MOL Group HSE Management System

HSE Management System (HSE_1 Group Guideline)
translates the Health, Safety and Enviromental principles into an outline
of practical activities that shall be executed to manage HSE at all levels
in MOL Group in order to achieve world-class performance.

HSE MS
Controlled document is on the CIP and SPS / HSE sites
Date of Effect: 15. 02. 2008

HEALTH, SAFETY & ENVIRONMENT
MANAGEMENT SYSTEM
(HSE MS)
HSE EBC & Panels
2008

FOREWORD
15th
of February 2008
Dear Manager,
Effective Health, Safety and Environmental (HSE) management is more crucial than ever. Legislation is
becoming more stringent and public expectations are high. Our commitment is strengthened by an increasing
understanding that improvement in HSE performance enhances overall business efficiency and effectiveness.
We are very pleased that user friendly group guideline is now available on HSE Management System (HSE MS).
• Within the framework of new MOL Group Regulatory System, the Group guideline HSE_1_GG Health,
Safety and Environment Management System (attached) is being issued these days. The guideline consists
of 15 elements, with clearly defined business rules that must be followed by each operation. This document
provides direction and conceptual guidance to managers for embedding HSE into their business by
describing a consistent HSE Management System of MOL Group.
• Implementation of HSE MS at site and company level, covering contractors as well, should give ownership
of HSE rules by all concerned. This must lead to activities where every person is accountable for imple-
menting the agreed rules within his/her area of responsibility.
• The attached Group guideline (HSE MS) will be followed by series of HSE Global and Local Operative
Regulations, which will be the key tools for implementation of 15 elements mentioned above.
We feel a sense of urgency because the full implementation of HSE MS according to Operational regulation
Road Map will involve considerable joint effort and take time.
Your role as a leader is to ensure that Group HSE Guideline is implemented and followed. You can do this
through taking a personal ownership of Element 1 – Leadership and Accountability.
Hereby we would like to ask you to create conditions for putting HSE Management System in place in your given
area, with clear segregation of duties of multi-step implementation process.
• HSE is ready to provide professional support in implementation of HSE Group Guideline at your business.
If you have any questions related to this issue, ask/send an e-mail to Group HSE Development Manager
Peter Varga (PetVarga@mol.hu) or contact your HSE business manager and/or HSE local coordinator.
We are confident that our common effort in implementation of Group HSE Guideline will bring positive results
contributing to achieving our business strategic goals.
Thank you for your commitment.
HSE MS
2
Zsolt Hernádi
Chairman and CEO
György Mosonyi
GCEO

3
INTRODUCTION
MOL Group owns and operates a range of oil and petrochemicals businesses in different EU countries
and Non-EU regions and cultures that may affect the health and safety of people, the environment. As stated
in the MOL Group HSE Policy we have an overriding commitment to business excellence and sustainable
development and we pursue this through the effective management of HSE.
This Group Guideline is the basis for HSE management systems at all levels in MOL Group. Although HSE
matters are interrelated and co-dependent, it is recognised that the skills and processes required to manage
issues may vary according to the context.
We are going to introduce the Health, Safety and Environment Management System to focus on the respon-
sibilities and accountabilities of line management with regards to turning our HSE Standard Principle/Policy
and thematic policies (Road Safety Policy) into practice.
The HSE Policy is the highest Group
level commitment in our Health,
Safety and Environment Manage-
ment and applies to all our business
units and controlled subsidiaries.
„Health, safety and environmental
protection (HSE) is an integral part
of the management philosophy
of MOL Group. Considering HSE
matters as any core business issues
enables us to implement our corpo-
rate values and to achieve business
excellence following the same
approach wherever we do business.”
Mol Group HSE Policy,
December 2004

HSE MS ELEMENTS AT GLANCE
ELEMENT 1 Page 11
HSE Leadership & Accountability
Managers, employees and contractors understand their accountabilities
and demonstrate leadership and commitment to Group HSE Policy
through effective HSE management.
ELEMENT 2 Page 12
HSE Risk and Change Management
HSE hazards are identified and associated risks assessed and managed.
Planned and unplanned changes are identified and managed.
ELEMENT 3 Page 13
HSE Training and Competences
Employees, contractors and visitors are aware of relevant HSE requirements,
hazards, risks and controls, are competent to conduct their activities
and behave in a responsible manner.
ELEMENT 4 Page 14
HSE Planning and Targets
HSE planning is an integral part of business planning with strategic objective,
goals and yearly targets expected to drive continual improvement in performance.
ELEMENT 5 Page 15
Contractor and Supplier HSE
Contractors, suppliers and others doing work on the MOL Group’s behalf,
impact our operation and reputation. The contracting of services, the purchase,
hire or lease of assets and activities with partners, are carried out
so as to minimise any adverse HSE consequences.
ELEMENT 6 Page 16
Design and Construction
Management of HSE risks and opportunities is an integral part
of all projects through design, approval, procurement, construction and commissioning.
ELEMENT 7 Page 17
Safe Operation
All plant and asset is operated, maintained, inspected and tested
using procedures and applying standards that manage HSE risks.
ELEMENT 8 Page 18
Health Prevention and Promotion
Health risks shall be managed through prevention and protection,
employee information and education initiatives.
HSE MS
4

5
ELEMENT 9 Page 19
Environmental Stewardship
MOL Group requirements to prevent pollution and waste, improve environmental performance.
Striving to minimise impact of our activities to the environment.
ELEMENT 10 Page 20
HSE Legal Requirements and Documentation
Relevant legal, regulatory and other HSE requirements are identified,
accessible, understood and complied with and an effective
HSE document management system is in place.
ELEMENT 11 Page 21
Product Stewardship
The lifecycle HSE impacts associated with MOL Group’s products and services,
processes are minimized, managed and communicated to customers /users.
ELEMENT 12 Page 22
HSE Communication and Consultation
Open, proactive and effective communication and consultation is maintained
with stakeholders regarding the HSE aspects of our business.
Stakeholders are encouraged to participate in and contribute
to sustainable development through HSE performance improvement initiatives.
ELEMENT 13 Page 23
HSE Incident Reporting and Investigation
HSE incidents are reported, investigated and analysed.
Effective corrective and preventive actions are taken
and learnings shared to prevent future incidents.
ELEMENT 14 Page 24
Emergency Preparedness and Response
Effective emergency preparedness and response are in place to ensure that,
in the event of an incident all necessary action are taken for the protection of the public,
the environment and MOL’s workforce and assets.
ELEMENT 15 Page 25
HSE Operation Assessment and Improvement
HSE performance and systems are monitored, audited and reviewed to identify trends,
measure progress, assess conformance and drive continual improvement.
GLOSSARY Page 27

OPEN SYSTEM - SOLVED STATE OF HSE CUBE
HSE MS
6
Operation Elements
(corners of cube)
System Driverss
(centre of cube)
Global and/or Local Operative Regulations
Open System (pictures)

7
THE NEW REGULATORY SYSTEM
MOL Group Code of Ethics (CoE)
It sums up and systematises all business-related ethical standards
and scopes of responsibilities which MOL Group established for itself.
It defines the MOL Group corporate governance philosophy, the Group operational
model, the basic operational rules and describes MOL Group Standard Principles.
Governance Handbook – consists of
OOR
CoE
Group Guidelines
Code
of
Ethics
Code of
Ethics
OOR
Standard Principles
LDADTR
BoardofDirectors,
ExecutiveBoard
Group-levelLeaders
TIER1-Framework
TIER2-GGs
TIER3-Operativeregulations
LocalLeaders
DTR LDA
Group Guidelines
Applicable
everywhere
Group Guidelines
CROSS GROUP COMMUNICATION & IMPROVEMENT
GLOSSARY Detailed rules KPI
KCI
ENGLISH Councils Controlling
handbook
Userfriendly
form
Subsidiary
involvement
Required
regulation list
Understandable
for everybody
Measurable
anytime
Global
Operative regulations
Local
Operative regulations
OOR
Standard
Principles
Glossary
LDA – MOL Group List of Decision-Making Authorities
Defines the most important decision-making points of the operation and
managerial authorities related to decisions. Thus, it disposes the key control
points required by efficient development and operation of MOL Group processes.
DTR – MOL Group Description of Tasks and Responsibilities
Stipulates the key tasks and responsibilities of organisational units as well as
organisational co-ordination mechanisms that support decision-making
(committees, decision preparation teams), and their charter.
Global Operative regulations
Rules valid for more than one MOL-Group member defined by Group-level
leaders describing operational framework specific either to product, service,
technology, geographic region or information technology system.
Local Operative regulations
Rules connected to a MOL Group member defined by its Local leaders
that describe local processes (with organisational responsibilities)
and methodologies based on the framework set in Group Guidelines
and Global Operative regulations by Group-level leaders.
Group Guidelines
Rules defined by a Group-level leader in consensus with the responsible
Council that describe the standardised operational requirements of the
area managed by the Group-level leader and describe rules to be mandatory
applied everywhere in the Group, where the activity is performed.
OOR – MOL Group Operational and Organisational Rules
Describe the position, the set of principles that directs business decisions and
activities to carry out core values and behaviours held critical to MOL Group.
Standard Principles
METHODOLOGY OF NEW REGULATORY SYSTEM

1. GUIDELINE OBJECTIVES AND CONTEXT
1.1 Objectives
To transform the principles expressed in the HSE Standard Principle/Policy1
into a practical activities in
order to manage HSE.
To provide direction and conceptual guidance to managers on the embedding of HSE principles in their
businesses by describing a consistent MOL Group HSE Management System (HSE MS) with clear segre-
gation of duties.
This Guideline describes the essential minimum elements of an HSE function, management system. It also
includes a requirement for system to be set up in such a way that it can be externally certified, in line with
nternational systems standard.2
1.2 Date of effect: 02.15.2008.
HSE Panels and frontline HSE BUs are available for consultation on the implementation of this Guideline.
The Group HSE Unit is responsible for training and communication of this Guideline as needed, prior to its date
of effect.
1.3 Main requirements
Individual HSE management tools and systems have evolved over many years but now a structured approach
is required to provide managers with the assurance that they are discharging their HSE responsibilities effec-
tively. A common framework is also needed, after decentralization of the HSE organisation, to ensure mutual
review of HSE functions and business issues.
MOL Group HSE MS has been built upon broad experience in management systems in a number of MOL
Group companies and upon best practices. Although it will require extra efforts to put it into place, the rewards
in terms of better management, reduced risks and improved business efficiency will make it well worthwhile.
Group Guidelines consist of mandatory rules (M) for the proper conduct of business. However, to develop
operations and implement good practices in MOL Group, recommended rules (R)3
have also been included,
the better to guide the development of processes.
1.4 Compliance
Rules set out in this Guideline are mandatory requirements for all units operationally controlled by MOL Group.
However, these business rules may not be automatically applicable to newly- acquired companies and entry
businesses within their first 3 years.
To enact HSE rules is a multi-step process requiring the assignment of specific implementation responsibilities
and involving:
1. Prior gap analysis (self-assessment with relevant the Divisional HSE Partner)
2. An HSE Guideline compliance development program comprising training and/or coaching (submitted by
a CEO or accountable manager to then be endorsed by GHSE)
3. Compliance level improvement or enhancement, including business integrity within 3 years. Progress must
be reported to GHSE and relevant superior business manager(s) at least annually.
1.5 Recommendations
This Guideline may be used as an HSE MS template by any operating BU or contracting, joint entity. Further-
more, this Guideline is intended to enhance rather than merely to suggest replacement of existing sound,
workable and effective BU/entity systems and practices.
1. MOL Group HSE Standard Principle/Policy demonstrates the Board of Directors’ commitment to HSE, the core values and expectations required to achieve
world-class (top quartile) HSE performance.
2. Application for ISO 14001 and/or OHSAS 18001certificate(s) should be based on relevant business manager decision based on achievable business
benefits or/and statutory requirements
3. Sentences with non-mandatory requirements are italicized.
HSE MS
8

9
2. KEY PERFORMANCE INDICATORS
MOL Group uses a mix of both leading and lagging indicators to measure overall HSE effectiveness
and performance4. Businesses can apply more specific leading or lagging indicator which will be used to measure
their HSE performances on an international industry basis and among their peer groups.
2.1 Leading indicators are designed to drive and measure critical HSE activities. When measured and moni-
tored actively, the data from leading indicators enable effective intervention to address or reverse a negative
trend before it results in injury, damage or loss. They comprise:
1. Reported Near-misses, Unsafe Act and Conditions (numbers)
2. Incident Inquiry Rate (IIR)
3. HSE Behaviour Observations, Audits, Inspections versus planed (%)
4. Fire cases (number)
5. Spills > 1 m3
(number)
6. Loss of Primary Containment (LOPC number)
7. Freshwater intake/consumption (m3)
8. Recycled, Reused and Recovered Materials (tons)
9. Road Accidents Rate (RAR)
10. HSE Audit findings closure rate (%)
11. HSE Training completion (%)
12. Emergency drills (number)
2.2 Lagging Indicators measure outcomes of a company’s HSE activities. They provide an overall estimate of
the progress required to achieve our vision of excellence, but they not measure the effective implementation
of HSE programs, proactive action plans or on-the-spot self-assessment. They comprise:
13. Fatalities (number)
14. Lost Time Injury Frequency (LTIF)
15. Total Recordable Incident Rate (TRIR)
16. Total Reportable Occupational Illness Frequency (TROIF)
17. Hazardous Waste (tons)
18. Controlled discharges to Water (tons)
19. Direct GHG emissions (CO2 eq. t)
20. HSE non-compliances (number)
21. HSE Fines/Penalties (m €)
22. Environmental Provision release (m €)
23. HSE Expenditure (m €)
3. KEY CONTROLS
Control indicators specify the most important functional controls of over the HSE from the integrated
operation point of view such as reports, reviews and audits.
Ad-hoc Incident Report
Weekly HSE Scorecard
Monthly HSE Projects Review
Quarterly HSE Management Letter
Midyear HSE Performance Review
Annual HSE Assurance Letter (Self-Assessment) and Audit Program
4. KPIs with non-mandatory requirements are italicized.

4. REQUIRED OPERATIVE REGULATIONS AND LOCAL DOCUMENTATION
4.1 Global Operative regulations
1. HSE_1_G1.1.1 see: Group Operation Management
2. HSE_1_G2.1.1 HSE Comprehensive Risk Assessment (COMPASS)
3. HSE_1_G3.1.1 HSE Competencies &Training
4. HSE_1_G4.1.1 HSE Target Setting & Planning
5. HSE_1_G5.1.1 Contractor and Supplier HSE Management
6. HSE_1_G6.1.1 Process Safety Management (PSM)
7. HSE_1_G7.1.1 HSE Standards
8. HSE_1_G7.2.1 Fire Prevention & Protection
9. HSE_1_G8.1.1 Occupational Health Management (OHM)
10. HSE_1_G8.2.1 Workplace Health Promotion (WHP)
11. HSE_1_G9.1.1 Waste Management
12. HSE_1_G9.2.1 Greenhouse Gas (GHG) Management
13. HSE_1_G9.3.1 Risk Based Environmental Remediation (RBER)
14. HSE_1_G10.1.1 HSE Document and Record Control
15. HSE_1_G11.1.1 Product Stewardship (PS)
16. HSE_1_G12.1.1 HSE Communications
17. HSE_1_G13.1.1 Incident Reporting & Investigation System (IRIS)
18. HSE_1_G14.1.1 Emergency Response System (ERS)
19. HSE_1_G15.1.1 HSE Audit
20. HSE_1_G15.2.1 HSE Self-Assessment
21. HSE_1_G15.3.1 HSE Performance Monitoring and Reporting
4.2 Local Operative regulations
1. HSE Management System and/or HSE Policy
2. Fire Prevention & Protection and/or Emergency Response Plan
3. (HSE) Training & Development
4. (HSE) Document & Record Management
4.3 Local documentation (electronic or paper) requirements
1st element
• Local language version of HSE Policy
• HSE MS or Register of HSE Critical activities
• Plan of HSE Site visits
• HSE meeting(s) record(s)
2nd element
• Risk Register/HSE Critical Activities
3rd element
• HSE Training & Development Plan
4th element
• Annual HSE Objectives & Targets
• Annual HSE Action Plan
5th element
• Contractors’ HSE Pre-Qualification Questionnaire
6th element
• Records of Process Hazard Analysis (for critical process)
7th element
• Local language version of Global HSE Standards
8th element
• List of trained First Aid provider(s)
• Medical Emergency contact list
9th element
• Environmental Impact Assessment (for major projects)
• Environmental Remediation Plan (regarding liabilities)
• (Annual) Waste Management Plan
• GHG Emissions Report (verified within EU)
10th element
• List of applied HSE legislation
• List of HSE permits and licences
11th element
• List of Local MOL Product’s Risk Assessment
(regarding manufacture)
• Local language version of MOL Product (M)SDS
• Local (M)SDS Emergency Contact List
12th element
• Local Annual HSE and/or SD Report
13th element
• Records of Incident Investigation Reports
14th element
• Emergency/Fire Response Plan
15th element
• HSE Performance evaluation records
• Local HSE Audit Plan
HSE MS
10

11
Type Title of
Business rules for HEALTH, SAFETY of regul. G/L
and ENVIRONMENT MANAGEMENT (Global Operative
or Local) reg.
10 MOL Group maintains a Group HSE Standard Principles/Policy ❑ L HSE Policy
appropriate to HSE impacts of Group activities, products,
services and commitments.
Where a MOL entity has operational control it must have a written
HSE Policy covering Group HSE Standard Principles/Policy,
as a minimum.
20 Site management must define and document the scope ❑ L HSE MS
of the HSE MS and/or HSE Critical activities in their operations.
30 Managers must demonstrate visible leadership and proactive ❑
commitment towards to HSE excellence through:
• setting personal example
• communicating HSE requirements to employees
• discussing and reviewing progress against HSE targets
• demonstrating personal participation in HSE initiatives
40 Managers must conduct frequent site inspections, reviews ❑
and behavioural observation walkabouts at least on a quarterly basis.
50 Leaders must integrate HSE issues into management meetings ❑
as the 1st
agenda point or set up equivalent managerial
HSE Forum /HSE (Sub)Committees
60 HSE is line management responsibility/accountability; ❑
it can not be delegated to a staff member of group
or an external service provider
70 Employees and contractors must be aware of proper ❑
HSE behaviour expected of them and have a clear understanding
of the consequences of inappropriate conduct.
Systems are in place that recognise, reinforce and reward
HSE innovation, initiatives, desired behaviour and results.
80 Employees and contractors must understand that they have ❑
the right and responsibility to stop work or refuse to work in
circumstances that may cause HSE harm, and to immediately
bring these situations to the attention of management.
Recommended Business rules are italicized.
ENVIRONMENTAL
STEWARDSHIP
HSE
LEADERSHIP
AND
ACCOUNTABILITY
HSE OPERATION
ASSESSMENT
AND
IMPROVEMENT
HSE INCIDENT
REPORTING
AND
INVESTIGATION
HSE
TRAINING
AND
COMPETENCES
ELEMENT 1.
HSE Leadership & Accountability

HSE MS
12
Type Title of
or Local) reg.
10 Personnel at all organizational level must be appropriately involved ❑ G
in the identification of HSE hazards and effects on them,
and the subsequent implementation of risk control
and recovery measures.
20 HSE hazard and qualitative risk assessment ❑ G HSE
must be regularly conducted though: Comprehensive
• identifying hazards Risk
• assessing consequences and probabilities Assessment
• controlling causes and implementing prevention measures (COMPASS)
• recovering and mitigation steps
at existing facilities or operations and must be initiated if activities
changing. HSE Critical Risks must be identified, evaluated
and methods to control them put into practice.
30 A comprehensive quantitative HSE Risk assessment of health, ❑ G HSE
safety and environmental hazards must be conducted for hazardous Comprehensive
processes at existing facilities or operations. Risk
Quantitative assessment must be updated at least every 5 years Assessment
or more frequently if the nature of a risk requires it. HSE risks should (COMPASS)
always be reduced to an acceptable level (ALARP)
40 All significant changes (to organisation, personnel, processes, ❑
equipment design, documentation etc.) must be evaluated
and managed to ensure that HSE risks arising from such changes
remain at an acceptable level.
50 MOL Group member companies/Business Divisions should establish ❑ L Management
and implement written procedure to manage critical HSE changes of Change
to ensure that all necessary actions have been identified, authorized
and completed and relevant documentation updated.
60 Management of Change (MOC) system must assure essential ❑ G See:
communication and training so that all effected MOL and/or Group
contractor employees and stakeholders can understand Operation
and successfully manage new risk. Management
70 HSE Comprehensive Risk Assessment must be performed by ❑ G HSE
trained and qualified employees or contractor and include expertise Comprehensive
from unit assessed. Risk Assessment
80 HSE risks must be evaluated by the appropriate level of management, ❑ G HSE
consistent with the significance of the risk. Risk management Comprehensive
decisions must be documented and the implementation Risk Assessment
of resulting actions tracked in a risk register. (COMPASS)
SAFE
OPERATION
HSE RISK
AND
CHANGE
PRODUCT
STEWARDSHIP
HSE DESIGN
AND
CONSTRUCTION
CONTRACTOR
AND
SUPPLIER HSE
ELEMENT 2.
HSE Risk and Change Management

13
Type Title of
or Local) reg.
10 Recruitment criteria for employees must be reviewed ❑
by HSE competence requirements.
20 Employee and contractor HSE competences should be identified, ❑ G HSE
documented and periodically) reviewed. Competences
(at minimum once a year) and Training
30 Employee and contractor training needs must be identified, prioritized, ❑ G HSE
planed, documented and monitored. Staff must be developed Competences
following structured competency assessment and training system. and Training
40 Initial/orientation, ongoing and periodic refresher HSE training to ❑ L HSE Training
meet job and legal requirements must be provided and documented. and Development
50 HSE Culture Change training should be undertaken ❑
by all managers within the next 3 years.
60 Training of all mangers, leaders and employees should be ❑
undertaken to demonstrate fully Group HSE MS requirements
and its implementation.
ENVIRONMENTAL
STEWARDSHIP
HSE
LEADERSHIP
AND
ACCOUNTABILITY
HSE OPERATION
ASSESSMENT
AND
IMPROVEMENT
HSE INCIDENT
REPORTING
AND
INVESTIGATION
HSE
TRAINING
AND
COMPETENCES
ELEMENT 3.
HSE Training and Competences

HSE MS
14
Type Title of
or Local) reg.
10 HSE Planning is an integrated part of Business Planning, ❑ G HSE Target
and its schedule must always be harmonised with Setting
the MOL Group planning calendar. and Planning
20 MOL Group shall set Group-wide HSE goals, targets and leading ❑ G HSE Target
and lagging indicators that are measurable, documented, Setting
communicated, monitored and reviewed. and Planning
30 MOL Group members and Business Divisions must annually set: ❑ G HSE Target
• measurable HSE objectives and targets, leading and lagging Setting
indicators that are documented, communicated, and Planning
monitored and reviewed.
• They must be consistent with the MOL Group-wide HSE targets,
take into account the HSE risks, legal requirements, and consider
technological options, business requirements
and the interests of stakeholders.
40 An Annual HSE Action Plan (tasks, projects and programs) must ❑ G HSE Target
be put in place and include designated responsibilities, resources Setting
and time frames to achieve HSE targets and objectives. To compile and Planning
an annual HSE action plan the following inputs must be considered:
• HSE policy, strategic goals and objectives,
• HSE (liability) assessment reports, requirement
of relevant HSE legislations,
• HSE risk map, HSE trainings,
• HSE improvement plan,
• Findings of previous HSE audits (internal and external),
• Stakeholders’ expectations as well as the availability
of the company or BU resources.
Annual HSE action plans must be updated and communicated
as changes, modifications or new developments occur.
HEALTH
PREVENTION
AND
PROMOTION
HSE LEGAL
REQUIREMENTS
AND
DOCUMENTATION
EMERGENCY
PREPAREDNESS
AND RESPONSE
HSE
PLANNING
AND TARGETS
HSE
COMMUNICATION
AND
CONSULTATION
ELEMENT 4.
HSE Planning and Targets

15
Type Title of
or Local) reg.
10 Contractors must be HSE pre-qualified and evaluated for work ❑ G Contractor
using criteria that include assessment of capabilities & Supplier
and competencies to perform work in a safe HSE Management
and environmentally sound manner.
20 Hazards and risks associated with contractor and procurement ❑
activities in our businesses must be identified,
managed and communicated.
30 Clear deliverables and performance indicators should be agreed ❑ G Contractor
and systems put in place to ensure HSE and technical compliance. & Supplier
HSE Management
40 Interfaces between contract owner and suppliers of services ❑
and/or products must be identified and effectively managed.
50 Purchased products and services should be verified meeting ❑ G Contractor
national/international health, safety and environmental standards. & Supplier
HSE Management
60 Conduct HSE workshop for contractor to communicate ❑
MOL HSE requirements / guidelines prior to start of every project.
SAFE
OPERATION
HSE RISK
AND
CHANGE
PRODUCT
STEWARDSHIP
HSE DESIGN
AND
CONSTRUCTION
CONTRACTOR
AND
SUPPLIER HSE
ELEMENT 5.
Contractor and Supplier HSE

HSE MS
16
Type Title of
or Local) reg.
10 Baseline safety-related technical, environmental and health data ❑ G Process Safety
must be collected before the development phase of any Management
new operation, facility or major modification. (PSM)
20 Design and construction of new or modified assets must be ❑ G Process Safety
formally approved by a PS Engineer or designated technical authority. Management
(PSM)
30 Deviation from approved design, standards and execution shall ❑ G Process Safety
only be permitted after review and approval Management
by PS Engineer or designated technical authority. (PSM)
40 Integrated HSE and quality control/assurance must be put in place ❑ G Process Safety
to ensure that facilities meet design and procurement specifications Management
and that construction is in accordance with approved plan. (PSM)
50 The design and selection of new plant, equipment and processes ❑ G Process Safety
controlled by MOL Group must take known and projected asset Management
life cycles, HSE requirements, provision for decommissioning, (PSM)
disposal and closure, into account.
60 Lessons learned from previous projects, current operations ❑
and other relevant sources should be taken into account in project
development phases to improve HSE performance.
Best Available Technique (BAT) should be preferred.
70 HSE Critical equipments, systems (pressure vessels, piping, ❑ G Process Safety
pressure relief and vent systems, controls, alarms, sensors etc.), Management
procedures and hazardous substances must be identified (PSM)
and documented prior to commissioning.
80 Prior to new/changed facility start-up final Process Hazards Analysis ❑ G Process Safety
(PHA) must be conducted and all recommendations must be closely Management
studied and approved by asset owner /site manager. (PSM)
90 Documented pre-start-up team-review must be carried out ❑ G Process Safety
as the final checkpoint for new and modified equipment to confirm that Management
all appropriate HSE requirements have been addressed (PSM)
and the facility is safe to operate.
SAFE
OPERATION
HSE RISK
AND
CHANGE
PRODUCT
STEWARDSHIP
HSE DESIGN
AND
CONSTRUCTION
CONTRACTOR
AND
SUPPLIER HSE
ELEMENT 6.
Design and Construction

17
Type Title of
or Local) reg.
10 HSE operational procedures, local work instructions must be ❑ G HSE
established, implemented and maintained to ensure that operations Standards
and maintenance activities are managed.
20 HSE critical processes and activities must be identified and executed ❑
according to documented regulations to ensure minimum HSE risk
and impact.
30 An appropriate fire prevention system must be established ❑ G Fire
to prevent the evolvement of circumstances that may cause fires Prevention
in operational areas. & protection
40 Where an operation is considered to be the cause of a major ❑ G HSE
industrial accident (as defined in the “SEVESO” act) Comprehensive
the HSE Comprehensive Risk Assessment (COMPASS) Risk
regulation should be implemented. Assessment
50 To prevent road accidents, Road Safety Policy requirements ❑ G HSE
must be met. Standards
60 To control hazards of MOL Group’s hazardous chemicals, ❑ G Process Safety
manufacturing and hazardous operational processes, Management
Process Safety Management System (PSM) must be used. (PSM)
PSM related start-up, operating, maintenance and shutdown process
regulations must be in place with identified designated authorities
(e.g. permit to work, hand-over, equipment and process isolation, etc.)
70 Proposals to modify operating or design limits must be subject ❑ G See: Group
to Management of Change (MOC) processes. Operation
Management
80 Systems must be established, documented and maintained to ensure ❑ G Process Safety
the ongoing integrity of plant and equipment. These include procedures Management
for maintenance, inspection, testing, calibration and certification (PSM)
of equipment at frequencies that meet legal
and manufacturer requirements.
90 The reliability and availability of protective systems and equipments ❑
(critical alarm, shutdown, emergency-response, PPE) must be
maintained through appropriate testing and maintenance programs,
including management of temporary disarming or deactivation.
SAFE
OPERATION
HSE RISK
AND
CHANGE
PRODUCT
STEWARDSHIP
HSE DESIGN
AND
CONSTRUCTION
CONTRACTOR
AND
SUPPLIER HSE
ELEMENT 7.
Safe Operation

HSE MS
18
Type Title of
or Local) reg.
10 Chemical, physical, biological, mental and ergonomic workplace ❑ G HSE
hazards must be identified assessed and regularly revised based on Comprehensive
the degree of occupational exposure. Risk
Assessment
20 Health risks must be managed through preventative and protection ❑ G Occupational
measures, employee information and education initiatives. Health
Management
(OHM)
30 Task/job related health screening of all employees, new hires ❑ G Occupational
and employees leaving MOL Group should be performed regularly. Health
Management
(OHM)
40 Appropriate medical monitoring of all employees should be ❑ G (OHM)
performed regularly.
50 Emergency medical service/support and resources must be ❑ G Occupational
available within 4 hours at every worksite. Health
Management
(OHM)
60 First aid must be provided at each workplace by skilled person(s) ❑ G Occupational
with appropriate sources, depending on the number of employees Health
and the level of worksite risk. Management
(OHM)
70 Health promotion program should be provided and designed ❑ G Workplace
to enhance employees’ well-being and productivity. Health
Promotion
(WHP)
HEALTH
PREVENTION
AND
PROMOTION
HSE LEGAL
REQUIREMENTS
AND
DOCUMENTATION
EMERGENCY
PREPAREDNESS
AND RESPONSE
HSE
PLANNING
AND TARGETS
HSE
COMMUNICATION
AND
CONSULTATION
ELEMENT 8.
Health Prevention and Promotion

19
Type Title of
or Local) reg.
10 For major projects (new activities, facility developments or significant ❑ G HSE
modifications) which require planning permission a Preliminary Comprehensive
Environmental Impact Study (PEIS) and/or Environmental Impact Risk
Assessment (EIA) must be performed. Assessment
(COMPASS)
20 Where installations are covered by GHG emission trading scheme ❑ G Greenhouse
(ETS), direct GHG emissions must be monitored, reported Gas
and verified. Cost-effective actions must be taken wherever GHG Management
are emitted with the aim of decreasing such emissions. (GHG)
30 Generation of hazardous and non-hazardous wastes must be minimised. ❑ G Waste
Generated hazardous and non-hazardous wastes must first of all Management
be treated by re-use, recycling, energy-recovery and/or final disposal.
Hazardous and non-hazardous waste streams must be traced from
generation up to final treatment which should take place as close to
the point of generation as practicable.
40 Soil and groundwater contamination must be assessed and, where ❑ G Risk
required, control or remediation must be taken in hand. Remediation Based
is a risk management issue, whereby technical and administrative Environmental
actions are adjusted to current and near-term future land use. Remediation
MOL Group favours the in-situ natural or intensified-natural solutions (RBER)
whereby energy consumption and/or the amount
of remediation-generated waste is zero or minimal.
ENVIRONMENTAL
STEWARDSHIP
HSE
LEADERSHIP
AND
ACCOUNTABILITY
HSE OPERATION
ASSESSMENT
AND
IMPROVEMENT
HSE INCIDENT
REPORTING
AND
INVESTIGATION
HSE
TRAINING
AND
COMPETENCES
ELEMENT 9.
Environmental Stewardship

HSE MS
20
Type Title of
or Local) reg.
10 Systems must be put in place to identify and access all applicable ❑ G HSE
HSE laws, regulations, approvals, licences, permits, and other Document
requirements (e.g. codes, policies, standards, protocols and Record
and commitments) and documented in a compliance register that Control
is reviewed and kept up-to-date and communicated to the workforce.
20 A compliance plan must be prepared and followed up for all external ❑ L HSE
and internal HSE requirements and such plan must contain Document
the precise description of a given action or task, its implementation and Record
timetable, resources required and person(s) responsible. If minor Control
changes in law occur, the preparation of such action plans is optional.
30 A system must be put in place to make secure drawings, design data ❑ L HSE
and other documentation, including definition of responsibilities for Document
maintaining such information. Current versions of relevant documents and Record
must be made available and understandable to users, as required. Control
Documents from external sources necessary for HSE MS planning
and operation must be recorded and kept up-to-date.
40 Systems must be put in place to ensure that accurate, legible ❑ L HSE
and identifiable HSE records are set up and maintained. Medical Document
records must be kept confidential by appropriate health experts and Record
Control
50 HSE documents and records must be identified, securely stored, ❑ L HSE
readily retrievable, with specified retention times based on legal Document
requirements and/or knowledge preservation needs, and responsible and Record
custodians assigned. Disposal of such documents must be in Control
accordance with MOL operative regulations.
60 Every HSE related data/datum, figure and record should be ❑ G HSE
stored in HSEINFO. Document
and Record
Control
HEALTH
PREVENTION
AND
PROMOTION
HSE LEGAL
REQUIREMENTS
AND
DOCUMENTATION
EMERGENCY
PREPAREDNESS
AND RESPONSE
HSE
PLANNING
AND TARGETS
HSE
COMMUNICATION
AND
CONSULTATION
ELEMENT 10.
HSE Legal Requirements and Documentation

21
Type Title of
or Local) reg.
10 Product Stewardship must be applied at all product life cycle stages ❑ G Product
relevant to the MOL activities Stewardship
20 New product (uses and markets) assessments must be conducted ❑
prior to marketing or distribution, to identify health, safety
and environmental hazards and risks associated with their
normal use and potential misuse.
30 Periodic reassessments must be conducted for all manufactured ❑
and re-branded products and isolated intermediate streams.
This includes collection and review of adverse effects reported
or experienced by those handling such products. Records of
assessment, background information and conclusions must be kept
up-to-date throughout a product’s life and retained as appropriate.
40 Dangerous substances and products must be managed throughout ❑ G Product
their life-cycles i.e. preparation, authorization, restrictions on their Stewardship
manufacture, market distribution, use and disposal.
50 Material Safety Data Sheets (MSDS), labels, exposure scenarios, ❑ G Product
chemical safety assessments and other information must be developed Stewardship
and made available to handlers and users in accordance with legal /MSDS
and customer requirements, and when such information changes.
60 A system must be put in place to respond to emergency requests ❑
for MOL product health, safety and environmental information.
70 An effective recall system must be put in place for MOL products ❑ G Product
where defect could give rise to health, safety and environmental hazards. Stewardship
80 Dangerous goods should be handled during transportation according ❑
to the requirements of the related (ADR, RID, IMO and IATA)
regulations. The handling system should manage and focus on
sender and receiver roles of MOL Group companies and BUs.
SAFE
OPERATION
HSE RISK
AND
CHANGE
PRODUCT
STEWARDSHIP
HSE DESIGN
AND
CONSTRUCTION
CONTRACTOR
AND
SUPPLIER HSE
ELEMENT 11.
Product Stewardship

HSE MS
22
Type Title of
or Local) reg.
10 MOL Group HSE Policy, the HSE MS, HSE (business) rules, ❑ G HSE
and relevant information on HSE matters, risks, plans Communications
and performance must be communicated throughout the organisation
to employees, and to external stakeholders, on a regular basis.
20 Proactive and open consultation and communication with ❑ G HSE
governments, authorities and other organisations must be maintained Communications
to contribute to the development of public policy, relevant legislation
and educational initiatives in relation to Sustainable Development.
30 HSE critical information must be shared across the organisation ❑ G HSE
and its operations as well as, where appropriate, Communications
with external stakeholders.
40 Concerns, complaints and relevant external communications related ❑
to HSE aspects of the organisation must be recorded in a register,
acknowledged, investigated as incidents and outcomes reported
back to relevant stakeholders.
50 The MOL Group Sustainability Report to all stakeholders ❑ G HSE
addressing HSE performance, initiatives, risks and stakeholder Performance
concerns, must be produced on an annual basis. Monitoring
& Reporting
60 Elaboration in electronic form of Local SD reports in the context ❑
of environmental, social and economic factors, may be considered.
HEALTH
PREVENTION
AND
PROMOTION
HSE LEGAL
REQUIREMENTS
AND
DOCUMENTATION
EMERGENCY
PREPAREDNESS
AND RESPONSE
HSE
PLANNING
AND TARGETS
HSE
COMMUNICATION
AND
CONSULTATION
ELEMENT 12.
HSE Communication and Consultation

23
Type Title of
or Local) reg.
10 HSE incidents must be reported, investigated, analysed ❑ G Incident
and mitigated in a timely manner. Reporting &
Investigation
System
20 HSE near-misses should be reported, investigated, ❑
analysed and communicated.
30 The root causes of incidents must be identified so that actions ❑ G Incident
may be taken to prevent their recurrence. Reporting &
Investigation
System
40 Corrective and preventive actions must be identified and prioritised ❑ G Incident
and aim at eliminating or reducing the risk and recurrence of incidents Reporting &
and near-misses (all recommendations should be in the form of Investigation
measurable actions with clearly-defined parties responsible System
and time scales for implementation) (IRIS)
50 High risk incidents must be investigated by a multi-functional/level ❑ G Incident
team with participation and leadership from outside Reporting &
the Business Unit concerned. Investigation
System
60 Major incident investigation reports must be submitted to MOL Group ❑ G Incident
EEB/BMT within 3 months of the occurrence of such incidents. Reporting &
Investigation
System
70 Information gathered from incidents must be analysed to identify ❑
lessons learned and to monitor trends, and then reported
to management to improve HSE MS practices.
80 Lessons learned must be shared across the organisation with ❑
stakeholders, and others as appropriate,
o prevent such incidents recurring.
90 Unsafe acts and unsafe conditions should be recorded in ❑
a hazards register and mitigations measures adopted
to eliminate such actions and conditions.
ENVIRONMENTAL
STEWARDSHIP
HSE
LEADERSHIP
AND
ACCOUNTABILITY
HSE OPERATION
ASSESSMENT
AND
IMPROVEMENT
HSE INCIDENT
REPORTING
AND
INVESTIGATION
HSE
TRAINING
AND
COMPETENCES
ELEMENT 13.
HSE Incident Reporting and Investigation

HSE MS
24
Type Title of
or Local) reg.
10 Systems must be put in place to identify potential emergency ❑ G Emergency
situations and their likely impact, Response
including those on nearby operations. System
(ERS)
20 Emergency Response Plans that define responses (including ❑ L Emergency
the mitigation of impacts on HSE) to predictable emergency Response
scenarios must be documented, accessible, communicated Plans
and reviewed. These plans should define roles and responsibilities
of employees and contractors.
30 Emergency response plans must be aligned with the MOL Business ❑
Continuity Management system (BCM), MOL Group business
continuity requirements, and internal/external response organisations,
taking into account their capabilities to respond.
40 Resources, including equipment and warning devices, ❑ L Emergency
required for emergency response and ongoing recovery activities, Response
must be identified, maintained and tested at least annually. Plans
50 Employees, contractors, visitors and external stakeholders ❑
as appropriate, must be trained in and understand emergency
response plans, their roles and responsibilities,
and the use of emergency response resources.
60 Emergency exercises and drills must be scheduled and conducted ❑ G Emergency
regularly (at least annually) including liaison with and the involvement Response
of internal/external response organisations and other stakeholders, System
as appropriate. (ERS)
70 Follow-ups from emergency exercises and drills must be documented, ❑ G Emergency
incorporated into revisions of plans and resources, and shared Response
with stakeholders and others, as appropriate. System
(ERS)
HEALTH
PREVENTION
AND
PROMOTION
HSE LEGAL
REQUIREMENTS
AND
DOCUMENTATION
EMERGENCY
PREPAREDNESS
AND RESPONSE
HSE
PLANNING
AND TARGETS
HSE
COMMUNICATION
AND
CONSULTATION
ELEMENT 14.
Emergency Preparedness and Response

25
Type Title of
or Local) reg.
10 MOL Group Business Unit and company HSE performance must be ❑ G HSE
monitored and reported in a way that can be verified externally. Performance
Performance must be continuously evaluated to support increase Monitoring
in business value on the basis of approved HSE goals, & Reporting
targets and (leading and lagging) performance indicators
20 Annual management reviews must be conducted to determine ❑
the continuing suitability, adequacy and effectiveness of the HSE MS.
Information reviewed should include audit results, incident reports,
performance reports and the opinions of relevant stakeholders.
Findings from lessons learned processes (e.g. behavioural
observation, audits, incident investigations, near-misses,
HAZOPS, etc.) must be prioritised, tracked and followed up on.
30 Compliance with relevant (national) legal HSE requirements must be ❑ G HSE Audit
assessed regularly - internally annually (unless a Group HSE audit is HSE Liability
conducted within the same reporting year) and by an independent Assessment
external auditor every 5 years. For these liability assessments annual
plans must be compiled and assessments conducted accordingly.
40 HSE Due Diligence must be an integral part of any proposal for ❑ G HSE Audit
company acquisition, divestiture or merger. Such Due Diligence HSE Due
must identify risks and potential costs related to all HSE issues Diligence
at the company concerned.
50 Risk-based Group audits must be conducted every 3 years ❑ G HSE Audit
at HSE-critical Subsidiaries and of MOL Group processes based Checklist
on a pre-defined set of questions / areas harmonised with the annual
Internal Audit programme. Audits may be more frequent depending
on an organisation’s HSE risk profile and performance history.
60 Performance improvement plans must be prepared, executed ❑ G HSE Target
and continuously monitored to address areas for improvement (AFI) Setting
including non-conformities. The workforce must be actively involved & Planning
in periodic self-assessments, audit findings as well as corrective
and improvement actions as part of the Group Improvement Framework.
70 Based on mid-year HSE performance evaluations, Management ❑ G HSE Self-
Letters might be issued identifying areas for improvement for Assessment
the relevant year with necessary corrective actions/recommendations. Management
Such corrective actions must be implemented Letter
and recommendations followed-up on.
80 Subsidiaries must conduct annual self-assessments to establish the ❑ G HSE Self-
extent of their conformance with this Group Guideline and then send Assessment
their annual HSE Assurance Letter to the GCEO, GHSE and relevant Management
Managers Appointed-for-Control (MAC) and Divisional Leader(s).
ENVIRONMENTAL
STEWARDSHIP
HSE
LEADERSHIP
AND
ACCOUNTABILITY
HSE OPERATION
ASSESSMENT
AND
IMPROVEMENT
HSE INCIDENT
REPORTING
AND
INVESTIGATION
HSE
TRAINING
AND
COMPETENCES
ELEMENT 15.
HSE Operation Assessment and Improvement

HSE MS
26
5. INTEGRATION CRITERIA
This Guideline is relevant to all Business and Functional Units and MOL Group legal entities at Group, Divisional
and site levels where MOL has operational control.
They include:
• Majority owned5
and/or operated sites and activities (from exploration and planning through to closure
and rehabilitation)
• Development (R&D) projects and divestments
• MOL Group management control (including construction activities prior to hand-over).
The table below explains compliance requirements for all types of operation.
Asset Owner Asset Operator Compliance level
1 MOL MOL Compulsory
2 MOL 3rd
Party Not Compulsory6
- MOL does not have
operational control
3 3rd
Party MOL Compulsory - MOL has operational control
4 JV where MOL owns < 50% Joint Venture(JV) Not Compulsory - MOL does not have
of the shares JV operational control
5 JV where MOL owns > 50% JV Not Compulsory - MOL does not have
of the shares JV operational control
6 JV where MOL owns < 50% MOL Compulsory - MOL has operational control
of the shares
7 JV where MOL owns > 50% MOL Compulsory - MOL has operational control
of the shares
8 JV where MOL owns < 50% Partner Not Compulsory - MOL does not have
of the shares operational control
9 JV where MOL owns > 50% Partner Not Compulsory - MOL does not have
10 JV where MOL owns < 50% 3rd Party Not Compulsory - MOL does not have
11 JV where MOL owns > 50% 3rd Party Not Compulsory - MOL does not have
5 “Majority owned” means that MOL or a Subsidiary owns more than 50 percent interest in the entity.
6 Where MOL Group does not have operational responsibility but has an equity stake, or where significant MOL Group assets are involved,
this Guideline is made available to the management of operator, so that comparable HSE MS may be applied.

27
GLOSSARY
Term Definition
ALARP Short for As Low As Reasonably Practicable. Reducing risks to ALARP means reducing
risks to a level at which the cost, effort, time and trouble of further risk reduction would be
grossly disproportionate to the risk reduction achieved.
Assessment A systematic and documented review of the effectiveness of implementation of HSE
processes, programs and process regulations, based on general process criteria and the
professional judgment of experienced assessors.
Annual HSE This process is a key component of HSE Governance. It is conducted annually and requires
Assurance Letter sites /subsidiaries to complete an assessment of HSE performance using the Self
Assessment tool. The process is aimed at measuring and recording HSE MS process
maturity at organisational level. Any deviations identified as a result of completing self
assessments are then tracked to closure via corrective actions.
Audit A systematic, independent and documented process for obtaining audit evidence and
evaluating it objectively to determine the extent to which the management systems audit
criteria set by the organization are fulfilled.
Change A deviation, either permanent, temporary, or incremental, from a currently established base-
line, or anything that is or may be substituted for something else. This includes changes to
personnel, processes, systems, plant and equipment, technology, documents, risks,
legislation, commitments, obligations, other requirements, and external environmental,
physical and social factors affecting or affected by the organization.
Management of The systematic process for dealing with changes to manage HSE risk.
change (MOC)
Closure The process and activities related to the cessation of the operating life of an operation
following a decision to close the operation which ends following abandonment, decom-
missioning, rehabilitation and, if required, remediation.
Compliance An up-to-date documented record of the regulatory and other requirements applicable
register to an operation.
Contractor An individual, company or other legal entity that carries out work on MOL premises or
performs services pursuant to a contract for service. This includes sub-contractors as well.
Controlled The sum of water effluents discharged to subsurface waters, surface waters and sewers.
discharges
to water
Controlled Documents pertinent to effective HSE MS planning, operations and risk control and exist
documents to ensure continual improvement.
These documents can be internal or external, and must be current, uniquely identifiable,
and up-dated (with changes and revision status recorded) and can only be changed through
a formal process to ensure that only current versions are
Corrective action Action designed to correct an undesirable HSE problem or defect in the management
system. Examples may include breakdown of controls, non-conformance with MOL or
regulatory requirements, accident, injury, illness, fire, release to the environment or other
HSE-related loss, undesirable trends in HSE metrics, etc.
Critical activity An activity or activities where conduct outside expected performance has the potential to
result in a high risk incident.
Critical HSE Information determined to be essential to the organization's workforce to ensure expected
Information HSE performance is achieved and maintained. This information may include employee risks
and associated controls, HSE metrics, progress on key objectives, lessons from incident
investigations, customer concerns, responses to concerns communicated to leadership, etc.
Culture The whole complex of distinctive spiritual, material, intellectual and emotional features that
characterise a society or social group.
Critical HSE Information determined to be essential to the organization's workforce to ensure expected
Information HSE performance is achieved and maintained. This information may include employee risks
and associated controls, HSE metrics, progress on key objectives, lessons from incident
investigations, customer concerns, responses to concerns communicated to leadership, etc.
Culture The whole complex of distinctive spiritual, material, intellectual and emotional features that
characterise a society or social group.

Term Definition
Dangerous Transported goods categorized by ADR that have the potential to pose a significant risk to
goods the health and safety of people or the environment.
Design data Any information used during, or as a record of, the development of a facility that defines
the resource, process, product, equipment, operation, layout or control of the facility. This
may include, but not be limited to: basis of design, process flow diagrams, piping and
instrumentation drawings, models, plans, single line diagrams, isometrics, construction
drawings, operations and control philosophies, layout drawings, design calculations, site
data, design standards, specifications (including for feed/feedstock and product), design
datasheets, process media, materials, cause and effect diagrams, fire and safety studies,
manufacturers’ data, manufacturers’ operating and maintenance manuals, emergency shut-
down sequences and critical equipment registers.
Direct CO2 Emissions to air of carbon dioxide (CO2) from combustion of fossil fuels and from
production process, from sources owned or controlled by MOL Group. Does not include
emissions from transport or indirect emissions.
Documents Structured units of recorded information, published or unpublished, in physical or electronic
form, managed as discreet units in the HSE management system. Most records are
documents; but not all documents are records. A document becomes a record when it is
part of a business transaction, is kept as evidence of that transaction and is managed within
a record keeping system.
Due diligence A systematic, comprehensive and verifiable approach to the management of HSE issues,
which is based on an assessment of their likely risks, potential legal liabilities and costs
arising from the issues, and is reasonably designed and operated to control and reduce
those risks and prevent those liabilities from being incurred.
Emergency An abnormal occurrence that can pose a threat to the safety or health of employees,
customers, or local communities, or which can cause damage to assets or the environment.
Emergency drill An exercise intended to train people in duties and escape procedures to be followed in
case of emergency.
Environment Surroundings in which MOL Group operates, including air, water, land, soil, natural
resources, flora, fauna, habitats, ecosystems, biodiversity, humans (including human arte-
facts, culturally significant sites and social aspects) and their interaction. The environment
in this context extends from within an operation to the global system.
Environmental Total amount spent on provision related projects. Provision (as specified by IAS 37.):
provision release a present liability with uncertain timing and amount, which will, arising from a past event,
occur with high probability (greater than 50%), and will require a financial commitment.
Fall Incident caused by falling off, over or onto something.
Fatality Death resulting from work related injury or occupational illness, including the fatalities due
to accidents caused to third parties. Company employees, contractor employees and 3rd
parties to be planned/reported separately. At Group level 3rd party fatalities will not be
reported externally.
Fatal Accident The number of company/contractor fatalities per 100 million hours worked.
Rate (FAR)
Fatal Incident The number of fatal incidents per 100 million hours worked. Incidents involving a third party
Rate (FIR) fatality are included, provided they directly result of company/contractor operations.
Fire An unplanned combustion. It includes electrical arcs that also involve a subsequent fire or
evidence of combustion (flame, smoke or charring).
First Aid Case Case that are not sufficiently serious to be reported as medical treatment or more serious
(FAC) cases but nevertheless require minor first aid treatment, e.g. dressing on a minor cut,
removal of a splinter from a finger. First aid cases are recordable incidents.
Fresh water The total volume of fresh water withdrawn from the environment (surface water / ground
consumption water / drinking water) used for technological purposes.
GHG The atmospheric gases responsible for causing global warming and climate change.
Greenhouse The major GHGs are carbon dioxide (CO2), methane (CH4) and nitrous oxide (N20).
Gases Less prevalent – but very powerful – greenhouse gases are hydrofluorocarbons (HFCs),
perfluorocarbons (PFCs) and sulphur hexafluoride (SF6). Reported as CO2 equivalent.
HSE MS
28

29
Term Definition
Harm A significant and/or long-lasting adverse impact on people, the environment or the
community.
Hazardous Substances that have the potential to pose a significant risk to the health and safety of
materials people or the environment.
Hazardous Undesired, dangerous release of materials or energy (e.g., toxic or corrosive discharges,
process fires, and explosions) with potential for causing serious injury to people and/or significant
property or environmental damage
Hazardous waste Waste featuring one or several hazardous characteristics listed in the local applicable
(HW) legislation. In MOL Group HW is categorized according to source of waste production:
a) arising from normal operation b) emergency events c) resulting from construction/
demolition d) from past operations.
Hazards Source or situation with a potential for harm in terms of injury or illness, damage to
property, damage to the environment, or a combination of these.
Hierarchy A series of controls, which should be applied in the following order (a number of these
of control options may be considered and applied individually, or in combination):
Eliminate – the complete elimination of the hazard
Substitute – replacing the material or process with a less hazardous one
Redesign – redesigning the equipment or work processes
Separate – isolating the hazard by collective guarding or enclosing it
Administrative – providing controls such as training, procedures, etc.
PPE – Isolating the employees from the hazard with providing and obligation of usage of
Personal Protective Equipment
HSE Behaviours Those behaviours that are expected to result from effective implementation of the organi-
zation’s HSE MS. This includes the behaviours of employees, all levels of leadership,
contractors and other non-employees with access to MOL operations.
HSE Competence A specific combination of attributes such as HSE knowledge, skills, abilities and attitudes
that is specified to perform a role within an occupation, staff position or job function
providing adequate and safe assurance of successful performance.
HSE Documents HSE related documents, either electronic or paper (e.g. procedures, work instructions,
checklists, training tools, etc.) developed and implemented to provide HSE direction,
guidance and requirements and ensure organizations operate in a safe manner and in
compliance.
HSE due diligence An HSE assessment and/or audit of a potential investment, including identification of HSE
risks and related costs.
HSE expenditures Costs (CAPEX and OPEX) of any and all materials, assets, services and projects, which are
arising from or related to ensuring compliance with HSE regulations, internal procedures or
standard requirements, or can mitigate HSE risks, or improve HSE performance.
HSE Impacts Any change that has adverse or beneficial effects on health, safety or the environment
resulting from the organization’s aspects. Some examples of impacts include toxic effects
from exposure to chemicals, asphyxiation from confined spaces, resource depletion from
energy usage, pollution from air emissions, and environmental release during product
distribution.
HSE Liability The process of revealing HSE non-compliances of MOL Group and assessment of expen-
Assessment diture need related to solving the revealed HSE non-compliances.
HSE A non-fulfilment of a requirement of a) HSE MS, policy, operational regulation and
non-compliance b) HSE related laws, legislation.
HSE Penalty Monetary fines levied for violating HSE related laws & regulations.
Impact Any change to the health and safety of people, the environment, the community or
property, whether adverse or beneficial, wholly or partially resulting from an organization’s
activities, products or services.
Incident An unplanned event or chain of events that has, or could have, resulted in injury or illness
or damage (loss) to assets, the environment or company reputation. Incidents do not
include operations, maintenance, quality or reliability incidents which had no HSE
consequence or potential.
Incident Inquiry Number of HSE incidents inquired by root cause analyses (TRIPOD approach) per number
Rate (IIR) of all HSE incidents.

HSE MS
30
Term Definition
In-situ On-site treatment of contaminated materials to reduce the source volume or concentration.
remediation It may include vacuum extraction for volatiles and semi-volatiles, air sparging or bioreme-
diation.
Job Hazard The job hazard analysis is a thorough, orderly, systematic approach for identifying, evalu-
Analysis (JHA) ating, and controlling the hazards of executed jobs, works, duties and operations.
Loss of Primary The uncontrolled or unplanned release of a product from a process or storage that serves
Containment as primary containment.
(LOPC) Report separately according to the following three categories
1. LOPC Incidents that release from 10 up to 100 kg
2. LOPC Incidents that release from 100 up to 1000 kg
3. LOPC Incidents that release greater than 1000 kg
Lost Time Injury Work related injury which results in a person being unfit for work at least one shift.
(LTI) Fatalities are included.
Lost Time Injury The number of LTIs per 1 million hours worked.
Frequency (LTIF)
Material Safety A document that contains information on the potential health effects of exposure to
Data Sheet chemicals, or other potentially dangerous substances, and on safe working procedures
(MSDS) users should adhere to when handling chemical products.
Medical Cases that are not severe enough to be reported as LTI or RWC but are more severe than
Treatment Case requiring simple FAC.
(MTC)
Near-miss A near-miss is an incident which potentially could have caused injury or occupational
illness and /or damage (loss) to people, assets, the environment or company reputation,
but which did not.
Non-conformance A non-conformance is any deviation from the organization’s management system. This
includes deviation from MOL policy or standards, established HSE procedures, rules,
regulations and voluntary commitments. A non-conformance is often an indication of weak-
ness or a flaw in the management system that requires corrective and/or preventive actions
to improve the effectiveness of the management system.
Non-LTI A work related injury that do not require the injured person to be absent from work includ-
ing FAC, MTC and RWC
Non The injury happening to an employee during or related to not-organized work by employer.
Work-related Any injury taking place when employee is transported from home to workplace and from
injury workplace to home is considered to be non-work related injury, except the injury happens
with a vehicle owned or leased by the employer.
Observation A systematic, independent and documented process for recognition of UA and UC during
execution of the regular jobs by employees.
Occupational A work related abnormal condition or disorder , other than that resulting from a work injury,
Illness caused by or mainly caused by exposures at work. Work injuries are caused by single event
in the working environment cases resulting from anything other than a single event are
considered occupational illnesses. Occupational Illnesses include acute and chronic illness
or diseases that may be caused by inhalation, absorption, ingestion or direct contact.
Occupational Any injury such as a cut, fracture, sprain, amputation, etc. which results from a work
Injury accident or from a single instantaneous exposure in the work environment. Conditions
resulting from animal bites such as inspect or snake bites, and from one-time exposure to
chemicals are considered to be injuries.
Personal All equipment (including clothing) which is intended to be worn or held by a person at work
Protective and which protects him against one or more risks to his health or safety (e.g. safety
Equipment (PPE) helmets, gloves, eye protection, high-visibility clothing, safety footwear)
Preventive Action An action designed to prevent or reduce the probability of occurrence of an undesirable HSE
incident such as the breakdown of controls, non-conformance to MOL or regulatory
requirements, accident, injury, illness, fire or other HSE related loss, etc.
Procedure A formal and documented combination of methods, steps and actions established by an
organization to achieve specific results, behaviour or activity.
Process Any activity or set of related activities (including storage, manufacturing, use, handling,
on-site transfer) and the associated equipment and technology.

31
Term Definition
Process Hazard PHA is application of organized, methodical approaches to identify, evaluate, and control
Analysis (PHA) the hazards associated with process facilities.
Product Product stewardship is a concept whereby health and environmental protection centres
stewardship around the product itself, and everyone involved in the life-cycle of the product is called
upon to take up responsibility to reduce its health and environmental impact.
PSM PSM is a management system addressing all elements of the process safety to method-
ologically identify, understand and reduce risks related to industrial processes. Its main
purpose is to prevent serious incidents like major fires, explosions or toxic releases that
might affect plant personnel, off-site populations, environment or result in significant
material losses.
Requirements Requirements resulting from laws, regulations, judicial orders, administrative orders,
consent decrees, municipal ordinances, etc. Identifying "legal" requirements means making
sure the organization knows which governing bodies (national, local) have authority as
related to their activities and the full extent of what requirements apply.
Restricted Any work related injury other than LTI which results in a person being unfit for full
Workday Case performance of the regular job on any day after the occupational injury. Work perform might
(RWC) be an assignment to the temporary job, part-time work at regular job or continuation
full-time in the regular job but not performing all the usual duties of the job. Where no
meaningful restricted work is being performed, the incident is recorded as an LTI.
Risk (HSE) Combination of the likelihood and consequence(s) of a specified hazard occurring
undesirable HSE event.
Risk Assessment A systematic approach used to determine the degree of risk or vulnerability associated
(HSE) with identified hazards.
Risk Assessment A practical tool that is used to qualitatively assess HSE and other business risks.
Matrix (RAM) The result is referred to as a Risk rating.
Road accident Any event with involvement of a (registered) road motor vehicle (owned or leased by
employer and employees’ owned vehicle) during execution of working duties resulting in
death, injury or damage to assets, if a vehicle was not properly parked. It is not relevant who
was injured, whose assets were damaged where an event happened or who was at fault.
If no death/injury occurs, material damage arising from the following categories (regardless
of the repair cost) is also considered an accident.
• Collision between vehicles in motion.
• Collision of MOL driver/rider with stationary object.
• Non-Collision accident - events that involve MOL driver/rider overturning, spinning,
skidding and/or running off the road.
Road Accident The number of road accidents per 1 million km driven.
Rate (RAR)
Road Incident Any event with involvement of a (registered) road motor vehicle (owned or leased by
employer and employees’ owned vehicle) during execution of working duties that result in
material damage only (apart from the three accident categories) is considered an incident.
If the fleet vehicle was properly parked occurrences resulting in damage only will be
considered an incident.
Road Incident The number of road incidents per 1 million km driven.
Rate (RIR)
Site Geographically separated operational installation (e.g. Zala Refinery, ….). In case of
Logistics depots, all depots in one country are considered as one site. The same applies
to Retail filling stations (all FSs in one country is one site). Therefore sites in Retail or
Logistics are e.g. Hungary, Slovakia. In case of Upstream drilling activities all drilling
platform is a separated site like all producing well of Upstream production activity is a
separated site as well.
Spills > 1m3
Unintended or uncontrolled release of hazardous materials exceeding 1 cubic metre to the
external environment (groundwater, surface water, soil), except spills contained in imper-
vious containments.
Targets Detailed goals identified by an organisation as being necessary to achieve HSE strategic
objectives. Targets are usually short term and achievable within a year and carry the most
weight when integrated into the organisation's annual Business Plan. All targets should be
realistic.

HSE MS
32
Term Definition
Process Hazard PHA is application of organized, methodical approaches to identify, evaluate, and control
Analysis (PHA) the hazards associated with process facilities.
Total Recordable The number of recordable incidents (FAC, MTC, LTI, RWC).
Incident (TRI)
Total Recordable The number of TRI per 1 million hours worked (worked during the reporting period)
Incident Rate
(TRIR)
Total Reportable The number of all occupational illnesses, whether or not they resulted in LTI, disabilities
Occupational or RWC.
Illness (TROI)
Total Reportable The number of TROI per 1 million hours worked (worked during the reporting period)
Occupational
Illnesses
Frequency (TROIF)
Trend Analysis The process of analyzing performance data to determine and understand current and past
conditions of performance used to predict and improve future results, e.g. incident inves-
tigation data identifying numerous and similar root causes.
Unsafe Act (UA) UA: a behaviour which increases unnecessary the risk for injury, damage or loss;
& Condition (UC) UC: which could lead to injury, damage or loss if not corrected.
Visitor A person visiting MOL site, who is not a MOL Group employee or contractor at that site.
Waste Materials listed in applicable local legislation which are disposed of, or are intended to be
disposed of or must be disposed of by their owner.
Work-related An occupational injury happening to an employee during or related to organised work
injury (during travel for work purposes, materials handling or transport, performing personal
toilet, organised workplace catering, occupational health care or any other service provided
by the employer during working hours), independent of its time, date and location and the
degree of involvement of the (injured) employee. Any injury taking place when an employee
is being transported from home to workplace or vice-versa is not considered to be a work-
related injury, unless such injury happens in a vehicle owned or leased by the employer.

This publication is designed to provide user friendly solution
in regard to the subject matter covered.
To obtain additional copies of this booklet:
• send e-mail to petvarga@mol.hu
• download form HSE SPS site: http://molsps/sites/hse/default.aspx
Published by MOL Group HSE © 2008

MOL Group HSE Management System

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