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Values Matter
Sustainability Report
Values Matter
2016 Sustainability Report
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Our HSE Approach and Management

Our HSE Vision
To fully integrate Health, Safety and Environment into our business, creating a culture recognized as a model by industry and stakeholders, resulting in a healthy workplace free of incidents.

Our Approach to HSE, and Why It Matters

Our HSE Vision is an extension of our core values of Excellence, Trust, Respect and Responsibility, and reflects our commitment to conducting our activities in a manner that ensures the health and safety of our people and those involved directly or indirectly in our operations.

This is Vermilion’s highest priority. Nothing is more important than the safety of staff, partners, suppliers, communities and all those who work with us.

Protecting the environment immediately follows safety in our priorities. While this presents as a critical operational risk from an adverse environmental incident, it also offers important opportunities to improve technology and processes to both protect the environment and contribute to operational excellence and return to shareholders.413-2

We operate by the mantra of “HSE: Everywhere. Everyday. Everyone.” because we believe that striving for a healthy workplace free of incidents is key to efficient and successful operations that will continue to generate strong returns to our employees, shareholders and the communities that we operate in. When it comes to HSE, protecting our people and the places they work, play and call home is what really matters most.

Management of HSE

HSE Policy

Our HSE Policy is also our promise.

It applies to all Vermilion activities, and provides an overall commitment to key principles for managing health, safety and the environment. The policy, which is the basis for Vermilion’s HSE objectives and targets, outlines the overall direction of our organization with respect to HSE and contains a commitment to continuous improvement:

Vermilion is committed to ensuring we conduct our activities in a manner that will protect the health and safety of our employees and contractors, and the public. Our HSE vision is to fully integrate Health, Safety and Environment into our business, where our culture is recognized as a model by industry and stakeholders, resulting in a workplace free of incidents.

Vermilion will maintain health, safety and environmental practices and procedures that comply with or exceed regulatory requirements and industry standards. Vermilion's HSE actions will reinforce our corporate Core Values of Excellence, Trust, Respect, and Responsibility.

Vermilion Energy will:

Hazard awareness, incident prevention and environmental awareness comprise an integral part of any job. It is a joint effort that requires continuous support of everyone who works at Vermilion. The protection of health, safety and the environment must be a key part of the planning and execution of every task. All those engaged in work for Vermilion shall be aware of this policy and its contents, and shall commit themselves to its implementation.

HSE Roles and Responsibilities

Our HSE Policy is clear that HSE is the responsibility of every person who works for, with or on behalf of Vermilion, from our permanent employees to our contractors and vendors.

Structural responsibility for HSE rests with our Board of Directors, which maintains oversight of HSE performance through its HSE Committee, which has regular and direct communications with our Executive Committee and senior management teams. Management responsibility for HSE rests with all of our Executives and operationally with our Vice President, International & HSE, who leads strategy and performance. In addition, the Managing Directors of each of our business units are responsible for HSE performance within their operations, supported by specialist HSE staff.

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. This is supported by our performance management system, which includes an HSE leadership objective for all leaders, connecting leader compensation directly to HSE and ensuring that HSE is viewed as a priority for every leader and every team in the organization.

We also strive to engrain safety and environmental awareness throughout all facets of the organization, not just in our field operations. We believe our HSE mantra emphasizes that keeping people and the environment safe isn’t just up to the HSE or operations departments, but involves every individual, whether they work as a technician in the field, an accountant in the office, or as a volunteer in the community during a Day of Caring.

To support this, we hold quarterly HSE Leadership meetings at the corporate level, with participants that include our senior management team and HSE advisors from all divisions and subsidiaries, representing 100% of our staff.

HSE in Our Operations and Supply Chain

We require third-party contractors and sub-contractors – our vendors – to be HSE pre-qualified prior to commencing service work. This helps ensure that they have an HSE program in place that meets or exceeds our requirements. We also observe and interact with our vendors on an ongoing basis to ensure that they are adhering to Vermilion’s HSE practices, procedures and rules.

We hold mandatory monthly HSE meetings in every field district that all staff (field and administration) attend and senior management routinely participate in. On a quarterly basis, the HSE district meetings are replaced by HSE-focused town     hall meetings that include our vendors. This practice, which has been in place since 2011, has resulted in a better understanding of Vermilion’s HSE requirements, and an improved understanding of where and how we can provide better support to our vendors.

Our site and work procedures also provide strong oversight of staff and contractor activities alike. For example, safety and environmental certifications, such as H2S and enclosed space training, must be current and in place; we track and monitor these for staff, and require proof of certification for vendor staff. Hazard identification is a key part of every job and as a result, Vermilion work permits are required in order to enter our locations, and registration is required on our roads and sites, to ensure that we know who is on site to do what work, and when. Appropriate Personal Protective Equipment (PPE) is provided by Vermilion or the contracting company as appropriate, and is a requirement to access our sites. Working conditions are also clearly identified and monitored, including maximum working hours per day (which include driving time to and from our locations).

In addition, staff and contractors must complete online training prior to arriving on site, to ensure that they are familiar with our most important HSE procedures. In Australia, those traveling to our offshore platform must undergo further training, to support critical platform and helicopter safety procedures.

With regard to our supply chain, our Corporate Contractor/Vendor Selection and Management Guidelines include specific activities to support HSE performance: for example, having the Vermilion staff member responsible for the vendor provide information and briefings on our Code of Business Conduct and Ethics and our HSE program requirements, including our High 5 personal safety initiative and site-specific hazard awareness.

5 Key HSE Pillars

Our HSE work is guided by our belief that there are clear linkages between strong HSE performance and strong business performance. We consolidate our efforts and focus on five key pillars of HSE performance, because this enhances our ability to advance our HSE priorities and reduce our risk, which in turn helps us ensure worker and public safety, environmental protection, and the delivery of superior business results. Within each pillar, we have developed longer-term outcomes to articulate what we want to achieve now and in the future:

KEY HSE PILLARVET VISION OUTCOMES
HSE Culture
  • Management and the workforce are actively involved in delivering HSE performance & improvement
  • The organization looks at what might go wrong and takes steps to prevent it
  • The organization creates an environment of empowerment, trust and accountability
Communications & Knowledge Management
  • Continuously learns and shares information to improve performance
  • Values training and validates competencies
  • Demonstrates reliable data systems, analysis, trending and generation of improvement actions
Technical Safety Management
  • Has a broad array of systems and practices to identify hazards and manage / reduce risks
  • Demonstrates regulatory compliance
  • Provides important organizational focus to low probability, high consequence events
Incident Prevention
  • Focuses on proactive measures for incident prevention. Responds promptly to hazards and takes immediate action
  • Intervention is seen as a positive action
Operational Stewardship & Sustainability
  • Integrates sustainability policy and practices into business strategies and performance measures
  • Considers that HSE and sustainable development has a direct correlation to business success


Our Hse Framework

flowchart

THREE MANAGEMENT SYSTEMS FORM THE INTEGRATED FRAMEWORK OF VERMILION’S HSE CULTURE.

Our HSE Management System (HSE MS), Asset Integrity Management System (AIMS) and Process Safety Management System (PSMS) provide the formal structure that helps us foster a workplace culture at Vermilion where HSE is always a priority.

The HSE MS reflects the principles of the ISO 14001, OHSAS 18002:2000, and API Standard models to ensure that health, safety and environmental issues are systematically identified, controlled, and monitored.

In addition, our German business unit is certified to ISO 50001 for energy management.

HSE Management System

HSE MS provides the structure for the delivery of our HSE policy and commitments, including areas of corporate ownership and responsibility, with the objective to increase consistency across the organization in its development and implementation. By following the HSE MS’s action steps of Plan, Do, Check & Correct – which provide a process for continual improvement – we identify and manage health, safety and environment hazards and risks associated with our company’s global operations.

Asset Integrity Management System

AIMS serves as the framework of processes and procedures that helps us execute safe and reliable asset operation. Through AIMS, we understand when work on an asset needs to be performed, how much it will cost, and where to start. Perhaps even more importantly, it helps us understand the impact and cost if no action is taken. Adherence to quality standards and practices, effective testing and inspection of equipment, quality of spare parts and repairs, and correct control of operating parameters are all within the scope of AIMS. A successful AIMS helps us improve operational safety, reduce spill volumes and frequency, increase overall reliability and life expectancy of assets through cost effective measures, assure proper management of high risk assets, implement best practices in managing our assets, and ensure compliance with regulatory requirements.

Process Safety Management System

PSMS serves as the “backbone” of how we manage process safety. This is a blend of engineering and management skills focused on preventing high impact, low probability events and near misses, such as fires, explosions, well blowouts and damaging releases associated with the loss of containment of energy or dangerous substances. Our PSMS is comprised of 14 interactive elements that identify key responsibilities and requirements, and is based on a Plan-Do-Check-Correct cycle. This helps us identify hazards, manage risk, eliminate or mitigate potential environmental impacts, operate safely and reliably, develop and share best practices, drive operational discipline, and support continuous improvement.

Values Matter
Vermilion Energy