Risk Assessment, Management and Incident Investigation

Implementation of Procedural HazOp

The 3-year Procedural HazOp Project was formulated to prevent potential process hazards or accidents from occurring during process equipment repair/ maintenance, period with relatively unstable process conditions, such as when operations commence/ cease or early stages after resuming operations, when switching between processes, or during non-routine operations, such as modifying process conditions and tank cleaning. A total of 82 operations were completed this year with an implementation rate of 100%, and focused on key rotating equipment switching platform.

Ensure the Health tf Employees and Stakeholders and Reduce the Risk of Exposure to Hazardous Substances

To reduce the health risks of employees and related stakeholders, the Company comprehensively reduces the use of Level 1 chemicals that are chronic health hazards (including carcinogens, genetic mutations, and reproductive toxicity) by banning their use or developing alternatives with suppliers (hereinafter referred to as "CMR Substances").

Occupational Accidents and Accident Prevention Management

In 2023, our death rate due to occupational accidents was 0, frequency of disabling injuries was 0.19, severity of disabling injuries was 17, and comprehensive injury index was 0.06, the number of occupational accidents was 1 more than in 2022.
There were 2 occupational accidents involving employees and 1 occupational accidents involving contractors, resulting in 3 disabling injuries; 73% of days lost due to disability was from traffic accidents while commuting.

• 2 occupational accidents involving employees: There was 1 fall (1 person) and 1 traffic accident in the plant (1 person).

• 1 occupational accidents involving contractors: There was 1 fall (1 person, not hospitalized).

Occupational Accident Prevention

We analyzed the cause of incidents and formulated prevention plans based on investigation results for parallel implementation. We assess and control risks through JSA and PHA to discover potential hazards and implement controls in advance, thereby ensuring employee safety and health.

Findings from analyzing the 2 accidents involving employees are as follows: Failure to consider the hazards to personnel when installing pipelines and ignoring defensive driving requirements on roads within the plant are the main causes of employee accidents.

Occupational accidents in 2023 were one-time events, so our primary goal in 2024 is to "Reexamine standard operating procedures – Standards for wearing PPE when handling abnormalities."

Prevention of occupational accidents involving contractors: Our primary goal is for "labor safety personnel and supervisors of contractors to conduct self-inspections, and related management personnel (supervisor, construction safety personnel, safety supervisors, and construction supervisors) to maintain safety standards before, during, and after operations."

Traffic Accident Prevention

The majority of employee work hours lost was due to "traffic accidents during commute." Employees were involved in a total of 11 traffic accidents in 2023, and the number of days lost was 485 days. After analysis, we were responsible in the majority of traffic accidents (6 cases). Hence, we periodically announce traffic accident hotspots in the previous year, have the parties involved share their experience, raise the awareness of supervisors of departments with a higher number of traffic accidents during quarterly Occupational Safety and Health Committee meetings, edit promotional clips each quarter, provide defensive driving training, and use video to raise employees' safety awareness. We encourage employees to actively report roads with poor conditions in plant areas, in order to improve traffic safety in plant areas. For employees who regularly clock in five minutes before work, their department head will talk with them and advise them to leave home early, in order to avoid rushing to work. We reward departments with excellent traffic accident prevention performance, in hopes that the collective efforts of all employees will continue to lower the rate of traffic accidents.

Raise Awareness of Traffic Accident Hotspots