Safety first and foremost

To ensure the safety of its employees and subcontractors, and to minimise its environmental impact, the Group has set itself the goal of becoming completely accident-free. Process and occupational safety is ensured through a systematic approach and effective cooperation at all the Group’s sites and all other areas of activity.

The life and health of every employee is our priority. We believe that achieving the target is a prerequisite for improving working conditions and safety at work through planned and systematic action. In addition, we will improve the safety risk management of our processes, invest in progressive technologies, increase the reliability of our equipment and promote a high safety culture.

In order to achieve the Group’s target of providing an accident-free working environment, each manager has made personal commitments to improve safety in production. These commitments are reflected in the performance indicators established for managers.

The main objectives formulated in the safety policy are the following:

1.
reduction of production injuries, occupational diseases, accidents and adverse environmental effects;

2.
organisation of safe production through comprehensive analytics and the management and minimisation of production risks;

3.
implementation of the best possible area-specific practices that will enable us to move forward and contribute to the achievement of the UN Sustainable Development Goals.

Due to objective factors, the Group’s activities involve production processes of higher than average risks. The equipment used is complex and the processes often use high temperature and pressure. In order to ensure a safe working environment, special methods and technology must be applied. VKG carries out systemic work in the area of production safety. A clear, understandable and fulfillable system of safety rules has been established. Our employees and subcontractors have the right to refrain and/or refuse from fulfilling work tasks which may damage human health or the environment.

Over the years, we have consistently invested in improving working conditions and safety culture, and we are happy to say that it is not in vain – work safety is more and more on our minds, bottlenecks are discussed, employees think about and contribute to improving working conditions. I am convinced that the Group’s strengthening safety culture has also been a foundation during the pandemic, because through joint effort and responsible behaviour we have been able to keep ourselves, our colleagues and production free from the coronavirus. It is a joint effort! Proof once again that the key to a safe working environment is cooperation, common goals and the contribution of every individual. It is in this way that we can ensure the safety of ourselves and our colleagues in the workplace and create an environment that is pleasant and safe to work in. Thank you, everyone, for being caring and supportive of each other despite difficult and stressful times.

Meelis Eldermann
Technical director and Vice Chairman of the Board

The Group’s priorities in occupational safety:

management’s commitment to occupational safety;
employees’ awareness, a high safety culture at all levels;
ensuring occupational and environmental safety in production processes;
safe and secure working conditions;
continuous improvement of the injury prevention system;

absence of fatalities due to accidents at work, both within the Group and among employees;
absence of major accidents;
a risk-oriented approach to occupational health and safety;
systemic safety cooperation with contractors;
application of the principle of sequential action – the next action is planned on the basis of the results of the previous action.

Prevention is easier than dealing with consequences

More than 95% of injuries happen precisely because of behavioural errors, so it is very important to pay attention to how work tasks are performed. Dangerous situations have a direct link to accidents at work, injuries is preceded by slight injuries, microtraumas and dangerous situations. Reporting and responding to dangerous situations in time will help prevent future injuries and accidents.

The Group has a group-wide common electronic system for recording emergency situations. Through the hazard reporting system, any employee, subcontractor or visitor of the production area can quickly and conveniently report hazardous factors at work, which, if responded to in a timely manner, can prevent accidents at work. By reporting hazards, work environment specialists can take action to make the working environment safer. Every incident is taken seriously, its causes are identified and a solution found.

In 2020, 445 incidents were reported by Group employees. Thanks to a systematic approach and awareness-raising among employees, almost three times as many, 1,127 potential hazards were reported last year, of which more than 90% have already been eliminated.

In 2020, 445 incidents were reported by Group employees. Thanks to a systematic approach and awareness-raising among employees, almost three times as many, 1,127 potential hazards were reported last year, of which more than 90% have already been eliminated.

We believe that the most important way to reduce the number of accidents is to implement a management system for production safety, occupational health and environmental protection, and to increase the safety motivation of employees at all levels of the organisation.

Bert Lõuke
Technical Manager

For several years now, the Group has been using innovative tools to improve safety:

safety visits with the participation of production line managers;
the organisation of safety days;
joint events with the Rescue Board;

online safety courses and training environment;
recording of dangerous situations.

To further improve the safety of work and processes, efforts will be focused on:

improving the timeliness of decisions on the prevention and/or elimination of hazardous situations;
increasing the interest of managers and workers in ensuring safe working practices and compliance with safety rules;

creating the necessary conditions for the prevention of accidents at subcontractors’ premises.

Work safety training

The Group organises occupational safety training events every year to raise awareness of production, fire and occupational safety, all the while honing skills and improving the quality of said training events. The main events include:

online and in person training sessions, preparation and qualification of employees;
updating training and inspection programmes in the areas of production safety and work protection;

introduction of a system of special training for employees working at dangerous sites;
supporting the promotion of a safety culture.

The Group provides electronic and video instruction to both its own employees and the employees of subcontractors.

„Measure twice, cut once”

In March 2021, VKG Oil and the Rescue Board held a joint fire drill aimed at raising employee awareness and promoting a culture of safety at work. The aim was also to improve the flow of information and cooperation between the various parties involved and to check the functioning of the chain of command.

According to the legend, the K-2 column of the generator oil distillation unit depressurized, causing the product to leak. One of the operators tried to repair the leak, but at the same time the product spontaneously combusted. The operator fell into the fire, and two colleagues rushed to his aid in an attempt to rescue him.

The drill started with a fire, which was immediately reported to the emergency centre.

Both rescue and ambulance teams were dispatched to the scene. During the joint exercise, rescuing the injured, extinguishing flames with foam, protecting endangered objects, and the functioning of water supply were rehearsed. The county’s professional rescuers from the Kohtla-Järve and Jõhvi rescue teams and volunteer rescuers from the Purtse and Mäetaguse volunteer rescue teams were involved.

The aim of the exercise was not to demonstrate an ideal performance, but to identify all the bottlenecks and make corrections. At the end of the exercise, the participants exchanged ideas, shared observations and made progress reports.

Leino Vaigla
VKG Oil’s Work Environment Specialist

Working during the pandemic

In 2020, the coronavirus pandemic proved to be a new challenge for the Group and the world. Protecting workers and ensuring uninterrupted production processes was a key challenge during this difficult period.

Due to the high level of sickness rates and the constraints related to the quarantine, the Group’s management took a series of additional measures related to changes in corporate governance, expenditure aimed at preventing sickness and ensuring the safety of employees and the continuity of production processes. The pandemic has also had an impact on the form of cooperation with stakeholders and on the activities carried out under the sustainable development programme.

Prior to the declaration of a nationwide state of emergency, a Crisis Committee was set up within the Group under the leadership of Meelis Eldermann, Vice-Chairman of the Management Board and Technical Director, to develop and implement operational measures aimed at preventing the spread of the coronavirus and to monitor the situation in all of the Group’s companies.

Tasks of the Crisis Committee

developing and further implementing a crisis strategy;
operational management during a pandemic and the communication of operational information;

coordinating the work between individual units to ensure the implementation of emergency measures to prevent the spread of the virus in the Group’s companies;
cooperation with other organisations and agencies in the field of virus containment.

VKG companies run by having a constant production process, this means that most of our employees’ work schedules are linked to continuous production and it is not possible for them to telework. Particular focus was on the people who are extremely difficult to replace in the production process. We therefore identified the critical positions and ensured their possible replacement if needed.

As the Group’s subsidiaries also provide vital services, it was and remains of the utmost importance to keep employees from being infected and to prevent the spread of the virus to the production area. Since the beginning of the pandemic, we have implemented a series of different measures, which we are adapting on an ongoing basis and as necessary.

Thanks to the timely preventive measures taken, as well as the responsible attitude of our staff, we did not have any incidents during the first wave. The first case was recorded at the end of August 2020 in the Ojamaa Mine. It was the only time in two years that we had to undercut our production. For 10 days, the Ojamaa Mine operated at a 60% load. The oil production has been operating in an ordinary regime and at full capacity throughout the pandemic.

After the first case was confirmed, we started to organise full-on testing at the group's companies as an outsourced service from Synlab, which also helped identify asymptomatic employees.

more than 90%

of workers are vaccinated

over 8 000

PCR corona tests performed

over 100 000

rapid tests acquired

400 000 euros

additionally invested in employees’ health during the pandemic

In the Group, we continuously monitor the occurrence of infection, and based on the number of people infected in the company and the epidemiological situation in the city/region/country, we adapt our measures. Data-driven process management is carried out on a daily basis.

Since March 2020, office employees have had the option of flexible working if the nature of the work allows it. We allow people to work from home. Office-based employees are guaranteed indoor dispersal (including in offices) and the 2+2 rule.

Measures to prevent the spread of the coronavirus

medical monitoring, measuring body temperature when entering administrative buildings and gates;
continuous disinfection of buildings, premises, offices of production units, means of transport and equipment;
no-contact shift transferring, dispersing and distancing;
free psychological support through a partner organisation;

equipping workers with personal protective equipment (masks, gloves, disinfectants);
wherever possible, transferring employees to teleworking, and purchasing the necessary office equipment;
regular PCR testing at the workplace and at partner medical facilities, purchase and distribution of rapid tests to employees;
on-site vaccination of employees and their family members.

Measures targeting employees

ongoing work to increase the awareness of employees – personal hygiene, information leaflets and posters, information sessions and seminars, involving the country’s top epidemiologists and doctors;
ensuring the availability of sufficient personal protective equipment and disinfectants at the workplace;

the use of video-training wherever possible to continue professional education and training of employees, which helped maintain training programmes aimed at upgrading the employees’ qualifications.

Vaccination

The Group was one of the first companies in the country to offer voluntary vaccination to its employees. We were able to start vaccinating critical service providers and at-risk employees in early spring last year, and by May we offered COVID-19 vaccination to all the Group employees. Thanks to a state exemption in Ida-Viru County, we were also able to offer on-site vaccination to family members and relatives of our employees. Thanks to the responsible attitude of our employees, we already reached the so-called collective immunity level of 70% at all the Group companies by August. By winter, more than 90% of the Group’s employees had been fully vaccinated.

We took the situation very seriously and responsibly. Throughout the pandemic, we did a good job of communication, both in terms of understanding the seriousness of the situation, new information and preventive measures. In general, I can say that the Group’s employees took what was happening seriously, because they knew that their behaviour and compliance with the rules would be crucial for the health of themselves, their families and their colleagues, as well as for the supply of heat and energy to their towns and cities. We are very grateful to our employees for their responsible and understanding attitude.

Ksenia Moskvina
Safety and Quality manager

Particular focus on mental health

Minimising contact, restricting habits, giving up favourite activities and not knowing what to do – it was not easy for people.

More than 85% of our office employees worked from home. Understandably, not everyone may have the opportunity to work and concentrate at home, with all their family members working and studying under the same roof.

With regard to teleworking, we noticed that some people even liked this way of working. They said it allowed them to get more done and, importantly, to spend more time with their families. There was a certain gain in time and also in money in terms of travel to and from work. At the same time, for many, the boundaries of the working day were blurred and working days tended to be longer than at the office. One positive thing that the employees have mentioned is the practice of going for a walk outside at lunchtime, combining both physical and mental rest.

At the same time, human beings are social by nature, and there are those who complain of both physical and mental fatigue. Routine, lack of communication, social isolation, the absence of social gatherings and no opportunities for quality recreation were reflected in the mental state of many. The introduction of new roles and responsibilities also had an impact on everyday life, with parents having to take a much more active part in their children’s studies.

As an employer, we have been offering a free and anonymous psychologist service to our employees for several years. The need for this service was identified after a psychosocial risk assessment was carried out in 2019. To keep the focus on mental health, we organised a Mental Health Week in April 2021, to which we invited specialists from NGO Head Matters to speak. The main subjects of the information seminar included the maintenance of mental health, the difficulties associated with the corona pandemic, and coping with changes.

The reporting period in figures

In 2020, the Group recorded a total of 26 workplace accidents, eight more than in the previous year. In 2021, the Group recorded a total of 29 workplace accidents, three more than in the preceding year. Unfortunately, one of our employees was fatally injured. In terms of severity of injury, the Group recorded nine workplace accidents resulting in serious physical injury in 2021 (the graph below has the fatal injury added to the count of serious accidents) and thirteen workplace accidents resulting in minor physical injury, and six workplace accidents only requiring first aid. Compared to 2019, the number of serious workplace accidents increased by six in 2021, while the number of minor workplace accidents increased by two.

Serious accidents took place in the following subsidiaries:

VKG Oil - 5
VKG Kaevandused - 4
VKG Energia 1 (fatal injury)

In 2021, the main reasons for accidents at work were the following:

violation of occupational safety requirements by an employee;
non-conformity of pathways/workspace to safety requirements;
ignoring the use of personal protective equipment;
insufficient arrangement of work;
underestimation of risks.

THE NUMBER OF ACCIDENTS AT WORK BY YEARS WITH THE INDICATION OF THE NUMBER OF EMPLOYEES

2015

2016

2017

2018

2019

2020

2021

500

1000

1500

2000

Minor accidents
Severe accidents
Number of employees

THE NUMBER OF ACCIDENTS AT WORK PER EMPLOYEE IN 2015–2021

	2015	2016	2017	2018	2019	2020	2021
Number of employees	1995	1785	1776	1761	1746	1612	1613
Number of accidents	14	26	19	16	17	26	29
Number of accidents per employee	0,007	0,015	0,011	0,009	0,010	0,016	0,018

In total, in 2009–2021 the largest number of accidents (both serious and minor ones, including ones requiring first aid) took place at VKG Oil, i.e. 74, while 44 accidents took place in VKG Kaevandused and 47 accidents took place in Viru RMT. A great number of accidents at a workplace in the companies mentioned above is due to a high level of danger of the works performed at them (underground mining, handling hazardous chemicals, repair and servicing of technological equipment) as well as the number of employees.

The most important measures aimed at improving the working environment in 2022:

review of the occupational safety strategy,
training of all employees on the topic of „corporate safety awareness culture“,
improving the system for recording dangerous situations,
the organisation of a campaign to raise awareness of reporting dangerous situations,
an in-depth analysis of the causes of work accidents and emergencies occurring in the Group, and review of prevention measures,
increasing the awareness of employees and subcontractors and promoting safety culture,
organising occupational safety training and exams by means of an online learning environment in all the enterprises,
preparation of video instructions,
improvement of communication,
involvement of work environment commissioners in safety issues (joint meetings, outings, development of training programmes).

2018–2021 TRIR AVERAGE FIGURES

	2018	2019	2020	2021
Viru RMT	2,25	1,23	7,74	3,42
VKG OIL	1,14	0,66	1,54	2,63
VKG Energia	1,92	2,97	1,09	3,40
VKG Logistika	0,00	1,79	1,65	0,00
VKG Elektrivõrgud	0	0	0	0
VKG Kaevandused	0,85	1,31	0,92	1,612
VKG Soojus	0	0	0	0
Average in the Group	1,0	1,1	1,8	2,0

It depends on each team member

The Group consists of seven companies, one of which is engaged in oil shale mining at a depth of 30 metres, and another that is classified as a company with a risk of a major accident. In total, the Group has 11 work environment specialists working on matters of the working environment. There is a specialist in each of our subsidiaries, and our largest subsidiary, VKG Oil, employs four specialists.

The primary objectives of the people involved in workplace safety matters are to keep safety at work constantly in the spotlight, to help develop the working environment by making it safer and more appealing. It is the responsibility of the work environment specialists to improve the existing system, building on the best practices and implementing them in the Group companies. Thanks to their contribution and continuous monitoring, the Group has a near-miss system in place and a target of zero workplace accidents.

We keep a close eye on the constant development and improvements in the area of the working environment, as the safety of our employees and work processes is a priority for us. The constant training and education of our work environment specialists is an integral part of this. The development of skills in occupational safety is carried out through both external and internal training. Despite the fact that 2020 brought a proper adjustment to our training programmes, the Group’s Head of Safety and Quality is currently in the process of obtaining the international NEBOSH (National Examination Board in Occupational Safety and Health) certificate. At the beginning of the year, our specialists participated as both speakers and audience members in the TREFF occupational safety and working environment seminar.

Cooperation with various groups

Cooperation with subcontractors

The Group has established uniform requirements for employees and contract partners who perform works at the Group’s sites or in the interests of VKG in the area of production and work safety and environmental protection, including the obligation to plan and perform activities in accordance with the applicable legal acts and the standards established by international law and the obligation to prevent any adverse effects on nature, including the plant and animal kingdom, in the area of performance of projects.

The respective mandatory terms and conditions have been included in the contracts for works and services concluded with subcontractors, and the employees of subcontractors who work at the Group’s sites are given training and explanatory instructions concerning the requirements for personal protective equipment, the use of means of transport and environmental protection as well as other requirements established by relevant standards.

In 2020, we held an information day – “Vision Zero – Safety First” – to which the representatives of subcontractors were invited. The information day focused on the topic of a preventive approach – moving towards preventing incidents and away from combating the consequences. The information day took place in the format of a dialogue where the representative of every contractor was able to make a contribution into improving cooperation and work safety.

Cooperation with local communities

VKG is a large production facility that creates a lot of jobs for the local residents. As at the end of the reporting year, approximately 1,600 employees were employed in the oil shale extraction and processing segment, mainly local residents. Our oil shale processing facilities are located within city limits and therefore the safety of the population and the employees is our priority. We apply process safety and work safety programmes, striving to minimise the risk of production accidents. Improving the work safety culture has an important role in this process.

Work safety cooperation with trade unions

The trade union organisation active in the Group also participates in matters of work safety.

As a partner to the Group, the Trade Union of Chemists is engaged in activities such as compliance with safety requirements, prevention of injuries and occupational diseases, ensuring personal and collective protective equipment, informing the employees of work safety, and other activities to introduce a work safety culture.

As at the end of 2021, six of VKG’s seven subsidiaries have been certified under the international ISO 45001 standard, which allows them to develop a work and production safety management system integrated into all the business processes.

Safety culture

Work and industrial safety is a priority for the Group. Safety starts with everyone: crossing the road with a green light, buckling the safety belt in the car.

Safety in production and everyday life is our joint task. It is not just a word, it is an entire culture. The safe operation of equipment, the safety of employees and subcontractors, food safety, and a safe way home. We can combine safety into a single system and mechanism. Every employee of the Group, regardless of their position, must understand that the fact that production indicators and safety are inseparable is the underlying principle.

Responsibility and constant development form the basis of safety culture. In order to shape the safety culture, a training system based on legal acts, corporate standards and international practices has been created.

We acknowledge the decisive role of employees in maintaining a safe working environment and we therefore pay special attention to a dialogue with employees. We organise safety days where employees and subcontractors discuss the risks arising in the performance of works and in which the Group’s top-level managers also participate. This allows us to receive high-quality feedback and ensure the operative elimination of difficulties arising at workplaces.

Hear the voice of employees, or a system of work environment commissioners

All the employees have the opportunity to run for the position of a work environment commissioner and thereby take part in the work of the Work Environment Council. Engaging employees in work safety discussions and workshops is our common everyday practice.

Work environment commissioners are the carriers of the voice of our people, whose aim is to notice and register and thereby make the working environment better. Work environment commissioners actively and closely cooperate with work environment specialists and are involved in various workgroups. For instance, we organise joints trips for work environment specialists and commissioners to other enterprises in order to see their functioning and successful practices.

The work environment commissioners of our subsidiaries meet up regularly; the frequency of such meetings is regulated separately in each company. Once a year, the general meeting of all the environment commissioners is held, convened by the Head of Safety and Quality. We are currently establishing and systematising defined activity objectives for work environment commissioners, and awarding and training the commissioners.

At VKG Oil, for instance, meetings with work environment commissioners are held in every quarter. A motivating incentive system has been developed and the work environment situation at other departments (where the commissioners themselves do not work) is also checked.

Work Safety Month – we engage everyone!

The Group’s tradition to celebrate the Global Work Safety Day has become a major event over the years. Due to the pandemic, most of the events took place in online format, but that was not an obstacle in engaging our employees. In 2021, we paid special attention to the topic of mental health. We ended the Work Safety Month with a discussion on an interesting topic: whether it is possible to bring the indicator of injuries to zero at a production company. The panel discussion included work environment specialists, the representatives of employees, and the Group’s management.

As one measure aimed at improving safety culture, the Group has established 9 life-saving rules compliance with which is mandatory for all the employees, including subcontractors and guests.

Preparedness for the elimination of emergency situations

The Group has developed and implemented a functioning set of measures aimed at the prevention and elimination of emergency situations in the industrial enterprises of the Group. The system ensures:

the planning and implementation of measures to prevent emergency situations;
the protection of employees and production facilities;
an increased reliability of the functioning of production facilities;

a decrease in the risk of occurrence of emergency situations of technical origin;
the minimisation of proprietary damage in the case of emergency situations;
the elimination of the consequences of emergency situations caused by natural and technological factors in accordance with the respective action plans.

The Group has established a plan of regular exercises and training sessions. In exercises, the employees practice the following practical activities:

reporting the occurrence of an emergency situation;
bringing the accident and rescue unit into readiness for action;
fault-free stoppage of technological equipment;

localisation of accidents;
using individual protection equipment and primary firefighting equipment;
helping casualties.