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Sustainability Report
Values Matter
2016 Sustainability Report
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2017

HSE Measurement and Evaluation

MANAGEMENT, EVALUATION AND ADJUSTMENT

Our Board of Directors maintains oversight of HSE performance through its HSE Committee, which has regular and direct communications with our Executive and senior management teams. HSE commitment and leadership is engrained in Vermilion’s leaders, through visible and active participation. They set the tone, provide the vision and resources required to achieve our HSE objectives, and actively participate to ensure the importance of HSE is well understood and a high standard of compliance is maintained.

The foundation of our measurement is our corporate Event Management Information System (EMIS), called iTrak, which collects information from each of our operations about potential hazards and the actions taken to resolve them. G4-LA6c This includes all health, safety, environmental, regulatory and public complaint incidents, near misses, unsafe acts and conditions, their root causes, actions taken, and preventive measures to avoid such incidents in the future.

Because of the potential risk to our people, the public and the environment, our President and CEO, COO, EVPs and other key senior leaders are immediately informed of all high potential near misses, recordable injury events and serious incidents entered into our EMIS. This reflects the critical importance of HSE at Vermilion. Lost time incidents and serious events are also reported to all staff throughout the company, with a focus on key learnings and prevention.

We have also established key performance indicators for HSE, which are reported internally on a real-time, monthly, quarterly and annual basis, with select metrics included in our sustainability reporting. Leading indicators (inputs) include elements such as HSE inspection/audit, finding closeout, compliance/regulatory inspections and emergency response exercises. Lagging indicators (outcomes) include elements such as lost time incidents, total recordable injuries, motor vehicle accidents, liquid spills and release volume, and emergency response plan effectiveness.

Our data collection, methodologies and tracking have consistently improved since our first public reporting from the years 2012 and 2013. This baseline has progressed into trend analysis and beyond. It now allows us to assess a detailed set of analysis associated with identified hazard exposure and root cause, with particular consideration given to our top fatal risks, allowing us to identify additional areas for improvement.

Vermilion uses a variety of HSE performance measurements that provide timely information on the progress and current status of the strategies, processes and activities we use to manage risk and safety.  We focus our efforts on the development of meaningful leading indicators that tell us how effective we are at identifying and reducing hazards in the workplace. Our leading indicators include activities such as contractor observations, site inspections, management and staff participation in safety meetings and site visits. They also measure the development activities influencing safety performance and continuous improvement.

We recognize that to adequately assess HSE performance, we need to take a balanced approach by also measuring outcomes, such as recordable injuries. However, we realize that such lagging indicators are reactive in nature, can be a poor gauge of prevention, and sometimes may lead to falsely interpreting low injury rates as an absence of risks in the workplace. Because of the drawback associated with this type of metric, we prefer to concentrate our energy towards more proactive performance measures.

Our HSE KPIs are included in the calculation of our Corporate Performance Scorecards for both 1-year and 3-year performance. As such, they directly impact employee and senior management team compensation. (For more information, see our Leadership section.)

We also use the analysis of results from our staff HSE Perception Surveys, and audit and compliance reviews, to understand areas for further development. This feeds reviews and improvements to our HSE MS and our sustainability work. 

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Vermilion Energy