HSE Measurement, Evaluation and Adjustment

The foundation of our event management is our corporate Event and Environmental Management Information System (EEMIS), a web-based system accessible to all staff that collects information about potential hazards, near misses and incidents, and the actions taken to resolve them. This includes HSE, regulatory and public complaint incidents, covering 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 via our EEMIS. Lost time incidents and serious events are also reported to all staff throughout the company, focusing on learning and prevention. Our data collection, methodologies and tracking have consistently improved over time. 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. This work, augmented by our triennial HSE Perception Surveys, allows us to identify additional areas for improvement ,such as the implementation in 2021 of the Life-Saving Rules.

Vermilion uses a variety of HSE performance measurements that provide timely information on the progress and current status of the strategies, processes and activities 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 on the development of meaningful leading indicators that tell us how effective we are at identifying and reducing hazards in the workplace. These 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 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 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. We therefore prefer to concentrate on more proactive performance measures.

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.