• Protection of life and health is one of the top priorities of the company. The company creates comfortable and safe working conditions for employees, introduces international approaches and standards of health, safety and security management, and takes all necessary measures to reduce workplace injuries.

    OCCUPATIONAL HEALTH ANF SAFETY MANAGEMENT

    Priority areas of the company's activity in the field of occupational health and safetyManagement system in field of occupational health and safety is a part of corporate risks management at production facilities of the company.

    General management of the company operation in health and safety matters is exercised by the CEO of the company. To implement the strategy of the company in the field of occupational health and safety the department for occupational, environmental and industrial safety was established.

    The organization of management system if the field of occupational health and safety with the relevant functions covers all the activities of the company enterprises on these matters according to their functional structures and consists of the 4th and the 5th levels of management (from the workplace to the management apparatus).

    The main document, according to which all Naftogaz enterprises operate in the field of occupational health and safety, is the company policy in the field of occupational health and safety, which aims to minimize the risks of accidents and other incidents, and the risks of occupational diseases of employees in the production process.

    Naftogaz strategy in the field of occupational health and safety

    In 2016, Naftogaz plans to begin the development of the Strategy in the field of occupational health and safety, according to which all enterprises of the company will carry out their activities on these issues. The strategy will become the new regulatory instrument on occupational safety management in enterprises of the company and will replace the company's current industry standard in the field of occupational safety. The strategy in the field of occupational health and safety is under development taking into account: 

    • Provisions of ISO OHSAS 18001: 2010 "Occupational health and safety management systems. Requirements" (OHSAS 18001: 2007);

    • Relevant documents of ILO and the International Social Security Association, including Seven Golden rules on the organization of occupational safety management; and international principle "Zero Accident — zero accidents in production".

    1 Industry Standard SOU 74.1-20077720- 025:2006 "Occupational Health and Safety Management System NJSC "Naftogaz of Ukraine". Major provisions'

    2 Seven Golden Rules developed by International Social Security Association, ISSA

    Implementation of international standards 

    After signing the EU–Ukraine Association Agreement, the importance of proper implementation of the entire set of measures and tools for occupational safety has increased. One of the strategic goals of Naftogaz is to ensure the implementation of international and European standards, including the management system of occupational health and safety.

    Naftogaz shares the European standards, which require leadership of the company's executive in providing the operation of an effective occupational safety management system and his/her corresponding actions, including:

    • Occupational health and safety shall be a priority in the enterprise operations;

    • Definition of duties and responsibilities of managerial personnel and employees to ensure occupational safety;

    • Constant response to dangerous working conditions and personnel behavior;

    • Documenting of the company policies on occupational health and safety.

    The company is constantly looking for ways to improve its safety and health management system in line with international best practices.

    Introduction of OHSAS 18001 across the enterprises of the company 

    In December 2015, Uktransgaz passed thought the certification audit, whose results confirmed the compliance of occupational safety management system with the requirements of OHSAS 18001:2007 and ISO 9001. According to the provisions of the standard, Ukrtransgaz takes measures to identify, evaluate and minimize the risks of accidents. For this purpose, Ukrtransgaz developed the Methodology for hazards identification and risks assessment, on the basis of which registries of hazards and of risks assessment are developed, containing corrective (preventive) actions to prevent occupational injuries.

    Other company enterprises exercise the preparatory work for the development, implementation and subsequent certification of occupational safety management system by the end of 2017 according to standard OHSAS 18001. The process includes several stages: the creation of a working group of experts who will be responsible for development of this system, and their training; the development of relevant procedures; the selection of organization which will hold a mandatory diagnostic audit, etc. 

    3 ISO 9001 "Occupational health and safety management systems. Requirements — the international standard containing the requirements to the quality management system

     

    OCCUPATIONAL SAFETY EXPENDITURES (INVESTMENTS) OF NAFTOGAZ

    Naftogaz enterprises annually develop and finance measures aimed at creating safe and healthy working conditions, at prevention of accidents and occupational diseases in the workplace.

    In 2015, Naftogaz invested UAH 136.4 million in occupational and industrial safety. The company's production enterprises spent, on average, 2.2% of their payroll on health and safety in 2014, exceeding 0.5% required by the current labour legislation of Ukraine.

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    During 2015, the company enterprises certified 1905 workplaces for working conditions. As a result of certification, actions are being developed and taken to improve working conditions

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    Naftogaz group focused its funds on the following:

    • Providing the employees with means of personal protection, including special clothing and footwear;

    • Adjusting fixed assets (premises and equipment) to the health and safety regulations;

    • Providing employees with special food;

    • Eliminating and minimizing the impact of dangerous and harmful factors on employees; delivering health and safety training;

    • Organizing and conducting medical examinations of employees.

    OCCUPATIONAL AND INDUSTRIAL SAFETY MEASURES BY NAFTOGAZ IN 2015

    In order to improve occupational and road safety, prevention accidents including and road accidents, in 2015, the company issued a series of administrative documents (orders) related to analysis of the occupational and road safety at enterprises, as well as to organization of the Occupational Safety Day and further improvement of occupational safety management system at the company's enterprises. 

    In April — May 2015, the enterprises held the events dedicated to the World Health and Safety Day and the Occupational Safety Day in Ukraine under the slogan "Join the preventive health and safety culture".

    "Seven Golden Rules" are the best international practices on health and safety management elaborated by the International Association of Social Security. The company's management prepared and approved the Recommendations for implementation of these rules at the enterprises of Naftogaz. The enterprises of the company identified branches, structural units and production units to implement the pilot projects on introduction of "Seven Golden Rules".

    At the end of 2015, Naftogaz established a working group on health and safety, composed of the representatives of Naftogaz group, the Trade Union of Oil and Gas Industry of Ukraine, the Federation of Mining Employers of Ukraine, the editorial board of the Okhorona Pratsi magazine, international experts, and health and safety auditors. The working group developed an action plan of Naftogaz for 2016, which includes the development of methodology for identifying hazards and assessing risks of accidents in the company, and for drawing up registers of these risks, etc.

     

    Occupational and industrial safety training for employees

    Safe working conditions depend not only on the technical condition of production facilities and equipment, but also on the culture of safe work, and also on responsible attitude of employees to compliance with health and safety requirements and industrial safety. Therefore, Naftogaz pays great attention to health and safety training of its employees.

    In 2015, the company held a training workshop on development and promotion of occupational safety culture at the company's enterprises and meetings, including one at the industry level, on the following:

    • occupational safety system in the context of Ukraine's European integration;
    • harmonizing the national health and safety legislation with the European one;
    • practical steps of the company's management and personnel to assess the risks of accidents, manage them and reduce injuries through changes in the employees' behavior together with implementation of technical aspects;
    • modern European directives and regulatory support of occupational safety management system, the role of chief executives of the enterprise in health and safety;
    • initiative and responsibilities of the employers to ensure healthy and safe working conditions; the consequences of failure to comply with industrial safety; the status of occupational injuries in Ukraine as a whole;
    • cooperation between public supervisory bodies and businesses to ensure the constitutional rights of employees to safe working conditions.

    The company is committed to introduce seven golden rules

    INDUSTRIAL INJURY INDICATORS

    The company is taking the necessary steps to reduce the level on industrial injuries and implements the international principle "Zero Accident — zero accidents at production". Unfortunately, despite all the measures taken by the company to prevent injuries of employees at work, 22 industrial accidents happened in 2015, with 24 workers injured, and 5 of them died.

    Expenditures (investments)

    Deaths were caused by an accident on a public road, falling, operating high-pressure equipment, a collapse of soil and hitting with a metal auxiliary rope when installing a preventer at a wellhead. The company's enterprises are thoroughly analyzing the causes of industrial injuries and take necessary preventive measures. In addition, according to the company's current health and safety system, industrial accidents and preventive activities are analyzed at the enterprises and the company as a whole on the quarterly basis. In case of deaths or heavy injuries, a special health and safety monitoring is introduced. Accidents with serious consequences and road accidents are a subject to internal investigation. Officials and other employees responsible for accidents are prosecuted. 

    PROSPECTS FOR 2016

    Ukraine's European integration implies radical changes in all areas of social activity, including attitude to working conditions and safety. The main task of the company is to set them as a priority in production processes and really implement international and European standards.

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    In December 2015, three specialists of health and safety agency of the company have improved their qualifications in the areas of: "Development and implementation of management systems based on risks management", and "Audit and certification of management systems". Participants received the relevant certificates of the Academy of Occupational Health and Safety Management System and of "Technical and Administrative Services LLC", which is the official representative of TÜV SÜD (Munich, Germany) in Ukraine and provides audit and certification services

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    At the corporate level:

    Development and implementation of the management systems in the field of occupational health and safety in Naftogaz in accordance with the international standard OHSAS 18001: 2007 "Occupational health and safety management systems. Requirements", and with the relevant documents of ILO and the International Social Security Association, including Seven Golden Rules, comprising:

    • introduction of common technical policy in the field of occupational health and safety; analysis of industrial accidents, working conditions and accident rate; development of prevention measures;

    • developing and implementing methods for permanent identification of hazards, assessment of risks of accidents, incidents, occupational diseases, road accidents and industrial accidents; implementation of necessary controls (management);

    • developing management in the field of enterprises occupational health and safety; facilitating the implementation of occupational health and safety management systems by the company's enterprises; organization of non-financial audit and certification according to international standards OHSAS 18001: 2007 "Occupational Health and Safety Management Systems — Requirements";

    • implementation of the Environmental and Social Action Plan (loan agreement with the EBRD);

    • implementation of the Organizational and Technical Action Plan on Health and Safety in 2016, comprehensive measures to achieve the set standards and improve the existing level of health and safety.

     

    At the local (management) level:

    • implementation of the Environmental and Social Action Plan under the Loan Agreement with the EBRD that involves implementation of occupational health and safety management system and relevant international standards of management;

    • ensuring the identification of hazards and assessing the risks of accidents, incidents at the head office of the company;

    • implementation of measures to tackle the British standard PAS 1010:2011 "Guidance on the Management of Psychosocial Risks in the Workplace", and the guidelines "Stress Prevention at Work Checkpoints. Practical improvements for stress prevention in the workplace", developed by the International Labour Organization, management of psychosocial risks, and to further increase the level of production culture in the company.

    Naftogaz cost (inestments) structure on occupational safety

     

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