Health and work environment
It is very important that our employees enjoy good health, and feel safe and appreciated. Healthy and motivated employees perform better and are more creative, and in that way contribute to increased profitability and better results.
Our overall safety performance did not improve in 2007. We did not reach our target of a 20 percent improvement in total recordable injuries (TRI), and we had two fatal accidents. In addition we had one fatal accident in February and one in April 2008. Our ambition to improve TRI by 20 percent per year remains unchanged, and we are working on appropriate measures to make this possible.
Hydro shall be a leading company in the area of health and work environment. In order to reduce work related illness and long-term sick leave, the objective is that all units shall carry out risk assessments and implement appropriate risk-reducing measures. Our business planning process is used to ensure continuous improvement throughout the organization and follow-up is reported on a monthly basis.
Risk assessment
A handbook for assessing the work environment risk is actively used by the sectors to help map and evaluate Hydro's work environment. The results provide the basis for decision-making. In 2007, a module designed for office environments has been added. A relevant key performance indicator has been introduced. We will continue to investigate opportunities for including specific tools to monitor the organizational and psychosocial environment, which could be of help in following up problem areas identified in the Hydro Monitor survey and health controls.
The prevention and follow-up of work-related illnesses are important to us. A new reporting tool for work-related illnesses is under implementation. Sick leave was 2.8 percent in 2007, up from 2.6 percent in 2006. The rules for sick-leave registration differ from country to country. Our sick leave in Norway is significantly higher than in Hydro on average, but relatively low compared to the Norwegian industry average.
In Norway, sick leave was 5.2 percent compared to 5.0 percent in the previous year. Men's sick leave was 4.9 percent, up from 4.5 percent in 2006, while women's sick leave decreased from 6.8 percent in 2006 to 6,4 percent in 2007.
The Registration, Evaluation and Authorization of Chemicals (REACH) is legislation applying throughout the EU for the handling of chemical substances. It entered into force on June 1 2007, and is intended to promote the protection of human health and the environment. We acknowledge the goal of REACH and the need for the rapid identification of chemical substances. A project group has been established at corporate level and pilot studies have been performed in some sectors. We will meet the pre-registration requirements in 2008.
Safety
A high level of safety in our plants is a prerequisite for safe and stable operations. We believe that it also contributes to increased profitability in our production. Our ambition is to avoid all accidents, and we work continuously to avoid work-related illnesses, damage to property, and loss of production. This applies to all our activities, irrespective of geographical location. We had two fatal accidents related to our business in 2007. Both were employed by contractors. One, working in our former oil marketing organization in Sweden, was killed in a traffic accident. The other fatality occurred at our rolling mill in Hamburg, Germany. In February 2008 an operator was killed in a work accident at Slovalco in Slovakia, and in April 2008 an operator was killed in an accident at our rolling mill in Holmestrand in Norway.
The total number of personal injuries per million hours worked (including injuries leading to absence, injuries resulting in alternative work, and injuries demanding medical attention) increased from 4.0 in 2006 to 4.1 in 2007, including discontinued operations. Our Aluminium activities showed a 9 percent improvement, but our target of a 20 percent reduction was not reached. Even though we in 2006 achieved a 25 percent reduction in the injury rate, we take the 2007 results as a serious reminder. Enforced commitment with even stronger emphasis on behavior is necessary to further improve our safety perfomance. In a ten-year perspective, we have reduced the number of personal injuries per million hours worked from 19.7 in 1997 to 4.1 in 2007.
Developing new indicators
For several years we have been working along with Det norske Veritas to develop an indicator for technical safety. The T-rate measures the availability of the technical safety barriers that are installed in order to prevent or mitigate major accidents. The indicator has already been implemented at several plants, and the plan is to implement the indicator in all relevant plants and installations by the end of 2008. Hydro has transferred the rights to the T-rate to Veritas in order to secure further development of the indicator. We will introduce a new proactive key performance indicator in 2008 focusing on incidents with major potential.
