Centrica Case Study

1
Centrica Case Study

• HSE Risk Management and Governance Arrangements
• Mike Garstang.
• Group Director of HSE.

2
The Business

• Energy supply
• Upstream gas and electricity production
• Renewable energy
• Downstream supply and service
• Predominantly UK with
• N. American up/downstream supply and service
• European downstream supply
• Norwegian supply/UK processing
• EP in N and W Africa, Trinidad
• Turnover, 2006 16.5bn Op profit, 2006
  1,447m

3
Risk profile

• Offshore production (MAH)
• Onshore processing (MAH)
• Contractors
• New build including offshore
• Domestic installations (3rd party exposure/8m)
• Vehicle Fleet
• International operations

4
Performance

• Aligned to international standards
• High profile attention to MAH
• Active surveillance of domestic installation
• Low LTIRF continual improvement
• High levels of near miss reporting
• Benchmarked
• Working Together

5
Management Arrangements

• Policy strategy - aspiration
• Accountability capability competence
• Process
• - Evaluation/assessment
• - Planning mandatory improvement plans
• - Performance reporting
• - Tiered review and challenge
• - Shared knowledge
• - Internal audit
• - Engagement directors/managers/workforce
• culture/values/behaviours

6
Internal Governance

• Leadership/challenge review
• Board CEO/CEC MDs
• CRC non exec chair MDs specialists
• GRMC/BRMCs (Business Assurance)
• Audit Committee.
• CEO QPRs
• Personal performance review ( REMCO)

7
Independent Verification

• Audit
• Risk improvement programmes
• Investigations - root cause analysis
• MAH assessment
• Business Assurance
• Corporate Responsibility

8
Contingency arrangements

• Readiness
• Director/senior manager briefings
• Investigation process
• Report writing
• Communications internal and external
• Support
• Internal escalation
• External network