Environmental Performance Index Development, Description and Deployment at PT Caltex Pacific Indonesia

Abstract

Abstract PT Caltex Pacific Indonesia (CPI), a production sharing contractor for Pertamina, has a long time experience in utilizing safety, health and environmental performance measures. These traditionally included Loss Time Injury (LTI), Motor Vehicle Accident (MVA) and number & volume of oil spills as End-of Process measures. In 1996, CPI conducted a Safety, Health & Environmental (SH&E) Management Systems Assessment (MSA) using a weighted protocol. CPI extracted specific environmental protocol elements from the MSA protocol and developed an environmental performance metric. This metric, a process measure, was established as a CPI Corporate Performance Measure for 1997. This paper describes how the environmental performance metric was developed, its description and deployment in CPI and its integration with the established Safety and Health metrics. Safety, Health and Environment is a key enabling strategy of CPI's strategic plan. Metrics to measure safety and health performance have been in place for a long time., However, there was no measure for our environmental efforts. With the recent emergence of the ISO 14001 environmental management system and CPI's adoption of a rigorous safety, health and environmental management systems process, it was decided that the best measure of our environmental performance was the rate of development and integration of environmental management practices into our normal business practices. This measure was called the Environmental Performance Index (EPI). This paper describes how the EPI program elements were extracted from the 1996 SH&E MSA audit process, how the 1996 baseline was determined, and how the 1997 EPI target was established. This paper elaborates how the action plans were developed to achieve the 1997 EPI and deployed through all operating teams throughout CPI organizations. Results of the 1997 achievement and challenges are also discussed in this paper. The paper concludes that environmental performance improvement can be measured. It can only succeed through top management commitment and continuous communication and participation by all operating teams. It is a viable process to ensure conformance with ISO 14001 and continuous improvement in environmental performance.