Occupational Health and Safety
Strive to become a Zero Accident Organization by targeting a Lost Time Injury Frequency Rate (LTIFR) of zero for employees and contractors by 2029.
Ensure that 100% of employees and contractors working on company premises receive the required occupational health and safety training or orientation.
Ensure 100% employee participation in Safety Talk activities in accordance with the established plan.
Conduct occupational health and safety inspections in accordance with the established plan, covering 100% of operational areas across factories and offices.
Encourage employees to report at least three Near Miss incidents per person per year, with follow-up corrective and preventive actions to proactively reduce risks.
Conduct emergency response drills at least once a year.
Ensure that 100% of sampled work practices of employees and contractors comply with the requirements set out in the applicable Work Instructions (WIs).
The Company provided occupational health and safety training to employees and contractors, covering 12 key training programs designed to enhance safety awareness, competencies, and risk prevention capabilities. These programs included Safety Induction, Hazard Identification and Risk Assessment, Chemical Safety and Safety Data Sheets (SDS), Lockout/Tagout (LOTO), Confined Space Entry, Working at Heights, Fire Prevention and Fire Safety, as well as Logistics and Transportation Safety.
The Company conducted ongoing Safety Talk activities to reinforce safety awareness and foster a strong safety culture across the organization. In addition, employees were encouraged to report near-miss incidents as part of a proactive safety management approach, enabling the identification of potential hazards and the continuous improvement of preventive measures before accidents occur.
The Company conducted workplace environment and safety inspections across its manufacturing facilities in collaboration with relevant departments and stakeholders. In addition, emergency response drills were carried out in accordance with established plans and procedures to ensure organizational preparedness and the effectiveness of emergency management measures.
The Company manages occupational health and safety in accordance with the requirements of ISO 45001:2018, applying the Plan–Do–Check–Act (PDCA) approach to drive continual improvement. The management system encompasses hazard identification, risk assessment based on the Hierarchy of Controls, accident and incident investigations using Root Cause Analysis methodologies, and management reviews conducted at least annually to evaluate performance and ensure the effectiveness of the occupational health and safety management system.
The Company promotes a proactive safety culture through initiatives such as the “Stop–Think–Act” and “1-Minute Safety Pause” programs, encouraging employees to assess risks before commencing work. Employees are empowered with Stop Work Authority, enabling them to immediately halt any task when unsafe conditions or behaviors are identified. In addition, Safety Ambassadors and Safety Champions are appointed across operational areas to reinforce safety leadership and awareness, while a Safety Role Model Recognition Program is implemented to acknowledge and reward exemplary safety performance and behaviors.
The Company continuously conducts monthly safety communication and awareness campaigns through various communication channels to reinforce safety knowledge and promote safe behaviors throughout the organization. In addition, an annual Safety Culture Survey is conducted to assess employees’ perceptions, attitudes, and behaviors related to safety, providing valuable insights for strengthening the organization’s safety culture and driving continual improvement.
Challenges and Opportunities
Occupational health and safety represent both a strategic risk and an opportunity that are directly linked to business continuity, corporate reputation, operational costs, and stakeholder confidence. This is particularly relevant in the lubricant, chemical, and logistics sectors, where operations involve the handling of chemicals, machinery, and work activities conducted in controlled or high-risk environments. Recognizing the significance of these factors, the Company comprehensively assesses occupational health and safety risks and opportunities to effectively manage potential impacts while creating long-term value for the organization and its stakeholders.
Challenges
A key challenge arises from the nature of the Company’s operations, which involve inherently high-risk activities associated with the production, storage, and transportation of lubricants and chemical products. These operations involve exposure to chemicals, machinery, confined spaces, working at heights, and fire-related hazards. Ensuring that hazards are effectively controlled across all activities and operational areas requires a systematic and continuous approach to hazard identification, proactive risk assessment, and the implementation of controls based on the Hierarchy of Controls.
Another significant challenge is extending occupational health and safety management beyond employees to encompass contractors and other personnel working on-site, who may be exposed to elevated operational risks. Ensuring that these groups comply with safety requirements equivalent to those applied to Company employees requires effective supervision, training, and performance monitoring. Maintaining the long-term objective of becoming a “Zero Accident Organization” also depends on fostering proactive safety behaviors, encouraging the regular reporting of near-miss incidents, and strengthening emergency preparedness and response capabilities. This is particularly important in addressing potential scenarios such as chemical spills, fires, or transportation-related incidents, which could affect public safety, surrounding communities, and business continuity.
Opportunities
From an opportunity perspective, the implementation of a systematic occupational health and safety management system based on ISO 45001:2018 and the Plan–Do–Check–Act (PDCA) framework enables the Company to reduce work-related injuries, occupational illnesses, and operational disruptions. This not only supports cost control but also enhances operational efficiency and productivity. A robust safety management system further strengthens the confidence of industrial customers, reduces supply chain disruption risks, and supports long-term business continuity.
In addition, fostering a sustainable safety culture through active employee participation, Stop Work Authority, and recognition programs for positive safety behaviors creates opportunities to enhance both employee engagement and organizational performance. Integrating safety training with Competency Gap Analysis also enables the Company to develop workforce capabilities more effectively by addressing specific skill and knowledge needs. Furthermore, the systematic management of contractor safety and the implementation of joint emergency preparedness and response exercises with local communities and external agencies help strengthen stakeholder confidence, enhance community trust, and reinforce the Company’s social license to operate over the long term.
Management Approach and Value Creation
Occupational Health and Safety
The Company recognizes occupational health and safety as a strategic priority and has developed an integrated management system aligned with the requirements of ISO 45001:2018. The system is implemented in accordance with the Plan–Do–Check–Act (PDCA) framework, with a strong focus on accident prevention, loss reduction, and continuous improvement. The Company also promotes active participation from employees at all levels under the principle that “Safety is a Shared Responsibility,” ensuring that occupational health and safety are embedded throughout all business operations. Key management mechanisms and approaches include the following:
| Key management mechanisms | Approaches |
|---|---|
| 1. Organizational Context Analysis and Stakeholder Engagement | The Company identifies and assesses occupational health and safety risks and opportunities that are relevant to the specific activities and operational characteristics of each department. Employees and contractors are actively encouraged to participate in the process by providing feedback, sharing concerns, and contributing insights to support effective risk management and continuous improvement of workplace safety. |
| 2. Hazard Identification and Risk Assessment | The Company conducts hazard identification and risk assessments covering all operational activities and work processes. Appropriate control measures are implemented in accordance with the Hierarchy of Controls, including the use of personal protective equipment (PPE), the establishment of controlled and restricted work areas, and the installation of machine safeguarding systems to prevent workplace injuries and occupational incidents. |
| 3. Safety Policy and Objectives | The Company has established and communicated a clear occupational health and safety policy, supported by both quantitative and qualitative objectives. These include reducing workplace accident rates and advancing toward its long-term goal of becoming a Zero Accident Organization. The policy and objectives are systematically cascaded throughout all levels of the organization to ensure effective implementation, accountability, and continuous improvement in safety performance. |
| 4. Safety Training and Safety Culture Development | The Company provides regular safety training programs for employees and contractors to enhance knowledge, awareness, and safe working practices. In addition, various initiatives are implemented to strengthen a positive safety culture across the organization, including Safety Week, Safety Talk sessions, and ongoing safety awareness campaigns that encourage proactive safety behaviors and employee engagement. |
| 5. Incident, Accident, and Near-Miss Management | The Company maintains a structured system for reporting, investigating, and managing accidents, incidents, and near-miss events. All reported cases are subject to Root Cause Analysis to identify underlying causes, establish corrective and preventive actions, and prevent recurrence, thereby supporting continual improvement in occupational health and safety performance. |
| 6. Performance Monitoring, Evaluation, and Management Review | The Company conducts internal audits in accordance with the ISO 45001 Occupational Health and Safety Management System and continuously monitors key safety performance indicators (KPIs). The effectiveness of the management system, safety performance, and improvement opportunities are reviewed by senior management at least annually to ensure continual improvement and alignment with the Company’s occupational health and safety objectives. |
| 7. Continual Improvement | The Company utilizes information obtained from risk assessments, audit findings, accident and incident investigations, and employee feedback to continuously improve its occupational health and safety management processes. Improvement actions are implemented in accordance with the Plan–Do–Check–Act (PDCA) framework to enhance system effectiveness, strengthen risk controls, and drive continual improvement in safety performance. |
Safety Awareness and Safety Culture Development
The Company promotes safety awareness through proactive communication and engagement campaigns delivered via various channels, including infographics, videos, safety signage, and digital communication platforms. These initiatives are complemented by regular awareness activities such as the “Safety Quote of the Day” program, which reinforces safety messages, encourages positive safety behaviors, and strengthens the organization’s safety culture.
The Company provides specialized safety training and simulation exercises covering high-risk activities, including confined space entry, working at heights, and chemical handling. Emergency response drills are conducted at least annually to enhance preparedness and response capabilities. In addition, Scenario-based Learning is incorporated into training programs to strengthen practical skills, decision-making abilities, and employees’ readiness to respond effectively to potential workplace emergencies and safety incidents.
The Company promotes active employee participation in occupational health and safety through initiatives such as the Safety Suggestion Box, the “Hazard Identification by Employees” program, and regular Safety Walk activities. In addition, Safety Ambassadors and Safety Champions are appointed across operational areas to encourage employee engagement, strengthen safety leadership, and foster a proactive safety culture throughout the organization.
The Company fosters proactive safety behaviors through initiatives such as the “Stop–Think–Act” and “1-Minute Safety Pause” programs, encouraging employees to assess potential hazards before commencing work. Employees are also empowered with Stop Work Authority, enabling them to immediately suspend work activities when unsafe conditions, practices, or situations are identified, thereby preventing incidents and reinforcing a strong culture of safety throughout the organization.
The Company strengthens employee engagement and motivation through recognition and reward programs, including the “Safety Role Model” initiative and Safety Performance Ranking. These programs are designed to recognize exemplary safety behaviors, encourage continuous improvement, and reinforce a positive safety culture by promoting accountability and healthy competition across the organization.
The Company continuously monitors and strengthens its safety culture through the annual Safety Culture Survey, which assesses employees’ safety perceptions, attitudes, and behaviors across the organization. The survey results are analyzed and incorporated into improvement plans, enabling the Company to identify development opportunities, enhance employee engagement, and further reinforce a sustainable safety culture.
Employee and Contractor Training
The Company designs its training programs based on risk assessment results and competency gap analysis to ensure that training content is aligned with operational risks and job requirements. The training framework covers 12 occupational health and safety courses for employees, contractors, and on-site personnel. In addition, all relevant personnel are required to complete Pre-job Training before commencing work to ensure they possess the necessary knowledge, skills, and safety awareness to perform their duties safely and effectively.
The Company promotes a variety of learning approaches to enhance occupational health and safety competencies, including classroom training, On-the-Job Training (OJT), Scenario-based Training, and Emergency Drills. The effectiveness of each training program is evaluated through Training Effectiveness Evaluations to ensure that participants have acquired the required knowledge, skills, and competencies, and that the training contributes to improved safety performance and risk management.
Contractor Risk Assessment for Responsible Procurement
The Company conducts contractor pre-qualification assessments prior to engagement
as part of its responsible procurement process. Evaluations include the review of safety performance records, accident history, occupational health and safety management systems (such as ISO 45001 certification), and other relevant documentation to ensure that contractors meet the Company’s safety standards and operational requirements.
The Company conducts job-specific risk assessments in collaboration with contractors
using the Hazard Identification and Risk Assessment (HIRA) process. Particular attention is given to high-risk activities such as electrical work, working at heights, and confined space entry to ensure that hazards are properly identified, risks are effectively evaluated, and appropriate control measures are established before work begins.
The Company implements preventive control measures prior to the commencement of work
including the specification of appropriate personal protective equipment (PPE), the issuance of Work Permits for high-risk activities, and the conduct of Toolbox Meetings to communicate work procedures, hazards, risk controls, and safety requirements. These measures help ensure that all personnel understand and comply with safety standards before performing their assigned tasks.
The Company controls site access through mandatory Safety Induction training and a Safety Pass system
All contractors and external personnel are required to complete safety orientation training before entering operational areas to ensure they understand workplace hazards, safety requirements, emergency procedures, and applicable site regulations. Access is granted only to individuals who have successfully fulfilled the prescribed safety requirements and authorization procedures.
The Company monitors and evaluates contractor safety performance throughout and upon completion of work
through regular Safety Inspections, the recording and investigation of accidents and near-miss incidents, and Post-performance Evaluations. The results are maintained in a contractor performance database and incorporated into future contractor selection, qualification, and procurement decisions, supporting continuous improvement and responsible procurement practices.
Stakeholders Directly Impacted
