BASF PETRONAS Chemicals` Verbund Site Report 2013
Transcription
BASF PETRONAS Chemicals` Verbund Site Report 2013
BASF PETRONAS Chemicals’ Verbund Site Report 2013 Inclusive of Toray BASF PBT Resin BASF PETRONAS Chemicals Sdn Bhd Verbund Site Report 2013 (Inclusive of Toray BASF PBT Resin) BASF PETRONAS Chemicals Report 2013 Inclusive of Toray BASF PBT Resin Contents About this report 1 Environment, health, and safety 8 Message from the Managing Director 3 Employees 13 Members of the Board of Directors 4 Society 15 Strategy 5 Selected prizes and awards 16 Business development 7 About this report BASF PETRONAS Chemicals Sdn Bhd Verbund Site – Report” is published annually as a concise document about the company’s development, progress and performance in regard to economy, ecology, and society. The reporting period for this publication is the financial year 2013. All data in the report are the combined 100% total from BASF PETRONAS Chemicals and Toray BASF PBT Resins without BASF Services. Data from newly constructed plants are included starting from the year they go into operation. 1 BASF PETRONAS Chemicals Sdn Bhd Verbund Site Report 2013 (Inclusive of Toray BASF PBT Resin) BASF PETRONAS Chemicals is pleased to present the fifth report on its environmental, social, and economic performance, including information from 2012 to 2013. As a joint venture of two FORTUNE 500 companies, BASF and PETRONAS (via the PETRONAS subsidiary PETRONAS Chemicals Group, PCG), which are both committed to sustainable development, BASF PETRONAS Chemicals publishes this online report annually. For our shareholder BASF, sustainable development means the combination of long-term oriented economic success with environmental protection and social responsibility. The company’s corporate purpose is "We create chemistry for a sustainable future." The strategic and organizational implementation of sustainability helps identify risks at an early stage while simul taneously opening up new opportunities for BASF. For information about BASF, visit www.basf.com. In line with the commitment to continuous growth and sustainable development for the future, our shareholder PETRONAS Chemicals Group (PCG) works in the best possible way to balance and integrate economic, environmental and social considerations into their business decisions. These considerations include, among others, strong health, safety and environment management and performance, continuous development of the workforce and the long-term and holistic contribution to society. This is reflected in their purpose “Chemistry for Growth”. For information about PCG, visit www.petronaschemicals.com. 2 BASF PETRONAS Chemicals Sdn Bhd Verbund Site Report 2013 (Inclusive of Toray BASF PBT Resin) Message from the Managing Director Greetings from BASF PETRONAS Chemicals Sdn Bhd! We are pleased to present BASF PETRONAS Chemicals – Report 2013. This report provides an overview of the company’s operations throughout 2013 in terms of our sustainability performance, or how we balance the economic, environmental, and social aspects of the company. From an economic perspective, 2013 was a tough year. Growth in our customer markets remained stagnant throughout 2013, a situation prolonged from 2011 through 2012. Operationally, our emphasis remains on continuous improvement in all our processes and procedures, seen in our Operational Excellence initiative. Through this, the company will continue to deliver solid financial results. In accordance with the philosophy shared by our parent companies, we demonstrate sustainability throughout our operations by maintaining worldclass operating standards at our site. We also maintained our strong performance in environmental protection in 2013. This can be seen in our operations, our efforts in environment, health, and safety (EHS) efforts, through Responsible Care audits, shareholder audits, Occupational Health audits, and through savings in energy, utility, logistics and procurement, to constantly live our mission, “Creating Value Through Chemistry”. Our focus in 2014 will be on excellence and improvements. This will ensure that we are ahead of our competition and that we continue to be recognized as the partner of choice. Looking at plans for 2014, there is a lot to anticipate. We broke ground in April 2014 on the long-awaited Integrated Aroma Ingredients Complex, and construction is now underway. We will continue to maintain close dialogue with the community, authorities, and relevant stakeholders, seeking to contribute to social development. I personally thank you for your support and interest in BASF PETRONAS Chemicals Sdn Bhd, and our whole team looks forward to serving you even better as we move forward. Best regards, Stefan F. Beckmann Managing Director, BASF PETRONAS Chemicals 3 BASF PETRONAS Chemicals Sdn Bhd Verbund Site Report 2013 (Inclusive of Toray BASF PBT Resin) Members of the Board of Directors BASF PETRONAS Chemicals Sdn Bhd Datuk Wan Zulkiflee Wan Ariffin Chairman of the Board of Directors, BASF PETRONAS Chemicals Sdn Bhd & Executive Vice President, Downstream Business, PETRONAS (PETRONAS Group of Companies) Sazali bin Hamzah President / CEO, PETRONAS Chemicals Group Sdn. Bhd. (PETRONAS Group of Companies) Dr. Rainer Diercks President Petrochemical Business, BASF SE (BASF) Gops Pillay President, Asia Pacific, BASF East Asia Regional Headquarters Limited (BASF) 4 BASF PETRONAS Chemicals Sdn Bhd Verbund Site Report 2013 (Inclusive of Toray BASF PBT Resin) Strategy Overview BASF PETRONAS Chemicals Sdn Bhd is a joint venture between BASF and Malaysia's state owned Petroleum Corporation Petroliam Nasional Berhad (PETRONAS), under its subsidiary PETRONAS Chemicals Group (PCG). Chemistry drives sustainability The signing of the shareholders’ agreement in August 1997, with an initial investment of MYR3.4 billion, brought together a vast amount of experience, innovation, cuttingedge technology and an abundance of strategically-located high quality resources. Today, operating from one of the largest integrated chemical sites in Asia Pacific, BASF PETRONAS Chemicals emphasizes the value of sustainability and strengthens our stakeholders’ confidence through a voluntary commitment to global standards and transparency in keeping with our belief of “Chemistry Drives Sustainability” and “Creating Value Through Chemistry”. In accordance with the philosophy shared with our parent companies, both BASF SE and PETRONAS Chemicals Group (PCG), we demonstrate sustainability throughout our operations by maintaining world-class operating standards on and at our site. We believe that to enjoy long-term success, we have to conduct our business in a sustainable manner. This is reflected in our company pillars, one of which is “Championing Sustainable Development”. Acting responsibly for us means that we want to integrate sustainability into our business activities. We have set ourselves ambitious environmental and climate goals. In doing so, we strive not only to provide the best service to our customers, but also to be relevant and beneficial to our employees, suppliers, the community we operate in, and the environment at large. Committed to sustainability We demonstrate sustainability throughout our operations by maintaining world-class operating standards on and at our site. Customers visit the BASF PETRONAS Chemicals Verbund site to experience “Creating Value Through Chemistry”. 5 BASF PETRONAS Chemicals Sdn Bhd Verbund Site Report 2013 (Inclusive of Toray BASF PBT Resin) On our journey of "Operational Excellence", the Company has implemented the “Hibiscus Project”. This effort is guided by a global team of Operations and Technology experts from BASF and is supported by our shareholders and stakeholders. This will complement the company’s strategic roadmap launched in late 2012 in which the company’s belief that “Chemistry Drives Sustainability” and its mission “Creating Value Through Chemistry” is supported by four strategic pillars – (1) Leveraging Diversity for Growth, (2) Partnering for Success, (3) Developing Talents for Growth and (4) Championing Sustainable Development - to ensure and enhance the company’s mission. About BASF PETRONAS Chemicals Sdn Bhd BASF PETRONAS Chemicals Sdn Bhd is a joint venture between BASF and Malaysia's state owned Petroleum Corporation Petroliam Nasional Berhad (PETRONAS), under its’ subsidiary PETRONAS Chemicals Group (PCG). The entrance to the BASF PETRONAS Chemicals Verbund Site at Kuantan, Malaysia 6 BASF PETRONAS Chemicals Sdn Bhd Verbund Site Report 2013 (Inclusive of Toray BASF PBT Resin) Business development High standards and continuous improvement Sustainable, efficient and safe – we combine economic success with environmental protection and social responsibility, thus contributing to a better future for coming generations. Our sustainability approach generates value for us and for our partners in business and society. Products and production plants Sales performance Production at the Verbund site includes: Combined sales of BASF PETRONAS Chemicals and Toray BASF in 2013 were €751 million (2012: €892 million). Sales of BASF PETRONAS Chemicals and Toray BASF (million €) Plants of BASF PETRONAS Chemicals and Toray BASF are integrated in a Verbund structure, allowing the waste products of one plant to be utilized as raw materials for other plants. This highly efficient structure safes costs, energy use, and emissions. Acrylics Complex - In operation since 2000 - Annual production capacity of 160,000 mt - Crude acrylic acid, glacial acrylic acid, butyl acrylate and 2ethylhexylacrylate Oxo/Syngas Complex - In operation since 2001 - Annual production capacity of 250,000 mt - Butanols and 2-ethylhexanol New integrated aroma chemicals complex The year saw Malaysian Prime Minister, Dato’ Sri Mohd Najib Tun Abdul Razak, officiating at the groundbreaking of the integrated aroma ingredients complex set up by BASF and PETRONAS Chemicals Group Berhad (PCG) at the BASF PETRONAS Chemicals Verbund Site in Gebeng. The integrated aroma ingredients complex will house a facility to produce citral and its precursors as well as associated downstream plants to manufacture citronellol and L-menthol. The MYR1.5 billion (approximately $500 million) complex will be developed in phases, with the first plants of the complex expected to come on-stream in 2016, creating some 120 new employment opportunities. Butanediol Complex - In operation since end of 2003 - Annual production capacity of 100,000 mt - Butanediol, tetrahydrofuran and gamma butyrolactone Toray-BASF PBT Resins Plant - In operation since 2006 - Annual production capacity of 60,000 mt - Polybutalyene terephthalate (PBT) and tetrahydrofuran (THF) BASF PETRONAS Chemicals Verbund site at a glance SALES EMPLOYEES €751million 668 Groundbreaking of the new integrated aroma ingredients complex at the BASF PETRONAS Chemicals site 7 BASF PETRONAS Chemicals Sdn Bhd Verbund Site Report 2013 (Inclusive of Toray BASF PBT Resin) Environment, health and safety Safety, security and health The Responsible Care Management System (RCMS) comprises the global rules, standards and procedures for environmental and health protection, safety and security for the various stations along our value chain. It allows BASF PETRONAS Chemicals to achieve compliance with regulatory and internal requirements, operate safe and environmentally sound facilities and manufacture safe products. Adherence to the processes in RCMS drives continuous improvement in performance and increases the efficiency and effectiveness of EHS-related activities. Integrating Responsible Care into operations BASF PETRONAS Chemicals helps to protect the local environment by integrating sustainability into our daily operations. We have set ourselves ambitious environmental and climate goals. Our responsibility also includes ensuring the safety of our employees, plants and products. Just as BASF PETRONAS Chemicals applies stringent standards to its own operations, we demand the same high standards of our contractors and suppliers too. The company believes there has to be responsibility and accountability throughout the entire supply chain. To this end, BASF PETRONAS Chemicals chooses carriers, service providers and suppliers not just on the basis of price, but also based on their performance in environmental and social responsibility. Product stewardship BASF PETRONAS Chemicals considers Product Stewardship as an integral business process. Product Stewardship is a concept whereby environmental, health, and safety protection focusing on the product itself, and everyone involved in the lifespan of the product is called upon to take up responsibility to reduce the environmental, health, and safety impacts. For manufacturers, this includes planning for, and if necessary, paying for the recycling or disposal of the product at the end of its useful life. One of the avenues through which the company advocates product stewardship is via the newly established BPC Academy, which aims to provide a platform for value-added sharing with customers. BPC Academy was launched in September 2013. Transportation and distribution safety In sustaining the company’s commitment to safe transportation distribution, we strive to achieve our target of zero accidents. Our excellent safety performance arises from strong coordination between BASF PETRONAS Chemicals and our selected logistic service providers which have shown steady commitment to reduce non-conformance and increase road safety awareness among their staff. Occupational safety Ensuring the safety of our employees, neighbors and the community where our site operates is vital. We will strive to provide a safe and healthy work place and we will ensure that safety and environmental issues are incorporated in the planning and operations of our company’s business. In 2013 the Lost time injury rate for employees was maintained at the very low rate of 0.7 per million working hours (2012: 1.4 per million working hours), while there were no lost time injuries among contractors in 2013 (2012: 4.8 per million working hours). Lost time injury rate BASF employees (per million working hours) Lost time injury rate contractors (per million working hours) Better product stewardship with customers A recent initiative to promote better product stewardship is the BPC Academy, to provide a platform for value-added sharing with customers. Saraswathy Arasu, Senior Manager, Product Stewardship, at a BPC Academy talk 8 BASF PETRONAS Chemicals Sdn Bhd Verbund Site Report 2013 (Inclusive of Toray BASF PBT Resin) Occupational health Emergency response and community awareness There is an on-site medical doctor, a nurse, an industrial hygienist team and shift paramedics on site. Some of the services offered by the occupational health team are: BASF PETRONAS Chemicals held the Gebeng Mutual Aid (GEMA) Emergency Drill at site on Thursday, September 19, 2013. The GEMA Emergency Drill was held to test the preparedness of the companies in responding to an emergency on their sites and aiding each other in times of distress. Observers from BOMBA Gebeng and Hospital Tuanku Ampuan Afzan (HTAA), neighboring Gebeng companies such as Eastman Chemical, Polyplastics Asia Pacific, WR Grace, PETRONAS Chemicals MTBE, KANEKA, and RP Chemicals, as well as observers from the Kuantan Port area, also joined the drill. 1. 2. 3. 4. 5. 6. 7. 8. Occupational Health Emergency Services Health Promotions (talks, tests, etc) Primary Health Care Industrial Hygiene Wellness Programme Return to Work assessment Health Training Process safety Improving process safety performance and competency in BASF PETRONAS Chemicals is one of the main objectives of the HSEQ & Utilities Department of the company. In 2013, we completed the ‘Clean Sheet’ Review for BDO plant which is a critical approach in developing a new hazard analysis for the existing process units. All operation personnel must undergo Process Safety e-learning training to enhance their awareness on process safety philosophy and risk assessment. We also started the review of our current Process Safety documentations in order to align with the BASF company-wide HSE requirement. Security The BASF PETRONAS Chemicals Verbund Site is categorized as a “Protected Area, Keypoint 1” under the Malaysian National Security Council of the Prime Minister’s office. It is guarded by our security staff who work in shifts, under guidance from the BASF regional security team. Coordinated emergency response – a priority BASF PETRONAS Chemicals works closely with neighboring sites to drill emergency response and ensure an integrated approach. Drill observers on-site during the 2013 GEMA drill 9 BASF PETRONAS Chemicals Sdn Bhd Verbund Site Report 2013 (Inclusive of Toray BASF PBT Resin) Environmental protection Resources from industry, science, politics and society are being called on to protect air quality, curb global greenhouse gas emissions, reduce other emissions to air and and water, make more efficient use of available resources. BASF PETRONAS Chemicals contributes to these aims, for example by constantly working to reduce greenhouse gas emissions from production. Our environmental management includes monitoring emissions from our plants. We measure both greenhouse gas emissions and emissions of air pollutants. Even as the size of our portfolio grows, we remain committed to our goal of minimizing absolute emissions. Steam consumption (total) (Metric tons) Electricity consumption (total) (MWh) Energy Energy efficiency is the most important means of combining climate protection, resource conservation and economic benefits. BASF PETRONAS Chemicals takes a three-pronged approach to responsible use of energy, focusing on efficient energy generation, reducing energy consumption in our production facilities, and developing products and technologies for increased efficiency in our use of available energy. Generally, energy efficiency is linked to the demands of the different production plants on the site. Heat from production processes is not discharged to the environment, but utilized at other plants according to our Verbund concept of integrated production. In 2013, there was a slight decrease in steam consumption, to 2,449,326 metric tons (2012: 2,624,539 metric tons). As steam is used in production, this decrease is primarily attributable to lower production rates in 2013 compared to the previous year. There was a slight decrease in electicity consumption to 310,558 MWh (2012: 337,644 MWh) and a slight decrease in fuel consumption from central power plants and boilers to 1,209,171 MWh (2012: 1,289,379 MWh), also due primarily to lower production rates in 2013 compared to the previous year. Fuel consumption (central power plants and boilers) (MWh) Energy saving through Verbund In our commitment to environmental preservation, we have invested substantially in environmental protection equipment and systems. Through integrated production, known as the Verbund, heat and waste products are re-used efficiently. Heat from the production process is utilized at other plants. 10 BASF PETRONAS Chemicals Sdn Bhd Verbund Site Report 2013 (Inclusive of Toray BASF PBT Resin) Emissions to air Our greenhouse gas emissions decreased to 681,196 metric tons (2012: 716,048 metric tons) in 2013, primarily due to a decrease in production in 2013 compared to 2012. In 2013 our emissions of air pollutants were 948 metric tons, a slight decrease from the previous year (2012: 995 metric tons). These two figures were recorded at higher levels than years prior to 2011, attributable to the installation of a Continuous Emissions Monitoring System (CEMS) in mid-2011 to analyze the emissions gases online. This enables the feed of live data, 24 hours a day, for faster response and mitigation. CEMS registers higher figures compared to manual sampling and with CEMS, as air pollutants measurements include fugitive emissions which were not accounted for in the measurements prior to 2011. 100% of the water supply at the site is from drinking water, as the main available water source, the same as previous years. In 2013, emissions of organic substances to water further decreased to 112.3 metric tons (2012: 142 metric tons). This was due mainly to increased efficiency in usage of water and the recycling of water for cooling. In 2013, nitrogen emissions to water decreased to one metric ton 2012: four metric tons). This was also due mainly to increased efficiency in the usage of water. Emissions of heavy metals to water increased slightly to 0.2 metric tons (2012: 0.1 metric tons), due to the use of water for washing down. This metric refers to water that Greenhouse gas emissions (total) (Metric tons of 1 CO2 equivalents ) Emissions to water (total): Organic substances (COD) (Metric tons) has come into contact with products, for example, when used for washing or as a solvent or a reaction medium. 1 CO2, N2O, HFC, PFC, SF6, NOx, NMVOC, SOx, dust, NH3/other inorganics Emissions to water (total): Nitrogen (Metric tons) 2 Air pollutants (total) (Metric tons) 2 CO, NOx, NMVOC, SOx, dust, NH3/other inorganics Emissions to water (total): Heavy metals (Metric tons) Water The sustainable use of water and the conservation of water resources are important concerns for BASF PETRONAS Chemicals. Our water conservation activities involve our production; we have decreased specific use in our production and we are evaluating further water protection and supply concepts at our site. Water use at Kuantan Verbund site in 2013 (million cubic meters) 11 BASF PETRONAS Chemicals Sdn Bhd Verbund Site Report 2013 (Inclusive of Toray BASF PBT Resin) Waste Balok River protection BASF PETRONAS Chemicals’ fundamental principle for handling waste is “avoid, reduce, and recycle”. We only dispose of waste after all recovery options have been exhausted, and we do so in a manner that reduces environmental impact. In this respect, the “Verbund” concept. i.e. the close integration of production processes, is one of BASF PETRONAS Chemicals’ greatest strengths; the by-products from one plant are often used in another as starting materials. Substitute fuels recycled from waste are also used in power plants and in some production plants. We dispose of hazardous waste according to the regulatory requirements of the Department of Environment, Malaysia. Non-hazardous waste, and waste categorized under “special waste management” is disposed at the Jerangau-Jabor Landfill. In 2013, we produced a total of 7,563.8 metric tons of waste (2012: 6,905 metric tons of waste). This increase can be attributed to more solvent waste being generated due to the plant shutdowns during the year, as well as a temporary increase in residues sent for disposal and an increase in domestic waste. In 2013, we recovered 70.54% of our waste (2012: 68%), 21.3% was disposed of in landfill (2012: 24%), while 5.93% was incinerated (2012: 6%). BASF PETRONAS Chemicals is located near the Balok River, thus making river protection a crucial part of daily operations. We constantly monitor the quality of the water in the Balok River near our plant as well as emissions of noise, gases and dust to ensure that they are within the acceptable levels. Responsible Care Week An annual initiative is the Responsible Care Week held at our Verbund Site. Along with many health, safety, and environment activities like Hazard Hunt, Emergency Response Training, Defensive Driving, Blood Donation and aerobics activities, a plant tour and exhibition are also organized during the week. This event gives the local community, other companies, customers and government agencies an opportunity to understand the importance of Responsible Care. Waste (total) – (Metric tons) Dr Joachim Queisser and VIPs at the Responsible Care Week 2013 Responsible Care® management system The Responsible Care Department (renamed HSEQ & Utilities in early 2014) provides advice and support on occupational safety, environment, industrial hygiene, fire services, quality assurance labs, transport distribution safety and product stewardship. BASF PETRONAS Chemicals have been a signatory to the Responsible Care® initiative since May 2000. 12 BASF PETRONAS Chemicals Sdn Bhd Verbund Site Report 2013 (Inclusive of Toray BASF PBT Resin) Employees Developing talent for growth BASF PETRONAS Chemicals aims to form the best team. This belief is seen in the tangible efforts and resources the company puts into the development of the employees as well as into company sponsored employee gatherings and outings such as divisional and cross-divisional teambuilding, to strengthen the team. We provide our employees with the opportunity to grow with the organization. This is reflected in our Strategic Pillar “Developing Talent for Growth”. As of the end of 2013, BASF PETRONAS Chemicals and Toray BASF Resins had a total of 667 employees (2012: 676). Recruitment and new graduate programs We aim to recruit, develop and retain the best employees, and allow them to fully realize their strengths and potential. We do this, for example, with performance-based remuneration, targeted training opportunities as well as measures to balance work and family life. Career development The company invests substantially in training for staff. This includes technical skills, environment, health, and safety, soft skills, and competency trainings. These are conducted inhouse when there is a competent trainer within the company, through customized trainings or at public courses. The company believes that training is not limited to a classroom experience and launched the Mentor-Mentee Program in 2013, with an initial 20 mentor-mentee pairs. Another vehicle to enable training is the Competency Based Learning & Development Catalog, which is a central database for a collection of selected training programs based on the company’s core and elective competencies. These programs are designed with the plan of long term development of our staff and the modules and course contents are customized to meet the learning needs relevant to our business. Employee dialog and Management briefing sessions are held quarterly at both the Kuantan site and the Shah Alam HQ while twice-yearly Senior Management Communications sessions are organized for management level sharing, alignment and engagement sessions. Highlights of 2013’s employee engagement sessions included a townhall and dialog session with Dr. Martin Brudermueller, Vice Chairman of the Board of Executive Directors of BASF SE, in March 2013, and with Datuk Wan Zulkiflee, Chairman of the Board of Directors for BASF PETRONAS Chemicals, in November 2013. Employees new and old at a team event in 2013 Number of employees (As of December 31) Bowling session with management and union members is part of the annual engagement initiatives 13 BASF PETRONAS Chemicals Sdn Bhd Verbund Site Report 2013 (Inclusive of Toray BASF PBT Resin) Work-life balance Employee assistance during monsoon floods Our flexi-hours system provides employees another avenue to balance work, family commitment and leisure. Under this system, employees are given some freedom in managing their working hours, while being responsible for completing the necessary 42 hours a week within the core hours of 9:00am to 4:00pm daily. Other than ensuring that the company remunerates employees in accordance or occasionally better than the industry standards, non-monetary benefits accorded to employees of BASF PETRONAS Chemicals include medical and dental benefits, insurance, Haj Leave, education grants, and periodic medical check-ups. Annually, our staff members organize sports and recreational activities for the whole company. Some popular events organized for employees are aerobics, badminton, bowling, futsal and swimming, as well as recreational activities such as the Amazing Walk and Search and combined Family Day & Annual Dinner. A series of bad floods in early December 2013 during the monsoon season on the East Coast of Malaysia saw more than 100 BASF PETRONAS Chemicals colleagues affected as their homes, and even the routes going to and from work, went underwater. The company quickly set into motion emergency response plans including search and rescue, evacuation, shelter, food and assistance for staff affected. Monetary assistance was also provided for colleagues who had lost their possessions in the floods whereas colleagues from the headquarters at Shah Alam organized collections and sent assistance to the colleagues via four-wheel drive vehicles, as soon as the roads cleared. Employee Enrichment Recognising that modern urban women are faced with a multitude of challenges, dangers and risks in their daily lives, and believing that being knowledgeable is being equipped, a “City Survival Training for Ladies” session was held for the first time in 2013. Other initiatives include cross-divisional team building activities and life training including useful skills such as CPR, First Aid and putting out fires. The response team from the company’s Shah Alam office prior to travelling to Kuantan Diversity + Inclusion Employees are offered equal opportunities at BASF PETRONAS Chemicals. This also includes age. In 2013 the largest proportion (51.6%) of employees at BASF PETRONAS Chemicals was in the 26-39 year old age group (2012: same). Employee age structure (Total, 667, as of December 31, 2013) The BASF PETRONAS Chemicals family during the 2013 Family Day & Annual Dinner 14 BASF PETRONAS Chemicals Sdn Bhd Verbund Site Report 2013 (Inclusive of Toray BASF PBT Resin) Society Our economic success depends on trust and social acceptance from our neighbors. BASF PETRONAS Chemicals aims to be a responsible corporate citizen, and to play an active role in society. Community engagement Community engagement is an important, integral part of the company’s annual calendar with activities and engagements running all year long. We collaborate with other neighboring companies in the Gebeng Industrial Area in the annual Balok beach and river clean-up programs, an educational program for village students, and exhibitions on the environment for the local community. This collaboration is a reflection of the Verbund approach in our community work, where we combine the know-how and contacts of external organizations with our own resources to maximize our outreach. Community activities and initiatives in 2013 included the annual Balok River Adoption Programme (BRAP) and an annual program with Malaysian Nature Society (MNS) of Pahang State. Halal certification We work to ensure that our products match the needs of society. Ten chemicals produced at the BASF PETRONAS Chemicals integrated site in Kuantan were certified Halal by the Department of Islamic Development of Malaysia (JAKIM). The Halal certification is reviewed regularly with new chemicals added to it as necessary. The Halal certification was reviewed and renewed in 2013. The Halal certified chemicals are used in a variety of applications in daily life, including cosmetics, perfumes, pharmaceutical ingredients, gloves, shoes, disposable diapers and hygiene products, sports attire, artificial leather, adhesives, packaging and coatings. Halal certification received for 10 of the company's products Collaboration with neighboring companies By collaborating with neighboring companies in community activities, as well as areas like safety and emergency response, we encourage a joint approach which supports the business. Raft-racing during the Balok River Adoption Programme (BRAP) river activity 15 BASF PETRONAS Chemicals Sdn Bhd Verbund Site Report 2013 (Inclusive of Toray BASF PBT Resin) Selected prizes and awards CICM Responsible Care Awards 2012/2013 An annual audit and awards event for the chemical companies in Malaysia, the Chemical Industries Council of Malaysia (CICM) Responsible Care Awards 2012/2013 was an event which saw BASF PETRONAS Chemicals awarded two silvers in the Corporate Awards for the Six Codes of RC Management Practices category, namely: Distribution Code – Silver Employee Health & Safety Code – Silver Employer of Choice Award BASF PETRONAS Chemicals was announced as one of the recipients of the Employer of Choice Award (Silver Award) at the Malaysian HR Awards Gala Dinner. This is a testimony to BASF PETRONAS Chemicals’ recognized good practices and initiatives in the area of Human Resource Management as one of the key drivers in the company’s mission to greater success. For more information, please visit our website or "Like" us at our Facebook page. You can find also this and other BASF publications online at www.asiapacific.basf.com. 16
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