2017 - HydroChemPSC · 2017 Annual Sustainability Report EXECUTIVE SUMMARY 4 In January 2009,...

2017SUSTAINABILITY REPORT

2017Annual Sustainability Report

Table of Contents

Statement from the CEO 3

Executive Summary 4

About HydroChemPSC 5

Services Overview 6-8

Locations 9

HydroChemPSC Core Values 10

Stakeholder Engagement 11

Restructured Sustainability Program 12

Sustainability Leadership Team 13

Sustainability Goals 14

Social Responsibility 15

Sustainability Progress 16

Three-Component Safety System 17

Environmental Stewardship 18

NORF Fresh Start Success! 19

Contact Us 20

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STATEMENT FROM THE CEOOn August 21, 2017 PSC Industrial Outsourcing joined forces with HydroChem to create the premier

industrial cleaning and environmental services company in North America. This combination will provide

our customers with the safest and most efficient operational experience, and ensure our employees receive

the most comprehensive training and career development opportunities. PSC and HydroChem both share

rich histories, a strong commitment to our people and deep values that promote safety, craft apprenticeship

and collaboration.

For twenty-five years HydroChemPSC has invested in our employees, our operations, and our communities to

deliver industry-leading industrial services. We provide innovative solutions that help our clients achieve

their operational needs as well as their sustainability goals. We employ state-of-the-art technologies to

streamline our operations and keep our employees safer, while allowing us to provide more services

utilizing fewer resources. We take safety very seriously and invest in training and professional development

so that our employees may return home safely to their families every day. At HydroChemPSC, we understand

that a strategy built on sustainability has a tremendous positive impact on our communities, our

environment, and the future of our business.

I am pleased to share with you the 2017 Sustainability Report. Sustainability remains a priority throughout

our organization, supported at the highest levels of management. We have implemented a shared

governance leadership model across the organization so that all areas of business share responsibility and

accountability for protecting our environment, developing our people, and strengthening our position in the

marketplace.

3

BRAD CLARK

President and Chief Executive Officer


EXECUTIVE SUMMARY

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In January 2009, HydroChemPSC launched its first Sustainability Plan. Since that time,

the company has made tremendous strides in building a formal sustainability program,

engaging stakeholders in the process, implementing sustainability-based efficiencies

and developing services to assist our clients in meeting their own sustainability goals.

Sustainability principles integrate into the company’s daily operations, policies and

practices using the Company’s five core values: Safety, People, Innovation, Integrity and

Environmental Stewardship.

REDEFINING SUSTAINABILITYFor HydroChemPSC, sustainability continues as a long-

term strategic vision focused on the company’s goals of

social responsibility, environmental stewardship and

economic prosperity. We’ve redefined sustainability to

create more value, better manage risk, provide superior

solutions, and even further integrate sustainable

thinking into our daily operations. Starting in 2012,

HydroChemPSC transitioned to a shared governance

leadership model. This report covers the 2017 calendar

year.

Create Value

for clients, employees, & communities today

Manage Risk

to ensure future prosperity

Provide

creative sustainable solutions

Integrate

sustainability into our culture


ABOUT HydroChemPSCHydroChemPSC is the premier industrial cleaning and environmental services

company in North America bringing together the best of PSC and HydroChem to

support the upstream, downstream and utility sectors. HydroChemPSC offers an

exceptional three-pronged safety system, innovative career development

platform, committed customer service, deep industry expertise, and advanced

technology and automation. We are committed to safety, people, growth, service

and performance. We provide the safest, most efficient operational experience

for our customers and the most comprehensive training and career development

for our employees. Our new company has a deep operational bench, and when

combined with industry-leading automation technology, creates exceptional

value for our customers with challenging maintenance needs.

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At HydroChemPSC, excellence in environmental, health and

safety performance is the foundation of everything we do. It

is HydroChemPSC's policy to conduct our business in a

manner that safeguards and protects the people,

environment and resources of the companies and

communities we serve. HydroChemPSC employees are

committed to doing our part to contribute to a safer and

healthier environment.

ENVIRONMENTAL, HEALTH, SAFETY & TRANSPORTATION (EHST) COMMITMENT


SERVICES OVERVIEW

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LOCATIONS

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With over 5,000 employees, located in over 50 facilities across the country, HydroChemPSC has theoperational size and geographic breadth to service clients regardless of size or location.HydroChemPSC-owned assets, combined with our innovative, service-oriented management culture,help make us the industry leader in providing comprehensive industrial services.


HydroChemPSC CORE VALUES

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Sustainability principles integrate into our company’s daily operations, policies and

practices using the Company’s five core values. As HydroChemPSC continues to enhance

our sustainability program, we are redefining ourselves as a Profitable Sustainability

Company. We’ve redefined sustainability to create value, manage risk, provide solutions and

integrate sustainable thinking into our culture.


STAKEHOLDER ENGAGEMENT

HydroChemPSC recognizes the interests and expectations of a

variety of stakeholders in achieving sustainability. Through on-

going efforts, we use a wide variety of channels of engagement

to solicit input and feedback that enables us to understand the

expectations and interest of our stakeholders. Additionally, the

stakeholder engagement process serves as a tool for

communicating our sustainability goals, initiatives and results.

HydroChemPSC continued our comprehensive stakeholder

engagement process throughout 2017. The information

gathered through this process was used in setting the

company’s sustainability goals and identifying action items for

the next three years.

Our channels of engagement include one-time special events,

daily activities, open-ended media channels, and annual

campaigns. HydroChemPSC identified eight primary

stakeholder groups for our business.

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RESTRUCTURED SUSTAINABILITY

PROGRAM2012 was a pivotal year of transition at HydroChemPSC.

The company launched its “Fresh Start” environmental

management system, and reorganized its management and

operational structures to align more closely with industry

practices. The new structure and leadership team

enhanced operating procedures across the organization to

ensure greater consistency and improved sustainability in

our daily business practices. Significant investments and

manpower were devoted to deploying automation to our

front line drivers. These applications eliminate paperwork,

improve regulatory compliance, and reinforce good safety

practices. We continue to work with our clients and

vendors to significantly reduce the amount of waste

materials going to landfills or for disposal by incineration.

We continue to forge ahead under the company’s

sustainability program which is embedded into all

business functions. This long-term approach will serve to

measure the success of our sustainability initiatives and

their impact on not only the environment, but also the way

we deliver high quality service to our clients and separate

ourselves from the competitors.

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Over the past four years, HydroChemPSC has shown consistent

growth and profitability despite challenging economic

conditions, regulatory changes, and energy cost uncertainty. In

addition, HydroChemPSC has invested significantly in capital

improvement projects over the past five years. HydroChemPSC

has made investing in better technology, better processes and

better equipment a priority, which not only has positive impacts

on our sustainability program through operational

efficiencies, but also enhances customer

service and lessens our impact on the

environment.

Investing in our Sustainability


SUSTAINABILITY LEADERSHIP TEAM

SUSTAINABILITY TEAM

EH&S

Human Resources

Sourcing

TechnologySales & Service

Transportation

Operations

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The Sustainability Leadership Teamis comprised of senior leadersrepresenting the business functionsprimarily responsible for drivingsustainability throughout theorganization. Our leadership teamworks together to ensure thatsustainability is part of the companyculture.

HydroChemPSC SHARED GOVERNANCE MODEL FOR SUSTAINABILITY


SUSTAINABILITY GOALS

•Create a positive environmental footprint through our facilities and our services

Environmental Stewardship

•Act with integrity in all that we do.

Integrity

•Deploy next generation systems and practices that are responsive to our client's increasingly complex demands.Innovation

• Invest in our communities and our workforce.People

Safeguard and protect human health and the environment.Safety

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In 2015, HydroChemPSCrealigned our sustainabilitygoals with the company’s fivecore values. Baselinemeasurements and targetvalues are set for a variety ofperformance indicatorsassociated with each goal.These goals continue to driveongoing improvement.


SOCIAL RESPONSIBILITY

Sustainability is a long-term strategic commitment at HydroChemPSC We incorporatethe three principles of sustainability: social responsibility, environmental stewardship,and economic viability into our daily and long-term decision making. This year marksthe fourth year of HydroChemPSC’s sustainability program. Our efforts are focused onimplementing new programs to achieve our vision. Our primary emphasis is on energyconsumption, public outreach, and corporate stewardship. We have integrated rapidlyevolving technological innovations driving us to be industry frontrunners, focusing onhighly specialized service standards. HydroChemPSC continues to invest in its people,equipment and facility infrastructure, emphasizing loss prevention that propels safetyand performance.

HydroChemPSC continues to leverage and integrate its sustainability efforts into newtechnologies to deliver the best service in the industry by automating its processes thatdeliver a safer and more economical service. This results in stronger customerrelationships which create new opportunities for revenue growth while reducing theenvironmental footprint of our operations. Our long-term strategy is to continue tobuild our business based on superior technology; clean and efficient equipment andfacilities; and a highly skilled, safe, and trained workforce focused on sustainability. Bydoing so we are prepared to face the challenges associated with climate change,changing economic cycles, rapidly accelerating technology, and evolving governmentregulations. We are committed to delivering best-in-class service for our customers withprecision unmatched in the industry.

HydroChemPSC’s Environmental, Health, Safety, and Transportation (EHS&T)department continues to focus on regulatory compliance, and maintaining a safeworkplace at all HydroChemPSC facilities to protect not only our employees, but also thecommunities in which we live and work.

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SUSTAINABILITY PROGRESS

We'd like to share with you our progress over the last six years. Theseefforts reflect the hard work and dedication of all HydroChemPSCemployees towards reaching our sustainability goals first established in2012.

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SAFETY:HydroChemPSC continues to lead our industry in application of behavioral based safetyprograms. In 2012, HydroChemPSC embarked on a project to standardize training for allemployees by launching a virtual training academy focused on delivering top-notch trainingon the company’s human resource policies, compliance, safety, and operational procedures.

Phase I of the project is focused on training for those positions servicing the health care andretail segments. Phase II focuses on training for core services, with a special emphasis oncustomer service. We know that delivering quality, consistent training brings improvementto all areas of our business.

HydroChemPSC’s safety record is evidenced by an exemplary Total Recordable Rate (TRR)signifying a safety record significantly better than the industry average

TRR 2012 2013 2014 2015 2016 2017

Rate 0.46 0.35 0.50 0.47 0.48 0.31

From 2016 to 2017, our Experience Modification rate (EMR) decreased from 0.68 to 0.64 as safety continues to be at theforefront of our operations. During this same time period we had over a 21% reduction in the amount of First Aid (FA)incidents.


THREE-COMPONENT SAFETY SYSTEM

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These three programs work hand-in-hand toaddress the safety of our employees andclients using three different controlmeasures: Mechanical Controls (MechanicalIntegrity), Administrative Controls (CraftCertification) and Behavioral Controls (LPS)to influence and ensure safety.

Each control by itself would not be enoughto completely mitigate safety hazards orlosses. Each control measure providesinputs to the other two to create a dynamicculture that addresses safety and focuses oneliminating risks before they can occur.

HydroChemPSC's three-component safety system works by combining the benefits of a proven safetyprogram, the Loss Prevention System™(LPS), Craft Certification and our revolutionary MechanicalIntegrity Program, all designed to provide HydroChemPSC workers a path to an incident freeworkplace.


ENVIRONMENTAL STEWARDSHIP

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HydroChemPSC continues to explore and secure better waste management technologies for our clients. The wide

variety of industrial services HydroChemPSC offers provide unique and innovative methods for handling our clients’

waste streams and process by-products in ways that lessen their environmental footprint. This is supported in a

number of different sustainability metrics by which our company can impact our planet.

Location Metric 2017 Achievement

Jeanerette, LA Oil recovered 2,517,480 gallons

Norco, LA Oil recovered 10,902,161 pounds

Norco, LA Ash rendered non-hazardous

15,359,960 pounds

Reduction Tech -Nationwide

Oil recovered 21,359,649 gallons


NORF FRESH START SUCCESS!

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In 2014 HydroChemPSC’s Norco Oil Recover Facility (NORF) in

Norco, Louisiana took sustainability to the next level by

achieving certification to the ISO 14001 Standard. The

primary vehicle for this industry-leading accomplishment was

HydroChemPSC’s Fresh Start environmental management

system (EMS). Through the hard work of the NORF team,

certification was successfully upgraded to the new 2015

version of the ISO 14001 Standard in 2017.

Registered by EAGLE Registrations Inc.ISO 14001:2004

By setting and and achieving environmental objectives with

measurable targets as part of this program, HydroChemPSC was

able to:

• Reduce fugitive emissions

• Lower energy consumption

• Minimize odors

• Mitigate environmental risks


CONTACT US

We welcome your questions, comments and suggestions.

HydroChemPSC

900 Georgia Avenue

Deer Park, Texas 77536

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www.HydroChemPSC.com

2017 - HydroChemPSC · 2017 Annual Sustainability Report EXECUTIVE SUMMARY 4 In January 2009,...

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