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EHS reporting 2015

Grebbestads Ansjovis

All our management staff are expected to be strongly committed to EHS work, and to ensure that all employees receive relevant training and are involved in EHS activities at their workplace. In 2015, the Group and its companies provided around 13,500 hours of organised EHS training for some 4,540 employees.

Each company must draw up targets and activity plans, establish systems and control procedures, carry out measures and report on their EHS activities. The EHS work is monitored at company and business area level through the submission of quarterly status reports to the management teams and the Group Executive Board and the Orkla Board of Directors.

The principle of preventive action is fundamental to the Group’s EHS efforts. Risk assessments are therefore a key element, and every Orkla unit must carry out such assessments. The risk assessment determines the action that must be taken, and helps businesses to optimise their improvement work by prioritising the most important measures and establishing effective action plans. In 2015, Orkla began to monitor factories by conducting internal initial EHS reviews based on the new standard. The purpose of the reviews is to facilitate learning through systematic observation and feedback. The Group’s aim is for initial EHS reviews to be carried out at all factories by the first quarter of 2017.

Safety

In 2015, there were few occupational accidents in Orkla’s operations that caused very serious injury. Most of the injuries were due to cuts, hits or slips or falls from a low height. A serious burn injury was caused by a small explosion from dust ignition. To ensure control and to reduce consequences, the Group in 2015 prepared training materials on explosion risk and prevention. This material has been reviewed with EHS staff and technical experts in all the business areas.

Recording and following up on all types of injuries and undesirable incidents are an important part of the Group’s improvement work, as it fosters a greater understanding and awareness of risk throughout the organisation. In 2015, a number of near misses were reported which show that the Group must continue to maintain full focus on injury prevention in every part of the organisation.
Orkla achieved a Lost Work Day Rate (LWDR) (number of injuries leading to absence per million hours worked) of 5.6 in 2015, and a Total Recordable Rate (TRR) (number of injuries leading to absence, need for medical treatment or restricted work per million hours) of 10.1. There were fewer injuries than in 2014.

Although the number of occupational accidents at Orkla is not satisfactory, many companies saw a positive trend in 2015. Several companies recorded no injuries leading to absence during the year. The results show that improvements can be achieved by applying key EHS principles such as good order and cleanliness, engagement, skills upgrading and the willingness to learn from others. We will therefore continue to focus on and emphasise the application of these important principles throughout the organisation, while also introducing new measures to ensure that further progress is made towards our goal of zero injuries. This work will continue in 2016.

Occupational health

A health-promoting workplace is important for every single employee. Healthy employees have a positive impact on their working environment and are crucial to achieving good financial results. Orkla wants all its companies to establish principles for fostering health-promoting workplaces, tailoring the principles to conditions in the respective countries. Systematic improvement efforts are carried out with particular emphasis on preventive action and rehabilitation.

The sickness absence rate for Orkla globally was 4.4% in 2015, the same level as in 2014. There have been minor changes in sickness absence in Orkla in the past few years, with the variations remaining constant throughout the year. The absence rate is highest in the winter months and lowest in the third quarter. On the other hand, sickness absence rates vary significantly from one country and company to another.

In 2015, the sickness absence rate in the companies in Norway was 5.8%. Compared with 2014, when the rate was 6.1% (revised in relation to Orkla’s current structure), there was an improvement. The rules for recording sickness absence and following up persons on sick leave vary from country to country, but it is nonetheless obvious that sickness absence, especially in some of the Norwegian companies, is too high. There is continuous focus on improvement measures. In Norway the principles of an inclusive workplace are applied, entailing active follow-up of persons on sick leave in close collaboration with the company health service. In practice, this means that individual companies must put in place good processes in which management and employees participate actively in establishing measures tailored to their workplace.

New EHS training courses were held for management and employee representatives in 2015. The training programme is now based on a combination of e-learning and gatherings. Training in the follow-up of sickness absence was included in this programme, but in 2016 special training will also be provided for management staff, with focus on sickness absence follow-up and health-promoting measures. There has been particular emphasis on following up employees with frequent short absences and employees with functional impairments to ensure their return to work. This is also in line with the Norwegian Labour and Welfare Administration’s initiative requiring employees to return to work after eight weeks’ sickness absence unless there are weighty medical reasons that prevent the person on sick leave from working. These measures will continue in 2016.

SICKNESS ABSENCE GRI 2013 2014 2015
% sickness absence in Norway G4-LAG 6.0 6.1 5.8
% sickness absence in Nordics (excl. Norway) and Baltics G4-LAG 3.7 4.0 4.6
% sickness absence, rest of world G4-LAG 2.9 3.1 2.7
INJURIES        
LWDR in Norway G4-LAG 5.6 5.3 3.4
LWDR in Nordics (excl. Norway) and Baltics G4-LAG 8.6 8.7 7.4
LWDR rest of world G4-LAG 4.2 7.0 4.9
TRR in Norway G4-LAG 13.1 11.8 6.0
TRR in Nordics (excl. Norway) and Baltics G4-LAG 20.8 20.2 19.4
TRR rest of world G4-LAG 5.5 7.8 6.9