promote an injury-free workplace by safeguarding the health and safety of our employees. Through evolution of our HSE management system we are able to successfully work toward our Key Result of a TRIR < 1. In 2015, we continued our success with a reduction in our TRIR with an annual result of.75. This is significantly below our goal of a company-wide TRIR of less than We have also greatly reduced our injury costs over the last 5 years, most notably in This is a strong indication that continued efforts to focus on culture and behavior have made a significant impact in all of our operating areas. Man Hours, Incidents and TRIR Man Hours Incidents TRIR Jan Feb Mar Apr May June July 2015 Aug Sep Oct Nov Dec

7 Man Hours, Injury Cost and TRIR Combined 5 year Analysis Man Hours Injury Cost TRIR Significant Injury or Fatality (SIF) Incidents A Serious Injury or Fatality (SIF) Incident is classified as such when the incident has occurred during an identified high risk activity, task or environment. A SIF incident can be a near miss, first aid, OSHA recordable or fatality. Year-end Willbros has a SIF (Serious Injury & Fatality) rate of 3.86%. Willbros has recorded 880 incidents throughout the four Segments. 34 of those incidents have been classified as SIF incidents. Oil & Gas 151 incidents of which 10 were SIF incidents. (6.62%) P. Services 77 incidents of which 1 was a SIF incident. (1.3%) Canada 195 incidents of which 10 were SIF incidents. (5.13%) UTD 457 incidents of which 13 were SIF incidents. (2.84%) January February March April May June July August September October November December SIFs Total Incidents % (SIF/Incidents) 3.67% 2.83% 3.27% 2.86% 3.13% 3.05% 3.35% 3.33% 3.38% 3.66% 3.69% 3.86%

8 Willbros HSE Safety Awards Willbros recognizes the hard work, commitment and dedication it takes to keep employees safe. Each year, safety awards are given to the individuals who display remarkable safety achievement and leadership in each of the business segments.

9 Willbros HSE Safety Awards Chris Chmelik accepts the President s Award President s Award 2015 Chris Chmelik, General Superintendent, Willbros Construction Services, Ft McMurray Field Services Willbros Canada Chris has been a Willbros team member for 12 years and has continued to evolve with the industry when it comes to safety. He began with Willbros as a laborer and has worked his way up to General Superintendent. He has not had a recordable incident since late Chris has been described as having a personal commitment and passion towards safety. He is constantly in the field coaching and mentoring his supervision and workers and looking for new ways to improve HSE. Every new employee to his projects knows how serious he is about safety.

10 Willbros HSE Safety Awards Chairman s Award 2015 Karen Hammond accepts the Chairman s Award on behalf of Hugh Hammond Hugh Hammond, Health and Safety Director Bemis Willbros Utility Transmission and Distribution Hugh worked for 36 years with the Central Vermont Public Service Corporation. Following a 7 year retirement, he returned to work in 2011 as Health and Safety Director at Bemis, LLC/Willbros. He passed away unexpectedly on April 9th, Two days after his passing, Bemis successfully completed 4 years without an OSHA recordable injury. Hugh had high safety standards and was relentless in his pursuit of perfection, demonstrating it daily. Hugh worked each day with the determination that work could be done both productively and safely. His attitude left a long lasting impression on not only his fellow Bemis employees but on all those in Willbros UTD.

11 Willbros HSE Safety Awards Joel Harper accepts the Chairman s Award Chairman s Award 2015 Joel Harper, Field Superintendent Tank Services Willbros Oil & Gas Joel has been with Willbros for 3 years. A zero incident record on all of his projects since then have illustrated his dedication to safety and commitment to his employees. Joel manages both new tank work and repair work projects, executing drastically different safety related activities simultaneously in both type projects. Joel exemplifies an active, effective commitment to safety.

12 Additional Areas of Safety Focus - Environmental In 2015, we continued to evaluate our impact to the environments in which we operate. Working with all business units, we collectively gather baseline data that will enable us to establish a benchmark from which to measure our environmental performance. Once a benchmark is estab- lished, development of green initiatives and sustainability concepts that are paramount in fostering a more environmentally conscious culture will be established. The success of these efforts will be accomplished through energy usage tracking, best management practices and conservation awareness programs that promote employee involvement. Security While we continue to monitor both international and domestic security issues, North America is the current focus of our work. We are committed to providing a safe and secure work environment for our people, operations and assets.

13 Additional Areas of Safety Focus HSE Assessments Assessment protocols are being restructured and developed in line with the revised HSE Management System. A data base is being developed to record Business Unit assessments for trending. The 2015 assessment schedule will be risk based within each of the segments. Our current plan is to assess business units within respective segments each quarter. Workshops & Training change and ingrain cognitive safety concepts throughout the company. We employ external consultants to design internal modules to support the core safety principles we wish to instill. HSE Communications Utilizing communication outlets such as semi-annual Directors Council meetings and bi-annual Managers Meetings, the HSE department takes Willbros. It is our priority to maintain a cohesive, united front throughout the enterprise.

14 Willbros Group, Inc. Segments & Capabilities Oil & Gas Cross Country Pipelines Well Connects / Flow Lines Gas / Oil Gathering Processing and Storage Facilities Pump / Compression / Metering Stations Turnarounds Manufacturing Canada Tank Construction Slurry Line Maintenance Capital Construction Spool Fabrication Field Maintenance Modular Fabrication / Assembly Electrical & Instrumentation (E&I) Utility Transmission & Distribution Transmission Substation Distribution Cable Restoration Smart Grids Emergency Restoration Telecom

15 Willbros Group, Inc. Culture & Mission Cultural Beliefs One Willbros I respect others contributions and reach across the organization to deliver Key Results. Own It I accept accountability for myself and my team to passionately resolve problems and deliver results. Cash Smart I ensure my actions positively impact cash management results. Release Potential I create the workplace that people believe allows all employees to maximize their personal growth and collective sense of accomplishment. Improve Daily I continuously challenge and improve to achieve Key Results. Process Matters I develop and embrace processes to deliver our Key Results through collaboration to achieve buy-in. Build Trust I create trust through constructive and honest experiences. Mission Our mission is to be a multi-billion dollar engineering and construction Company with a diversified revenue stream, exposure to high growth opportunities and ability to achieve stable and predictable results.

16 Health, Safety, Environment and Security 2015 Annual Report Willbros Group, Inc Post Oak Pkwy, Suite 1000 Houston, TX (713)

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