oerlikon.com

Health & Safety

GRI 3-3

Oerlikon’s ongoing health and safety (H&S) oversight is designed to maintain an attractive and safe workplace for our employees, as mandated by the Group’s Executive Committee and Board of Directors and in keeping with our core values.

Occupational health & safety

GRI 403-1

As our “Zero Harm to People” target suggests, we strive to ensure that no direct or indirect employees, contractors or visitors come to harm at Oerlikon’s sites or while working for us at external locations. This ethos extends to our impact on the communities in which we operate. In keeping with the principle that all injuries and occupational illnesses can be avoided, we implement workplace programs that promote health-conscious behavior.

To fulfill our commitment to providing a safe and healthy working environment, we engage in ongoing actions to:

  • Continually improve Oerlikon’s HSE performance.
  • Meet or exceed legal and Oerlikon’s HSE requirements.
  • Assess and manage all risks in relation to H&S.
  • Work systematically to apply the parameters, processes and tools defined by the Group-wide, division and local H&S directives and guidelines, and within the scope of an H&S management system.
  • Provide relevant H&S training to all employees.
  • Conduct regular performance reviews.

H&S is a core component of Oerlikon’s Code of Conduct, which is detailed in the Ethics & Integrity section of this report (page 68 to 73). Oerlikon’s Health, Safety and Environmental (HSE) Sustainability Policy was launched in 2016. In January 2022, we formally integrated our other sustainability efforts and HSE into a new policy – Sustainability & HSE Policy. Oerlikon’s intent, ambitions, commitments, actions, roles and responsibilities and governance concerning sustainability, health, safety and environment are defined in the policy, whose key messages appear on page 67 of this report and at www.oerlikon.com/en/sustainability/our-policies.

Hazard identification, risk assessment and incident investigation

GRI 403-2; SASB RT-IG-440a.1

Our H&S management system governs Group-wide H&S practices as outlined in a 21-chapter document that covers a spectrum of H&S, risk management and wellness topics (see box below). Many of these topics are further detailed in Group guidelines and supplemented by division, business unit and business line standards and procedures regarding HSE risks or processes.

We require all sites to conduct a legal HSE compliance check annually, and these undergo third-party reviews every other year. Our system maintains meticulous records that track incidents of and responses to work-related injuries and significant near misses, all of which must be reported to top management and the Group HSE within 24 hours. This approach facilitates precision in response and prevention.

Key health and management system topics

  1. Visible Safety Leadership
  2. Hazard Identification, Risk Assessment & Mitigating Actions
  3. Legal Obligations
  4. Introduction & Training
  5. Good Housekeeping
  6. Roles, Responsibilities & Accountability
  7. Safe Working Procedures
  8. Hazardous Work Activities
  9. Performance Monitoring
  10. Contractor Safety Management
  11. First Aid, Emergency Preparedness & Response
  12. Learn & Share
  13. Management of Process Change
  14. Accident, Near-Miss & Unsafe Situation Reporting, Investigation & Corrective Action
  15. Management Review & Planning
  16. Design Safety
  17. Document & Records Management
  18. Industrial Hygiene & Monitoring
  19. Health and Wellness Issues
  20. Occupational Rehabilitation
  21. Audit & Compliance

Stressors Identification and Exposure Monitoring

All our divisions and sites must have processes in place to identify the work environmental stressors that are to be monitored (see below). Each site is required to undertake environmental stressor (hazard) identification and determine whether monitoring is needed, and if so, what type of monitoring is appropriate.

Stressors monitored include:

  • Toxic/hazardous material exposures
  • Atmospheric contamination
  • Noise
  • Air quality
  • Ventilation
  • Vibration
  • Temperature
  • Flammable gases
  • Fire
  • Radiation
  • Ergonomics
  • Lightening/illumination

Approach to Hazardous Substances

In our coating R&D, equipment and services, a global process directive determines the requirement for the order, use and disposal of dangerous products. Dangerous products are substances, preparations, mixtures and solutions that have dangerous characteristics for people (e.g. poisonous, irritating, etc.) and for the environment (e.g. inflammable, environmentally harmful, etc.) and can therefore involve specific risks. The directive clearly outlines the approach and preventive steps taken in handling such substances:

  • Before a (dangerous) product can be used at a workplace for the first time, either for tests at laboratory level or in the production process, advice on health, safety and the environment must be provided by the local HSE Manager.
  • A list of banned and restricted chemical substances that have a major negative influence on health and the environment has been established. When requesting these banned and restricted chemical substances, the reason why no other chemical product can be used must be submitted. For every product used, a check against the banned and restricted list has to be performed. In case a banned and restricted product is still used, an alternative has to be searched and the banned and restricted product has to be replaced. This search has to be documented.
  • For some chemicals that have been reviewed and deemed acceptable, a global exception exists and the sites do not have to search for alternatives.
  • In handling waste, there must be a map clearly indicating storage areas, which are posted at multiple locations on site so that no one has doubts about where to put which kind of waste. All employees have to be trained in the handling of waste, including where to put which kind of waste, separate and different waste streams, dangers of the waste, etc. If the waste is treated internally after usage, for instance by evaporation, the safety professional has to make sure the facility in question has the necessary permits to carry out this activity. The remaining waste after internal treatment and the waste in general has to be collected and treated by a certified contractor.

Approach to Noise and Air Quality

Noise and air quality are potential stressors. If they are identified at the workplace, preventive measures will be implemented, such as noise reduction initiatives or providing ear protection.

In terms of air quality, specific dust-measurement programs in collaboration with national authorities for coating process may take place in addition to locally required workplace investigations. If required, technical measures to reduce dust and rules for personal protective equipment are regularly updated. This applies in an identical way at customer facilities using Oerlikon’s equipment and in our own coating centers.

Protection From Equipment Usage Hazards

Following the global rollout of our lockout–tagout (LOTO) HSE guideline in 2021, we completed implementation of the procedure during 2022. This measure was launched to protect employees and contractors from hazards that can emerge during machine and equipment servicing and maintenance, where unexpected start up or release of stored energy could occur and cause injury.

HSE Policy and Incident Management

Oerlikon’s HSE Committee establishes the company’s HSE guidelines and processes, drives the implementation of related programs and monitors their performance. The team, led by the Head of Group Operational Sustainability & HSE, works across all sites and businesses. Standardization of HSE practices across the Group is facilitated by an online tool used to track and assign tasks to sites and to follow up on their implementation via an HSE balanced scorecard. For each site, Oerlikon tracks initiatives on training, safety leadership and risk management, and conducts HSE compliance checks.

We regard every Oerlikon employee as being responsible for understanding our H&S policies and making them a reality in practice within our workplaces. Our managers, in particular, have a duty to lead in this regard, and we provide support and oversight via a H&S team of specialists who facilitate Group-wide implementation and monitoring of all related topics.

Thus, training for managers has been a long-standing requirement of our H&S management system. In 2022, we placed this topic again on the agenda, requiring top, senior, middle, and first-line managers to attend refresher courses and committing to establish a process for monitoring people who are undergoing training. In addition, we expect divisions and sites to establish visible safety targets.

In 2022, we conducted analyses of 14 accidents that occurred between January 2020 and May 2022. Although these accidents resulted in minor injuries that required only brief medical treatment, they exposed vulnerabilities in eye safety that alerted us to opportunities for improved practice in protecting the face and eyes in the workplace. A presentation that captured the findings, requirements and recommendations was disseminated company-wide to augment existing safety instruction.

Additional initiatives completed during 2022 include publication of a visual crane inspection checklist and instruction in safe operation of powered industrial trucks and electrical lift trucks. Each of these projects served to complement our existing H&S training and raise awareness of strategies for minimizing risk.

Work-related injuries

Work-related injuries

GRI 403-9; SASB RT-IG 320a.1

Oerlikon’s key performance indicator on safety is our rate of recordable work-related injuries, referred to internally as the total accident frequency rate (TAFR), which is based on 200 000 hours worked by employees (including temporary workers but excluding independent contractors). We find it to be a good indicator because it encompasses accidents and medical treatments that did and did not lead to lost time. H&S data in 2022 includes a few small offices that provided the data.

We established a TAFR target for 2030 that was published in the 2020 Sustainability Report and uses 2019 as our baseline year. In 2022, Oerlikon’s TAFR was 0.75, which is a reduction of 15% compared to 0.88 in the 2019 baseline year. Compared to the initial baseline set in 2016, there has been an aggregate 42% reduction.

At Oerlikon, we consider TAFR to be comparable to the total recordable incident rate (TRIR) since the actual number of cases where illnesses did not result from accidents are low.

The Group also tracks the number of calendar days lost per each Lost Time Accident (LTA) per 200 000 hours worked. For 2022, this LTA severity rate was 12.04, a 26% decrease over 2021, when the rate of 16.17 (including acquisitions) reflected a few accidents that required longer recovery periods.

Oerlikon covers a broader scope than just near-miss and also takes into consideration unsafe situations, which can be unsafe acts or conditions, and safety suggestions (internally referred to NMUS). In 2022, our NMUS frequency rate was 30.6. In 2022, the fatality rate for work-related fatalities was zero.

Oerlikon continues to monitor these indicators closely and is always seeking new opportunities to strengthen our performance and improve the health, safety and well-being of every member of our team.

We conform with the GRI 403 Occupational Health and Safety 2018 by defining high-consequence work-related injury in terms of recovery time instead of lost time to determine an injury’s severity. Recovery time refers to the time needed for a worker to recover fully to preinjury health status. We currently do not measure recovery time but intend to implement a process to track recovery time. In 2022, we had 2 such cases of work-related injury.

Worker training on occupational health and safety

GRI 403-5

“No person is allowed to work for Oerlikon or to visit an Oerlikon site without having received adequate safety instruction and training.” This is the first of our five golden health and safety rules, which clearly states that new employees must receive adequate training before being approved to work at any of our sites.

Training covers site-specific rules, such as walkways and speed limits, and workplace-specific rules, such as personal protective equipment. Testing at the conclusion of training is recommended but not mandatory. The trainer and trainee must sign written confirmation that training was conducted.

In 2022, we piloted a safety leadership training module that was completed by 101 managers over the course of the year. Topics covered in the module include Sustainability & HSE policy, 5 golden safety rules, H&S responsibilities, hazard identification and risk assessment, behavior-based safety, safety moments, near misses and unsafe situations and accident investigation. We plan to continue rolling out this training program in 2023.

Since 2015, Oerlikon has hosted an annual global HSE Day, designed to address areas of existing or potential concern. HSE Day themes have included risk/hazard identification, ergonomics, safe driving, “fit4life” (which encouraged physical activity, healthy eating and getting sufficient sleep), stress management, avoiding toxic substances and, in response to COVID-19, strategies for preventing infection and coping with the mental health impact of the pandemic.

The event went on hiatus for 2020 due to pandemic safety concerns. During HSE Day 2022, employees worldwide participated in activities and training related to the theme Wellbeing and Resilience.

We recognized the importance of acknowledging the stress that many of our employees are experiencing in today’s world. They must manage a combination of external influences, such as health crises, geopolitics, inflation and resource scarcity and alterations to their professional environment, including remote working, the demand for high speed and agility, the rise of digitalization and the need to master the use of new tools and processes.

Studies have shown that even employees who are meeting these challenges successfully can benefit from support in maintaining resilience and health-positive habits. With that in mind, we shared information and resources about ergonomics, physical activity and proper use of the body (posture, movement and managing weight loads), stress reduction and relaxation techniques and mindfulness.

Participants had the opportunity to try a variety of stress-reduction techniques, such as yoga, breathing exercises and journaling. We also provided information about managing conflicts and other difficult situations to encourage mutual trust and foster productive relationships with coworkers.

Occupational health services

GRI 403-3

We organize occupational health services at the legal entity or site level in accordance with local regulations. Oerlikon appoints a local, usually external (third-party) doctor to provide services.

The majority of these doctors work off-site, but a number of doctors have a more permanent presence and provide in-house services at a few of our larger facilities. Appointed doctors regularly attend H&S committee meetings organized by local management to evaluate problems, issues and potential areas of improvement.

Oerlikon’s H&S management system requires that all sites establish and maintain an industrial hygiene program that, with full medical input, anticipates and monitors workplace environmental stressors that may cause illness or disease. This allows us to implement mitigation actions, where needed. At sites where employees work with permitted hazardous substances or face air quality issues, we regularly monitor the health status of the employees by means of preventive medical checkups.

We respect the confidentiality of all employee health and safety related information in accordance with local labor laws and data privacy regulations. The Group’s Data Protection Officer has established stringent internal data privacy procedures and regularly provides information and training on the topic.

Worker participation, consultation and communication on occupational health and safety

GRI 403-4

Oerlikon operates 205 sites in 37 countries, each governed by local labor and labor-related laws and regulations regarding worker participation, consultation and communication. Workers’ participation and consultation are set up in compliance with regulations that differ by locality.

Almost all sites have H&S committees to address health and safety topics. Due to the different local regulations, there are differences in the details of how participation, consultation and communication are done. Generally, committee members include workers’ representatives, a representative from management, an H&S officer and a company doctor.

Meetings take place regularly several times per year (in many countries on a quarterly basis). Oerlikon’s H&S management system requires concerned personnel to be involved in the risk assessment process and in investigations of accidents and incidents and to share lessons learned.

To enhance awareness and communication, safety moments, which are brief discussions on a safety-related topic, are held at the beginning of a work shift to remind employees about safe practices and issues related to safety. This practice extends to both Oerlikon and customer sites that operate the systems.

Promotion of worker health

GRI 403-6

In the majority of the countries where Oerlikon operates, public health systems are in place to meet Oerlikon employees’ need for non-occupational medical and healthcare services.

Oerlikon promotes workers’ health through global and local initiatives. In December 2021, we launched a wellness-focused Adaptive Resilience program designed to help employees learn to foster empowerment, build trust, focus on clarity and improve their mental well-being. During 2022, 13 participants were trained under this program.

Safety measures that Oerlikon initially implemented in response to COVID-19 have now been integrated into our overall approach to workplace health and protecting employees from infectious diseases. These strategies apply equally to emerging health risks and to long-standing seasonal viruses. We continue to offer free flu vaccinations worldwide, and although participation is voluntary, we encourage employees to protect themselves, their coworkers and their families by getting the flu vaccination.

Workers covered by an occupational health and safety management system

GRI 403-8

Oerlikon’s safety rules also apply to indirect employees, such as short-term contractors or technicians servicing machinery. Visitors must review and sign an acknowledgement of the safety instructions before being admitted to a site. This is consistent with our practice of making no health and safety management distinction between direct, permanent staff or temporary members of our workforce who are employed by outside agencies but whose work is controlled by Oerlikon (within legal limits).

Our accident rates cover both types of employees in the same way. Temporary workers accounted for 13% of work-related injuries in 2022 (2021: 12%). Those figures correspond to the proportion of their representation within our total workforce in each of those years.

Likewise, we apply the same safety standards for contractors we engage to work at our premises or on customer sites and make the same commitment to their health and safety.

Prevention and mitigation of occupational health and safety impact directly linked by business relationships

GRI 403-7

Oerlikon adopts the highest standards in ensuring the safety of our products and services within our operations and for customers. We apply these standards from the product design phase through production, assembly, packaging, labeling, training, delivery and on-site customer service.

We also use a certified quality management system to ensure quality standards. If potential dangers cannot be completely avoided when using Oerlikon products, Oerlikon clearly indicates this with health and safety warnings. When transporting products or materials, we adhere strictly to international and local trade, export, packaging, transportation, labeling and declaration paper regulations.

Oerlikon products and services can be clustered into three business models that cover 100% of Oerlikon’s sales:

  • Machinery and equipment
  • Materials
  • Coating as a service/components/AM

For all three categories, Oerlikon has in place comprehensive safety measures, including safety directives, safety data sheets (SDS) and product manuals, and safety is defined and ensured from the very beginning at the design stage all the way to ongoing customer support after delivery of the equipment/product. See the table for further details. In addition, all Oerlikon sites fully comply with international and local safety standards.

Prevention and mitigation of occupational health and safety impact directly linked by business relationships

Equipment

Oerlikon’s equipment is basically built according to European standards and regulations and thus meets one of the highest safety standards in the world and, at the same time, fully adheres to the regulations of local countries in which the products are sold, delivered and used.

Risk Assessment and Precautionary Principle

All equipment undergoes a risk analysis during development as well as during modification over the lifetime of the equipment. The risk assessment is comprehensive, covering technical, operational, health and environmental risks, and addresses all risks and mitigation actions needed. The effectiveness of these actions is then tracked during the project. A final check of the complete risk mitigation is a prerequisite for the final sign-off of the equipment before the product is placed on the market.

Directives on Machine Safety (MS) are in place for both Polymer Processing Solutions and Surface Solutions, following the ISO 12100 Safety of Machinery – General principles for design as the authoritative specification, without being limited to them. The directives are guided by a close-loop concept (see chart below) that considers legal requirements as well as branch-internal and brand-independent external audits.

This internal directive clearly defines the concept, structure and roles of responsibility for ensuring product safety. Safety is one of our essential principles, and the directive informs and enforces our commitment to protecting the safety of persons handling our products at Oerlikon or customer sites worldwide.

At the division and branch levels in the Processing Solutions Division, there are also Safety Committees being set up with clearly defined processes and actions to monitor machinery safety issues and determine appropriate escalation steps when required.

In addition, risks originating from the design or production process are assessed and taken as the basis for the equipment risk assessment. For equipment from acquired companies, the risk assessment is performed during the due diligence process or after the acquisition.

Ensuring Safety from Innovation to Delivery

Safety concepts are created for each system and are applied at each phase of the innovation process from feasibility and verification through equipment and process safety. For the European Economic Area (EEA), CE certification is the final step. Checklists for starting up safety-relevant components are maintained for each system, as are manuals that include SDS. Available in all European languages and more than 10 non-European languages, the sheets highlight residual risks and aspects on which the operator needs training. These checklists, manuals and SDS are delivered with the equipment to customers.

If incidents are reported, we take the following actions, if required:

  • Perform accident analysis with customer
  • Adapt safety concept
  • Send out technical information/safety information to all customers worldwide for prevention

The incident will become a product sustainment project, which will send the technical and safety information to all customers worldwide to prevent and track safety or other issues if they occur.

Moreover, equipment maturity program projects are executed for older versions of machines and for machines from acquired companies if our required levels of safety standards are not implemented.

After delivery of the equipment, we continue to monitor the products for systematic recording and processing of potential risks and detected accidents. Reports on near-miss incidents and customer product observations provide us with feedback that results in mitigation actions or flows back into product development for design improvements.

Customers from both Surface Solutions and Polymer Processing Solutions receive training via extensive documentation, including on residual risk (using an operational manual). We organize regular internal safety events and training on machinery safety. All employees in engineering are trained by the safety department during onboarding and complete regular refresher courses.

Safety Concept on Machine Safety

Materials

SASB RT-IG-440a.1

In our materials business, we regularly check on and enforce our products’ full compliance with all relevant regulations, including the EU’s regulation on Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) and the EU’s Restriction of Hazardous Substances (RoHS) regulation. Products that are not compliant are replaced before introduction on the market.

For all our materials sold, we provide customers with SDS prepared in strict compliance with the legal requirements of the applicable country for the safe use, handling, storage and disposal of these materials. These sheets are published in all the relevant local languages and are available for download online. The SDS provides information including:

  • The national/local emergency telephone number, including 24-hour response service number.
  • Composition/information on ingredients.
  • First aid measures.
  • Firefighting measures.
  • Accidental release measures.
  • Exposure controls and personal protection.
  • Accidental release measures.
  • Toxicological information.
  • Ecological information.
  • Disposal considerations.
  • Transport information.

The SDS are generated with software that complies with regulatory standards and is updated three to four times per year to include any new global, regional or local regulatory classification and requirements. Our team of materials experts network with industry groups and consultants to exchange information and keep up to date on regulatory and technological changes in chemicals and materials.

Coatings

All Oerlikon’s production and coating centers worldwide adhere to strict H&S guidelines provided by the company. It addresses not only health issues, such as ergonomics, but also safety guidelines on how to work with machinery, materials, waste and ensuring protection such as safety glasses.

The safety and prevention procedures and processes for equipment apply to the development of coatings (both thin film and thermal spray) and to the coating processes, both at customer facilities using Oerlikon equipment and in our own coating centers:

  • Risk analysis is performed before the start of a development project.
  • There are clear specifications of basic materials and substances of the coating, which are subjected to regular supplier audits.
  • The layer specifications are determined to ensure the absence of hazardous substances and/or are compliant with limit thresholds defined by standards such as REACH, RoHS or the minimization principle applied at Oerlikon.
  • In the event that the coatings or coating processes generate air particles, specific dust-measurement programs in collaboration with national authorities for coating processes may take place in addition to locally required workplace investigations.

All employees are trained to comply with the rules for the use of personal protective equipment, where required, and these rules are regularly updated.

Contractor Safety

Contractors working at an Oerlikon site must work in a safe way. In 2022, we began global implementation of a guideline that sets high-level requirements for contractor safety and outlines the minimum requirements for contractor safety management that each site must apply when outsourcing jobs and services to contractors. We have established standards for contractors in construction works, facility management, machine installation, maintenance and repair, building maintenance work, industrial services (such as transport and packaging) as well as building and commissioning work.

These guidelines apply to direct contractors and to contractors appointed by the landlord for leased sites. The contractor selection process must be completed in close cooperation with the local procurement department, and the contractor’s safety record, as well as self-information, its health and safety management plans and references, must be provided and considered before the contract is granted.

Oerlikon fully complies with international and local safety standards, including:

  • CE conformity for all equipment, incl. ISO standards (personal and equipment safety); the CE marking (an acronym for the French “Conformité Européenne” certifies that a product has met EU health, safety and environmental requirements, which ensure consumer safety
  • Machinery Directive (2006/42/EC)
  • Low Voltage Directive (2014/35/EU)
  • EMC (electro magnetic compliance)
  • Directive (2014/30/EU)
  • Radio Equipment Directive (2014/53/EU)
  • REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals)
  • RoHS 2 (Restriction on hazardous substances) (2014/65/EU)
  • Germany: Technical Rules for Hazardous Substances (TRGS)
  • Pressure Equipment Directive (2014/68/EU)
  • ATEX Directive (2014/34/EU)
  • USA: UL = Underwriters Laboratories (as per request)
keyboard_arrow_up