Material Topic Teck 2015 Sustainability Report | Social | Health and Safety of Our Workforce Health and Safety of Our Workforce

Why was Health and Safety of Our Workforce a Material Topic in 2015? Global Context: Every day, 6,300 people die as a result of occupational accidents or work-related diseases — more than 2.3 million deaths per year — and 317 million accidents occur on the job annually, many of these resulting in extended absences from work.6 Many of these tragedies are preventable through the implementation of sound prevention and management practices. The International Labour Organization (ILO) has created occupational safety and health standards to provide tools for governments, employers and workers to enhance workplace safety.

Industry Context Teck Context What is in this Topic? Mining and processing involves the Safety is a core value at Teck and nothing Management approach and performance handling of large volumes of materials, the is more important than the health and of health and safety including occupational use of heavy equipment, and potentially safety of our people. We recognize our health and hygiene. hazardous production processes. It also responsibility to identify and mitigate has the potential to expose employees health and safety risks and we believe it Performance Highlights and contractors to chemical, physical and is possible for our people to work without biological health hazards. We believe the serious injuries and illnesses. As a result Reduced High Potential Incidents (HPIs) mining industry has a responsibility to of two fatalities in 2014, we increased our by approximately ensure that hazards associated with focus on the safety risks that have the operations are controlled to ensure the highest potential to cause serious injury safety and longer-term health of workers. or loss of life. 25% The importance of health and safety is In 2015, there were no fatalities and reflected in the International Council on we continued to build on our efforts to Mining and Metals (ICMM) 10 Principles. improve safety performance, achieving ICMM Principle 5 is to “seek continual 16,000 a 25% reduction in our High-Potential employees and contractors have improvement of our health and safety Incident frequency compared to 2014. performance” and states that member completed Courageous Safety Leadership However, our total reportable injury and training since 2009. companies must implement management lost-time injury frequency edged upwards. systems focused on continual improvement This emphasizes that we must remain Learn More of health and safety performance and take diligent as we work to reach our ultimate all practical and reasonable measures goal of everyone going home safe and See the recently released Health and to eliminate workplace fatalities, injuries healthy every day. safety critical control management: good and diseases among employees and practice guide from the ICMM contractors. Poor occupational health and safety performance can negatively impact labour costs, productivity, morale and reputation. Moreover, low performance in health and safety can significantly impact the lives of our employees, their families and the greater communities in addition to resulting in fines and other liabilities. The health and safety of employees can impact the communities where they live.

Pictured left: Community members in Iquique, Chile near Quebrada Blanca Operations Pictured above: Julia Dick, Utilityperson at Highland Valley Copper Operations 6 Source: http://www.ilo.org/global/standards/subjects-covered-by-international-labour-standards/occupational-safety-and-health/lang--en/index.htm 57 How Does Teck Manage Health and Safety?

We have a three-pillar approach — embedding a culture of safety, Our Targets and Commitments learning from High-Potential Incidents and operating with We believe that all incidents that could cause serious harm to our employees excellence — that drives continual improvement and supports or contractors are preventable. We are our vision of everyone going home safe and healthy every day. responsible for providing a safe workplace by effectively managing workplace risk. Our strategy is to continue to strengthen and achieve a balance We are also committed to providing between the cultural and technical aspects of our health and leadership and resources for managing health and safety to ensure that all safety program — and to ensure that these two streams are employees and contractors have the complementary with one another. knowledge and ability to safely perform their duties. We believe that a safe operation is an to optimize our production and avoid We identify and manage occupational efficient operation. Applying strong potential injuries, accidents, property health and hygiene exposures for the operating standards informed by ILO, damage and operational disruption. protection of longer-term health. We also strive for continual improvement and hold ICMM and global best practice helps us ourselves accountable through verification and reporting of our performance. Figure 10: Three-Pillar Approach We expect all employees and contractors to be leaders in health and safety through identification of hazards and the elimination and control of high-potential risk. We all share in the responsibility for our safety and that of our co-workers. Working together, we believe we can eliminate fatalities and serious injuries in the workplace. Everyone Going Home Safe and Healthy Every Day Each year we set internal targets to improve our safety performance. Our goal in 2016 is to reduce our Lost-Time and Disabling Injury Frequency by 15%. Values Based Learning Operate with Organization Organization Excellence Cultural Aspects Technical Aspects of Management of Management

Accountability and oversight of health and additional oversight of performance, as safety performance rests at the highest well as to evaluate emerging health and level of our company. Health and safety safety trends and initiatives. incidents are reported as they occur, Our Health and Safety Policy defines our in monthly company-wide performance corporate commitment to providing reports and on a quarterly basis to the leadership and resources for entrenching Health, Safety, Environment and Community core values of health and safety across our Risk Management Committee, which is company. In 2014, our Health and Safety made up of several members of our policy was updated to include a statement executive management team. The Safety regarding our commitment to occupational and Sustainability Committee of the Board health and hygiene for the protection of also plays an oversight and governance longer-term health. For more information role in monitoring health and safety at on how our Health and Safety Policy works Teck. We have an executive Health and with our Health, Safety, Environment and Safety Steering Committee to inform our Communities Management Standards, five-year health and safety plan and provide please see page 12.

58 Teck 2015 Sustainability Report | Social | Health and Safety of Our Workforce

Values Based Organization actions for high-risk tasks. Once we identify the root causes of PFOs, our We believe that employee engagement through leadership and commitment is operations also conduct a gap analysis the key to achieving our health and safety and implement corrective actions to vision, and we have implemented two help prevent incidents from occurring major initiatives to foster a culture of safety elsewhere in the company. at Teck: Courageous Safety Leadership We are committed to investigating all (CSL) and Visible, Felt Leadership (VFL). HPIs to comprehensively understand Launched in 2009, CSL focuses on root causes and key contributing factors, challenging existing values, beliefs and and we take actions to prevent HPI attitudes towards safety, and builds recurrences. Using the Incident Cause commitment from individuals to work Analysis Method (ICAM), we consider the safely and foster safe practices at our contributing factors at the individual, team operations. The program, rolled out in a and organizational levels that led to each series of phases, seeks to empower every incident. Throughout 2015, we applied employee to be a safety leader by playing ICAM to 144 incidents. an active role in their own safety as well High-Potential Risk Control as the safety of those around them. Since its inception, more than 16,000 people To proactively identify and mitigate have participated in CSL training. In 2015, High-Potential Risks, we continued to we engaged a cross-section of Teck implement our High-Potential Risk Control employees to help determine the direction (HPRC) strategy in 2015, which has now of the next phase of CSL. This phase will been implemented at all our operations. be implemented starting in 2016 to This program focuses on improving the enhance the development of a positive way we identify and evaluate the controls culture of safety. that will most effectively prevent serious injury or loss of life. VFL is a key health and safety program for management teams across the company The HPRC strategy aims to improve our that helps Teck to evaluate how effectively ability to answer three key questions: CSL and other safety requirements are 1. What are our high-potential risks and being embedded throughout the how do we know? organization. Through VFL, managers interact and engage with our workforce on 2. What critical controls — measures that, a regular basis to foster relationships and when implemented, are more effective gain mutual understanding of the issues in preventing an unwanted event — do the workforce may be facing, particularly we have in place to manage these risks? with regard to working in a safe way. In 3. What processes do we have in place to 2015, a company-wide guidance document give ourselves the confidence that our for VFL was rolled out to each of our sites controls are effective? to outline the expectations for team site Employees across the business are tours, solo site tours, and health and undertaking Work Team Risk Assessments safety meeting participation and feedback. to help answer these questions, look for Learning Organization gaps and work together to close them. As part of our emphasis on reducing HPIs and We foster a culture of continuous learning effectively managing high-potential risk, and improvement in safety performance in 2015 we continued to develop and roll by analyzing High-Potential Incidents, out requirements that establish minimum sharing best practices in safety through employee training and development and controls and expectations for various areas participating with our peers in mine safety that may result in HPIs, including specific working groups, including the Mining standards for the following: Safety Roundtable and the ICMM. We track · Energy isolation and lockout all safety incidents and classify significant · Heavy mobile equipment and other incidents as HPIs, Serious HPIs or vehicle interaction Potentially Fatal Occurrences (PFOs). Analyzing and learning from these · Working at heights incidents allows us to identify and target · Barricading 59 How Does Teck Manage Health and Safety?

Operating with Excellence Employee Health and Wellness Snapshot Operating with excellence in safety means Our company-wide Health and Wellness that we focus on implementing supporting strategy, which focuses on improving Individual Risk Assessment systems and standards that continually physical and mental well-being, continued Through Take 5 improve our safety performance. These to be implemented in 2015. The strategy Individual risk assessments include the identification of high-potential brings together initiatives and resources have an important role to play in risks and associated critical controls, as across the company and builds on work identifying high-potential risks. well as standards, auditing, reporting on already underway at sites and offices. leading and lagging indicators, technological One of the most successful initiatives under The Take 5 personal safety tools, and ongoing communications and the program is our Know Your Numbers planning tool currently in use at training. As part of our work to manage Campaign, a voluntary health testing our steelmaking coal operations high-potential risks and improve health and program to help employees identify potential is an example of an individual- safety performance, we are implementing health concerns. Know Your Numbers level risk assessment that is clinics provide free cardiovascular health helping employees form the an occupational health and hygiene screening that measures several indicators, habit of taking the time to program, employee health and wellness including blood pressure, cholesterol, casual assess workplace risks before program, and drug and alcohol policies. glucose and body mass index. In late 2014 they begin a task. Occupational Health and Hygiene and in 2015, we conducted clinics at Line When they complete a Take 5, The occupational hygiene programs and Creek Operations, Trail Operations, Product employees ask themselves a procedures at our operations help prevent Technology Centre, CESL and at our series of questions under five occupational exposures that could give offices in Toronto, Calgary, and prompts: rise to occupational illnesses. These Vancouver, with 670 employees attending. 1. Stop programs and procedures are designed Learn more in this online case study. to limit worker exposure to potentially · Am I clear on what the task is? Drug and Alcohol Policies harmful substances and other sources of · Do I have the required skills occupationally related illness or disease. We take our obligation to provide the safest and training? This includes exposure to dust, noise, possible workplace for our employees very · Is this task routine? vibration and hazardous chemicals. seriously. We strongly believe that taking measures to eliminate potential misuse of 2. Think In 2014, we formed an Occupational Health drugs and alcohol that can affect at-work · Do I need a permit? and Hygiene Committee consisting of performance and safety is an important corporate and business unit health and safety · Could work conditions change way we can achieve our vision of everyone representatives to assist in the development that may introduce new High- going home safe and healthy every day. Potential Risks during the task? of Teck Occupational Health and Hygiene Teck’s drug and alcohol policies, which · Are there other workers Principles and to inform strategy development. include post-incident and reasonable cause involved/introduced who are In 2015, the committee developed and testing, have been in place at the six mines unfamiliar to the task? issued a self-assessment tool that was in our steelmaking coal business for over applied across all sites to determine the · Could my task seriously injure 10 years. In 2012, our steelmaking coal type of occupational health and hygiene myself or other people? sites expanded these policies to include programs in place. The results are being 3. Observe random testing. Since the initiation of used to guide future strategy and random testing, we have seen a decrease · What High-Potential Risks improvement. The committee also assisted in post-incident positive tests. In addition, may I encounter in my with establishing requirements for Teck voluntary requests for drug and alcohol work environmental or as occupational hygiene programs. I undertake this task? rehabilitation increased following the In 2016, we will work to enhance our introduction of random testing. At our 4. Plan occupational health and hygiene risk Cardinal River Operations in , · How will I control the assessments, monitoring, and exposure random drug and alcohol testing was High-Potential Risks? controls to protect the long-term health of suspended in 2015 after an arbitration 5. Proceed Safely employees. Beginning in 2016, we will decision in which the arbitrator determined develop leading and lagging indicators for there was not sufficient evidence of a drug · Does this task feel right to occupational health and hygiene reporting and alcohol problem at Cardinal River do now? and incorporate these indicators into health Operations to warrant the need for random · If yes, proceed. If no, do not and safety performance reporting. testing. The operation continues to commence task and contact implement pre-employment, reasonable supervisors if effective cause and post-incident testing. Random controls are not in place. drug and alcohol testing at our other

60 Teck 2015 Sustainability Report | Social | Health and Safety of Our Workforce

steelmaking coal sites in incident and reasonable cause testing. is subject to ongoing arbitration. Outside of , all of our operations Sustainability Strategy have drug and alcohol policies that allow In 2015, Trail and Highland Valley Copper Spotlight for testing, including random testing as Operations finalized and rolled out drug permitted under local laws. and alcohol policies that include post- Progress Against Our 2015 Goals As part of our goal to reduce overall total reportable injuries, Case Study there has been a reduction in Total Reportable Injury High-Potential Risk Control: Improving Working at Heights Frequency (TRIF) of Safely at Trail Operations approximately 30% and in Long-Term Injury Frequency Working at heights is a potential and to date, the feedback from (LTIF) of approximately safety issue for mobile equipment employees using the system has 27% since 2010. operators and heavy truck drivers at been positive. For a full list of 2020 and our Trail Operations in British Columbia. The fall protection towers now in 2030 health and safety goals, Operators often access the tops or use at Trail Operations align with our see page 18. backs of tall equipment to adjust High-Potential Risk Requirements canopies, remove ice and snow (HPRR) for working at heights and are buildup, and adjust material weight. just one example of how we ensure In alignment with the best practices that everyone working at our site goes for working at heights, we identified home safe and healthy every day. that these employees and contractors The work done at Trail Operations has were accessing equipment at heights been shared with other operations so of 3–4 metres, which could lead to a they can assess potential applicability. Potentially Fatal Occurrence if they fell. “Use of the new fall protection To help control this risk, Trail Operations towers has mitigated one of implemented an improved fall-arrest our working at height risks. system in 2015 designed to prevent This aligns closely with our High- workers from injuring themselves Potential Risk Control strategy.” when working at heights on these Thompson Hickey, General Manager, pieces of equipment. Trail Operations Trail Operations installed two fall protection towers on-site. While wearing fall protection, workers on-site can use these towers to access the tops or backs of large mobile equipment. The system — similar to that used for railcar access — is equipped with a self-rescue device that safely lowers a worker to the ground if there is a fall. Each person using the towers is required to have fall protection training completed beforehand. Instructions on how to safely use the towers is also provided. The fall protection towers went into service in the third quarter of 2015,

Pictured above: Fall protection-certified employee from Trail Operations at work 61 What was Our Performance in Health and Safety in 2015?

We track several leading and lagging indicators to monitor our safety Outlook for Health and performance. In this section, we report on our safety performance. Safety of Our Workforce Safety is a core value at Teck and Safety Performance Teck’s TRIF is slightly above the average compared to the ICMM, which is made we are committed to continually In 2015, we continued to build on our safety up of many of the world’s largest mining improving our performance. Moving performance in areas of greatest risk. We companies. Companies vary in terms of forward, we will continue to focus sustained no fatalities and we reduced our how they define “injury” under TRIF, as on strategies to reduce incidents High-Potential Incident (HPI) frequency rate does each company’s individual culture that have the potential to seriously or by approximately 25% compared to 2014. of reporting, which means that a direct fatally injure people, or exposures that Total Reportable Injury Frequency (TRIF) comparison may not be completely may result in occupational disease. was 20% higher than in 2014, largely due accurate. Our safety performance is In 2016, we will continue to improve to an increase in medical aid injuries; our summarized in the table below. For more the quality of our High-Potential Risk Lost-Time Injury Frequency increased by detail on safety performance of employees Control strategy implementation, roll 5%. That being said, since 2010, there has and contractors by country of operation, out the next phase of Courageous been a reduction in TRIF of approximately go to the Health and Safety of Our Safety Leadership and build on our 30% and in LTIF of approximately 27%. Occupational Health and Hygiene Workforce section of www.teck.com. Strategy. Table 16: Safety Performance1,2

2015 2014 2013 2012

Total Reportable Injury Frequency 1.24 1.01 1.26 1.33 Lost Time Injuries 78 74 69 94 Lost-Time Injury Frequency 0.43 0.40 0.34 0.46 Disabling Injury Frequency 0.27 0.25 – – Lost-Time Injury Severity 18.6 80 19 17 Number of Fatalities 0 2 0 0

(1) Our safety statistics include both employees and contractors at all of our locations (operations, projects, exploration sites, and offices). For sites where Teck owns more than 50%, safety statistics are weighted 100%; for sites where Teck owns 50% or less, safety statistics are weighted according to Teck’s ownership of the operation. This includes the Antamina mine, in which we have a 22.5% interest. We define incidents according to the requirements of the U.S. Department of Labor’s Mine Safety and Health Administration. Frequencies are based on 200,000 hours worked. Severity is calculated as the number of days missed due to Lost-Time Injuries per 200,000 hours worked. New information or a reclassification of injuries may cause a change in historical data. See our Glossary for definitions of these safety indicators. (2) Increase in severity in 2014 is a consequence of the fatalities, which are automatically counted as 6,000 lost days.

Since tracking of HPIs commenced in Figure 11: High-Potential 2010, we have seen an overall decrease Incident Frequency in HPI frequency (Figure 11). This improvement has been driven by our focus 1. 2 on learning from past incidents, and on sharing lessons learned and associated 1. 0 best practices across our company. Equally, while HPI frequency has declined, 0.8 our operations continue to generate HPIs every year that could have seriously 0.6 or fatally injured one or more of our

employees or contractors, and we continue 0.4 to focus on improving performance. In 2015, there were seven PFOs, which 0.2 Frequency (per 200,000 hours worked) were investigated using ICAM, and corrective actions were developed. The 0.0 ICAM results are shared with all of our 2013 2014 2015 High-Potential Incidents operations in order to facilitate a local gap Serious High-Potential Incidents analysis against the findings to prevent Potentially Fatal Occurrences similar occurrences. 62