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Values Matter
Sustainability Report
Values Matter
2016 Sustainability Report
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HSE Measurement and Evaluation

MANAGEMENT, EVALUATION AND ADJUSTMENT

The foundation of our event management is our corporate Event and Environmental Management Information System (EEMIS), a web-based system that is accessible to very staff member, which collects information from each of our operations about potential hazards, near misses and incidents and the actions taken to resolve them. This also includes all health, safety, environmental, regulatory and public complaint incidents, including immediate and root cause details, actions taken, and preventive measures to avoid repeat incidents.403-2c

Because of the potential risk to our people, the public and the environment, our Executive Committee members are immediately informed of all high potential near misses, recordable injury events and serious incidents entered into our EEMIS. 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.

Our data collection, methodologies and tracking have consistently improved since our first public reporting from 2012. This baseline has progressed into trend analysis, which allows us to assess identified hazard exposures, root causes and Management System gaps, 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. These are reported internally on a real-time, monthly, quarterly and annual basis, with select metrics included in our sustainability reporting.

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, finding closeout, compliance/regulatory 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. These lagging indicators (outcomes) include elements such as severe injury incidents, recordable injuries, motor vehicle accidents, liquid spills and release volumes, compliance and annual total recordable injury frequencies.

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 1-year performance (25% weighting) and 3-year performance (via the significant HSE contributions to CDP, SAM and Sustainalytics rankings, which carry a 10% weighting). As such, they directly impact all employee and senior management team compensation. (For more information, see our Leadership section.)

We also analyze results from our staff HSE Perception Surveys, and audit and assessment reviews, to understand areas for further development. This feeds reviews and improvements to our HSE MS and our sustainability work. 

HSE Performance Linked to Executive and Employee Compensation

Our HSE KPIs are included in the calculation of our Corporate Performance Scorecards for:

By including HSE as a metric in our scorecards, we ensure management continues to focus on HSE performance. As such, they directly impact all employee and executive compensation.

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Vermilion Energy