Environmental and Social Report 2008

planning for a sustainable future Your views and comments on the structure and content of the Environmental and Social Report 2008 will help us to improve. Please e-mail us at: [email protected] Environmental and Social Report 2008 CONTENTS

Management Message ...... 4 MOTOR OIL’s Profile ...... 5 Timeline of MOTOR OIL’s growth ...... 6 Vision, Mission, Principles and Values ...... 7 MOTOR OIL: 36 years of achievements and growth ...... 8 The 2008 results ...... 9 The refinery ...... 10 Added value – Economic benefits to society ...... 11 Growth - Investments ...... 13 Health, Safety and Environmental Management - Quality...... 15 Corporate Governance ...... 17 Customer Service...... 17 Communication with Stakeholders ...... 18 Commitment to Corporate Social Responsibility and sustainable development ...... 19 Awards ...... 21 AVIN OIL...... 22

Human Resources ...... 23 Human resources management system ...... 24 Equal opportunities and human rights ...... 25 Employment...... 26 Labour relations...... 26 Personnel composition ...... 27 Gender profile ...... 27 Educational level...... 27 Personnel categories...... 27 Average age ...... 27 Length of service and mobility...... 27 Compensation and benefits ...... 28 Discretionary non-wage benefits ...... 30 Education and training ...... 32 Education and training tools ...... 35

Health and Safety ...... 37 Health and Safety Management ...... 38 Upgrading and improving the safety conditions and the quality of the work environment ...... 40 Investments and expenses...... 40 Internal and external inspections ...... 42 Upgrading and improving safety procedures ...... 43 Complying with legislation...... 43 Risk identification and control ...... 43 Reports, measurements and indexes ...... 44 Emergency Response Plans...... 44 Medical services - health ...... 45 Planned shutdowns of refinery units...... 47 Training, safety awareness and cooperation ...... 47 Accident statistics ...... 49 The REACH Regulation...... 50

2 [ENVIRONMENTAL AND SOCIAL REPORT 2008 Security – revised edition of «Port Information & Regulations»...... 51 AVIN OIL...... 51

Environment ...... 53 Environmental management ...... 54 Environmental Management System ...... 54 Environmental investments and expenses ...... 57 Environmental impact management...... 57 Best Available Techniques ...... 58 Climate change ...... 59 International initiatives...... 59 MOTOR OIL’s position ...... 60

CO2 emissions ...... 60 Energy consumption optimization...... 61 Introduction of natural gas to the refinery ...... 61 Electricity and steam co-generation ...... 61 Monitoring and daily practice ...... 62 Air quality management ...... 63 Liquid waste management ...... 66 Solid waste management – recycling ...... 67 Water management...... 68 Noise management ...... 68 Marine environment protection ...... 69 Communication with Stakeholders ...... 69 Participations and collaborations ...... 70 Compliance with environmental legislation ...... 71 AVIN OIL...... 72

Community involvement ...... 73 Contribution to society ...... 74 Contribution to local communities ...... 74 Education ...... 75 Culture ...... 75 Social solidarity ...... 78 Heating ...... 79 Environment – Improving local infrastructure ...... 79 Sports ...... 80 Entrepreneurship ...... 81 Broader social contribution ...... 81 Social solidarity ...... 81 Education, science and culture ...... 86 Health care and volunteering ...... 92 Sports ...... 93

Global Compact: Communication on Progress ...... 97

Principles and boundaries of the Report ...... 98

GRI indicators table ...... 99

ENVIRONMENTAL AND SOCIAL REPORT 2008] 3 ] Management Message MOTOR OIL’s Profile

The strategic objectives and business protection, our human resources and In the field of human resources policies we apply at MOTOR OIL aim social contribution, as well as the management, we continued providing at the achievement of sustainable realization of our economic and our structured programme of development, which pursuits development objectives. discretionary benefits, and we renewed economic growth consistent with our personnel by hiring new colleagues. human well-being, in conditions of In year 2008, MOTOR OIL’s sales environmental sustainability. amounted to 9.3 million metric tons, Environmental protection is always a breaking the 9 million tons barrier for principal issue, and efforts to improve The Environmental and Social Report the first time. However, the year’s the refinery’s environmental footprint 2008 that you are currently perusing – financial results were significantly are continual. In year 2008, the the seventh consecutive edition – burdened by the negative effect of refinery was connected to the natural presents the disciplined and stock valuation at the end of the year, gas network; the project of upgrading systematic work of our employees, the due to the very sudden adjustment of steam production was completed; measurable results and the strategic international oil prices in the second many other smaller environmental handling of challenges by MOTOR OIL, half of the year and especially in the investments were implemented; and as they arise from the pursuit of last quarter. the company received the «ECOPOLIS sustainable growth through the 2008 – Environmental Investment» application of the principles of Our investment plan continued in year award for the second consecutive year. Corporate Social Responsibility. 2008 with the new Crude Distillation Unit project entering the construction In the field of community involvement, This year, we endorsed and are phase, and the largest-scale periodic year 2008 saw the disbursement of participating in the United Nations maintenance programme in the history around 4.7 million euros in support of Global Compact initiative, the purpose of the refinery being completed the work of various foundations and of which is to guide enterprises smoothly and safely. The new unit, authorities, both in the local towards sustainable growth through together with the expansion of the communities and in the broader voluntary and responsible behaviours sulphur recovery and production units, society. We continued with our project and actions. Therefore, we are will be commissioned in year 2010. for rehabilitation of Makistos village in committed to full compliance with the Ileia, which was destroyed in the forest ten principles of the Global Compact. Occupational safety continues to be fires of August 2007. The last home is our primary objective. This year, our expected to be handed over within year We strive for continuous improvement activity in this area focused on the 2009. in what we do, and for our efforts to be certification of the Health and Safety more effective, we need to set the right Management System in accordance The perusal and acceptance of our targets. In year 2008, with the with the OHSAS 18001:2007 Report by all of you, our stakeholders, participation of all our people, we international standard, on equipment and your comments (favourable or focused on programmes relating to improvement projects and on projects unfavourable) help us in becoming safety at work, environmental minimizing the risk of accidents. better.

4 [ENVIRONMENTAL AND SOCIAL REPORT 2008 MOTOR OIL’s Profile

Value creation with respect for people and the environment

Combining a progressive perception on corporate responsibility with an efficient business model, competent people and management, MOTOR OIL is on a course of continual growth and value creation for all stakeholders, while it effectively fulfils its social role, enhancing its societal contribution and paving the way for its future growth. ] Timeline of MOTOR OIL’s Growth

MOTOR OIL’s Profile 1972 Refinery begins operations. It comprises a crude oil distillation unit, base oils production unit and port facilities.

1975 Construction of a 100,000 barrels/day crude distillation unit and storage facilities of 1.5 million cubic metres capacity.

1978 Construction of a catalytic reformer unit (further processing of naphtha for gasoline production).

1980 Commissioning of a catalytic cracking unit (for converting fuel oil to higher-value products).

1984 Construction of a power plant, burning fuel gas. Company granted the right to sell surplus energy to the national power grid.

1993 ISO 9002 quality certification for the entire range of the company’s commercial and manufacturing activities.

1996 Purchase of 50% of the company’s shares by Aramco Overseas Company B.V., a wholly-owned subsidiary of the Saudi Arabian Oil Company (Saudi Aramco). Relocation of head office to new modern facilities in Maroussi.

2000 Production of fuels conforming to EU specifications for 2000. New units were constructed and the naphtha reformer was upgraded into a continuous 103-octane number catalyst regeneration unit. ¡ew central control room and installation of a Distributed Control System. The Environmental Management System is ISO 14001:1996 certified.

2001 Increase of the company’s equity capital through public offer of shares and listing on the Athens Stock Exchange. Installation of a new gas turbine in the power plant. Upgrading of the lubes vacuum distillation unit.

2002 Acquisition of 100% of the retail oil marketing company AVIN OIL.

2003 Certification of the Quality Management System of the company compliant with ISO 9001:2000 in January 2003, for the whole spectrum of its operations.

2004 Commissioning of the new Truck Loading Terminal at the refinery. The Environmental Management System is recertified, according to ISO 14001:2004, for a further three years.

2005 The Hydrocracker Complex is commissioned, facilitating the production of clean fuels conforming to European Union specifications for 2005 and 2009. Motor Oil Holdings S.A. acquires the stake in MOTOR OIL previously held by Aramco Overseas Company B.V.

2006 Recertification, according to ISO 9001:2000 for three more years. ISO 17025:2005 certification of the refinery’s chemical laboratory.

2007 ISO 14001:2004 recertification of the Environmental Management System valid until 2010. Registration of the company in the Hellenic Register of EMAS (Eco-Management and Audit Scheme). Award «ECOPOLIS 2007 – Environmental Investment» Award "ECOPOLIS 2007 – Environmental Investment"

2008 Health and Safety Management System is certified compliant with OHSAS 18001:2007. Safe accomplishment of the largest shut down in the history of the refinery for periodic maintenance works. New Crude Distillation Unit enters the construction phase. The company is awarded by the NGO Ecocity with the "ECOPOLIS 2008 – Environmental Investment" award for a second consecutive year.

6 [ENVIRONMENTAL AND SOCIAL REPORT 2008 [ Vision, Mission, Principles and Values MOTOR OIL’s Profile

Since 1972, when MOTOR OIL began operating as an oil refiner and oil products marketing company, it has always functioned with responsibility and integrity, aiming at sustainable profitability and growth in a socially responsible way. Its Corporate Vision and Mission define the context which drives the planning and implementation of its dynamic growth. Moreover, its operation is founded on a set of firm Principles and Values that underpin its business activity.

MOTOR OIL’s Vision and Corporate Mission are underpinned by three basic Principles:

Respect for our people Respect for the environment Transparency

The realization of the Vision and Corporate Mission is based on four corporate Values:

Efficiency Responsibility Social Responsibility Integrity

ENVIRONMENTAL AND SOCIAL REPORT 2008] 7 ] MOTOR OIL: 36 years of achievements and growth

MOTOR OIL’s Profile MOTOR OIL plays a leading role in the crude oil refining sector and the marketing of petroleum products in Greece and the greater region of the Eastern Mediterranean, supplying this region with a wide range of high quality products. With a consolidated income, in 2008, equivalent to approximately 2.4% of Greece’s GDP, it constitutes one of the main pillars of the national economy.

MOTOR OIL was established in 1970, and its refinery was commissioned in 1972. It is listed on the Athens Stock Exchange since 2001, and is included in the FTSE/ATHEX International Index, the FTSE/ATHEX- 20 Index, the General Index (ATHEX Composite Index), the MSCI (Morgan Stanley Capital International) Small Cap index, and in other sector- specific indexes.

The company owns 100% of AVIN OIL shares and, directly or indirectly, is a shareholder with various holdings in eight other companies, details of which are included in MOTOR OIL’s Annual Financial Report 2008.

Key Consolidated Results (in million euros) MOTOR OIL Sales by Market Sector (in thousand MT) 6,000 300 9,321 5,000 8,376 8,313 250 4,000 200 3,000 150 2,000 Turnover 100

1,000 50 Earnings before Taxes, EBITDA 0 0 2006 2007 2008 2006 2007 2008

Turnover EBITDA Earnings before Taxes Domestic market Public Power Corporation Export market Bunkering market

8 [ENVIRONMENTAL AND SOCIAL REPORT 2008 [ MOTOR OIL’s Profile

KORINTHOS POWER S.A. has been The 2008 results OIL’s consolidated financial granted an electricity production The consistent and successful pursuit statements – apart from the parent licence by the Ministry of of MOTOR OIL’s strategy has resulted company – also incorporate the results Development, for a 396 MW natural in successively increased sales and of AVIN OIL, KORINTHOS POWER gas combined-cycle plant, located in profitability. Year 2008 was yet S.A. and MAKREON S.A., with the Aghioi Theodoroi/Corinth. On the another important year with respect to "full consolidation" method, and those basis of a Joint Venture Agreement the achievement of financial results, of OLYMPIC FUEL COMPANY S.A. signed in November 2008 between implementation of investments and and HELLENIC AVIATION FUEL MOTOR OIL and MYTILINEOS S.A., forming of strategic alliances. COMPANY S.A. (HAFCO S.A.), with MOTOR OIL’S holding in the share the "net equity" method, while capital of KORINTHOS POWER The chart shows the progress of three ATHENS AIRPORT FUEL PIPELINE will be reduced to 35%, and the key indicators of consolidated COMPANY S.A., AVIN ALBANIA S.A., holding of MYTILINEOS S.A. will be performance– Turnover, EBITDA BRODERICO LTD and 65%, and expected to be included in (Earnings Before Interest, Taxes, ELECTROPARAGOGI SOUSSAKI S.A. the energy portfolio of ENDESA Depreciation and Amortization) and are included at their acquisition cost. HELLAS S.A. EBT (Earnings Before Taxes). MOTOR MOTOR OIL’s sales figures for 2008, in the three markets in which it operates – domestic, exports and HOLDINGS (as at 31.12.2008) bunkering (marine-aviation) – broke SUBSIDIARIES Share the barrier of 9 million metric tons for AVIN OIL S.A. 100% the first time in its history, reaching KORINTHOS POWER S.A. 100% MAKREON S.A. 100% AVIN ALBANIA S.A.* 100% BRODERICO LTD* 100% ELECTROPARAGOGI SOUSSAKI S.A.* 70%

ASSOCIATED COMPANIES Share OLYMPIC FUEL COMPANY S.A. 28% HELLENIC AVIATION FUEL COMPANY S.A. (HAFCO S.A.) 50% ATHENS AIRPORT FUEL PIPELINE COMPANY S.A. 16% * Inactive.

MOTOR OIL Share in the Inland Market MOTOR OIL Sales by Product Group (in thousand MT) 9,321 2006 2007 2008 8,376 8,313 Domestic market 21.6% 20.6% 27.4% Bunkering market 29.0% 25.7% 21.3% INLAND MARKET TOTAL 23.4% 21.9% 25.9%

2006 2007 2008

Asphalt Fuel Oil 2.4% of GDP Diesel Oil (Automotive-Heating) Jet Fuel Gasoline LPG Lubricants Other The 2008 Consolidated Income

ENVIRONMENTAL AND SOCIAL REPORT 2008] 9 ] The refinery

9.3 million tons. The quantities The company’s refinery is located in The Crude Oil (Atmospheric)

MOTOR OIL’s Profile supplied to each of these markets are Aghioi Theodoroi, Corinth, Distillation unit produces liquefied determined by the relevant demand, approximately 70 km from the centre of petroleum gas, naphtha, jet fuel, but also by the company’s aim of Athens. Together with its auxiliary diesel and fuel oil. Some of these supplying its products in markets facilities and its marine and truck products are subjected to secondary offering higher margins. loading terminals, it is the largest processing in view of improving their private industrial complex in Greece quality, such as the catalytic reforming Exports to more than fifty countries and is considered as one of the most of naphtha to produce gasoline were realized in year 2008. state-of-the-art refineries in Europe, and the hydrotreating of middle with a Nelson Complexity Index of didtillates to produce heating gasoil As for the annual financial results 11.95. and low-sulphur diesel oil. (earnings before taxes), despite the Fuel oil, which accounts for the largest particularly strong 9-months earnings, The refinery processes crude oil of quantity but lowest value product were negatively influenced during the various types, producing a wide range of atmospheric distillation, last quarter of 2008 by the sudden of oil products, complying with the is processed in conversion units adjustment of international oil prices, most stringent international (Thermal, Catalytic and due to the global economic crisis and specifications, and supplies oil Hydrocracking), which increase the the consequent unfavourable companies in Greece and customers production of high value white conditions in the refinery sector. abroad. Moreover, it is the only Greek products, such as diesel and gasoline. refinery that produces base oils. The products produced at the refinery comply with the European Union specifications that became effective on January 1st, 2009, as well as the strictest relevant international specifications. 411.4 million euros The year 2008 Social Product

10 [ENVIRONMENTAL AND SOCIAL REPORT 2008 [ Added Value - MOTOR OIL’s Profile Economic Benefits to Society

natural resource. In year 2008, the We create value for both our It produces all types of fuel refinery was connected to the national shareholders and other stakeholders, products and is one of the most natural gas network, acquiring the and for the society as a whole, by complex and state-of-the-art capability of using natural gas for the aiming at achieving sustainable refineries in Europe, with production of hydrogen, and also as a fuel development, and by faithfully applying Hydrocracking and Catalytic for its thermal and energy requirements. the principles of Corporate Governance. Cracking units and with a Nelson This capability adds flexibility in the selection of the best mix of raw materials The scale of our operations, combined Complexity Index of 11.95. and fuels, while also further improving the with our consistent focus on steady It produces clean fuels (gasoline and refinery’s environmental performance. growth, result in a very significant diesel) in accordance with EU contribution to the national economy. specifications for 2009. Liquid waste is collected and treated at This contribution, which is directly It has ISO 9001:2000 certification the Waste Water Treatment Plant and the associated with the efficiency and for quality, ISO 14001:2004 for the Urban Liquid Waste Treatment Plant. commercial success of our industrial environment, OHSAS 18001:2007 operations, encompasses value and job for Health and Safety, while the The Truck Loading Terminal which has creation, the contribution to social refinery’s Chemical Laboratory is been operative since year 2004 has progress and cohesion while protecting also certified as per ISO significantly strengthened MOTOR OIL’s the quality of the environment. 17025:2005. competitive position on the market in It is the only Greek refinery that Southern Greece. Additionally, Our functioning in the particularly produces base oils. in view of improving its share in important energy sector reduces the It is energy-independent – installed Northern Greece and obtaining better country’s dependence on foreign power 68.3 MW. access to the Balkan markets, the suppliers of oil products. On a first Its tanks have a capacity of company obtained, in year 2007, a long- level, our interaction with stakeholders term lease for a Truck Loading Terminal creates primary value for all those 2,300,000 m3. in the area of the city of Kavala. concerned. On a second level, it It has modern facilities for tanker contributes to the creation of value for docking, suitable for tankers of up to the national economy and society as a 450,000 tons DWT. whole. This is achieved by creating

The operation of a refinery requires Social Product Components in 2008 auxiliary supplies of electric power, Total: 411.4 million euros water and steam. The refinery’s electric energy requirements are fully covered by Other procurements Salaries, wages and other four gas turbines in the Power Co- 14.5% personnel benefits, including Social Security contributions generation Plant. Needs for high pressure Maintenance 23.5% steam are covered by four boilers, 8.0% combined with the steam produced in Donations some refinery units, while the seawater /Sponsorships 1.1% desalination units produce water of a suitable quality for supplying the Banks State revenues 9.5% 11.1% boilers. By the addition, in 2007, of a new, reverse osmosis desalination unit the refinery’s water requirements are fully Shareholders covered, saving significant quantities of 32.3% fresh water, the at risk highly valuable

ENVIRONMENTAL AND SOCIAL REPORT 2008] 11 ]

jobs, continuously improving our

MOTOR OIL’s Profile production processes, as well as by investing in expanding or upgrading our own facilities.

In 2008, the group’s income totalled 5,544.9 million euros, equivalent to approximately 2.4% of Greece’s Gross Domestic Product (GDP) that year. Of this, 4,980.6 million euros were allocated to the purchase of raw materials (crude oil) and fuel products, accounting for 89.8% of the group’s total revenue, this high proportion being an inevitable consequence of the nature of the group’s activities.

The extent and composition of our contribution to society is clearly determined by the magnitude and the constituents of the social product we produce.

The social product can be defined as that part of our income that is allocated to a selected group of stakeholders, that is: company employees, the state and social security funds, shareholders, banks, suppliers and society in general (donations and sponsorships). stakeholders in 2008 was 411.4 It encompasses: payroll expenditure million euros (compared with 409.1 and various other employee benefits, million euros in 2007 and 380.0 over and above those required by million euros in 2006). legislation (such as additional health insurance for hospital treatment and In the past three years, MOTOR OIL additional pension allowances); has contributed in excess of 167 social insurance contributions million euros in revenue to the state 726 million made to the various social security budget, through taxes and other funds; corporate income taxes and payments, and has paid its personnel, euros duties paid to the state; donations in net salaries and other benefits, over and sponsorships; interest paid to 208 million euros. The total credit institutions; expenses related to regular preventive maintenance Furthermore, during the past three investments programmes; payment of suppliers and years, its contribution to public welfare dividends paid to shareholders. initiatives amounts to 12.0 million over the last euros (see chapter Community On the basis of the above assumptions, Involvement). seven years the social product paid off to

12 [ENVIRONMENTAL AND SOCIAL REPORT 2008 [ Growth - Investments MOTOR OIL’s Profile

The core of MOTOR OIL’s business model comprises the responsible growth of the value of the company for the benefit of all stakeholders. This is achieved by means of a continual and duly targeted investment programme, and the application of effective organizational and management systems, which lead to high operational efficiency in all sectors, with consequent higher financial returns. At the same time, the company’s Principles and Values impose the element of sustainability to this growth, which means that the pursuit of the best Full automation of refinery concerning the Environment, possible results goes hand in hand with operations. Health and Safety. respect for people and the environment, Increasing the efficiency of Strengthening of preventive and by guaranteeing safe working production processes and the safety measures in process units conditions. availability of process units. through investments in automated prevention and In this context, our strategic objective ● Effective product marketing in a protection systems that fulfil or remains the consolidation of MOTOR way that enables the attainment of exceed the specifications OIL’s position as a leading refining and optimal overall profitability from foreseen by Hellenic law and fuel products marketing company in the the three principal markets international regulations. broader Eastern Mediterranean region. In (domestic, bunkering and export), Upgrading the reliability of the order to achieve this objective, we in order to achieve the best process units’ support systems, implement a consistent but flexible possible profitability, by means of: such as the power and steam business strategy, which is focused on the Co-generation Plant and other following three key goals: Maximising the domestic market critical utilities. share by improving the Implementation of personnel distribution network. training programmes based on the Developing export sales, use of the most advanced ● Maximising economic performance particularly targeting high technology systems, such as (i.e. the refinery profit margins) by potential developing markets simulators for training the means of: with significant profit margins. operators of process units. Expanding and exploiting the Expanding the refinery company’s storage facilities in view Achieving our strategic objectives – value distillation capacity by 60,000 of improved response to demand creation through the production and barrels per day (see below). for products and improved marketing of oil products conforming to Applying new product customer service offer. the most stringent international specifications promptly and as specifications, without compromising cost-effectively as possible, by ● Achievement of the highest possible environmental protection, and the health exploiting state-of-the-art level of Health and Safety, and safety of our own employees and technologies (see below). Environmental Protection and subcontractors – requires major capital Improving the energy-efficiency Quality, through technological, investments. In the seven-year period of the refinery, thus reducing its operational and organizational 2002-2008, total capital investments

operating cost as well as CO2 adaptations to the refinery, such as: reached 726 million euros (refer to emissions (see chapter chapter Environment). The major part of Environment). Implementation of programmes this investment was spent on the

ENVIRONMENTAL AND SOCIAL REPORT 2008] 13 ]

construction of the Hydrocracker The largest-scale periodic investment in the new Crude Oil

MOTOR OIL’s Profile complex. The commissioning of this maintenance programme in the Distillation unit, to be commissioned in complex, in November 2005, allowed company’s history (31.1 million 2010. The capital expenditure for the the production of clean fuels compliant euros). new 60,000 barrels/day Distillation unit not only with European Union Expenditure for the New Crude will come to around 180 million euros. specifications for 2005 but also with the Distillation Unit, which entered the This investment is part of the refinery stricter specifications applying from construction stage in year 2008 expansion programme, for which 2009. At the same time, it helped to (26.6 million euros). MOTOR OIL has already invested increase the production of middle Works to increase storage capacity significant capital funds. With the new distillates of which there is a shortage in (7.9 million euros), with the unit, the refinery’s capacity will exceed Greece and in Europe. The refinery has construction of tanks for LPG (5 170,000 barrels/day or 9.0 million MT also gained more flexibility, allowing the tanks), fuels (6 tanks), lubricants (2 per annum. Additional benefits are maximization of either diesel or gasoline tanks) and desalinated water (1 expected from the substitution of production, according to seasonal tank). imported Straight Run Fuel Oil by own- demand. Finally, commissioning of the The project for upgrading the produced product, the possibility for Hydrocracker helped to improve the lubricants’ production complex. further optimization of crude oil supplies, refinery’s environmental performance The following projects, which were and the ability to process new types of even further by reducing emissions of completed in year 2008: crude oil. certain pollutants. ● Connection of the refinery to the Besides the construction of the new The rest of the capital investment national natural gas network. CDU, growth prospects include the programme has been focused on the ● Construction of the new machine current projects of upgrading the technical upgrading of the refinery, in shop and the new central lubricant unit and expanding the storage terms of vertical integration, automation, warehouse. capacity. energy sufficiency and environmental ● Maintenance and refurbishment protection. As a result, it is now of all steam production boilers. Finally, of the new projects to be considered as one of the most technically Expenditure for the last of the 4 commissioned in year 2009, the most advanced refineries in Europe and boilers for 2008 came to the important are: the construction of a new worldwide (on the basis of the Nelson amount of 1.4 million euros. sulphur recovery unit and the upgrading Complexity Index achieved), with OHSAS ● Refurbishment of the Truck of the wastewater treatment plant 18001:2007, ISO 14001:2004 and Loading Terminal in Kavala, (environmental projects that will make a ISO 9001:2000 certification for its which the company has obtained significant contribution to the health and safety, environmental and through a long-term lease improvement of the refinery’s quality management systems, contract. Expenditure for 2008 environmental performance), as well as respectively. amounted to 1.1 million euros. projects for increasing the electricity generation capacity. Overall, the group’s investments for year The Company growth prospects for the 2008 amounted to 78.4 million euros 3-year period 2008-2010 are based on and concerned the following, amongst an investment plan which includes an others: increase in distillation capacity due to the

488 million euros the environmental protection investments over the last seven years

14 [ENVIRONMENTAL AND SOCIAL REPORT 2008 [ Health, Safety and Environmental MOTOR OIL’s Profile Management - Quality

Ensuring Occupational Health and Health, Safety and Environmental Protection Policy Safety and Environmental Protection is part of our corporate Principles and Values and constitutes a fundamental MOTOR OIL operates with due respect for Health, Safety and the Environment. strategic aim. That is, we strive to To that end, the company is committed to: carry out our industrial and commercial operations without Setting goals compatible with the continuous improvement of its Health, Safety compromising the health and safety of and Environmental management systems. our employees and collaborators, Complying with, or exceeding, the requirements of relevant legislation or other while maintaining the highest obligations. standards of environmental protection Producing guaranteed quality products in accordance with or exceeding Health and respecting the quality of life of and Environmental Protection specifications applicable to each, making efficient those living in the vicinity of our use of raw materials, energy and technology. industrial facilities. Reporting its performance, good or bad, as a responsible corporate citizen. Maintaining emergency action plans which are regularly rehearsed. The importance we attach to the Operating a coherent Integrated Management System that takes account of management of Health, Safety and Health and Safety, and Environmental Protection factors when plans are drawn Environmental Protection, and our up, or business and operational decisions are being taken. commitment to the continuous Offering advice, information and training, to its own employees and to improvement in these areas, is set out subcontractors and others working on its premises, so as to ensure their vigilance in the relevant policy that governs the and commitment to compliance with safe working practices. operation of the Environmental Management System (ISO Actively and uncompromisingly complying with environmental operating 14001:2004 certified) and the standards that set limits on waste and polluting emissions. Health and Safety Management Co-operating with all stakeholders for developing and applying balanced Health, System (OHSAS 18001:2007 Safety and Environmental Protection programmes that take into account the certified since 2008), which lay down needs of all parties involved. the detailed programmes and measurable targets to be achieved. At MOTOR OIL, anything we plan, design or do is done safely, in an environmentally-friendly manner, and with financial efficiency.

We are equally committed to quality always taking under consideration management, which is an integral part of the stakeholders’ interests. our strategy. Since the start of its MOTOR OIL focuses on its operations, MOTOR OIL, with respect customers, examines and evaluates and responsibility towards its customers, their requirements and applies all has focused its efforts on supplying them necessary technologies and actions, with high-quality products. in order to avoid compromises in quality matters and constantly strives MOTOR OIL’s quality policy is summed to improve the effectiveness of its up in two key principles, to which both Quality Management System. management and employees are fully committed: The quality policy is applied through preventive management procedures, MOTOR OIL will produce and sell which allow potential problems to be products that satisfy its customers, pre-empted before they arise.

ENVIRONMENTAL AND SOCIAL REPORT 2008] 15 ]

The customer-oriented Integrated

MOTOR OIL’s Profile Management System takes full account of quality issues in all operational and management processes, as shown in the diagram. The consolidation of the Environmental Management System and the Health and Safety Management System, into the Integrated Management System confers an overall coherence to the company's operational management and links these management systems with other related processes, helping to maximise their effectiveness.

The company’s Integrated Management System, through which its quality policy is implemented, is certified according to ISO 9001:2000, by Bureau Veritas (BV). In year 2008, the certification’s scope was extended to include activities relating to biofuels (production, distribution and trading).

The Quality Control Management process meets the requirements of the ISO 17025:2005 standard and the Hellenic Accreditation System (ESYD) has certified the refinery’s Chemical Laboratory as fit for purpose and able to carry out testing in accordance with the requirements of the standard, and issues Quality Certificates endorsed by ESYD for practically all the company’s products. This certification is an additional competitive advantage, that is the quality of our products is now guaranteed.

16 [ENVIRONMENTAL AND SOCIAL REPORT 2008 [ Corporate Customer Service MOTOR OIL’s Profile Governance

The supreme administrative body of MOTOR OIL aims to being as The results of the survey are analysed the company is the Board of Directors, customer-focused as possible and is and evaluated with a view to building which is elected by the Annual Ordinary adopting a systematic approach to on the company's strengths, detecting General Meeting of Shareholders and satisfying customer requirements. weaknesses and taking action to operates according to the provisions of Besides its direct contact with correct them, thus demonstrating the law 3016/2002 on Corporate customers, it conducts a quantitative customer-focused nature of the Governance and the company’s Articles and qualitative customer satisfaction company's strategy. of Association. Information about the survey approximately every two years, board’s structure is available in the covering the full spectrum of its Such surveys were carried out in years company’s website. clientele. This is aimed at establishing 2003, 2004 and 2007. The an objective view of their level of processing of responses and The company’s management and control satisfaction, learning about their recommendations from these surveys is based on the modern principles of perception of the quality of our led to a series of interventions that corporate governance, as prescribed by services, and obtaining feedback about allowed for a reduction in oral or legislation and the relevant regulations, their overall impression of MOTOR written complaints from customers, and by other international codes of best OIL’s corporate image. Within the despite the fact that the increase in practice and auditing standards. Its framework of the survey, customers are sales volumes between 2003 and strategy and daily operations are asked to respond to 7 groups of 2008 exceeds 35%. deployed within the framework of questions covering the following issues: corporate governance principles, which determination of the customer’s govern issues such as: the structure of its relationship with the company, Board of Directors; its compliance with satisfaction from the quality of the legal and regulatory provisions; the company’s products, speed of order respect for, and protection of, processing, issuance of bills of loading shareholders’ interests; the reliability of and invoices, loadings on ships or information disseminated; and the trucks, handling of complaints, and systematic assessment and management general evaluation of the company’s of corporate risks. image by the customer.

Two three-member committees operate The basic objectives of this survey are: within the framework of the Board of Directors: the Internal Audit Committee Evaluating customer satisfaction. and the Compensation Committee. Evaluating the perceived quality of the whole range of MOTOR OIL’s The Internal Audit Department reports services. directly to the Board of Directors, and is Determining aspects of MOTOR supervised by the Internal Audit OIL's current products, services and Committee. The company’s independent offers that need to be improved. internal audit system aims at ensuring Determining the criteria used by compliance with the company’s those selecting MOTOR OIL as a procedures for managing financial and supplier, and assessing the operational matters, as well as at impression they have of MOTOR safeguarding issues related to the OIL’s image as a supplier or efficient management of business risks. partner. The company’s financial results are also Assessing MOTOR OIL's overall audited by independent chartered corporate image. auditors, in view of complying with its legally instituted obligations.

ENVIRONMENTAL AND SOCIAL REPORT 2008] 17 ] Communication with stakeholders

MOTOR OIL’s stakeholders, as well and our desire to discuss and take Shareholders: At the end of 2008,

MOTOR OIL’s Profile as their interaction with the company, into consideration their needs, so that 61.5% of the company’s shares are schematically shown in the any social and environmental impacts belonged to its founding family diagram. The communication and may be confronted with mutually (Vardinoyannis family), while the cooperation we have developed acceptable solutions, as much as remaining 38.5% belonged to with stakeholders expresses the possible. investors. Communication with importance we attach to this issue, shareholders is implemented in various ways: through the company’s website, with press releases and announcements issued by the Investors’ Relations Section, through the Annual Financial Report and the Environmental and Social Report, through the operation of an Investors’ Relations Section, and with regular participation in roadshows.

Employees: Various communication methods are used, such as corporate announcements, the intranet and task forces.

Society (with emphasis on local communities affected by the company’s operation): Communication takes place mainly through Local Authority bodies, as well as other authorities, such as private associations and organizations (see chapter Community Involvement and p. 69).

Stakeholder "Society" also includes:

● Non-Governmental Organizations and other social organizations, as well as Academic and Scientific Bodies. Chapter Community Involvement contains detailed reference to collaborations developed with these stakeholders in year 2008. ● Business Organizations: MOTOR OIL is a member of the Hellenic Global Compact Network, the

18 [ENVIRONMENTAL AND SOCIAL REPORT 2008 [ Commitment to Corporate Social MOTOR OIL’s Profile Responsibility and Sustainable Development

Hellenic Network for Corporate MOTOR OIL operates in the oil sector, environment, and fulfilling our Social Responsibility, the Hellenic where the principles of Corporate obligations to all stakeholders (our Federation of Enterprises (SEV), Social Responsibility and sustainable employees, shareholders, customers, the Athens Chamber of Commerce development need to be particularly suppliers and society as a whole). and Industry (EBEA), and other applied and respected, given that crude regional Chambers, CONCAWE, oil reserves are finite, and that their MOTOR OIL is a founding member of MOIG (Mediterranean Oil Industry exploitation – from extraction and the Hellenic Network for Corporate Group, and OCIMF (Oil transportation, to refining and the use Social Responsibility and the Hellenic Companies International Marine of refined products – has environmental Global Compact Network, since it has Forum), see p. 70. consequences that need to be ratified in 2008 and participates in the effectively dealt with, using the latest UN Initiative for the Global Compact, Customers: Due to the nature of its available technology. the purpose of which is to guide business, MOTOR OIL has a enterprises towards sustainable relatively small number of Corporate Social Responsibility (CSR) development, through volunteer and customers. Communication with indicates a balanced approach to the responsible behaviour and actions. customers is mainly the task of the economic, social and environmental Therefore, the company is committed Marketing Division, which involves impact of business operations that is to complying fully with the ten other company departments if consistent with the "society – principles of the Global Compact with necessary. Information about environment – economy" triangle. This respect to: products can be found on the is widely and universally accepted by company’s website, as well as in responsible members of the global human rights, the Material Safety Data Sheets. business community and underpins the labour relations, main aspiration of corporations in the environment, and Associates and suppliers: These terms of creating value for their transparency (anti-corruption). are providers of products and shareholders, while satisfying contractor services at the refinery, customers, ensuring employee welfare, Moreover, MOTOR OIL as a responsible where there is a structured protecting the environment and public company, listed on the Athens communication programme for contributing to society. This Stock Exchange, ensures that its providing them with suitable encompasses the notion of sustainable activity complies with the current code information on matters of health, development, the kind of development of business ethics and meets safety and environmental that aims at meeting current needs contemporary demands for more protection. without putting at stake the availability transparency, and reliable and timely of resources for future generations. dissemination of information to all Public Authorities: There is open, stakeholders. honest and bilateral We fully acknowledge the importance communication and cooperation of the above-mentioned issues and we MOTOR OIL has adopted a Corporate with the relevant Public Authorities, express our social responsibility by Social Responsibility model that for the provision of information recognising the extent of our obligations incorporates the four sectors of action necessary to each party, as well as in this area, as expressed by our included in Corporate Social for documented discussion on any commitment to pursue our business Responsibility programmes, as they issues arising. activities with due respect for people, moreover arise from the UN Global the environment and society. A natural Compact and the internationally consequence of this commitment is the accepted Global Reporting Initiative adoption of a holistic approach to (GRI) standard. implementing Corporate Social Responsibility principles, by Each one of these sectors has its considering the protection of the respective stakeholders. The diagram

ENVIRONMENTAL AND SOCIAL REPORT 2008] 19 ]

indicates these sectors, the respective programs that enhance their economic, and partners, and strives – through the

MOTOR OIL’s Profile stakeholders and the current issues of social and cultural life, and becomes systematic and consistent achievement interest ("effects, challenges and involved in similar activities that benefit of its business targets – to obtain the opportunities" according to GRI society as a whole; best possible return for its shareholders terminology) on which MOTOR OIL’s without compromising its corporate activities are focused. having a responsible position on the social responsibility and sustainable market, development standards. MOTOR OIL: respects market rules and produces top quality products; it focuses on relations as a responsible employer, of trust with its customers, suppliers cares about the career and personal development of its employees, invests in their training, provides a creative and supportive workplace environment characterised by good team-work and mutual respect, and conducive to initiative and innovation; where Health and Safety constitute major priorities that are assured through state-of-the- art infrastructure and modern management practices;

having a responsible attitude towards the environment, tries to ensure that its activities have the minimum possible impact on the environment, by having in place an effective Environmental Management System, using Best Available Techniques and other advanced systems for environmental protection and efficient energy saving and management;

as a responsible member of society, seeks fruitful social dialogue, in a climate of mutual trust and respect, with the local communities in which it chiefly operates; it supports these communities, by participating in

20 [ENVIRONMENTAL AND SOCIAL REPORT 2008 [ Awards MOTOR OIL’s Profile

Evaluation and management of In year 2008, MOTOR OIL received Corporate Social Responsibility the «ECOPOLIS 2008 – Environmental issues Investment» award from the The evaluation of material issues and Environmental Non-Governmental challenges relating to sustainable Organization Ecocity (see p. 56). development and concerning MOTOR OIL is implemented by taking the It was also awarded by the Municipality following into consideration: of Penteli for the support it provided to the town’s Civil Protection group in The company’s Principles and 2007, for the purchase of a fire engine. Values, Vision and Mission. The company’s strategy. The corporate governance 2008 principles applied by the company. ● «ECOPOLIS 2008 – Environmental The company’s policies (Health, Investment» Award (see p. 56). Safety and Environment Policy, 2007 Quality Policy, Human Resources ● «ECOPOLIS 2007 – Environmental Management Policies). The MOTOR OIL Environmental Investment» Award. The views of stakeholders and and Social Report ● «Entrepreneurship Award 2007» especially those of local MOTOR OIL’s annual Environmental from the Corinth Chamber of communities. Social and Report, the present edition Commerce. of which is the seventh in a consecutive ● The MONEY Business Award in the The efficient management and series, is an independent source of category «High Investments». implementation of programmes and information presenting the systematic 2006 actions arising from the above and strategic confrontation of the ● The LEADERS OF THE YEAR Award evaluation: challenges arising from the pursuit of to MOTOR OIL’s Chairman and sustainable development through the Managing Director, Mr. Vardis Follows the procedures foreseen by application of the principles of Vardinoyannis, for «Consistent the Annual Operating Plans and in Corporate Social Responsibility. The Business Achievements». the Five-year Business Plans, Environmental Social and Report ● The MONEY Business Award in the where the programmes and actions records, in detail, all the relevant issues category «Investor Relations». are recorded as explicit short- and managed by the company and relating 2005 long-term goals of the company’s to the fields of Corporate Governance, ● The MONEY Business Award in the overall strategy, on the basis of Communication with stakeholders, category «Best Company in the which we operate and we are Human Resources, Health and Safety, FTSE/ATHEX-20 Index». assessed. the Environment and Community ● The MONEY Business Award in the Is implemented and monitored by Involvement. category «High Investments». the certified Management Systems 2004 for Quality (ISO 9001:2000), the The Environmental and Social Report is ● The MONEY Business Award in the Environment (ISO 14001:2004) an appropriate demonstration of category «High Investments». and Health and Safety (OHSAS MOTOR OIL’s commitment to ● The MONEY Business Award in the 18001:2007) on the basis of producing value while respecting category «Investor Relations». specific procedures and working people, the environment and society, 2003 guidelines. and reporting on its actions and ● The MONEY Business Award in the performance in the above fields. category «High Investments».

ENVIRONMENTAL AND SOCIAL REPORT 2008] 21 ] AVIN OIL

AVIN OIL was established in Athens in for 2008 was 1,019.0 million euros, facility in Aghioi Theodoroi was

MOTOR OIL’s Profile 1977. It commenced its commercial with a net profit of 2.5 million euros inaugurated in 1987 and constitutes a activity with the distribution of before taxes. sophisticated loading terminal, lubricants, produced by MOTOR OIL, equipped with comprehensive safety throughout Greece. The first petrol AVIN OIL’s only shareholder is MOTOR and environmental protection stations bearing the AVIN OIL trademark OIL. systems. Our partners are also served were established in Attica, in October by other 3rd party terminals in other 1982. The first AVIN OIL petrol stations AVIN OIL is marketing high quality parts of Greece (Attica, Thessaloniki, in the Peloponnese were established in fuels to private and professional car Kavala, etc.) with which AVIN OIL has 1985. AVIN OIL’s network began to owners, to aviation and the industry, throughput agreements in place. The expand rapidly in 1987, with the asphalt, Liquefied Petroleum Gas and company exports fuels and lubricants commissioning of its owned Truck lubricants, which comply with the to neighbouring countries (Albania, Loading Terminal in Aghioi Theodoroi, international API, SAE, CCMC, ACEA Bulgaria, FYROM, Romania and Corinth, which is supplied by the technical specifications as well as the Cyprus). adjacent MOTOR OIL refinery. specifications of major car manufacturers. AVIN OIL has constructed and operates At the same time, the AVIN OIL network Since year 2008, AVIN OIL the Megara Twin Petrol Station and was continued to expand throughout implemented an EN ISO 9001:2000 recently awarded the contract for the Southern Greece, and particularly in the certified Quality Management System for construction and operation of the Twin areas of Sterea, Evia, as well as in the branches of Fuels and Lubricants Petrol Stations of Platanos on Egnatia Western Greece and most of the Ionian Storage, Distribution and Trading and highway, and of Leptokarya on the Islands. The first AVIN OIL petrol Retail Network Management . Lamia-Thessaloniki National Road. stations in Northern Greece opened in 1984, and specifically in the prefectures AVIL OIL procures its products mainly AVIN OIL holds a 14% stake in the of Thessaloniki and Serres. The growth from MOTOR OIL, as well as from the Olympic Fuel Company S.A., which has of its network in Northern Greece was other Greek refineries, and its built and solely operates the Aviation and continues to follow a steep path. comparative advantage consists in the Fuel Supply System (Hydrant System) at sale of high specification products at the "El. Venizelos" Athens International Today, with more than 560 petrol competitive prices. Airport. Also, the company has a stake, stations throughout Greece and with together with Chevron, in the Hellenic annual sales of around 1,200,000 AVIL OIL sells its fuels in the Greek Aviation Fuel Company S.A. (HAFCO metric tons in year 2008, AVIN OIL is market, mainly through its owned S.A.), which currently operates at four 4th in the Greek market, among more Storage and Truck Loading Terminal Greek airports (Athens, Thessaloniki, than 20 retail companies. Its turnover in Aghioi Theodoroi, Corinth. The Kavala and Zante).

22 [ENVIRONMENTAL AND SOCIAL REPORT 2008 ∏uman Recources

We ensure a workplace of trust, team spirit and respect for people

We recognize the fact that our value as a company is created by our human resources. Realising our vision requires the active involvement of all our people. With their participation we can achieve our corporate objectives, implement our growth business plans and safeguard our long-term competitiveness. Our business operations, the quality of our products and the service to our customers, are fully dependent on the performance of our staff, which we strive to reinforce by providing excellent work conditions in a workplace of respect for people and their needs, and by placing particular emphasis on the efficient use, proper management and development of our human resources.

In year 2008, we refreshed our human resources with new hirings, we applied an extended educational programme for staff training and development, and we continued to provide the structured welfare plan of discretionary benefits. ] Human Recources Management System

Human Recources The respect for our employees and Objectives of the Human Resources their needs is one of our corporate Management System principles, which leads us to consider the care for our people and their families as one of our primary Compliance with legislation in force and with universally entrepreneurial and social obligations. established principles of human This concern is manifested in our and labour rights. continuous effort to develop and motivate our employees, to support and Fairness and meritocracy in all encourage them and offer them fairness aspects of employee relations. and equality of opportunity; to create a Ensuring equal opportunities for working environment in which they can employees and offering them achieve their full potential through possibilities for professional and professional and personal personal development. development. This same philosophy Accountability of employees for underpins our policies and programmes the achievement of the company’s that aim at fostering a coherent business goals. corporate culture, ensuring employee job satisfaction, providing professional Fair and competitive remuneration development opportunities and system linked to employees’ achieving a healthy balance between performance and expectations, work and family life. and in line with prevailing market conditions. This approach, which amongst others Providing allowances exceeding is well suited to our objective of the legally anticipated and those attracting young and talented provided for by collective labour employees, is implemented through the agreements. application of a modern and integrated Providing continuous education Human Resources Management and training for human resources System. The system is based on our development, to ensure that the values and principles and is defined by necessary skills are acquired and our vision and strategic objectives. that work is being carried out effectively and safely. Its main components include attracting competent people, providing equal Extending the scope of welfare opportunities, personnel training and provisions to cover employees’ development, as well as the appraisal, families and making efforts to improve their work/life balance. the compensation and discretionary benefits systems, while a grid of Creation of strong bonds between programmes and policies supports the employees and the organisation, achievement of the system’s objectives through candid, reciprocal and in practice. open communication. Enhancement of corporate culture and corporate values.

24 [ENVIRONMENTAL AND SOCIAL REPORT 2008 [ Equal Opportunities and Human Rights Human Recources

Within the framework of applying our Equal remuneration is provided to As for the protection of labour rights corporate Principles and our men and women. and of the fundamental human rights, commitment to Corporate Social our respect for these is a natural Responsibility, we offer a workplace The various benefits and welfare consequence of our corporate without exclusions, which favours provisions provide additional Principles and corporate culture, and is diversity and provides equal support for employees and their reflected in our commitments, policies families, while aiming at the opportunities to all. and practices. Besides, MOTOR OIL’s maintenance of a healthy balance activities take place exclusively on between their professional and All aspects of human resources Greek territory, the legislative personal lives. management are pursued with framework of which is harmonized with transparency, fairness and on the basis the requirements of the 1998 of meritocracy. Recruitment, transfers, Moreover, we acknowledge the Declaration of the International Labour promotions, remunerations and importance of the role played by Organization (ILO) on Fundamental benefits, education and training, etc. businesses in the collective effort to Principles and Rights at Work, with are governed by the principles of our establish a society without exclusions, reference to the Greek Constitution and equal opportunities policy, the where disadvantaged people are labour law. The eight fundamental ILO avoidance of any form of protected not only by welfare conventions have been ratified by the discrimination and the respect for provisions, but mainly by the efforts Greek Parliament and constitute Greek employees’ dignity. In applying the that are made for their societal law. Included in these are the two equal opportunities policy we try to inclusion in a productive manner. conventions concerning the protection ensure that: Thus, we offer jobs to disabled people, of freedom of association and the right providing them with equal to collective bargaining, adopted in The composition of management opportunities with respect to 1948 and 1949 respectively and reflects the composition of the employment, education and ratified by the Greek Parliament in workforce as a whole. professional development. In year 1962. Finally, it is a fact that there has 2008 we employed 20 people been no case of compulsory or child Education and training belonging to this category. labour in the operations of the programmes are available to all company, nor does the company personnel, in accordance with tolerate such violation. business needs.

1,485 people were employed by Motor Oil and Avin Oil in year 2008

97.8% of employees in 2008 were on open-ended contracts

ENVIRONMENTAL AND SOCIAL REPORT 2008] 25 ] Employment Labour Relations

Human Recources In year 2008, the human resources of when the new units were Labour relations are at a particularly MOTOR OIL and AVIN OIL amounted commissioned. It also reflects the need good level. We not only comply with to an average of 1,485 people, of for timely and sufficient training of new legal requirements, relating to worker which 1,294 were men and 191 were employees hired to cover the vacancies participation and the protection of women. In relation to year 2007, created by the relatively high number human rights, but also aim to cultivate human resources presented a net of retirements in the period 2005 – mutual trust and co-operation. We increase of 15 people. 2007. operate a progressive system of human resources management policies, which Besides employees directly employed In 2008, 1,090 out of MOTOR OIL’s incorporates clarity and fairness in by the two companies, it should be 1,278 employees were based at its matters of recruitment, transfers, noted that a significant number of main site (the refinery in Aghioi promotion, remuneration, education people are indirectly employed through Theodoroi, Corinth). The remaining and training, benefits, holidays and sub-contractors. 188 were based at the company's other types of leave. A reflection of the head office in Maroussi. About half of harmonious state of industrial relations Due to the continuous growth of the the refinery personnel live in the is the fact that there have been no group, personnel levels have been broader area of Corinth, where MOTOR strikes in recent years. At MOTOR OIL, steadily increasing since year 2000, in OIL is the biggest employer. AVIN OIL, terms and conditions of employment spite of investments aimed at by comparison, employed 207 people are regulated by a company collective increasing the level of refinery in year 2008. labour agreement, which has been in automation and of efforts made to place since September 1974 and is simplify tasks. The significant rise in approved by the Ministry of Labour. the total number employed since 2003, reflects increasing numbers Employees are free to participate in required at the refinery, in order to trade unions and professional complete and operate the expanded associations without any limitation. and upgraded facilities for the Refinery employees have their own production of clean fuels conforming to union which has been a signatory to a the relevant 2005 and 2009 EU collective labour agreement with the specifications. This investment Federation of Greek Industries since programme was completed in 2005 1986. This agreement, which lays down the terms of employment and pay levels at the refinery, is supplemented by an annual local agreement between the company and the union. We believe that cooperation with the employee’s union is very Direct Employment (annual averages) 2000 - 2008 important, and therefore hold regular meetings with its representatives, with the common aim of developing 1,430 1,470 1,485 1,338 1,377 bilateral relations, preserving labour 1,240 1,280 1,207 1,220 peace and improving the overall working environment.

2000 2001 2002 2003 2004 2005 2006 2007 2008

26 [ENVIRONMENTAL AND SOCIAL REPORT 2008 [ Personnel Composition Human Recources

Gender profile leading to the award of recognized combined workforce has considerable We respect diversity and we try to diplomas. experience in the group, as their service create an inclusive work environment is longer than 10 years, while 37.1% where all employees have equal Personnel categories have less than 5 years’ service. These opportunities, and we do not In 2008, across the group, figures suggest a healthy balance in the discriminate on grounds of gender. management grades made up 12% of service profile of our personnel: between However, due to the nature of most total personnel, while technicians and experienced, older employees and those, refinery jobs, the ratio of women to administrative personnel accounted for more recently recruited, who bring men is relatively low. Thus, in 2008, 88% of the total. dynamism to the workforce as a whole. 13% of all employees were female, Each employee has the opportunity to rising to 34% for head office personnel. ascend management hierarchy, Long-term employment at MOTOR OIL Among management, women made up depending of course on their is rewarded with additional 11% of the total, a satisfactory qualifications, performance and skills, compensation benefits and, at the reflection of the general percentage of as the company aims at filling vacant refinery, with honouring gifts for women in overall staff numbers, while managerial posts from within the employees completing 15 and 20 years in other office and technical jobs the company, wherever and whenever this of service. percentage was 13%. is possible. A large percentage of employees Educational level Average age (32.6%) falls in the 1 to 5 years range Considerable importance is attached to Over the last few years, the average age of service length. This figure is due to the educational level of our workforce, of the group’s employees remains the increased number of recruitments and our aim is to attract, develop and around 41.5 years, coming to 41.7 since 2003, mainly to confront the retain suitable and competent years in 2008, up from 41.4 years in additional personnel requirements employees. 25% of the workforce are 2007 and from 41.6 in 2006, and caused by the operation of the new university or college (TEI) graduates. down from 42.3 in 2005. 62% of the units at the refinery, and the need to In order to develop the skills of employees were aged less than 45. cover vacancies arising from the personnel and maintain a high-output relatively high number of retirements culture in the workplace, we implement Length of service and mobility due to the change to the retirement various educational, vocational training As far as length of service is concerned, conditions foreseen by law, whereupon and personal development the average was 14.6 years in 2008, a number of employees chose to retire programmes, and the personnel are reflecting the low level of personnel a bit earlier under the provisions of the encouraged to follow external courses turnover. Some 52.6% of the group’s previous retirement regime.

Gender Profile Educational Level Personnel Categories College Gratuates (TEI) Managerial Technical Female 8% 12% Male 13% University 66% Secondary Gratuates 87% Administrative /Technical 17% 22% 72%

Elementary 3%

2008 2008 2008

ENVIRONMENTAL AND SOCIAL REPORT 2008] 27 ] Compensation and Benefits

Human Recources Personnel Mobility One of MOTOR OIL’s main objectives is to offer its employees competitive 2006 2007 2008 and high level salaries, so as to reward Hirings their contribution to the company and New hirings 123 139 57 maintain high employee satisfaction Resignations by reason levels. Our approach to pay policy is to Retirement 56 44 37 set, manage and review salary levels in Resignation 12 20 11 a consistent, transparent and objective Other 9 8 11 way, in line with current sector-specific Total 77 72 59 and national practices. Negotiations for the drafting of collective agreements Personnel mobility* 5.4% 4.9% 4.0% relating to salary readjustments are based on the industry practices applied

Number of persons leaving at national level. Moreover, the *Personnel Mobility = x 100 Average personnel number structure of compensation ensures equal pay treatment for men and women for the same job, and rules out In 2008, we recruited 57 new The remarkably low level of personnel discriminations of any other kind. employees, while 59 left for various turnover (averaging 4.0% across the reasons. The number of recruitments in workforce in 2008) reflects the 2006 and 2007 was particularly high, establishment of mutual trust between for the reason mentioned above, i.e. in the workforce and the company, the view of preparing to cover the needs professional satisfaction of employees, arising from the expected increased and the development of harmonious, retirements. long-term labour relationships.

Average Age Length of service 32.6% 58%

38% 18.7% 16.2%

10.3% 11.2% 6.4% 4.5% 4%

< 25 years 25 - 45 years > 45 years < 1 year 1 - 5 5 - 10 10 - 15 15 - 20 20 - 25 > 25 years years years years years years 2008 2008

28 [ENVIRONMENTAL AND SOCIAL REPORT 2008 [ Human Recources

The additional non-statutory wage allowances, which constitute a discretionary The Basic Principles of our benefit paid to employees, are meant to significantly enhance their income and Compensation System reward their performance and contribution to the company’s results, as well as to foster their long-term stay with the company. Competitive remuneration compared with market rates. Principal Supplementary Wage Allowances A fair and reliable salary review process. A long-service supplement, which is a percentage of the base salary, is first paid Consistency and meritocracy in pay after three years' service and then increased every three years of service, up to a policy. maximum of 57% of base salary. A complementary long-service supplement, equivalent to a double annual leave The remuneration paid is performance- allowance, is paid to those who complete five years of employment, and a based; performance is annually appraised double Easter bonus is paid to those who complete 10 years of employment. for each employee on the basis of This means that an employee with 10 years of employment receives the structured procedures. These appraisals, equivalent of 15 months pay each year. besides evaluating performance, also act A continuous attendance allowance is paid to refinery employees who achieve as a tool for motivating employees, exceptionally low levels of absenteeism. providing incentives and determining An one-off payment to refinery employees on completing 25 years of service, education and training requirements. The equivalent to one month's base salary and a similar one-off payment after factors determining salary levels are completion of 30 years of service, equivalent to one month’s gross salary. mainly the grade scale, the responsibility A Marriage allowance. position held, the educational level and seniority (length of service).

Total personnel expenditure during 319 Recruitments in the period 2008 amounted to 88.5 million euros. This includes the compensation cost of 2006-2008 regular and overtime work, various mandatory employer contributions to Social Security Funds and other 4% The very low personnel additional employee allowances not required by legislation. mobility in 2008

Compensation Cost Breakdown 2008 (in million euros) Employer Average Annual Salary Increase vs the Average Consumer Price Index Gross wages contribution (Base Year 2000 = 100) including additional 14.2 allowances 170 54.8 160 150 140 130 120 110 100 2000 2001 2002 2003 2004 2005 2006 2007 2008

Additional Average Annual Salary Increase Average Consumer Price Index Allowances 19.4 The average annual salary increments, as a rule, significantly exceed the average Annual Total: 88.5 millions euros Consumer Price Index.

ENVIRONMENTAL AND SOCIAL REPORT 2008] 29 ] Discretionary Non-Wage Benefits

Human Recources Besides the basic pay and benefits helping towards achieving a healthy the 15.2 million euros in 2007, due to package, we have developed a wide work/life balance. the imponderable factor of range of complementary discretionary extraordinary payments for the pension non-wage and insurance benefits for The cost of the discretionary non-wage plan; such extraordinary payment was our employees, as well as for their benefits in year 2008 amounted to 7.4 made in 2007 to cover differences from family dependents. The MOTOR OIL million euros, significantly lower than previous years. discretionary benefits plan has been established for many years, while its Schemes covering retirement benefits, life insurance current structure is in place since and hospital treatment 2002. We try to support our personnel and their families with improved and flexible These discretionary provisions aim at benefits in line with contemporary trends and requirements, and aim at providing providing for the welfare and security of protection and financial assistance in cases of unforeseeable medical emergencies, employees over and above what the which can incur hard to bear costs. In this context, since 2002, we have operated a law requires, at their personal group health insurance scheme covering employees and their dependant family development, at the further members. strengthening of their ties with the company for the purpose of developing This health insurance scheme provides compensation in the following cases: the corporate culture, at cultivating co- operation and team spirit, and at Loss of life due to illness or accident. Permanent total disability due to illness or accident. Permanent partial disability due to accident. Loss of income due to illness or accident. Hospital and out-patient care. Maternity allowance.

Employees also benefit from a private pension scheme which pays out a lump sum to those retiring at normal retirement age or earlier due to disability. The entire cost of both these schemes is covered by the Group.

Discretionary non-Wage Benefits (in million euros)

15.2

7.5 7.4

2006 2007 2008

30 [ENVIRONMENTAL AND SOCIAL REPORT 2008 [ Human Recources

Discretionary non-Wage Benefits

Personal development and welfare Pension plan (see p. 30). Study subsidies (see p. 34). Provision of financial facilities to cover emergencies.

Corporate culture and team spirit Organization of excursions and dinner events for employees and their families. Financial support for the employees’ football teams to compete in Corporate Games. Organization of Christmas parties for employees’ children. This event is a major company institution, and is very popular among employees. Organization of New Year's celebrations with lotteries and gifts. For the refinery in particular, an "annual employee ball" is organized; it is a big corporate celebration of fraternisation and entertainment, away from the workplace formalities. Provision of "name-day" gifts. Long-service gifts – at 15 and 20 years – for workers at the refinery (54 gifts in 2008).

Health Hospital treatment scheme for employees and their dependent family members (see p. 30). Private life insurance scheme. Full compensation for the first three days of illness (consecutive or otherwise) within the year. Availability of three occupational physicians to deal with both occupational and personal health concerns.

Family Implementation of more favourable maternity policies – compared with the law – for working mothers. Wedding present allowances (26 allowances in 2008). Paid leave arrangements on special occasions (e.g. covering bereavement, in other serious situations, to parents for taking care of school childcare issues, etc.). For refinery employees: ● performance awards for secondary school children (65 awards in 2008). ● award of educational grants for university students (113 grants in 2008). ● full coverage of the children’s participation cost in summer camps (47 cases in 2008). ● award of a day care nursery allowance (46 allowances in 2008). ● award of financial assistance for the beginning of the school year (853 cases in 2008).

Facilities Operation of a restaurant at the refinery, with a symbolic cost contribution paid by employees and at headquarters with special prices for employees. Free transportation of employees to/from work by bus.

ENVIRONMENTAL AND SOCIAL REPORT 2008] 31 ] Education and Training

Human Recources MOTOR OIL continued to invest in the Football teams education and training of its personnel In year 2008, the MOTOR OIL employees’ football team celebrated the winning of in year 2008. We recognise that in a yet another championship. For the 13th consecutive year, it came first among 24 globalized and highly specialised other teams in the Athens Corporate Games Football League championship, and sector, such as the oil sector, following was crowned champion. our growth path and implementing our business strategy is closely linked with The MOTOR OIL team has competed for 16 consecutive years in these games and the development of the skills and won several major trophies: eight "doubles" (championship and cup), five competencies of our staff. Hence, our championships, one cup, and two ethos awards. The team has also succeeded in education and vocational training international competitions, having won the World Corporate Championship in 2004 activities, and the personal and the European Corporate Games tournament in 2003 and 2005. development of our employees, are of paramount importance and we allocate In 2008, the equivalent AVIN OIL football team achieved the fourth place in the significant resources to those activities, Greek Oil Companies 8-a-side championship. In previous years, the team was part both in terms of money and effort. of the 5-a-side championship and was champion in year 2006.

Our training policy aims at ensuring that each employee’s knowledge and skills match their job function, without any gender or age discrimination, and at meeting the following principal objectives: 2,700 The continuous, responsible and employees and family members comprehensive education and vocational training of employees. took part in 46 excursions The continuous expansion of the professional know-how and the to various parts of the country development of employees’ personal skills.

in 2008. The internal designation and promotion of staff to managerial positions.

32 [ENVIRONMENTAL AND SOCIAL REPORT 2008 [ Human Recources

Training of technical personnel on Training Performance in 2008 the specific scope of their tasks. Training Activity Ratio1: 8.0 hours/person This training concerns the know- how each employee needs to have Training Cost Ratio2: 1.0% in order to complete their tasks successfully. Training Participation Ratio3: 29.9% Training of non-technical staff on the basic Health and Safety 1. Total training hours over total number of employees. regulations, use of fire-fighting 2. Total training expenditure over total payroll expenditure including employer’s social security equipment and First Aid. contributions. 3. Total number of trainees over total human resources. Training on business skills and personal development issues.

Education and training programmes The requirements for specialist Academic education (graduate and are planned, according to the needs training on particular technical post-graduate programmes) within the framework of employee arising, on an annual basis. The themes, on Environmental preparation for undertaking following factors are taken into account Protection and Quality increased responsibilities. when planning vocational training Management. activities: The individual employee Preparedness for emergencies with requirements for personal regular planned or unplanned drills. The prevailing corporate priorities development. This training also includes joint and goals. drills with the other Greek refineries, and sessions with the The training activities of previous Education and vocational training participation of the Fire Brigade years. programmes concern the following sectors in general: Search and Rescue Team (EMAK). The Health and Safety training Foreign language learning. requirements, both from a technical Induction training for newly-hired point of view and from the point of unit operators and maintenance Health and Safety training for view of increasing the awareness of technicians. subcontractor personnel. the importance of safety at all employee levels. Induction training for newly-hired engineers.

92,500 Training Cost (in thousand euros) man-hours 1,230 1,180 1,020 of training 850 730 in the period 2004-2008.

2004 2005 2006 2007 2008

ENVIRONMENTAL AND SOCIAL REPORT 2008] 33 ]

Human Recources The implementation of vocational systems, available at both the refinery Finally, a major part of the training training programmes is achieved and the head office. process was dedicated to through various approaches, including: Administrative, Financial and IT A total of 11,830 man-hours of subjects, aiming at developing the In-house training seminars. education and vocational training were administrative and technical skills of Participation of employees in external delivered in 2008, at a total cost other personnel. seminars organised by internationally- (including indirect costs) of 850,000 recognised educational and training euros. Also in 2008, in line with the policy of bodies, such as the Institute of paying the tuition fees for employees Petroleum and the Oxford Princeton The number of employees participating following graduate or post-graduate Programme, and in local or in the training programmes was 444 in studies, we covered the cost for the international conferences, such as the total (202 managers and engineers and following cases: European Refining Technology 242 other employees). This number Conferences (ERTC) and the does not include training hours relating three employees for participating in the CONCAWE (of which MOTOR OIL is to the execution of emergency drills. On post-graduate Business Administration a member) seminars and meetings. the basis of these data, the average course run by the Hellenic Offering opportunities for employees length of training undertaken was 26.6 Management Association (EEDE), to continue their education or to hours per participant (down from 64.9 two employees for acquiring a follow postgraduate courses, by in 2007 and 40.3 in 2006). Business Administration degree, covering the relevant cost. one employee for acquiring a Encouraging employees to learn In year 2008, there was no need to postgraduate diploma in Human foreign languages, according to train new operators (hence the reduced Resources Management, business requirements, and number of training hours per trainee in one employee for specializing in sponsoring them accordingly. relation to the two previous years). International Accounting Standards, Paying for technical magazine Emphasis was placed on the training of two employees for specializing in subscriptions and covering existing technical staff, aimed at Applied Accounting – Auditing, professional society membership developing and improving further the one employee for specializing in fees. skills of employees on personnel Taxation; management and various specialized The in-house training seminars are technical issues. Health and Safety in one employee for specializing as a carried out in dedicated in-house the workplace, as well as Environmental Computer Systems technician, training facilities, fully equipped with Protection, were also main themes of two employees to attend foreign state-of-the-art IT and presentation the 2008 training process. language courses.

Training Cost Ratio* Training Man-Hours by Subject in 2008 1.9% Total Training Hours = 11,830 1.6% flÚ˜ 1.3% Technical 12,000 Health, 1.0% 1.0% 10,000 Safety & Finance/ Environment 8,000 IT Accounting Management 6,000 4,000 2004 2005 2006 2007 2008 2,000 *Total training expenditure over total payroll expenditure including employer' s social security contributions. 0

The high value of the Training Cost Ratio in 2004 is due to the programme implemented that year for the induction training of the newly-hired operators in view of the operation of the new units in 2005, while its high value in 2006 is due to the extensive Health and Safety training programme. By contrast, the low value in 2008 is due to the fact that no new operators were hired, and therefore the relevant programme was not implemented.

34 [ENVIRONMENTAL AND SOCIAL REPORT 2008 [ Human Recources

Education and training tools Training and induction of new operators and maintenance technicians: an integrated system Investments are made for the correct and effective support of the education It is MOTOR OIL’s policy that when refinery operators retire, and also for the coverage and training process for refinery of new jobs arising from the investment programme, new operators must be both personnel, and the refinery’s adequately trained and experienced in performing the duties of their prospective posts specialized staff apart from delivering before assuming actual responsibilities. To achieve this, new operators are hired about the training, plans the education one year before the retirement of their predecessors or the activation of new job process and prepares the required positions. Training takes the form of a specially organized multi-faceted and support material, in the form of comprehensive induction programme. This programme, which includes appropriate technical manuals and other printed theoretical and practical training, ensures that the refinery's future technical personnel material. A four-volume set of training have acquired both technical skills and competencies and a full understanding of the manuals has been published to cover responsibilities associated with their work in a demanding and potentially hazardous the training needs of refinery personnel environment. The approximately twelve-month induction training is carried out by with respect to the structured and refinery managers, engineers and skilled operators from various units of the refinery, specialized provision of information according to the responsibilities the new recruits will take on. focused on the operations and processes of the particular refinery: As with any other form of training, the newly hired operators training process is evaluated when completed, in view of identifying weaknesses and implementing Volume π – Fundamentals and improvements for the future delivery of the training package. Thus, an evaluation of the training experience gained in previous years led to the partial restructuring of the new Lubricants’ Processes operators induction programme, with respect to the emphasis placed on practical Volume ππ – Fuels’ Processes training at the initial stage of the induction programme; this is no longer limited to the Volume πππ – Products theoretical coverage of the curriculum, but in addition includes practical Volume πV – Electromechanical demonstrations/exercises on site. Equipment

The induction training schedule, and the subjects covered are as follows:

One month’s training on fundamental subjects (Health and Safety, Protection of the Environment, Fire Protection, Quality, First Aid, Properties and Specifications of Crude Oil and Petroleum Products, Refining Processes, Plant Equipment, Maintenance, Technical English, Computers, etc).

Five months of day-shift full-practice in the particular job function to be taken up.

Six months practice shift-working, without assuming actual operational responsibilities, in order to gain experience and for evaluating their knowledge and experience, their interest and devotion to the task, in view of a final 5.0 million euros evaluation of their suitability for the job in question. invested in At the end of each of the three training stages, the new operators take a written test employee that ensures their gradual evaluation. education and After completion of the above training, the new operators take up their posts in a phased way, working with experienced operators, initially taking on basic tasks before moving on to assuming their full responsibilities. training in the

A similar programme, adapted to the relevant requirements, is also applied for the period induction of the newly-hired maintenance technicians. 2004-2008

ENVIRONMENTAL AND SOCIAL REPORT 2008] 35 ]

Human Recources These manuals were exclusively written Computerized Training Simulator (CTS) by MOTOR OIL refinery engineers to replace earlier documentation The CTS is used to train the operators of the refinery’s most complex plant (i.e. the published during the 1980s, which Fluid Catalytic Cracking Complex), and the operators of the Hydrocracker Complex. became obsolete following the recent It is an exceptionally effective training tool, the first of its kind in the Greek industrial large-scale upgrading and expansion of sector, and contributes greatly to the safe operation of the refinery. the refinery. They are perfectly adapted to the refinery’s current structure, cover The system consists of a network of computers supporting workstations similar to all aspects of processes and products, those used for the actual control of the refinery units. The CTS simulates the and they provide the necessary operation of the actual process units. The accuracy with which the real operation is theoretical and technical replicated is very high; also, the actual work environment is accurately simulated, documentation, so as to constitute thereby rendering training particularly effective. single, integrated and comprehensive sources of information. Using the CTS for training leads to multiple and important benefits, including:

The ability for on-the-job training of the operators in handling complex units in various operating scenarios, e.g. under normal operating conditions but with different feed types, in cases of malfunctions in the units, or at the normal start- up or shut-down of the units. The ability to train the operators on emergency shut-down procedures. The ability to train the operators on the procedures for restoring the units to normal operating conditions after an incident of unstable operation. The ability to assess the skills and preparedness of the trainees.

As well as being a training tool, the CTS also allows for carrying out important studies with respect to the safe and efficient operation of the units, such as the ability to evaluate alternative approaches for the computerized control of the units, or the evaluation of the dynamic behaviour of units under different operating conditions.

36 [ENVIRONMENTAL AND SOCIAL REPORT 2008 Health and Safety

We are committed to Health and Safety, as it constitutes a moral obligation and a business necessity

We perform our industrial and commercial operations within the framework of our Principles and Values. One of our fundamental Values is respect for people, which gives rise to our commitment to ensuring a safe working environment and continuous improvement of health and safety in the workplace. We accomplish this commitment by applying a soundly structured system on the basis of which we manage all Health and Safety issues.

In year 2008, our activity in the field of Health and Safety focused, amongst other things, on the safe completion of the largest-scale planned shutdown in the history of the refinery for carrying out periodic maintenance works, on implementing investment projects to reduce the risk of accidents, on improving fire safety equipment, on training and on fostering the safety awareness and accidents’ prevention mentality among our employees. The continued downward trend in the values of the Accident Frequency and Accident Severity Indexes is a noteworthy achievement, and an encouraging result in our pursuit of achieving «zero» accident rates. ] Health and Safety Management

Health and Safety Health and Safety at work and the prevention of occupational risk is a moral obligation and a business necessity, which goes beyond the narrow limits of a simple legal obligation. Our principal concern, arising from our integrated Health, Safety and Environmental Protection policy, is to take all necessary measures and implement all appropriate projects, programmes and procedures that allow us to achieve our standing goals for Health and Safety in the workplace, which are laid down as follows:

To minimize the risk of major accidents to the lowest possible level. To eliminate occupational accidents. Continuous monitoring and upgrading of the quality of equipment in order to achieve continuously improved conditions for safe work execution. Efficient protection of people (our personnel, contractors’ personnel, inhabitants of neighbouring communities, associates and and Safety Management System, which December 2008 by Bureau Veritas. visitors), as well as the environment is a basic process of the Integrated This fact constitutes a concrete proof of and our own installations from the Management System. The Integrated the company’s commitment to the hazards that may arise from the Management System is ISO continuous improvement of Health and company's activities. 9001:2000 certified, and therefore the Safety, since the OHSAS certification execution of the various internal completes and improves the existing The company’s management and all its operations and procedures of the Health Health and Safety Management System executives are committed to providing and Safety Management System is aiming at the further: the necessary support for the characterized by the strict implementation of all programmes and documentation imposed by the ISO harmonization with legislative actions ensuring constant improvement 9001:2000 standard. requirements, of health and safety conditions in the improvement of working conditions workplace, and contributing to the In year 2008, and as a result of and productivity increase, development of a soundly-based safety coordinated teamwork that lasted for culture and of an accidents’ prevention several months, the Health and Safety reduction of accidents and of the mentality. Management System was restructured direct and indirect cost of incidents, in accordance with the principles of the improvement of company Delivering on this commitment relies on OHSAS 18001:2007 standard, and operations through the reduction of the application of the integrated Health certified to the same standard in occupational hazards,

38 [ENVIRONMENTAL AND SOCIAL REPORT 2008 [ Health and Safety

improvement of the corporate Do Check Act), but is markedly components. Each one of these image for its customers and oriented towards continuous components is an essential building employees, improvement. element of the system, and when enhancement of the ability to applied simultaneously, they work in handle emergencies, The successful implementation of the synergy to increase the overall effect Health and Safety Management System significantly. assurance of the application of the relies on a framework of supportive HSE policy and of the continuous monitoring and upgrading of procedures. Health and Safety Management System: Framework of supportive Moreover, the company gains a components competitive advantage, since the People ● Visible and systematic management by capable executives OHSAS certification is a marketing at all management levels. tool; it enhances and correlates to ISO ● Setting goals, responsibilities and accountabilities. 9001 and ISO 14001 standards and is ● Active involvement of all employees. an international standard that offers ● Provision of appropriate and full training to all employees. the company global recognition. Equipment ● Continuous inspections of the mechanical and all other The new operational structure of the equipment in our installations, to ensure its operational Health and Safety Management System integrity throughout its life-cycle. is still based on the four stages of the ● Equipment upgrading plan to ensure optimized established Demming cycle (Plan performance with respect to both productivity and safety.

Procedures ● Strict application and documentation of procedures for operational safety and efficiency. ● Strict compliance with relevant legislation, with international standards and codes of practice and with established operational rules. ● Systematic identification, control and assessment of all risks associated with the hazards arising from the refinery’s operations. ● Ensuring that all operations are carried out in full compliance with safety rules and regulations. ● Systematic recording, investigation and analysis of all incidents.

Communication ● Excellent cooperation and communication with public authorities and other stakeholders, including providing them with all relevant information. Results ● Systematic measurement of results using established industry indicators, so as to ensure constant improvement in performance and identification of malfunctioning and vulnerabilities. Health and safety Risk control ● Occupational risks and the respective protective measures management system are sufficiently understood by all, and at all management an intergrated system with levels. ● Continuous review and updating of the company's OHSAS 18001:2007 Emergency Response Plan. certification ENVIRONMENTAL AND SOCIAL REPORT 2008] 39 ] Upgrading and improving the safety conditions and the quality of the work environment

Health and Safety The operation of the Health and Safety Improvements in working conditions maintaining the highest possible Management System is assigned to the and in the safety of the work standards of safety and accident refinery’s Health, Safety and environment are achieved by making prevention. The cost of the company’s Environment Section. Moreover, the the required investments in equipment, investment programme (including AVIN Health and Safety organization includes through the introduction of new OIL investments) for improving Health in-house Safety Supervisors, procedures, and by means of Health and Safety standards, and for acquiring Occupational Physicians and nursing and Safety inspections. and maintaining safety and medical staff, both at the refinery and at the equipment, was 8.3 million euros in company's head office, at a level that Investments and expenses 2008, while the cost of all other types more than covers the provisions of the The refinery was designed, built, and of expenses was 2.7 million euros. relevant core laws (Law 1568/1985 operates, in accordance with Greek and Therefore, the overall 2008 cost of and Presidential Decree 17/1996). international regulations and standards. investments and expenses amounted to However, there is a continuing 10.9 million euros, up 56% in relation During 2008, our efforts to achieve our investment programme in the proper to year 2007. Particular emphasis was Health and Safety goals were focused maintenance of the electrical, placed on implementing projects that on the following main directions: mechanical and electronic equipment, mitigate accident hazards and improve and in technical upgrades and renewals working conditions, as well as on Projects and investments for of this equipment by taking account of projects that improve the facilities' fire upgrading and improving the safety engineering developments, aiming at safety. and quality of the work environment. Projects and expenses for Investments and Expenses for Health and Safety (in thousand euros) upgrading, consolidating and Investments 8,262 improving the instructions and Fire Safety 894 procedures for preventing and Emergency Response 534 controlling occupational risks. Personal Protective and Medical Equipment 187 Training and safety awareness Risk Reduction 6,586 fostering, both for our own Security 61 personnel and the personnel of contractors, preparedness and Expenses 2,681 cooperation with stakeholders. Total 10,943 Implementing suitable measures for the prevention of accidents during the course of the 2008 planned shutdowns of refinery units for maintenance purposes. Organizing for the company’s harmonization with the European Union’s REACH (Registration, Evaluation and Authorization of Chemicals) Regulation.

40 [ENVIRONMENTAL AND SOCIAL REPORT 2008 [ Health and Safety

Among other things, this amount buildings and sites located further ● Connection of reactors and other included investments for: away from the production units. vessels to a high-pressure nitrogen These projects, besides improving supply system in order to ensure ● Continuation of the project for productivity, also aim at providing safe decompression in case of an installation of the Advanced more comfortable and safe working emergency. conditions for employees working Process Control (APC) System, a ● Elevation of the vents of the sewer on these sites. The project budget is natural continuation of the system at various units for better 2.5 million euros. Distributed Control System (DCS). gas dispersion. To date, the APC has been ● Construction of a new power ● Renewal and upgrading of the basic implemented in the Catalytic substation on the jetty, Personal Protective Equipment Cracking Complex and in the incorporating all the state-of-the-art (PPE) and of the refinery’s Medical Vacuum Distillation Unit, while the safe operation techniques, with a Centre equipment, besides the inclusion of the Crude Distillation budget of 3.2 million euros. At the procurement of special safety Unit in the system is in progress same time, an automatic fire- devices for the tasks of monitoring, (budget: 8.8 million euros). fighting system was installed in two supervising, maintaining and existing refinery power substations. ● The first stages of the project for repairing the plant equipment. upgrading the Alkylation unit safety ● Completion of the fire protection ● Improvement of the fire safety level, which consists in the project in the area of the large heat systems with various projects, such installation of water curtain and exchangers at the Hydrocracker as: (a) automation of the fire- water deluge systems to enclose a Complex, through the expansion of fighting system in the Truck potential hydrogen fluoride leak. the fixed fire-extinguishing foam Loading Terminal, (b) construction The project budget is 3.2 million system (installation of an elevated of a permanent foam system in the euros. The construction of a fire-fighting monitor and of a foam second product-pump-station, (c) suitable underground facility for the tank), which significantly improves installation of water curtain safe storage of hydrogen fluoride the fire safety level by minimizing systems for the protection of tanks was completed in the same response times. unit, as well as the installation of refinery units, as well as the pipe ● hydrogen fluoride detectors and pH Continuation of the double block trench,(d) installation of a foam meters. ("HF mitigation system"). bleed valves installation project in container in the fire-fighting system the furnaces of the process units. of the Dewaxing unit, (e) ● Completion of the relocation of installation of fire detection systems ● Installation of shut-off valves in the maintenance workshops and of the on various sites in the refinery, (f) Hydrocracker Complex, as well in central materials warehouse to new procurement of new portable fire other units.

Investments and Expenses for Health and Safety (in thousand euros) 10,943

7,004

4,551 4,339 3,040 2,561

2003 2004 2005 2006 2007 2008

ENVIRONMENTAL AND SOCIAL REPORT 2008] 41 ]

Health and Safety pumps, and (g) replacement of a Internal and external inspections the refinery is divided for this large number of old portable fire The continuous monitoring of purpose. extinguishers, with a parallel effort equipment and workplaces to identify Executive Safety and Environment to achieve consistency in this type potential hazards by carrying out Inspections by a team headed by of equipment, as much as possible. planned Health and Safety the General Manager of the ● Renewal of the wireless inspections are essential procedures refinery, and including the communication devices to improve that are given the highest priority. At Departmental Managers and the intra-communications, especially in the refinery, the planned Health and Head of the Health, Safety and emergency situations. Safety inspections are realized by Environment Section. both internal inspection teams and ● Acquisition of new vehicles used to transfer personnel and materials, as external safety auditors, including There are also two institutional well as bicycles; it is to be noted Greek or foreign consultants. Committees – the Safety and that bicycles have been widely used Environment Committee, consisting of for many years within the refinery, The projects under construction are the refinery Section Heads, and the as an environmentally-friendly object of daily ad hoc inspections, Employee Health and Safety means of transport that moreover while the planned internal inspections Committee as per Law 1568/1985; the offers added safety. are carried out on the basis of an meetings of these committees give rise annual schedule by teams of different to recommendations for the ● Safety improvements at various composition and mandate, consisting improvement of health and safety access points to refinery facilities of refinery executives and other conditions. (ladders, platforms, etc.), competent personnel: improvements in lighting and signposting of the internal road The findings and recommendations network. Safety and Environment arising from the above inspection Inspections by a three-member process, and the recommendations ● Continuation of the project for team headed by a Section Head, arising from the meetings of the two installation of a lift at the Catalytic and including one Engineer and Committees are evaluated and lead to Reforming Unit. one Supervisor. There are 23 such appropriate technical or organizational teams, and each one is responsible measures being taken to achieve long- for one of the 23 sectors in which

10.9 million euros investments and expenses in 2008 for improving health and safety

42 [ENVIRONMENTAL AND SOCIAL REPORT 2008 [ Upgrading and improving Health and Safety safety procedures

term improvements of the level of The technical integrity of equipment company’s Intranet, which contains health, safety and environmental and the safe working conditions are all the provisions of Greek law protection. 914 new recommendations just one of the parameters ensuring concerning Health and Safety issues were recorded in year 2008, while 849 safety in the workplace. The attitude of that are relevant to the refinery's were implemented (including pending the human factor is even more operation. This Database is recommendations of the previous year), important; through the establishment exceptionally important, not only for with another 221 recommendations of strict processes and the provision of the legality of our operations, but also currently pending. suitable training for ensuring that the for the wealth of information it necessary skills and competencies are contains on all issues, e.g. on risk Finally, it is apparent that the technical acquired and that the safety awareness identification and control, drafting of inspections and equipment audits is appropriate, human resources are Emergency Plans, levels of exposure carried out by the Technical and led to execute their work safely. to hazardous substances, etc. Maintenance Departments, lead to findings and to the implementation of Complying with legislation measures that involve risk prevention Not only is relevant Greek and Risk identification and control and contribute to the improvement of European Health and Safety We continuously seek to implement health and safety conditions. legislation strictly observed and best practices by identifying Health complied with, but other international and Safety hazards in all workplaces, standards, codes of practice and and applying practices and procedures established operational rules are also for their mitigation or elimination. The complementarily followed where this framework for hazard identification is judged likely to allow us to achieve and control is provided by Greek even higher standards of Health and legislation (Presidential Decree Safety than would be achieved by 17/1996), and by other European and legal compliance alone. international codes of practice.

We have developed a Database, available to all employees on the

ENVIRONMENTAL AND SOCIAL REPORT 2008] 43 ]

● Health and Safety Systematic evaluation studies of respect to the protection of workers Fire-fighting Equipment, etc.) in occupational hazards per type and from explosions. The measures order to facilitate the replacement job position have been carried out foreseen concern the avoidance of of equipment and achieve for all the refinery’s activities and inflammable substance leaks, the consistency to the greatest possible suitable measures to eliminate or prevention of ignition, the training extent. These specifications are control such hazards or maintain of employees and the specifications updated in line with technological them at acceptable levels, have of the work and protection developments. been determined. Whenever equipment. required by any changes to the Reports, measurements and workplace or the working indexes conditions, these studies are ● We encourage the active We systematically record, investigate reviewed, so as to be up-to-date involvement of all workers in Health and current on a continuous basis. and Safety arrangements, both and analyse all incidents (fires, individually and through their being accidents, near-misses) with a view to represented on the Employee implementing corrective and preventive ● We provide appropriate and Health and Safety Committee. measures. Moreover, we strive to adequate training to all our workers enhance our experience by studying the covering: information and investigations of serious accidents instruction relevant to the hazards ● As for the evaluation of operational occurring in similar facilities abroad, arising from their work, measures risks, we carry out detailed hazard and taking advantage of their for the elimination or control of and operability (HAZOP) studies, as conclusions and recommendations as such hazards, correct use of a matter of absolute necessity, for and when they are applicable to our Personal Protective Equipment, all new facilities and for all own facilities. safe working practices, appropriate modifications to existing facilities, emergency response procedures on a case-by-case basis. We systematically record and analyse and first aid provision. all relevant operational data, which compose the picture of our Health and ● As of 2007, we have implemented Safety performance in order to be able ● We ensure the enforcement of an innovative project, concerning to monitor this performance safety rules in all situations, by the application of a specialized Risk statistically. Through goal-setting and implementing all required Based Inspection (RBS) programme benchmarking on the basis of protective measures and complying to three refinery units: the Crude internationally-established with safe working procedures. The Distillation unit, the Naphtha performance indicators we seek to process for issuance of Work Stabilizer and the Caustic Soda and Permits is particularly important Amine Treating unit. RBI is an ensure continuous improvement, and during the execution of repair and innovative approach that ensures highlight potential weaknesses and maintenance work, because it optimum results. Experience from vulnerabilities. ensures employee protection. This application of this method in 2008 is why the process for issuance of has led to changes in the intervals Emergency Response Plans Work Permits is the object of between consecutive technical Our emergency response set-up is continuous training for our inspections for all equipment and based on our Emergency Response employees who issue or receive pipelines. Also, all piping in these Plan, which is regularly reviewed and such permits, as well as for units has been recorded and updated taking account of refinery contractors’ personnel involved in classified in groups (corrosion expansions and other changes to its refinery activities. circuits), which makes their configuration, of changing legal inspection more efficient. requirements, and of best practices resulting from technical developments ● European (ATEX Directives) and or by the experience gained by others in ● Greek legislation (Presidential Specifications have been issued for dealing with major or non-major Decree 42/2003) are applied with all Health and Safety equipment (Personal Protective Equipment,

44 [ENVIRONMENTAL AND SOCIAL REPORT 2008 [ Health and Safety

accidents. We have also prepared and activated. Twenty-four such Medical services - health submitted studies to the competent exercises were carried out in year For the refinery personnel we have in authorities, which comply with the 2008. Safety drills and major place a programme of inoculations and European SEVESO II Directive, as exercises contribute greatly to the regular medical examinations regards the most important potential training and preparedness of (including blood tests, X-rays, employees, to the evaluation and accident scenarios and the respective cardiograms, eye tests, etc.). We have upgrading of fire safety equipment, prevention and confrontation measures. organised a comprehensive and to the evaluation and occupational health service at the modification of the Plan itself. In July 2008, the refinery was refinery with the appropriate personnel inspected by a special committee of The fixed and portable equipment and material resources in place to competent Authorities, established in for fire detection, fire-fighting, and provide medical and first-aid services, accordance with the provisions of article leakage detection and containing, including: 16, SEVESO II. The committee’s report which are upgraded according to a has not yet been submitted. regular annual investment plan. ● A main Medical Centre, housed in The availability on the refinery site modern premises covering around The Emergency Response Plan, of six fire engines and one 12,000- 100 sq. m., staffed by an especially for major accidents, specifies litre bulk foam tender, that are Occupational Physician and the protection measures for the public, available on 24-hour standby, and nursing staff, and equipped with the instructions for the inhabitants of are operated by trained fire-fighter all necessary hospital equipment local communities and the way of crews. for emergency treatment. It has dealing with the issues arising from the five patient examination and first The operation, in 2008, of the aid beds, as well as one fully potential activation of the Major upgraded automatic telephone call equipped short-term treatment Technological Accidents Response system (COMMUNICATOR) for ward. Plans (SATAME), drafted by the executives, in the event of an competent Authorities, which determine emergency outside normal working ● A Pharmacy stocked with all the intervention of the state. hours. necessary medicines, surgical dressings and other medical The existence of alternative The Emergency Response Plan equipment. locations for the Incident Control prescribes equipment, organization and Room at four different strategic ● A suitably-equipped first aid station facilities available (both internally and points of the refinery. at the Alkylation unit, where there from off-site sources) to mitigate the effects of an emergency. Features of the Emergency Response Plan include:

The Mutual Aid Agreement whereby all Greek refineries co-operate in the event of an emergency, dating from 1988. The effectiveness of this collaboration is ensured through joint exercises involving MOTOR OIL, the local fire brigade and the other refineries. The safety drills, organized weekly, and the preparedness exercises on dealing with major accidents that are organized several times a year. During these exercises, the Major Incident Response procedure is

ENVIRONMENTAL AND SOCIAL REPORT 2008] 45 ]

Health and Safety is medical assistance available on a Examples of actions taken during 2008 to improve operating 24-hour basis. procedures ● Three suitably-equipped first aid stations (located in the Central ● The auditing and inspection of selected hot and confined space works continued, as Control Room, the Chemical particular emphasis is placed on this type of works. Between 5-7 audits are carried out Laboratory and the Hydrocracker each day, and more than 2,000 audits took place in year 2008 alone (increased number Complex). due to the major refinery shutdown for preventive maintenance). ● Three fully-equipped ambulances. ● Continued application of the new technique (introduced despite the higher cost involved), which allows crude oil tanks to be cleaned without the necessity for personnel to enter the Fire-fighting crews are also trained in tanks, thus entirely eliminating the associated hazards. rescue practices and in first aid ● provision. Continued application of the system of imposing penalties on contractors, who breach the company’s Health and Safety rules while working on refinery premises, implemented for the first time in year 2006. Persistent breaches lead to escalated disciplinary measures A Medical Centre, staffed by two depending on the severity of the breach. As of 2008, this system also produces a sub- doctors, is also available on the contractor reliability scale, based on the evaluation of breaches identified. company’s head office premises to cater for the needs of MOTOR OIL and ● A new procedure for critical works was issued (use of cranes and liftings), and lists of AVIN OIL personnel located there. actions in case of natural disasters (earthquakes, etc.) were reviewed and completed. Also, the OHSAS 18001:2007 certification led to the need to review 18 existing Smoking is prohibited throughout the procedures and draft a new procedure for Vertical Health, Safety and Environment company’s facilities. Smoking is only Inspections. allowed in employees’ personal offices ● In the framework of our policy to reward the personnel of refinery Sections in which no and specially designated areas. accidents were recorded, or whose safety performance was significantly improved over the previous year (2007 in this case), the Management of the company rewarded the Finally, the non-exposure of workers to personnel of four Sections (Catalytic Cracking, Lubricants’ Distribution, Housekeeping concentrations of noxious substances and Fire Safety) with elegant honouring gifts. that can be harmful to their health is ● Review and re-issuance of the Material Safety Data Sheets (MSDS) for the refinery confirmed by carrying out relevant products, within the framework of application of the REACH Regulation provisions, concentration measurements, in continued. This work is ongoing, in line with developments in the application of the accordance with the provisions of the REACH Regulation. relevant legislation. .

46 [ENVIRONMENTAL AND SOCIAL REPORT 2008 [ Planned shutdowns Training, Health and Safety of refinery units safety awareness and co-operation with shareholders A large-scale planned shutdown of site managers, on a daily basis, to refinery units for periodic maintenance identify hazards jointly and initiate The continuous training of our tasks took place in the period from May remedial measures; and daily site employees, their updating with the to July 2008, together with another safety inspections. required information, the creation of a three smaller-scale planned shutdowns high level of safety awareness, together in individual units. The work carried out Inspection teams were set up especially with the technical and organisational was the most extensive, with respect to for the works in 2008; they were measures are the essential pillars for both volume and complexity, since the headed by executives from the Health, accident prevention and the establishment of the refinery – as apart Safety and Environment Section and maintenance of a safe work from the Catalytic Cracking complex, staffed by engineers from the Technical environment. This fundamental the Hydrocracker complex as well was Department. The teams were charged approach governs the Health and Safety included in the scope of works for the with the duty of 24-hour monitoring of Management System of MOTOR OIL. first time; the work was accomplished the works with respect to application of in absolute safety, and the unit start- safety rules, in view of immediately Considerable emphasis is placed on the ups were exemplary. This fact alone correcting any irregularities onsite. systematic supply of Health and Safety constitutes an exceptionally positive information to sub-contractors involved result. Nine unplanned shutdowns occurred in in refinery site operations, in particular year 2008, besides the planned relating to safe working procedures and Such extended interruptions in the shutdowns. Accidents were avoided in general principles of accident operation of the plant, require special these cases as well, through the prevention, the aim being to ensure vigilance and precautionary safety application of a similar range of their full and effective participation in measures, because of the greatly preventive measures. refinery operations. increased risk of accidents. Careful planning, continuous supervision and The general content of Health and special accident prevention measures Safety training includes the following are required during the shutdown subjects: period, including the following: achievement of a heightened state of Fires – fire safety – use of fire- safety awareness among all those fighting equipment. involved, by providing them with Work Permits. guidance and information about the Work in confined spaces. increased risk level; co-operation with Identification of occupational hazards and risk evaluation. Personal Protective Equipment. Classification, packaging and marking of hazardous substances. Material Safety Data Sheets. Emergency response procedures and participation in relevant drills. First aid. Cleanliness – ergonomics. Presentations – analyses of accidents occurring abroad.

In 2008, emphasis was placed on the field of fire safety, on training/certification of Work Permit

ENVIRONMENTAL AND SOCIAL REPORT 2008] 47 ]

● Health and Safety issuers (company personnel) and Training and certification of 21 to 29 different types of activity. recipients (contractor personnel), on company employees who issue This information programme OHSAS 18001 and other specialized Work Permits. covers 8 hours and was attended by around 150 persons in 2008, issues: ● "Toolbox Meetings» training adding to the 420 individuals sessions (the 2006 Environmental who received training in the ● The always-current issue of fire and Social Report contains previous two years. safety was a central theme of extensive reference to this training Safety-related training in 2008, approach) on special subjects - Toolbox Meetings on the first and all refinery personnel in concerning specific workplaces. Monday of every month, attended responsible positions (foremen, by the contractors working at the ● Training of relevant personnel on supervisors, engineers, section refinery during that period, on safe welding practices. heads, managers) were trained on a Health and Safety issues relevant to range of subjects, including ● The structured and focused efforts the work executed by them, and - everything the relevant employees to provide information to the mainly - to discuss irregularities need to know about fires, fire safety employees of subcontractors, and observed during workplace and available fire-fighting to raise their safety awareness inspections. equipment. continued in 2008, covering: ● Safety drills and preparedness ● Full training programme (three-day -The information delivery exercises are regularly rehearsed to seminar), in view of application and programme (including provision improve the preparedness of certification as per the OHSAS of information, question and personnel in handling emergencies 18001 standard, addressed to answer sessions, recording and to test equipment and executives that were to undertake results in a database, issuing of procedures related to the the role of internal auditors for the special cards showing successful Emergency Response Plan. The said system. attendance of the programme) relevant programme for year 2008 covering all employees of ● Training of duty engineers mainly included 52 drills (one per week), subcontractors who receive Work on the response to major incidents of which 24 concerned the Permits. The training material and on the available fire-fighting response to a Major Incident. Half comprised a general component - equipment, at a both theoretical of the drills were planned, while the covering Health and Safety and practical level, in the form of rest were unscheduled drills (with subjects relevant to all types of real-life fire-fighting drills and respect to the date and time, the refinery work – and a second, related desk exercises. location and the scenario) involving specialist component – relevant mobilization of response

48 [ENVIRONMENTAL AND SOCIAL REPORT 2008 [ Accident Health and Safety statistics

equipment. Planned drills took safe start-up of electrical The successful operation of the Health place at different parts of the equipment. and Safety Management System is refinery site, involving theoretical ● The «Visitor Guidelines» leaflet was reflected in accident statistics and practical training in fire-fighting issued in 2008; the leaflet is (indicating both the number and the procedures and familiarization of distributed to visitors to the frequency and severity of accidents) personnel with fire-fighting refinery, and contains the basic which show a clear downward trend equipment and related Personal rules to be followed during their over the years. Protective Equipment. visit. ● In order to raise safety awareness Eight accidents were recorded in year amongst the personnel, Health and Cooperation with other stakeholders is 2008, compared with six in 2007 and Safety messages and posters are considered a necessary element of the ten in 2006. It should be noted that the regularly displayed on 13 notice responsible handling of Health and largest planned shutdown in the boards, dedicated for this purpose, Safety issues. For this purpose, refinery’s history for maintenance located throughout the refinery site. Refinery Cooperation Meetings on works took place in year 2008. The ● A new approach to training unit Health, Safety and Environment issues Accident Frequency Index, due to the operators on safety issues has been are organized and attended by bigger number of accidents, showed an applied since the end of 2008 representatives of Greek refineries, the increase in 2008 compared with the based on material contained in competent ministries, local previous year (from 2.6 to 3.4, video tapes. The video tapes are government, the fire department and equivalent to a 31% worsening), but short in duration (10 – 20 other stakeholders. MOTOR OIL was much lower than the target (3.8). minutes), and are shown on TV competent employees attend these monitors located throughout the meetings and play an active role with The above result should also be linked different Departments. Operators presentations on various topics. These to the Accident Severity Index, which are able to watch the video tapes at meetings promote cooperation and improved significantly in relation to a time that is suitable for them, but synergy in a field where there really is year 2007, since it dropped from 1.1 on the basis of a predetermined increased capacity for the exchange of to 0.5 (55% improvement), when the schedule. The six video tapes knowledge and experience. target was 0.7. This value is the lowest made available in year 2008 had since the refinery’s establishment, and the following themes: safe use of indicates fewer serious accidents than electrical tools, hearing protection, in 2007 (reduced number of work safe use of scaffolding, safe hours lost). transportation, avoiding falls, and

Accident Frequency Index

Trendline 19.0 16.4 12.6 12.8 11.9 14.4 6.4 10.6 14.9 7.7 7.0 9.7 6.3 4.5 2.6 3.4 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Frequeny Index= Accidents (Lost Work Injuries) number per one million hours worked

ENVIRONMENTAL AND SOCIAL REPORT 2008] 49 ] The REACH regulation

Health and Safety These statistics relate to our own The European Union REACH Safety and Environmental employees and do not include Regulation (Registration, Evaluation and protection, and we participate in accidents involving sub-contractors’ Authorization of Chemicals), effective as the Fuel Ethers Reach Consortium employees, which showed a marked of 1st June 2007, creates a new basis for (FERC), the core organization reduction: no accidents were recorded the protection of human health and the assisting ether (ª∆µ∂/∂∆µ∂/∆∞- in 2008, compared with one in 2007, environment from the use of chemicals ª∂/∆∞∂∂) producers in their one in 2006, five in 2005, four in throughout their life-cycle. preparation for the registration of 2004 and nine in 2003. these substances. Through these As a socially responsible company, forms of participation, we can The above data concern the refinery MOTOR OIL is committed to complying ensure that the chemical properties workplace only; however, it should be with the requirements of the new of the products we produce and noted that no accidents were recorded Regulation and taking all necessary distribute are systematically in the remaining workplaces (MOTOR action for the timely registration of the analysed and scientifically studied OIL head office, and AVIN OIL offices chemicals it produces and distributes. with respect to chemical safety and and facilities). Within this framework: the associated protective measures relevant to their uses, throughout We have mobilized our human their life-cycle. resources in view of harmonization with the above-mentioned 2008 was a milestone year for the Regulation. In recognition of the Regulation, marked by the completion of importance of the participation of all the initial registration by the companies of stakeholders in the production and the substances included in its field of distribution of our end products, the application. The entire procedure was company discusses and analyzes all completed through the European individual issues that arise in the electronic system IUCLID, which application of the Regulation, with constitutes a basic tool for achievement of both suppliers and customers. the Regulation’s objectives. MOTOR OIL completed the pre-registration of the Furthermore, we are active substances that concern it, without a participants of the CONCAWE hitch and within the prescribed time organization, which provides limits. Full registration of the substances technical advice to European is scheduled to be completed by refineries on matters of Health, November 30th, 2010.

Accident Severity Index

Trendline 3.7 3.3 2.4 2.1 1.8 2.3 0.5 0.5 1.6 0.9 2.4 1.9 1.3 1.8 1.1 0.5 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Severity Index =Number of lost man-hours per one thousand worked hours

50 [ENVIRONMENTAL AND SOCIAL REPORT 2008 [ Security - revised edition of AVIN OIL Health and Safety «Port Information & Regulations»

We are taking all appropriate provisions of the Ministry of Mercantile The core principle governing how preventive measures to protect our Marine. AVIN OIL exercises its operational installations against likely security activity is respect for people and the threats, both deliberate and non The revised Port Information & environment. In this spirit, the deliberate ones. Our personnel Regulations became applicable in year company has developed its policy for responsible for this protection are 2007. We consider the existence of «Health, Safety and Environmental suitably trained, both in security and the Port Information & Regulations for Protection» and implements a Health, safety matters; they can thus our port, which codifies in a single Safety and Environmental Protection effectively and swiftly carry out their volume all the requirements for the Management System, on the basis of tasks, in full awareness of the duties safe docking of vessels at our terminal which it manages issues relating to assigned to them, and of the need to – according to Ministry of Mercantile Health and Safety, aiming at avoiding fully respect freedom and the Marine guidelines, and international all incidents whatsoever that can have fundamental human rights. codes and conventions – to be a effects on health, the environment or prerequisite for the best possible assets. Furthermore, we give the highest protection of both our installations and priority to security measures aimed at the vessels themselves. The revised AVIL OIL is committed to the following: the protection of our port facilities in Port Information & Regulations order to prevent any incident consolidates all new provisions arising Fully complying with applicable whatsoever, which apart from any since its previous issue, including legislation, regulations and codes other consequences, may also cause those of the ISPS Code, while it also of practice concerning Health and marine pollution. It should be noted describes clearly and in detail, our Safety. that, in 2004, MOTOR OIL became minimum requirements relating to Regularly making available to the the first Greek company to be certified safety and security, as well as the authorities and all involved by the Ministry of Mercantile Marine measures to be taken to avoid stakeholders full and accurate for compliance with the International pollution. Health and Safety data relating to Ship and Port Facility Security (ISPS) the risk free use of the products it Code, which is applied according to distributes. the requirements of chapter XI-2 of the Providing its employees with a safe International Convention for the Safety and appropriate work environment. of Life at Sea (SOLAS). The accreditation is revised each year, in Ensuring that Health and Safety accordance with the existing legislative issues are handled by competent and dedicated in-house personnel (occupational physician, safety engineer, etc.). Providing appropriate Health and Safety training to its employees and accordingly informs those with whom it collaborates. Maintaining updated Emergency Response Plans for efficiently responding to emergencies or large-scale incidents. Observing and applying, to the best of its ability, all international technological developments.

ENVIRONMENTAL AND SOCIAL REPORT 2008] 51 ]

● Health and Safety Encouraging its associates and compliance with the terms Security personnel at the Aghioi customers to adopt similar included in the European Theodoroi terminal, Corinth, approaches to Health and Safety Agreement concerning the received training relating to the issues. International Carriage of Dangerous handling of fire-fighting equipment. Goods by Road (ADR). All Road Continuously striving to improve its ● A far-reaching scheme for training Tankers loaded at AVIN OIL’s Health and Safety performance. all AVIN OIL petrol station facilities are equipped with a personnel on safe petrol station special Safety Pass certifying that In the procedures field in year 2008: operation has been put into they have been checked according practice; training is carried out at to the ADR. ● AVIN OIL Road Tanker drivers were each individual petrol station, to trained on safe driving techniques ● A schedule was drafted for the ensure universal participation. (anti-rollover and anti-skid signature of a contract with the training). This training takes place company’s sub-contracted In the field of capital investments in on a special track, using a suitably transporters, relating to the Health and Safety, five new large and modified road tanker vehicle. Other provision of the following to them five new small (for heating oil contracted road tanker drivers will through a specialized company: (a) distribution) Road Tankers became Safe transportation consultancy, also be trained in the near future. operative in year 2008, while at the and (b) Safety training on issues ● The safety training (on issues AVIN OIL terminal: related with the safe receipt, related with the safe receipt, delivery and distribution of fuels, delivery and distribution of fuels) of ● Asbestos-containing materials (roof and anti-rollover and anti-skid Road Tanker drivers was repeated material in the loading gantries) training. and extended to cover not only AVIN were removed and replaced by OIL's own drivers but also other, ● The process for harmonization with non-harmful materials. contracted Road Tanker drivers. the requirements of the European ● The fire fighting system was Union REACH (Registration, ● The thorough programme of annual upgraded with the installation of Evaluation and Authorization of inspection for all Road Tankers non-explosive electric light globes Chemicals) Regulation, effective as (owned and sub-contracted) in the pump station and the of 1st June 2007, is currently in involved in the distribution of the loading gantries, and with progress. As a downstream user, company's products was upgrading of the fire fighting AVIN OIL has provided all continued, in line with state and equipment at the pump station. necessary information to its petroleum industry regulations. suppliers and customers. ● Improvements were made to the Such inspections extend to technical infrastructure to reduce the risk of accidents and improve safety levels (e.g. installation of an emergency shower, posting of signs requiring the use of Personal Protective Equipment, installation of an air exhaust system in underground warehouses, etc.).

52 [ENVIRONMENTAL AND SOCIAL REPORT 2008 Environment

Caring for the future by protecting the environment

Respect and care for the environment is a common denominator of all our activities. We operate competitively but, at the same time, as a responsible corporate organization we espouse the Principles of Sustainable Development; that is, the development which is based on mutual respect and on our responsibility towards future generations.

Year 2008 saw the introduction of natural gas to our refinery, completion of the steam production unit upgrading programme, execution of the largest preventive maintenance programme in the history of the refinery, extension of ISO 14001:2004 certification to cover biofuel production, trade and delivery, and issuance of the annual voluntary Environmental Statement 2007 in accordance with the EMAS ER 761/2001 regulation. Finally, the company received the «ECOPOLIS 2008 - Environmental Investment» award. Environment] 54 the law. that gobeyondthestrictapplicationof finally implementprojectsandactions Hellenic andEuropeanlegislation terms, rigorouslyadheretotherelevant framework ofapprovedenvironmental of otherpollutants,functionwithinthe greenhouse gasesemissionsaswell possible manner,minimizethe operate inthemostenergyefficient We seektoensurethatourfacilities goods andideas. climate offreemovementpeople, technological progresswithina achievements ofscientificand society maycontinuetoenjoythe we arebeingcalledtoprotect,sothat are thethreeinvaluableresourcesthat and morevisible.Air,soilwater climate changearebecomingmore the wholeofsocietyaseffects becoming anever-greaterconcernfor is aglobalchallengewhich its safeguardingforfuturegenerations Protection oftheenvironment Environmental management [ ENVIRONMENTAL ANDSOCIALREPORT 2008 and membership ininternational field takeplace,rendersour developments intheenvironmental technological andlegislative The pacewithwhichscientific, resources. through theallocationofnecessary environmental benefitsaremaximized this bydefiningthesectorswhere Management Systemscontributesto systematically. Theapplicationof results ofoureffortswerenotevaluated would notbeatthedesiredlevelif The improvementofourperformance to employeesworkingattherefinery. control systemstothetrainingprovided and fromtheuseofadvancedprocess during therefinery’sdailyoperation, new plants,tothepracticesapplied selection oftechnologieswhenbuilding spectrum ofouractivities;fromthe environmental impactcoverstheentire and measurestoreduceour Selection ofthemostefficientmeans and Environmental Protection Policy Protection Environmental and than necessary. academic community,morethan support ofthescientificwork organizations aswellas,theactive expressed throughour impact resultingfromitsoperation,is the minimizationofenvironmental Our company’scommitmenttowards System Environmental Management seven years in thelast investments in environmental million euros 487.9 ensured. possible environmentalbenefitis resources toactionswiththemaximum are recognized.Thus,theallocationof requiring interventionandimprovement systematically andthatactivities performance ismeasured ensures thatenvironmental management system.Thissystem internationally acceptedenvironmental without theapplicationofavalidand Our commitmentwouldnotmaterialise Health, Safety Health, . [Environment is 55 ] , as foreseen by was first certified , which is ISO Integrated Environmental is part of the European Eco-Management and Environmental Management ENVIRONMENTAL AND SOCIAL REPORT 2008 Management System Management System compliant with the ISO 14001:1996 compliant with the ISO 2004 it is standard in 2000. Since the ISO certified compliant with by BV (Bureau 14001:2004 standard Veritas). The ISO 14001:2004 stricter standard imposed new, requirements for environmental but at the same management issues, required for time provides the tools more efficient operation of such systems. MOTOR OIL was re-certified by BV for ISO 14001:2004 in 2007, and expanded its certification in 2008, to include the production, trade and delivery of biofuels, asphalt and specialized petroleum products. The characterized by the strict documentation imposed by this standard. The aforementioned management systems are applicable to issues concerning the company’s everyday operation. Our commitment to make public the data regarding our environmental performance and the effects arising from the operation of our facilities, as expressly mentioned in our Policy for the Environment, has led to the voluntary adoption and application of the 9001:2000 certified for quality, and therefore the execution of various internal functions and procedures of the Environmental Management System The company’s The company’s System Audit Scheme (EMAS) European Regulation 761/2001. This system ensures that all companies or organizations adopting it, identify the environmental impacts arising from their activities, define strategies and implement plans to mitigate them to certified is an effective tool for implementing, and is an effective tool for .

Environmental Management System ISO 14001:2004 certified EMAS ER 761/2001 Included in the ISO 9001:2000 certified intergrated management system Environmental Management System Keeping abreast of legislative developments and ensuring full compliance with developments and ensuring full compliance Keeping abreast of legislative legislation in force. all Greek and EU environmental terms. within the framework of approved environmental Operating the facilities into the various company projects by taking Planning and implementing effects. account the dimension of minimizing environmental greatest possible extent. Applying Best Available Techniques to the emissions of greenhouse gases as Monitoring and continuously minimizing the and liquid waste, as far as well as those of other pollutants, and of solid technically and economically possible. the consumption of energy. Monitoring and, as far as possible minimizing, reducing the probability of Pre-empting any risk of environmental pollution, and testing the environmental accidents, and preparing, implementing appropriate emergency response procedures. all our personnel and Training of, and awareness-raising among, premises, on the implementation of subcontractors’ employees who work on our the company's environmental protection policy. and continually improving our Evaluating our environmental performance Developing communication and dialogue with all stakeholders. Developing communication and dialogue monitoring compliance with the company's various environmental protection policy with the company's various environmental monitoring compliance objectives, which are: ● ● management system ● Environmental Environmental objectives The Environment] 56 OIL refinery. similar complexitylevelastheMOTOR encountered inEuropeanrefineriesofa advantages; suchcertificationisrarely important, andprovidesmultiple 9001:2000 forquality,isparticularly for theenvironmentandISO 14001:2004 andEMAScertification sector, thetriplecombinationofISO It isworthnotingthat,intheoilrefining the year2006. second suchstatementaftertheonefor MOTOR OILissueditsBV-certified Public Workseachyear.In2008, Environment, UrbanPlanningand renewed decisionsoftheMinistry System, andismanifestedwith Management andAuditScheme organization toremainwithintheEco- prerequisite whichallowsthe Environmental Statement 2007 Statement Environmental Statement Environmental performance, intheformofan information regardingitsenvironmental publish, onanannualbasis, EMAS, thecompanyiscommittedto Additionally, withintheframeworkof possible. the largerextentasreasonably [ ENVIRONMENTAL ANDSOCIALREPORT 2008 . Thisisa , its the useofresourcesbymankind. recycled materialsymbolizeseconomyin signifies victoryandrecognition,whilethe made ofrecycledglass.Thelaurelleaf entry wasartist’sValentinoMarengo«LEAF», The ECOPOLIS2008sculpture.winning In year2008,MOTOROILreceivedasignificantdistinction:The 2008» «ECOPOLIS 2008 – Environmental Investment» Environmental – 2008 of theHealth,SafetyandEnvironmentSection,MrY.Paleokrassas. 4th, 2008,andtheawardwasreceivedonbehalfofcompanybyHead The awardceremonytookplaceattheGAIANaturalHistoryMuseumonJune Organizations, Enterprises,StateAuthoritiesandtheMedia. and projectsimplementedbyScientificAuthorities,Municipalities,PublicSector of thisinstitutionistorecognizeandrewardenvironmentally-sensitiveinitiatives environmental, non-profit,non-governmentalorganizationEcocity.Thepurpose The prizeawardwasorganizedforafourthconsecutiveyearbythe to enterthetanks. the hazardsforhealthandsafetyofemployees,sincetheyarenotrequired waste producedandachievingzerogaseousemissions.Moreover,iteliminates method minimizestheenvironmentalimpact,byreducingquantityofsolid the implementationofaninnovativecrudeoiltankcleaningmethod.This businesses, whichithadalsoreceivedin2007.Thecompanywasawardedfor Environmental SensitivityAward Environmental SensitivityAwardfor «ECOPOLIS [Environment 57 ] , as is the case for modern ENVIRONMENTAL AND SOCIAL REPORT 2008 The operation of a complex industrial The operation plant by the influx refineries, is characterized raw materials, the of large quantities of large quantities consumption of equally these into of energy in order to convert the end products, and finally the market. distribution thereof on to the need for a This process gives rise and reliably system that will regularly measure and then assess the impact that each of the production units has on the environment and finally, classify them according to their criticality. This in turn necessitates the establishment of a set of criteria, including legislative requirements and the opinions of stakeholders, among other things. Finally, it is clear that this system will have to be structured in such a way as to monitor the evolution of the plant and redefine the criticality of individual parameters. The minimization of the impact that our activities have on the marine environment, the underground water, the air and soil quality, the reduction Environmental impact management 8.3 3.7 3.1 11.4 15.1 21.9 16.7 80.2 11.0% 1.0 54.6 231.5 120.6 0.0 0.0 0.0 407.7 56.2% 2.0 2.2 2.2 2.5 2.6 2.9 4.0 18.4 9.3 58.3 234.6 132.0 15.1 21.9 16.7 487.9 67.2% 11.0%. Overall, environment-related 11.0%. Overall, to 487.9 investments amounted of the total million euros or 67.2% investment programme. 2008 amounted Total investments in of which 16.7 to 78.4 million euros, of the total) million euros (21.3% improving and concerned projects in protecting the environment. Year 2008 was characterized by the completion of the largest preventive maintenance programme in the history of the refinery, while the upgrading of steam boilers was completed, thus contributing significantly to the reduction of the refinery’s NOx emissions. A series of other, smaller and larger, projects were implemented during the year; these were oriented towards the reduction of emissions and energy consumption, the improvement of the environment-related measurements system as well as, the improvement of the liquid waste management. 47.4 88.5 251.0 164.5 44.6 51.4 78.4 725.8 2002 2003 2004 2005 2006 2007 2008 Total Percent is

- For improving performance - For clean fuels INVESTMENTS AND EXPENSES 11.3 60.5 236.8 134.5 17.7 24.8 20.7 506.3 Environmental Expenses Total Capital Investments Environmental Project TOTAL OF ENVIRONMENTAL Year ENVIRONMENTAL INVESTMENTS AND EXPENSES 2002 - 2008 (in million euros) ENVIRONMENTAL INVESTMENTS AND EXPENSES 2002 - 2008 (in During the last seven years, as shown in the table below (which includes the corresponding AVIN OIL data), MOTOR OIL has implemented a massive investment programme totalling 725.8 million euros. The major part of this investment programme was related to the construction of the Hydrocracker complex and its supportive facilities. Low-sulphur fuels produced by the Hydrocracker complex, satisfy EU specifications that came into force on 1.1.2009. Investments in clean fuels absorbed 56.2% of total investment, while investments for the further improvement of environmental performance absorbed an additional oriented towards the production of oriented towards the with the relevant products that comply technologies specifications, by using effects. that minimize environmental and Projects for the improvement enhancement of the refinery’s absorb environmental performance maximization of resources, having the the main criterion. expected benefits as and expenses investment policy The company’s Environmental investments investments Environmental Environment] 58 Techniques. them byincorporatingBestAvailable into account,inviewofminimizing proposals takesenvironmentaleffects projects, theevaluationofalternative With respecttotheconstructionofnew to itsemployeesforthispurpose. MOTOR OILprovidesrelevanttraining environmental impactofitsactivities, contribution forthelimitationof In recognitionofthehumanfactor has toconfront. important challengesthatthecompany energy, allconstitutethemost finally therationaluseofwaterand intensive industrialactivities,and the noisenaturallycausedbysuch liquid waste,thefurtherreductionof and efficientmanagementofsolid [ ENVIRONMENTAL ANDSOCIALREPORT 2008 (IPPC) Documents (BREFs for short). for (BREFs Documents of This Directiveintroducedtheconcept caused byindustrialactivities. prevention andcontrolofpollution Pollution Prevention and Control and Prevention Pollution Daily Operation Environmental ProtectionSystems Production ofFuelsandLubricants the designofnewrefineryunitsandfor aforementioned techniquesbothduring MOTOR OILincorporatesthe Reference Techniques Available Best Directive 96/61/EC Best availabletechniques per sectoraredescribedintherelevant practicable. BestAvailableTechniques economically feasibleandtechnically an industrialactivity,whilealsobeing application –thepollutioncausedby control –dependingontheirfieldof that canmosteffectivelypreventor a legislativelevel.BATsaretechniques Best Available Techniques (BATs) Techniques Available Best Heat exchangers maintenanceandcleaningprogramme Automated tankcleaningmethod Fugitive emissionsLeakDetection andRepair(LDAR)programme Truck LoadingTerminal Vapour recoverysysteminthe catalytic crackingunit Electrostatic filterinthefluid Waste watertreatmentplant Acid watertreatmentunits Closed-circuit sulphurproduction unit Upgrading ofamineregeneration recovery Maximization ofrefinery-gas Upgraded pre-heatingfurnaces Hydrocracker Complex , isaimedattheintegrated for the Integrated at Control Systems Ancillary Facilities table. application areshowninthefollowing Some typicalexamplesofBAT the refinery’sdailyoperation. have beenadoptedandareappliedin reinforce pollutionpreventioncapacity Finally, BestAvailableTechniquesthat of reliabilityandsafetyintheunits. and energywhileensuringhighlevels efficient managementofrawmaterials refinery; thesecontributetothe control systemsintheoperationof company incorporatesautomationsand their operation.Atthesametime, of minimizingtheimpactsarisingfrom the upgradingofexistingones,inview Advanced ProcessControl(APC) Distributed ControlSystem(DCS) Power ManagementSystem(PMS) Reverse osmosisdesalinationunit Installation oflow-NOxburners Electricity co-generation refinery Introduction ofnaturalgastothe [Environment 59 ] the Greenhouse National Emission for individual activities ENVIRONMENTAL AND SOCIAL REPORT 2008 as established by Directive 2003/87, was adopted as the main mechanism. Through this scheme, Member-States are invited to submit made emissions by 8% within that same period, while Greece was given a margin to increase emissions by 25% compared to the base year. For the achievement of the above objectives, Allocation Plans Gas Emissions Rights Trading Scheme, , to reduce Kyoto Protocol their emissions by 5% compared to 1990’s (base year) levels, within the period between 2008 and 2012. The Protocol was formally put in force on 16th of February 2005. Within this framework, the EU undertook the obligation to limit man- International initiatives In 1997, 184 countries committed, by signing the ), taking place over taking place 4 ) and nitrous oxide 6 , changes to the climate

), methane (CH 2 √). Characteristic of the urgency of 2 In order to avoid increases to the earth’s temperature, it is necessary to stabilize the greenhouse gases concentration in the atmosphere, which means that by 2020 the emissions will have to be reduced by 25% to 40% compared to 1990 levels. the situation is the fact that greenhouse gases emissions have increased almost 12-fold in the last 100 years. It has been widely accepted that the main cause of climate change is the increase of the concentration of anthropogenic greenhouse gases in the atmosphere, such as carbon dioxide (CO itself (increased average temperature, itself (increased average changes to atmospheric conditions, etc.) and the effects of such changes (altered ecosystem composition, reduced polar ice caps, observed changes in the duration of each season, etc.) are now clearly visible. * Climate Change 2007, Synthesis Report (¡ Intergovernmental Panel on Climate According to the annual report* of the According to the annual the last fifty years constitutes one of the the last fifty years constitutes – on a most important challenges health, social global scale – for human and cohesion, economic development food-chain safety. The climate change The climate Climate change Climate Change (IPCC) chlorofluorocarbons (CFCs), sulphur hexafluoride (SF Environment] 60 Regulations. instituted intheformofDirectivesand are currentlyintheprocessofbeing a nationallevel.Theabovemeasures be implementedonaEuropeanandnot measures, allocationtoenterpriseswill note thatwithinthenewframeworkof of year2005,whileitisimportantto reduced by21%incomparisontothose activities includedintheSchemewillbe is expectedthattheemissionsfrom achievement oftheaboveobjectives.It will constitutethemaintoolfor of the The furtherreinforcementandextension energy sourcesto20%. an increaseofthesharerenewable by 20%comparedto1990levels,and set includethereductionofemissions energy sourcesbyyear2020.Targets emissions andpromotingrenewable it aimstoachieveitstargetsforreducing new seriesofmeasures,throughwhich European Commissionannounceda emissions. On23January2008,the reduction ofgreenhousegases formulation ofnewpoliciestowardsthe activity inEUrespecttothe 2008 wascharacterisedbyanintense enterprises. and subsequentlytotherelevant [ ENVIRONMENTAL ANDSOCIALREPORT 2008 Emissions Rights Trading Scheme Trading Rights Emissions development, wearecommittedto: Responsibility andsustainable and objectivesofCorporateSocial manner, andadheringtotheprinciples our businessoperationsinaresponsible Within theframeworkofcarryingout any otherinitiatives. important parametersforthesuccessof consequent mentalitychanges,are insufficient, suchaswater,andthe resources thatarebecoming energy aswellas,oftheother issues relatedtotherationaluseof and targetedinformationprovisionon consumers, isrequired.Theintensive stakeholder groups,including commitment towardsthisaimfromall on agloballevelaswellas,strong this phenomenon,coordinatedaction Our beliefisthatinordertoconfront consequences ofclimatechange. activities ontheenvironmentand over theeffectsofanthropogenic MOTOR OILsharessociety’sconcerns MOTOR OIL’sposition all interestedparties. Reporting ouractionsandresults to protection policies. financially viableenvironmental technologically feasibleand stakeholders inplanning state authoritiesandother Cooperating withthecompetent reduction ofemissions. technologies thatcontributetothe Investing intheapplicationof emissions. the reductionofgreenhousegases with respecttotheuseofenergyand continuous basis,ourperformance Measuring andimproving,ona reduction ofCO requirements inrespecttothe 2008-2012. Apartfromthe Protocol decisionsfortheperiod of theimplementationKyoto 2008 isthefirstyearof2ndstage CO tons ofCO produced droppedfrom0.29to 0.27 refinery’s emissionspertonofproduct was slightlyhigher.Thus,the the refinery’sproduction,whichinfact was achievedwithoutanyreductionin It shouldbenotedthatthisreduction tons, i.e.6%lessthaninyear2007. emissions amountedto1.952million During 2008,carbondioxide Within thisframework,MOTOROIL: their relativeuncertainty. of measurementsandtheevaluation specifications relatingtotheaccuracy implementation stageimposesstricter 2 units. fuels, lubricantsandhydrocracker installed inthesmokestacksof measurement analyticaldevices certification ofthecontinuous Proceeded withthefirststage the hydrocrackercomplex. and molecularweightattheflareof continuous measurementofflow Installed appropriatedevicesforthe methodology. gas, usingthegaschromatography carbon quantityintherefineryfuel standard, forthecalculationof as pertheEN17025:2005 Chemical Laboratoryqualitycontrol Completed theaccreditationofits emissions 2 . 2 emissions, the2nd [Environment 2008 61 27,550 ] 29,033 2006 2007 27,491 As an alternative fuel for the Power As an alternative Co-generation Plant turbines, fuel gas or which consume either be, and propane as the case may depending on the refinery’s use of operating scheme. The plant to natural gas allows the 16% operate with approximately lower emissions. As an alternative or supplementary fuel for those refinery furnaces that currently use heavy fuel oil fractions thus resulting in significantly decreased quantities of emitted air pollutants. ENVIRONMENTAL AND SOCIAL REPORT 2008 Electricity and steam co-generation The reliable and uninterrupted operation of the Power Co-Generation Plant is of decisive importance for the refinery’s operation. The four gas turbines, with a total capacity of 68.3 MW, in conjunction with the two waste heat boilers that recover heat from the flue gases generated, provide the refinery with the required power supply autonomy while at the same time cover a large percentage of its steam requirements. Energy Consumption (TJ) 2005 20,042 2004 18,587 0.27 2008 1.952 As an alternative raw material for the hydrogen production unit. The production of environmentally- friendly fuels requires the consumption of large quantities of hydrogen, the production of which is based on the catalytic reformation of hydrocarbons (naphtha or LPG) with steam. Carbon dioxide is produced as a by- product of this procedure. Utilization of natural gas as an alternative feedstock results in reduced carbon dioxide quantities emitted. It is estimated that emissions are 12% lower than those generated with the use of naphtha or LPG. of energy. Moreover, it is important to Moreover, it is important of energy. of the natural note that the construction OIL, gas pipeline serving MOTOR parameter for constitutes an important of a potential the economic viability network to expansion of the national supplying the Megalopoli, in view of electricity Public Power Corporation’s significant generation plants, with benefits environmental and economic for the area. Within the refinery, natural gas is used: 2007 2.075 Emissions per product ton (Mt/Mt) as Emissions 2 CO 0.29 0.29 2006 1.994 (in million Mt and Mt/Mt of product produced)

Annual emissions (in million Mt) 0.24 2005 1.311

2008 was an important year for the shaping of the refinery’s «energy footprint». The first delivery of natural gas in May 2008 marked a turn to more environmentally-friendly sources Introduction of natural gas to the refinery Year 2008 was characterized by the Year 2008 was characterized Gas to the introduction of Natural refinery. The projects completed in previous years (replacement of gas turbines, upgrading of pre-heating furnaces, installation of Advanced Process Control, etc.), combined with the continuous monitoring of energy performance together with the preventive maintenance programmes implemented, contributed to the reduction of the refinery’s energy consumption by approximately 6% (3.8 TJ per ton of product produced, down from 4.0 TJ in 2007). well as, the conversion of its fractions well as, the conversion energy- into end products is particularly are intensive. Energy requirements use of energy is such that, the rational both for the of particular importance, company’s environment and the economic results. optimization of crude oil refining The process Energy consumption consumption Energy Environment] 62 200,000 tonsofCO environment amountingtoaround translated intoabenefitforthe of 100tonssteamperhouris Moreover, thesimultaneousproduction 2007. performance to36.9%from34.7%in improvement ofthePlant’senergy reduction ofimportsfromPPC,andthe increase isattributedbothtothefurther increased to61,000tons.This completion oftheLevelIIpreventive Year 2008sawthesuccessful fuel intherefinery’ssteamboilers. released fromtheburningofadditional which wouldhaveotherwisebeen tons ofCO the environmentamountedto38,700 year 2007,theestimatedbenefitfor adverse resultsfortheenvironment.For the conventionalfuelmix,withmultiple the productionofwhichwouldrequire from PublicPowerCorporation(PPC), drastically reduceselectricityimports at anationallevel.Itsoperation reduction ofgreenhousegasemissions operation ofthePlantcontributesto Besides theautonomyitprovides, [ ENVIRONMENTAL ANDSOCIALREPORT 2008 2 , whileforyear2008 2 per annum, Plant’s overallperformance. installed in2005),upgradedthe and 2007(thefourthturbinewas turbines thattookplaceinyears2006 replacement ofthetwooldergas turbine, which,togetherwiththe maintenance programmeofthe3rdgas maintenance programmeprovidesfor: Similarly, therefinery’spreventive continuous monitoring. in eachoftheunits,byvirtue (APC) systemoptimizestheenergyuse installed AdvancedProcessControl major contributioninthisdirection.The any weaknessesappearing,makesa timely interventionforthecorrectionof energy performanceoftheunitsand the dailypracticeofmonitoring at therefineryinviewofsavingenergy, Besides themajorprojectstakingplace Monitoring anddailypractice environmentally-sound cleaning During 2008,asiteforthesafeand percentage ofenergyrecovered. coolers inordertoincreasethe cleaning ofheatexchangersandair Systematic retubing,repairand heating furnaces. refractory, burnersandtubesofpre- Repair and/orreplacementof ageing. specifications, perhapsdueto performance isnotupto rotating equipmentwhoseenergy Maintenance and/orreplacementof environment. minimizing lossestothe equipment insulation,thus programmes, ofpipelineand Replacement, throughannual 2008. exchangers wascompletedin and maintenanceoftherefinery’s [Environment 63 ] ENVIRONMENTAL AND SOCIAL REPORT 2008 Determination of control points Determination of measurements frequency methodology to be used Determination of the appropriate measurement points Implementation of periodic checks at the predefined Repair of leaking components Reporting on findings ● ● ● ● ● ● Leak Detection and Repair (LDAR) Leak Detection and is based on the emissions detection and leak repair programme The refinery’s fugitive Agency. United States Environmental Protection EPA 21 method of the , such as valves, result at numerous points within the refinery Fugitive emissions can on the pipelines, valves and other related equipment installed pumps, flanges, safety or storage tanks. pressure vessels, reactors design and implementation points are: The programme’s key The MOTOR OIL refinery’s leak detection programme includes more than 5,000 The MOTOR OIL refinery’s leak detection programme units, truck loading terminals, port predetermied points, which cover all production These points are checked by refinery facilities, storage tanks and oil separators. depends on the process to be personnel at least once a year (the frequency concentration measurement controlled), using portable volatile hydrocarbon are found to exceed 5,000 ppm, a repair equipment. In the event that concentrations request is issued for the equipment checked. which revealed 68 points requiring 6,100 checks were implemented in year 2008, which were either handed in for intervention by the refinery’s personnel, and the refinery’s planned maintenance immediate repair or scheduled for repair during programme. ). A 2 ), 2 and dust ¯ ), particulate both within particulate 4 ), hydrogen 2 2.5 as well as, S), hydrocarbons 2 10 measuring device is the 2.5

S) and sulphur dioxide (SO 2

sulphur dioxide (SO sulphide (H fourth, mobile station, equipped with state-of-art measuring and recording devices has the ability to monitor the concentrations of multiple pollutants, including nitrogen oxides (¡√ and ¡√ and carbon monoxide measurement equipment, a provision that exceeds the legislative requirements. It must be noted that the ƒª only one operating on a private basis in Greece. The flue gases of the main refinery chimneys are continuously monitored by online analysers. The parameters measured are temperature, flow, exhaust gas humidity and oxygen, NO meteorological parameters. In 2008, the mobile station was equipped with PM besides methane (CH matter PM Monitoring of air quality in the peripheral zone of the refinery, is carried out on a continuous basis by three fixed monitoring stations, which are capable of measuring and recording hydrogen sulphide (H refinery’s boundaries and in the refinery’s boundaries legal as well as surrounding area, is a for the company, an ethical obligation of Corporate within the framework Air pollutants Social Responsibility. through a concentrations are monitored that make use wide range of techniques of state-of-the-art measurement grid that equipment. The measurement both point and has been created covers diffuse emissions sources on a continuous and intermittent basis. Safeguarding air quality Safeguarding Air quality management quality Air Environment] 64 ∏ exit pointsofthoseunits.Also,the sulphur concentration.The to continuousmeasurementoftotal the Hydrocrackerunit,aresubject both theFuelsproductionunitand The supplylinesoftheflares Distributed ControlSystem(DCS). controlled viatherefinery’s respective meta-furnacesis production unitsandofthe 99%). Theoperationofsulphur recovery performance(morethan so astoensuremaximizationof measured, recordedandadjusted, monitors andrecords∏ recovery units,whichcontinuously system isoperativeinthesulphur An automaticperformancecontrol taking placeinthefurnaces. complete controlofthecombustion configuration whichallowsforthe Distributed ControlSystem(DCS),a connected totherefinery’s point outthattheanalysersare concentration. Itisimportantto and ∏ concentrations attheentrypoints [ ENVIRONMENTAL ANDSOCIALREPORT 2008 2 S/SO 2 S, SO 2 ratio iscontinuously 2 concentrations atthe 2 S concentrations ofairpollutants, Besides themeasuresfor emissions intheatmosphere. towards thereductionofhydrocarbon (LDAR forshort)constitutesamajortool Leak DetectionandRepairprogramme been designedandimplemented.The checks oncarefullyselectedpointshas equipment, aprogramofperiodic limit fugitiveemissionsfromthe leaks intotheatmosphere.Inorderto present ahigherriskofhydrocarbon expected thatspecificpointswill In suchanenvironment,itistobe unit, asisthecaseofamodernrefinery. transferred, isinstalledinanyindustrial intermediate andendproductsare quantities ofrawmaterials, equipment, fromandtowhichlarge A plethoraofdifferenttypes suitably accreditedcompany. certified everyfourmonthsbya chimneys aremeasuredand Emissions fromtherefinery’sother the refinery. the DistributedControlSystemof analysers installedareconnectedto monitoring a achieving thereductionofnitrogen the refinery’sneeds,whilealso ensures reliablesteamgenerationfor the fourthsteamboiler.Theupgrade came tocompletionwiththerevampof with atotalcostof7.6millioneuros, refinery’s steamgenerationcomplex, The projectfortheupgradeof sulphur recoveryunits. improve theoperationofrefinery’s this projectisexpectedtofurther methyldiethanolamine recoveryunit; carried outfortheupgradingof recovery units.Finally,astudyisbeing downstream gastreatmentandsulphur turn improvedtheoperationof higher nitrileremovalcapacitywhichin gases wasinstalled;thisprovideda of thedieseldesulphurizationunit’s In 2008,anewwaterwashingsystem Complex constructionprojectin2005. expanded duringtheHydrocracker process. Itisnotedthattheunitswere recovery unitsplayavitalroleinthis desulphurization unitsandthesulphur refinery. Therefinery’sfuel-gas air pollution series ofmeasurestoactivelyreduce are inplacewithinthe [Environment 65 ] ) contained in the 2 and ¡√ (thermal oxides), 2 emissions by 50% to 60%. ¯ ENVIRONMENTAL AND SOCIAL REPORT 2008 concentrations does not affect other ¯ burners appeared at the beginning of the 1990s, when the effects of burners appeared at the beginning of the 1990s, ¯ Burners x in the atmosphere started to be noticed. At this point, it should be pointed out that in the atmosphere started to be noticed. At ¯ their design and construction is quite challenging; the burners must be designed in their design and construction is quite challenging; such a way that the achievement of low NO NO atmosphere is oxidized, resulting in the production of ¡√ atmosphere is oxidized, depending on prevailing burning conditions. The main factors affecting the creation of burning conditions. The main factors affecting depending on prevailing the burner. air excess and flow conditions in oxides are burning temperature, The first low-NO operating parameters such as their energy performance and CO emissions. operating parameters such as their energy performance are the following: The main techniques used (alone or combined) (1) reduction of the air preheat temperature, (2) low air excess, of two or three combustion zones (3) gradual introduction of air or fuel and creation with mixtures that are rich or poor in fuel, and (4) re-circulation of exhaust gases. to the alteration of the combustion The implementation of these techniques leads of NO mechanism, which can result in the reduction Low-NO effects, such as the are responsible for a series of environmental Nitrogen oxides (NOx) and the increased pollution, the phenomenon of acid rain creation of photochemical human health. in the atmosphere, which is detrimental to concentration of ozone liquid or gaseous fuels, the nitrogen (¡ During the burning of , 3 : 350 Ìg/m 2 , S√ ). 3 3 : 50 Ìg/m : 200 Ìg/m ¯ 10 S at the station located in Aghioi 2 Finally, sulphur emissions in 2008 (247 kg/h) appeared significantly lower than in previous years (2007:256, 2006: 406, 2005: 391 kg/h), due to the use of low-sulphur fuel. Theodoroi, outside the Refinery, and therefore in the broader region of the facilities, is particularly low. PM As for hydrogen sulphide emissions As for hydrogen sulphide following (which have been minimized the upgrading of the acid gas processing systems and sulphur recovery units), these are monitored on a daily basis by all 4 air quality monitoring stations. The analysis of results shows that the concentration of H The detailed records for the past five The detailed records both the hourly years demonstrate that are much and daily concentrations set by law lower than the limit values (¡√ oxide emissions and noise levels. and noise levels. oxide emissions Environment] 66 of thehydraulicandpollutantload The followingtableshowstheevolution disposal. and compressedpriortofinal the sludgeproducedisdehydrated transferred totheendrecipient,while processed, processedliquidwasteis Treatment Plant.Afterthewasteis transferred totheUrbanLiquidWaste Treatment Plant,whileurbanwasteis transferred totheWasteWater refinery’s specialisedunitsandthen waste ispre-processedinthe to theirfinaldisposal.Industrialliquid applied tothesetypesofwaste,prior different processingtechniquesare Due totheirdifferentpollutantload, waste. urban two categories: refinery’s operationcanbedividedinto Liquid waste Liquid wastemanagement [ ENVIRONMENTAL ANDSOCIALREPORT 2008 produced bythe industrial waste waste industrial and Phenols (Kg/day) Suspended solids(Kg/day) BOD Discharge Rate(m Parameter method isbeingexaminedforits the managementofsludgeproduced;a Particular attentionhasbeenpaidto flexibility inloadmanagement. treatment plantallowedforgreater reinforcement oftheacidwater Water Treatmentplants.Moreover,the Industrial andUrbanLiquidWaste concerning theoperationof completed, togetherwithprojects equipment drainagemanagementwere the improvementofrainwaterand During 2008anumberofprojectsfor the lastfiveyears. the WasteWaterTreatmentPlantover Treatment Plant Hydraulic andPollutantLoadoftheIndustrialWasteWater 5 (Kg/day) 3 /day) ,6 ,7 03510,297 10,385 8,976 7,565 0520 072008 2007 2006 2005 50130280174.0 208.0 143.0 75.0 .025 .83.79 2.58 2.51 3.10 6 0 8 265 286 305 266 treatment plant. efficiency attheindustrialwastewater and theincreaseofsludgedrying to furtherimprovegaseousemissions the utilizationofexistingidlecapacity Finally, astudyisbeingconductedfor storage tankwascompleted. project fortheventilationofsludge alternative fuel.Atthesametime, landfills oritsutilizationasan stabilization andsafedisposalin [ Solid waste management - Recycling Environment

The management of solid waste Landfarming at the refinery produced during the operation of the refinery requires integrated processes to be put in place covering all stages of The deposits arising during tank cleaning are processed in either two-stage waste life-cycle, from collection to (decanter) or three-stage (tri-canter) centrifuges, for the removal of hydrocarbons. eventual exploitation/disposal. The resulting solid residue is subjected to biodegradation at specially prepared sites (landfarms), in conformity with the relevant API landfarming standard. The main aims of a solid waste management programme are: This method has proved to be effective for the reduction of the concentration of all oil product components, and is based on the metabolic activity of microorganisms reduction of quantities produced, at (algae, protozoa, fungi and bacteria) that naturally occur in the soil. Bacteria source, present the largest populations, and are the most biochemically-active agents. The characteristics of the soil, the oily components in the sludge collected from tank separation into hazardous and non- bottoms, and the weather conditions are the main parameters that can influence hazardous waste at source, the effectiveness of this method. wherever possible, An environmental audit was carried out due to the change in use of the land maximum exploitation prior to final previously used for the application of the above method; the audit included disposal, through recycling or re- chemical analyses for the determination of substances presenting environmental use or recovery of useful concerns, such as metals, metalloids, Polycyclic Aromatic Hydrocarbons (PAHs) components or regeneration, and and DOC (Dissolved Organic Carbon) and evaluation thereof on the basis of finally, geochemical criteria, taking into consideration the land’s geochemical background, and the maximum acceptable limits determined by international environmental safe transportation and final legislation. The audit was carried out by a research team led by Prof. A. Kelepertzis, disposal aiming towards the of the Department of Economic Geology and Geochemistry, Faculty of Geology and protection of both the environment Geoenvironment, of the University of Athens. and the human health. The following conclusions were drawn from the audit: Cooperation with licensed companies «…the concentrations of all environmentally graded metals and metalloids in specializing in the management of the soil examined are considered normal on the basis of both the geological specific types of solid waste is deemed background and the land use of the project site». more than necessary in all occasions. «…the concentrations of aromatic hydrocarbons in the soil examined are In year 2008, more than 121 Mt of considered normal on the basis of the maximum acceptable values established spent catalyst were removed by by current environmental legislation». licensed solid waste management companies.

At this point, a mention must be made on the programme regarding the licenses for both collection and export for the recycling of used lubricants and removal of asbestos components from of the asbestos abroad. their packaging, thus contributing to the MOTOR OIL’s facilities. In 2008, protection of the environment and raw 1,075 m2 of asbestos sheets (11.56 As far as used lubricants and their material savings. We also collaborate Mt) where removed, following another packaging is concerned, we have with accredited firms specialised in the 4,150 m2 in year 2007. The removal contracts in place with a firm specialised recycling of batteries, ink toner was carried out by a specialized in used mineral oil recycling and with a cartridges, motor vehicle tyres and hazardous material management firm specialised in handling packaging computers. company, which has the necessary materials. These two contracts provide

ENVIRONMENTAL AND SOCIAL REPORT 2008] 67 Environment] 68 Office isdonatedtotheFoundation toner cartridgesrecycledatHead The moneyraisedfrompaperand «For the child and the family». the and child the «For ● ● ● ● ● ● ● were recycled: In 2008,thefollowing 2 1 are notavailable. figures fortheAVINOILretailnetwork alone, sincecorrespondingreliable These quantitiesrefertotherefinery bleached paperwasinitiatedin2008. The useofrecycledandnonchemically- 1,300 tonercartridges 3.4 tonsofbatteries 13 tonsoflubricants 26 tonsofpaper 45 tonsofwood 121 tonsofspentcatalyst 2,732 tonsofiron(scrap) [ ENVIRONMENTAL ANDSOCIALREPORT 2008 1 2 refinery’s turnaround. for maintenanceduringtheextensive thorough preparationoftheequipment This increaseisattributedtothe and increasedagainby3%in2008. 2007, thisquantitydroppedby7%, product producedincreased.Inyear quantity ofwaterconsumedperton refinery’s expansionproject,the following thecompletionof It shouldbenotedthatin2006, thousand m water inyear2007amountedto125 refinery’s needs.Thus,whereimported to covermorethan99.8%ofthe supply ofadequatequantitieswater desalination unitsmadepossiblethe first time,theoperationof management attherefinery.For Year 2008wasamilestoneforwater management morethanimperative. risk, afactwhichrendersitssound Water management Water 4 thousandm is oneofthenaturalresourcesat

0420 0620 2008 2007 2006 2005 2004 309 3 , thisquantitydroppedto Sanitary waterImports

1,370 3 1,679 in year2008.

232 Annual WaterConsumption(inthousandm 1,902 2,134

146 Desalinated Water 2,962 completed inyear2008. refinery’s sulphurrecoveryunitswas A studyonnoisereductioninthe low noiseemissions. as theprocurementofequipmentwith of silencersandsoundcurtains,aswell Such measuresincludetheinstallation disturbance causedtotheneighbours. suitable measurestominimizeany locations aroundtherefinery,andtakes measurements atalargenumberof regular basis,bycarryingout MOTOR OILmonitorsnoiselevelsona the activitiestakingplace. natural andinevitableconsequenceof such astheMOTOROILrefinery,isa Noise causedbyindustrialfacilities, Management Noise 3,108

125 2,894 3,019 Total 4 3

3,145 ) 3,149 [Environment 69 ] ENVIRONMENTAL AND SOCIAL REPORT 2008 refinery neighbours, and accepts any complaints they may have. Complaints expressed by neighbours are recorded, investigated and evaluated according to the refinery’s complaint handling procedures, and short or long term measures are taken to address them, depending on the cause of the disturbance. One typical example of actions to reduce disturbance is the study for and subsequent installation of a foam breakdown system at the industrial waste water treatment plant, following a specific complaint received. The number of complaints recorded during year 2008 was 27, compared with 35 complaints in 2007, 24 in 2006 and 36 in 2005. Finally, we contribute to the environmental protection work of Non- Governmental Organizations. In 2008, we sponsored a study on the quality of seawater around the Argosaronikos islands, carried out by the Pan-Hellenic Centre of Ecological Research (PAKOE). of the principles 1 (small scale) pollution drills and 1 (small scale) pollution two Tier 2 (medium scale) drills. and Is a member of international whose aim regional organizations, for is to coordinate the cooperation incidents preventing major oil spill in the and the providing assistance should response to such incidents they occur (see p. 70). Communication with stakeholders Communication with Within the framework of Corporate Social Responsibility, MOTOR OIL uses various means of keeping local authorities and other stakeholders informed of its activities, either by involving its own staff in local authority conferences and meetings, or by organising events at the refinery. The aim of such meetings is to provide regular briefings to the local authorities about its investment plans and its programmes relating to environmental protection. Within this framework, a meeting with Local Government officials and other local authorities took place in April 2008, to provide information on the company’s environmental policy and investment prospects in the coming years. The presentation was made by the Refinery’s General Manager, Mr M. Steiakakis, with an introduction by the Deputy Managing Director, Mr I. Kosmadakis. Besides briefing the local authorities, the company also keeps in touch with , which is the operation of the operation Oil Spill

harmonized with the Local Contingency plan and the National Contingency Plan drafted by the Ministry of Mercantile Marine. Maintains all necessary equipment for responding to local small and medium scale water pollution incidents (Tier 1 & 2), such as absorbents, booms, skimmers, coastline cleaning equipment and vessels (boats, tugboats and a special vessel equipped with tanks for storing the collected pollutants). There are also appropriate stocks of oil dispersants, used at the final stage of clean-up operations, when authorised by the port authorities. Audits the preparedness of the above plans and maintains personnel response capability at high levels, with an annual drill schedule, which includes eight Tier Contingency Plan Takes all necessary active and passive protection measures to minimize the risk of oil spills during the operation of its refinery. Takes all necessary measures and provides all equipment for the safe arrival and departure of tankers at its facilities, as well as for the safe loading/unloading thereof. Has drafted an Within this framework, MOTOR OIL: MOTOR OIL’s refinery is completely MOTOR OIL’s refinery environment. interwoven with the marine a potential Due to the extensive impact on the marine pollution may cause, both and social ecosystem and the economic as well as the life of adjacent areas, rehabilitation tremendous expense that and preparation for entails, prior planning to such incidents successfully responding is absolutely necessary. Due to its location, Due to its location, Marine environment protection environment Marine Environment] 70 imperative. communication betweenentities legislative level,rendertheneedfor well asdevelopmentstakingplaceata progress ofscienceandtechnology,as environmental protectionissues.The organizations andotherentitieson opinions betweencompanies, of theexchangeinformationand MOTOR OILacknowledges Participations andcollaborations Forum (OCIMF) Forum Companies International Marine International Companies Europe), in Water We areamemberofthe environmental performance. improving thecompany’s suitable manner,thusfurther daily businesspracticesinthemost evaluated andincorporatedinour conclusions ofresearchprojectsare products thatweproduce.The distribution, handlinganduseofthe protection, duringproduction, concerning environmental information provisiononmatters complete andsystematic Our participationensuresconstant, environmental protectionissues. refineries onhealth,safetyand technical supporttoEuropean (CONservation of Clean Air and Air Clean of (CONservation practices. design standardsandoperating the continuousimprovementof of facilitiesandoiltankers,through environmentally-friendly operation aimed atpromotingthesafeand terminals. Theforum’sactivitiesare as welltheoperationofoil of crudeoilandpetroleumproducts, interest inthemarinetransportation petroleum companieswithan CONCAWE organisation We areanactivememberofthe [ ENVIRONMENTAL ANDSOCIALREPORT 2008 , anassociationof which provides Oil the value Within thisframework,MOTOROIL: environment-related conclusions. study ofphenomenainviewdrawing knowledge andintheobservation both inthedevelopmentofprimary We supporttheacademiccommunity technologies», technologies», of mild catalytic pollution control pollution catalytic mild of by industrial activities. Application activities. industrial by pollutants in a marine area affected area marine a in pollutants chemical behaviour of toxic of behaviour chemical «Demokritos». and distribution the of «Study technologies. control/decontamination apply mildpollution investigation ofthepossibilityto typical tothearea,and significant chemicalprocesses deeper analysisofenvironmentally refinery islocated.Italsoconcernsa Saronic Gulf,wheretheMOTOROIL marine areaoftheNorth-western behaviour ofbasicpollutantsinthe distribution andenvironmental concerns thestudyoflevels, elaborated. Theprogramme doctoral thesesarebeing framework ofthisprogramme2 of the At aregionallevel,wearemember of ScientificResearch Department andtheNationalCentre Athens UniversityChemistry Finances theprogrammeentitled incidents intheMediterraneanSea. for respondingtomajoroilspill pollution andinthepreparedness of theindustryinpreventingmarine industry forumonthecoordination Group (MOIG), Group Mediterranean Oil Industry Oil Mediterranean carried outbythe Within the a regionaloil market» biomass and its uses on the Greek the on uses its and biomass production of biodiesel from biodiesel of production programme entitled Participates intheresearch production. the useofsolidwasteforenergy Solid FuelsApplications,concerning of theInstituteTechnologyand Supports theresearchprogramme coastal zone. the watercolumnofrefinery’s prevailing chemicalconditionsin University, forthedeterminationof the GeologyDepartment,Patras Applied GeochemistryLaboratoryof Continues tocooperatewiththe of new chemical processes for the for processes chemical new of oils. processing ofgasoilsandvegetable of thepossibilitysimultaneous purpose andfinally,theexamination conventional catalystsforthis diesel, thepossibilityofusing vegetable oilsandde-sulphurised processing plantformixturesof parameters ofahydrogen- is toexaminethebasicoperating Athens. Theaimofthisprogramme and theAgriculturalUniversityof and TechnologyHellas(CE.R.T.H.), University, theCentreforResearch including theNationalTechnical eight otherpartiesareinvolved, ; apartfromMOTOROIL, «Development [Environment 71 ] Finally, the annual Environmental Statement 2007 was submitted to the Ministry of the Environment, Physical Planning and Public Works , in accordance with the requirements of EMAS ER 761/2001. The company is registered with the European Eco- Management and Audit Scheme (EMAS) and in the Hellenic Register of EMAS-registered organizations, under number EL 000067. ENVIRONMENTAL AND SOCIAL REPORT 2008 ● The review of environmental terms for MOTOR OIL’s facilities is currently in progress. Additional data for the Environmental Impact Study of the new Crude Distillation Unit, currently under construction, was submitted to the Ministry of the Environment. application of Directive 96/61/EC on Integrated Pollution Prevention and Control (IPPC). ● ● of the measures

We submitted a report on the construction of five new propane, butane or LPG storage tanks at MOTOR OIL’s facilities. According to a decision taken by the Ministry of the Environment, Physical Planning and Public Works, the proposed project will be included in the Environmental Terms Approval Decision currently being revised. This will be issued in We submitted the plan for the collection of waste generated by ships at MOTOR OIL’s port facilities, to the Ministry of Mercantile Marine. We submitted the annual report on gaseous and liquid pollutant emissions for year 2007 to the same Ministry and the competent Prefecture Council. We submitted the annual report on hazardous and non-hazardous wastes (liquid and solid) production for year 2007 to the same Ministry and to the Peloponnese Regional Authorities; a similar report was submitted to the National Statistical Service for year 2006. We submitted the greenhouse gas We submitted the greenhouse 2007 to emissions report for year the Ministry of the Environment, Physical Planning and Public Works. Additionally: ● ● ● ● ●

Strict application Thus, in year 2008: Compliance with environmental legislation environmental with Compliance and European instituted by national with the authorities, and compliance of current reporting requirements integral parts of legislation, constitute our environmental policy. Environment] 72 System Volatile OrganicCompound(VOCs) (Stage I)concerningtherecoveryof requirements ofEUDirective94/63 network soastocomplywiththe The companyhasinvestedinitsretail improvement. ensure itseffectivenessandcontinuous audits andmanagementreviewsto Safety and Environmental Management Environmental and Safety Environmental Protection Policy» Protection Environmental OIL operatesacomprehensive regulations andcodesofpractice.AVIN compliance withalllegalobligations, activities. Thepolicyrequires consistently adherestoinallofits summarizes theprinciplescompany environment. Its respect forpeopleandthe quality productsandservices–with operating intheoilsector–marketing For 31years,AVINOILhasbeen AVIN OIL [ ENVIRONMENTAL ANDSOCIALREPORT 2008 which providesforregular «Health, Safety and Safety «Health, Health, drivers weretrainedin2008onthe provisions. Finally,AVINOIL’sroadtanker accordance withcurrentlegislative for environmentally-friendlyoperation,in The newroadtankersarefullyequipped acquisition ofatotaltenroadtankers. included inabroaderplanforthe added toAVIN’sfleetin2008;theseare emissions. Threenewroadtankerswere required systemsforrecoveringVOCs and aresuitablyequippedwiththe undergone thenecessarymodifications programme, allroadtankershave parallel. Withintheframeworkofthis the protectionofenvironmentin the safetransportationofproducts,and company’s fleetofroadtankersensures The programmeforrenewalofthe stations. detection oftankleakagesinitspetrol the installationofdevicesforearly emissions, andisgraduallyinvestingin materials afteruse. of AVINOIL’slubricantsandpackaging provide forthecollectionandrecycling lubricants’ packaging;thesecontracts specialised intherecyclingofused lubricants andwithanotherone firm specialisedintherecyclingofused AVIN OILhassignedacontractwith product contamination. early detectionofapotentialpetroleum samples onamonthlybasis,forthe been constructedandfortakingsoil the soil,two(2)monitoringwellshave Finally, inordertoensurethequalityof the reductionofitsenergyconsumption. station makesamajorcontributionto loading, whileitsupgradedpump Terminal isfullyequippedforbottom The AghioiTheodoroiTruckLoading the EuropeanECODRIVEprogramme. principles ofecologicaldriving,through Community Involvement

Commitment to the community – responsibly, consistently and reliably

We strive to benefit local communities through job creation and fostering entrepreneurial activity, to contribute to the overall economic development of the country, and to ensure that our activities have a positive and productive impact on the social environment in which we operate. Moreover, we also believe that we have a responsibility towards society to participate actively in enhancing social values, and in creating a hopeful and humane future. For these reasons, we support the communal and cultural life in the area surrounding our installations, as well as the social and cultural life of society as a whole, by means of a diversified programme of donations and sponsorships. ] Contribution to Society Contribution to local communities

Our social contribution is one of the provisions of the relevant policy and in A prime aspiration of ours is being a main parameters of the way in which application of our strategy for source of prosperity to the local

Community Involvement we perceive our commitment to community involvement, which is built communities adjacent to or near the Corporate Social Responsibility, and we around the following main objectives: refinery, through the large number of handle it as responsibly as we handle job opportunities we offer, as well as our human resources, environmental support for cultural, athletic and the provision of a broader care for these protection, health and safety in the social activities and initiatives, communities by working on the workplace, and the issues of corporate donations to hospitals and church- development of constructive governance. run aid agencies, relationships with them, which we constantly strive to enhance aiming at Our sponsorship activities seek to contribution to education and the achieving a balanced and harmonious sciences, provide consistent and reliable coexistence. assistance to the community, according support for the work of non- to our corporate objectives and values, governmental organisations, This care is expressed through the aiming at supporting the values that associations and charitable support we offer for the implementation promote the quality of life: education, foundations, of various programmes and initiatives. healthcare, athletism and culture. broad assistance in addressing the The programmes we support are social needs of groups and selected through a process of dialogue, During 2008, and in line with our long- individuals, communication and cooperation with standing tradition as a socially active the various authorities and support for projects to improve local corporate citizen, we sponsored and organisations in the municipalities of infrastructure, and donated a wide variety of different Aghioi Theodoroi, Corinth, Loutraki, activities realized by reliable hosting of informative visits to the Saronikos and Solygeia. The main organizations and foundations. The refinery, and offering student criteria we take into consideration for activities we supported were selected traineeships. selecting the particular programmes, by the competent company executives are their potential contribution to the at local and corporate level, in development and promotion of the local accordance with the procedures and communities, to the enhancement of the social sub-structure, and the exploitation of synergies that lead to more tangible results rather than 4.7 million euros in donations merely meeting societal needs. and sponsorship in 2008

Distribution of the 2008 Sponsorship Programme

Culture New Generation 11.2% (Education and athletism) 33.2%

Social Solidarity 51.7%

6.2% of the group’ s Heating Gasoil net earnings after tax 3.9%

74 [ ENVIRONMENTAL AND SOCIAL REPORT 2008 [ Community Involvement

Education educational visit to Thessaloniki by We provide financial support for various the students of the 3rd class, within local schools, aiming at contributing to the framework of the «Artistic the improvement of their infrastructure Intervention» educational and cultural programme. or educational equipment, and at the realization of various school activities ● Financial aid, for the third and programmes that promote the level consecutive year, to the Elementary of education. School of Almyri for the maintenance of its facilities. The following are some examples of ● Support for the Isthmia Elementary these activities in 2008: School and Kindergarten Parent- Teacher Association, for organizing ● Financial support to the cultural events and educational environmental programme of the excursions. 2nd Corinth Junior High School, for ● educational visits and the Purchase of books for the publication of the 9th issue of the Elementary School and school’s newspaper, currently in its Kindergarten of Vochaikos, Corinth. sixth year, always on account of our company’s support. and to the Senior High School for educational visits. ● Financial aid for schools in Aghioi Culture Theodoroi: to the 3rd Kindergarten, ● Provision of computer equipment to In year 2008, we contributed to the which opened in 2008, for the the Corinth Experimental Junior realization of many high-quality acquisition of equipment and High School (3 computers, 10 cultural events by assisting a multitude educational material; to the 1st Day monitors and 4 printers). of local associations that promote the Nursery for the acquisition of ● Financial aid to the Elementary area's cultural level in many ways, garden toys and playground School and Kindergarten of such as by offering classes for equipment; to the 1st and 2nd Xylokeriza for the construction of a traditional dancing and theatre Kindergarten for the purchase of computer room. workshops, organizing concerts and educational equipment; to the theatrical performances, and by Junior High School for the ● Economic support to the Isthmia rewarding top students. replacement of classroom curtains; Junior High School for an

Donations and Sponsorships (in million euros) 4.7 4.4

3.3

2.1 1.9 1.7 1.1

2002 2003 2004 2005 2006 2007 2008

ENVIRONMENTAL AND SOCIAL REPORT 2008] 75 ]

Refurbishment of the «Krokideios Hall», Holy Diocese of Corinth Aghioi Theodoroi Cultural Centre Community Involvement We responded with a major donation to the appeal of the Bishop of Corinth to raise funds As we do every year, we supported the for the repair and refurbishment of the «Krokideios Hall», in order for the historical hall to events organized by the Aghioi Theodoroi re-open its doors to the Corinthian Church and the public. It is the only hall in the town of Cultural Centre, which celebrated 20 years Corinth that is suitable to serve as a venue for the pastoral, spiritual, artistic and social of ongoing and expanding cultural activity in activities of the Holy Diocese, as well as a multi-function hall for the town of Corinth, year 2008. The Centre offers culture, something that the town clearly needs. entertainment, knowledge, education and new horizons to the citizens of Aghioi Theodoroi. Corinth Municipal Cultural Centre The Cultural Centre operates many different departments, such as: guitar (40 children), Year 2008 was the 150th anniversary of the establishment of the New Town of traditional dance (150 children – 80 Corinth (the town was moved from the site of Ancient Corinth to New Corinth in adults), adult and children’s theatre 1858, after the catastrophic earthquakes). In order to celebrate this anniversary, the workshop (60 persons), philharmonic (25 Municipality of Corinth and the Corinth Municipal Cultural Centre organized a series of persons), adult and children’s modern events throughout the year, under the general heading «150 years Corinth – one dance (70 adults – 90 children), parental town, centuries of history». The events included scientific conferences, theatre and consultancy, art workshop (for elementary dance performances, artistic exhibitions, musical events and sports activities. MOTOR school and kindergarten – 53 children), OIL sponsored the events of the «150 years Corinth – one town, centuries of history» puppet theatre for kindergarten and adult programme. and children’s choir (120 persons).

We also sponsored the Corinth Municipal Cultural Centre’s organization of the Many different events were organized in summer events «Cultural Mosaics 2008», which included concerts (by ONIRAMA, 2008, including theatrical performances Katsimihas-Xydous-Koutras, the 70-member German group Frohlicher Akkordeon with the «Notis Pergialis» Open Theatre, the Express, and others), traditional dances and songs with groups from Greece, Egypt «Horeftiko Sergiani» Festival, with and Russia, theatrical performances (The Doctor in Spite of Himself by Molière, Oh traditional dance performances by dance my kidneys by M. Tsikliropoulos, Clouds by Aristophanes, Shadow Theatre), and a departments of cultural associations Rock-Metal music festival throughout Greece, painting and photography exhibitions

19.2 millions euros in donations and sponsorships over the last six years 76 [ ENVIRONMENTAL AND SOCIAL REPORT 2008 [ Community Involvement

● We donated to a series of cultural events organised by various local Concert by the «Mikis Theodorakis» Orchestra associations, such as the Corinthian Amateur Theatre «Vassilis Rotas», Over the last six years, since the 1,600-capacity open-air theatre named after the for the play Medea by Euripides, and renowned Greek composer Mikis Theodorakis was inaugurated in Examilia, Corinth, the the play Me arithmo protokollou by Lysippeion Cultural Centre of Corinth Prefecture has been organizing a large popular Vassilis Kostaras, which were music concert with the «Mikis Theodorakis» Orchestra. The 2008 concert took place on presented at theatrical festivals in July 25th. Greece and abroad, the «Irida» theatre in Corinth, the Loutraki- Perahora Municipality Cultural MOTOR OIL sponsors the event every year. The purpose of this sponsorship is to pay a Centre for the organization of tribute to the valuable musical heritage of Mikis Theodorakis, who, besides his enormous Carnival events, the Isthmia Cultural symphonic work, has also composed ninety-four song-cycles that promote poetry in a Club, the Corinth Epirots Association simple and genuine manner and originate from the roots of our popular tradition. «Pindos», the «Aghios Dimitrios» Moreover, the company shows its support to this orchestra that, for over a decade and Cultural Association of Xilokeriza for under the composer's supervision, has presented remarkable productions, cooperated the publication of its annual with major artists, musicians and singers and has travelled around the world, promoting magazine, the Saronikos the power of Mikis Theodorakis' music. Municipality's Cultural Association, «Arakoukia» for the organization of a At the concert of July 25th 2008, a major cultural event for the area as always, the «Mikis musical cultural evening, the Theodorakis» Orchestra played famous popular songs by the composer, accompanied by «Mainalo» Arcadians Union of the voices of Kostas Thomaidis, Grigoris Valtinos, Lina Orfanou, Hero, Alexandros Hajis Corinth Municipality, the Examilia and Petros Gaitanos. Cultural Association for events organized by its dance group, the Aghioi Theodoroi Women’s Association and the Aghioi Theodoroi Cretan Association «Psiloritis». ● We support many local newspapers and magazines, which have limited resources and a small readership

ENVIRONMENTAL AND SOCIAL REPORT 2008] 77 ]

Social solidarity occupational workshops. In 2008, We donated to various entities, such About eight years ago, MOTOL OIL the Centre accommodated around as the Corinth Labour Centre, the

Community Involvement launched a very important social 153 persons with special needs. Association of Corinth Police Officers, solidarity initiative in cooperation Persons with special needs require the Corinth Municipality Cleanliness with the Corinth Municipality constant and specialized support, and Landscaping Division, and the Protection Centre for Elderly People, and continuous medical and social Corinth Trade Association. which the company continuously care. MOTOR OIL has shown interest supports. The initiative involves a in the «Efthymeion Centre» for many We provide assistance to meals programme for Corinth’s years given that we are convinced neighbouring communities in destitute elderly people, within the that exclusion has no place in emergency situations, placing at their framework of which free lunches and contemporary society, and that disposal the refinery’s personnel and dinner supplements are offered 365 persons with special needs should be its technical, fire-fighting anti- days a year. The meals are prepared incorporated in society through pollution and medical equipment at the refinery’s restaurant and are suitable actions and programmes. whenever necessary, as well as its the same as those offered to refinery personnel buses to meet the employees. We offered economic assistance to occasional transport needs of schools the Hellenic Red Cross, Aghioi and sports clubs. Examples of this In every year and since its Theodoroi Regional Department, in activity in 2008 include the provision establishment in year 2000, we offer order to equip the ambulance and of a company ambulance on around significant economic assistance to the the coastal First Aid station with a eight different occasions, the Aghioi Theodoroi Protection Centre portable defibrillator, and for meeting provision of fire-fighting equipment for Elderly People; the Centre has part of the operational costs of its and personnel on two occasions, and around 400 members and we cover team of volunteer lifeguards. coaches on ten occasions. part of its operational expenses and the enrichment of the events it We donated to the Corinth Prefecture organizes for the area’s elderly. In Association of Sickle Cell Anaemia year 2008, this assistance covered Patients, which represents 60 many events, such as excursions, thalassemia patients, who receive special painting and handicraft transfusions and are monitored by seminars and conferences on medical the Corinth Hospital. issues relevant to geriatric diseases. We offered Christmas gifts to the We offered economic assistance to schoolchildren in Aghioi Theodoroi, the «Efthymeion Centre» for Isthmia and Kyra-Vryssi. Treatment and Rehabilitation of People with Special Needs, in During the Christmas and Easter Corinth, for the organization of an periods, we offered some economic artistic event at the «Mikis assistance to more than 620 Theodorakis» theatre in Examilia, in destitute people in Corinth, Aghioi which, the children of the Theodoroi, Isthmia, Loutraki, «Efthymeion Centre» were playing Saronikos and Solygeia. the leading roles. The Centre provides assistance and relief; it is As every year, we provided the recognized for the quality of its Municipality of Aghioi Theodoroi with services and has thus far provided lubricants for all municipal vehicles care for more than 400 Persons with and machinery, as well as electronic special needs, both through its equipment (6 computers, 7 printers treatment programme and its and 30 monitors).

78 [ ENVIRONMENTAL AND SOCIAL REPORT 2008 [ Community Involvement

Heating Environment – Improving local infrastructure In year 2008, more than 250,000 litres of heating gasoil were provided free of charge during the winter months Donation of a Fire Engine to the Municipality of Aghioi Theodoroi to more than 220 recipients. The objective of this social contribution is to MOTOR OIL donated a fire engine to the Municipality of Aghioi Theodoroi, at an official meet part of the heating expenses of ceremony that took place on July 16, 2008. This action underlines the continuous schools, orphanages, public interest of the company in the safety of people, and the protection of the environment of kindergartens, municipal childcare the greater area, as well as its excellent cooperation with the neighbouring Municipalities, centres, public elderly people’s homes, especially that of Aghioi Theodoroi. churches, church institutions, etc. in the neighbouring municipalities, as The fire engine is a MAGIRUS-DEUTZ make, is equipped with tanks for 6,000 litres of well as the similar expenses of a large water and 500 litres of foam component, and a roof water/foam monitor), while its number of other recipients in other operation is assisted by two water and water/foam spraying hoses. It is an exceptionally regions of the country, mainly in the effective fire-fighting vehicle, which will contribute significantly to the Municipality’s efforts Athens area. Such recipients included to ensure the best possible fire protection in the area, at a time when incidents of forest the «Smile of the Child» charity fires are on the rise. organisation, the «Efthymeion Centre» for treatment and rehabilitation of people with special needs, the «Corinth Special Elementary School» for disadvantaged children, the Aghioi Theodoroi schools, the Corinth Kindergarten, the «Vissarioneio» old people’s home in Istiea, the «Agia Eleni» elderly people’s home in Loutraki and the «Floga» Association of Parents of Children with Neoplasia.

ENVIRONMENTAL AND SOCIAL REPORT 2008] 79 ]

● We supported the Municipality of replacement of the cultural events Sports Solygeia in carrying out a deep hall roof, the Kitsivari «Nea Zoi» We support activities that promote the

Community Involvement exploratory water bore in its effort association for road paving works, spirit of athleticism in the young people to increase its available drinking «Apostle Paul» (Keghreon), of the local communities, as an water reserves. «Glykia Zoi» (Sousaki) for sports instrument for cultivating a spirit of fair facilities and installation of trash ● We covered the needs of around competition, developing personality cans on the beach, «Philothei» 200 homes around the refinery, in and enabling healthy inclusion in Keghreon for road paving, «Aghios terms of garden and cleaning society. Some examples of this Charalambos» Kalamakiou for water, with water quantities contribution to local communities in electricity works, «Halcyon» Agia produced by the refinery’s Marina-Kyra Vryssi for landscaping 2008 include: desalination plants. This water is a in the churchyard, «Kallybizes» source of life for the area’s Aghioi Theodoroi for repair and A significant donation to the vegetation. MOTOR OIL has built acquisition of new toys for the football team of the «Corinthos» and maintains the water supply playground, «Prathi» Aghioi Pan-Corinthian Athletics Club, mains to these homes, as they are Theodoroi for repair of the church which we have been supporting for not covered by the existing Aghioi of Panagia Prathiou, «Pika» a number of years. Theodoroi water distribution Kinetta, «Kiafa Beka» Aghioi network. In year 2008, 72,000 Theodoroi, «Protoporos» Aghioi Financial support to the Loutraki- cubic metres of water were thus Theodoroi for landscaping of a site provided free of charge, with a Perahora Municipality for the to be used for the construction of a value exceeding 230,000 euros. organization, together with the playground, and the Federation of National Volleyball Association, of ● We provided support to the Aghioi Theodoroi Residents’ the 1st European Beach Volleyball «Aghioi Theodoroi» Forest Associations. Championship for under-18s, in Protection Association, which Loutraki (28-31 August 2008), owns three fire engines and other which attracted the participation of equipment, to allow it to continue 48 teams from 26 European its important work of direct and countries. effective intervention by its volunteer firemen in the case of a forest fire in the region. ● We donated to the construction of a one thousand five hundred seat open-air theatre in a very picturesque location in Sofiko village, which will be the host of cultural events organized by the Municipality of Solygeia. ● We also made donations to various local development and other associations, involved in landscaping and related infrastructure projects. These associations included, among others: the Sousaki «Klara Elias» association for upgrading the facilities of the association’s children’s club, the Kitsivari «Galini» association for

80 [ ENVIRONMENTAL AND SOCIAL REPORT 2008 [ Broader Community Involvement Social Contribution Financial support for infrastructure Entrepreneurship Our contribution to society is not and organizational projects to the Being the largest economic entity and limited to supporting the local «Tiron» Basketball Club of Aghioi employer in the Prefecture of Corinth, communities only, but also extends to a Theodoroi, which was established MOTOR OIL provides income, directly or wide range of other objectives. in 1988 (many of the founding indirectly, to a large number of families Examples of our diverse activity in members being former employees in the area, and is a pillar of prime 2008 are mentioned below: of MOTOR OIL) and has more than importance for the area’s economic 100 active athletes of all ages. development. The company also Social solidarity Also, donations to the «Saronikos» supports the market in the Corinth area Action aimed at supporting bodies Galatakiou Sports Association, the by implementing a policy of preference involved in social solidarity activities is Corinth Gymnastics Sports Union, for the region’s businesses in order to a fundamental expression of our the Union of Corinth Football Clubs, meet the refinery’s needs in corporate values and our concept of and the Corinth Tennis Club. consumables, food, etc., even if cheaper Corporate Social Responsibility in sources are available elsewhere. particular. Donations to numerous other local sports clubs, including the Aghioi We support local initiatives that aim at MOTOR OIL assisted the social Theodoroi «Theseas» karate Sports promoting entrepreneurship: work of UNICEF by making Club, the Aghioi Theodoroi Tennis significant donations to the fund Club, the Football Clubs «Kypselos» ● The Corinthia Chamber of raising radio show and telethon Corinth, «Ethnikos» Xylokeriza, Commerce organized the 2nd organized in 2008. «Pannemeatikos» Nemea, regional exhibition «Corinthia «Teneatis» Athikia, the Loutraki 2008» between 17.9.2008 and The telethon took place on 16 Sports Club «Poseidon», the 21.9.2008, which we supported. December 2008 in cooperation «Isthmiakos» Sports Club, the The exhibition, with 138 exhibitors with ET1 national television and Corinth Marine Club, the and 18,000 visitors, was an with the participation of private important economic, social and «Palaimon» Basketball Club, the radio and television stations, to cultural event for the Corinth «Aghioi Theodoroi» Sports raise funds for supporting the region. In parallel events, Association, the Corinth hungry or underfed children around presentations were made on Gymnastics Sports Union, the the world. «Corinthos» Football and Gymnastics Club, the Corinth The radio show of love took place Football and Athletics Academy, on 17 April 2008, within the the «Corinthos» Volleyball Club, framework of an awareness and others. campaign organized by UNICEF and the Ministry of Foreign Affairs, on the subject of Combating Child Corinthian cuisine, fashion, dance Trafficking. The exploitation of and ballet, while meetings on the children as commercial objects for prefecture’s development included labour or sexual acts, is a profitable themes such as the environment international operation – the third and new forms of energy, and the most profitable after arms and drug relations of small and medium trading. Around the world, 1.2 enterprises with banks. million children are trafficked illegally each year.

ENVIRONMENTAL AND SOCIAL REPORT 2008] 81 ]

UNICEF supports protection centres accommodation for seventy senior Common Market. These events where children can find food and citizens, operates four fully took place between September

Community Involvement shelter, receive professional training equipped physical therapy units and December 2008 and aimed and suitable psychological support. with skilled staff, and has set up a at raising public awareness with UNICEF also promotes the children’s programme for the provision of respect to the role of customs education as a strategy for the home help to the infirm; this authorities and relevant future prevention of the exploitation of programme provides systematic developments, which are children, and works at international and organized care to 350 families. expected to facilitate trade and level to improve legislation in view of public security. providing comprehensive protection Within the framework of our to children. initiatives for promoting ● The General Directorate of Customs entrepreneurship: of the Ministry of Economy and We made a large donation to the Finance was also supported for the Holy Diocese of Lambi and Sfakia ● We supported the Arab-Hellenic co-organization (together with the for the reconstruction of the Chamber of Commerce and World Customs Organization and Panagia Thymiani Holy Monastery, Development for the organization the European Union's Directorate- and for the completion of a of the 2nd Arab-Hellenic Economic General for Taxation and Customs) charitable Foundation owned by Forum, which took place in Athens of the international conference the Diocese, which aims to offer on 19-20 November 2008, with entitled «International Conference assistance for the rehabilitation of the main aim of promoting on the fight against counterfeiting persons suffering from chronic business relations between Greece and piracy. Customs Response to mobility problems and other and the Arab countries. the Challenge». disabilities, in continuation of a similar donation made in 2007. ● We sponsored the General ● We supported the National Directorate of Customs of the Federation of Petroleum, Refinery We donated significantly to the Ministry of Economy and and Chemical Industry Employees «Annousakeion» Treatment Centre Finance for the organization of (as we do every year), the National of the Holy Diocese of Kissamos national celebrations to mark the Union of Retired Refinery Workers, and Selinos, which implements a 40th anniversary of the the American-Hellenic Chamber of multi-faceted social activity aiming European Customs Union, which Commerce and the American- at relieving human pain. It provides is a basic component of the Hellenic Institute.

82 [ ENVIRONMENTAL AND SOCIAL REPORT 2008 [Community Involvement 83 ] «Aghios old people’s home in Addict Support Centre, the Aigion, which is run by the Agapis Melathron Ecclesiastical Foundation. Organization Against Drugs (OKANA), the Children’s Protection Association, the Hellenic Federation of Unions of Parents of Persons with Learning Difficulties, the Special Occupational Education Centre for intellectually challenged persons and the «Oasis» Haralambos» We sponsored the organization of the organization We sponsored Hellas at the an event by ActionAid and 7 Athens Megaron on 6 of November 2008, in view ActionAid, assisting the work of and safer whose vision is a better world for us and our children, of absolute through the eradication poverty. We donated to the telethon organized by Rethymnon Prefecture on Creta Channel on 6 May 2008, to support the family of a police officer who was seriously injured in the line of duty. We donated to the Hellenic Society for the Protection and Rehabilitation of Disabled Children (ELEPAP), the Hellenic Muscular Dystrophy Association (MDA Hellas) for the creation of a Youth Centre for young people suffering from neuromuscular diseases, the ENVIRONMENTAL AND SOCIAL REPORT 2008 based at, and at the Panagia Kalyviani «Nikolaos J. Vardinoyannis Foundation» supervised by, the Panagia Kalyviani Women’s Holy Monastery in the Heraklion supervised by, the Panagia Kalyviani Women’s expenses, while the Holy Prefecture of Crete. We cover part of the Foundation’s of the operating costs. The Foundation was Monastery is responsible for the remainder Nikolaos J. Vardinoyannis, and its set up and funded by the company’s founder, rehabilitation of orphaned and mission is the accommodation and social/professional the Monastery, the Foundation is a indigent girls. Located in the idyllic setting of cared for. They are trained in household sanctuary, where the girls are sheltered and in embroidery, cooking, decoration tasks, particularly in the art of cutting and sewing, aged 12-18, for a three-year stay. They and handicraft. The Foundation accepts girls religious and social instruction. Other receive accommodation, meals, tutoring, and has facilities to accommodate needs, such as clothing, are also met. The Foundation 60 girls. For the last 30 years, MOTOR OIL – within the context of its charitable work – has been For the last 30 years, MOTOR OIL – within the main patron of the «Nikolaos J. Vardinoyannis Foundation» Women’s Holy Monastery ]

Makistos: Promises turned into reality

Makistos village in Ilia prefecture was one of the villages devastated by the fiery

Community Involvement storm that razed the country in the summer of 2007. Its homes were devoured by flames and fell into ruin. Whole families were wiped out, and a lifetime’s efforts were lost. The Chairman and Managing Director of MOTOR OIL, Mr Vardis J. Vardinoyannis and his wife Mrs Marianna V. Vardinoyanni, a UNESCO Goodwill Ambassador, were among the first people to show an interest in our fire- stricken fellow countrymen and women; Mrs Vardinoyanni immediately travelled to Makistos and announced the undertaking of the entire repair cost of the homes.

The preliminary works for the rehabilitation of the Makistos village began immediately; the project was assigned to a construction company, which appointed permanent engineers in Makistos as of September 10th 2007, to ensure the best possible planning of works. The preliminary site surveys (house plans, recording of properties, reconstruction of the buildings’ interiors, architects, civil engineers, mechanical examination and evaluation of damage to on the basis of current standards for engineers, soil engineers and professors buildings, etc.) showed that the best comfortable, modern homes. The from the National Technical University of method to rehabilitate the structures is constructors started taking over in January Athens – are involved in the execution of their full repair, so as to ensure that the 2008, and clearing works began; as soon this project. complete prior form is restored, while as the first permits were issued by the their static properties are significantly competent Town Planning Bureau, repair The first 8 repaired buildings were improved, and proper structural design works were also able to begin. handed over in November 2008, while by codes are followed for enhancing the the end of the year a total of 12 buildings resistance to earthquakes. This method is On May 17, 2008, the inhabitants and (16 independent homes) had been also the most suitable from an the Local Municipal Authorities were delivered. The works are proceeding architectural point of view, since it briefed on the progress of works during an rapidly, and the last building is expected preserves the building façades and does open meeting, and the surveyors to be handed over before the end of year not alter the village’s architectural presented the specifications and repair 2009. character as it was before the methods followed for the reconstruction catastrophe. of the buildings. The «Next Day» programme was also in progress in year 2008; this programme Separate surveys for each building started The complete project involves the repair was supported by MOTOR OIL with a to be drafted as of October 2007. The of 49 buildings, which include 66 cash sponsorship, and is an initiative of surveys include a full static analysis for the independent homes, and of 2 churches the Hellenic Network for Corporate Social rehabilitation and structural reinforcement that have already been repaired. Besides Responsibility – of which MOTOR OIL is a works, and a full architectural study the constructors and their employees, founding member – in cooperation with covering the radical re-arrangement and more than 25 professional engineers – the Non-Governmental Organization

84 [ ENVIRONMENTAL AND SOCIAL REPORT 2008 [ Community Involvement

before after

before after

PRAKSIS. The programme aims at protecting vulnerable groups in the fire- stricken areas (children and the elderly), and at organizing tree-planting activities with the participation of volunteer employees from the sponsoring companies. Actions in 2008 included reforestation expeditions – during which 2,000 trees were planted in the Avlida area – and tree-watering expeditions. Eleven volunteers from the company’s personnel participated in these expeditions.

ENVIRONMENTAL AND SOCIAL REPORT 2008] 85 ]

Education, science and culture future. We also believe in the role of For the celebrations of Naval Week We provide consistent support for art and culture as key elements of a 2008 (29 June – 6 July), we

Community Involvement education, the sciences and culture. healthy social development, which is donated to the Hellenic Navy and We believe in the power of knowledge based on solid intellectual the Hellenic Coast Guard. The Naval as the factor that cultivates and foundations, and we provide multi- Week, which celebrated its 75th fosters the development of both faceted support for activities that anniversary in 2008 – since it was individuals and teams, and this is why present and bring out our cultural established in 1933 – is celebrated we care about supporting and heritage. every 2 years with events throughout promoting education, research and the country. The aim of the events is technology - the three main pillars In year 2008, we focused our interest to stimulate the sensitivity and love that constitute the driving force of on the following: of Greek people for the sea, for the progress and the support of society’s naval and maritime professions, as well as to promote our Nautical History, the Navy, a main element of our national security and the fiduciary of our nautical tradition, and the Merchant Navy, the pillar of The «Vardinoyanneion Foundation" the country’s economic The «Vardinoyanneion Foundation», sponsored primarily by MOTOR OIL – the other prosperity. sponsors being other companies of the Vardinoyannis Group – was established in 1989, and is run by a seven-member Board of Trustees. Its mission is to grant scholarships and awards, as well as to provide annual financial assistance, without examinations, for candidates who have distinguished themselves academically, or who are in need of support for graduate or post-graduate studies at tertiary education institutions either in Greece or abroad. Through these scholarships and financial support, candidates are assisted in overcoming financial problems allowing them to continue their studies unhindered.

The supported study areas vary in each academic year. A total of twelve scholarships were awarded for the academic year 2008-2009:

● two postgraduate scholarships for studies abroad, in the fields of Business Administration and Food Technology, ● five postgraduate scholarships for studies in Greece, in the fields of Greek Language and Literature, Business Administration, Maritime Studies, Clinical Psychology and International and European Studies, ● five undergraduate scholarships for studies in Greece, in the fields of Agronomy, Medicine, Archaeology, Economics and Naval Architecture.

In addition to the scholarships, 124 annual assistantships were also awarded in the academic year 2008-2009.

Since its establishment, the Foundation has awarded 122 scholarships and 1,274 annual assistantships.

86 [ ENVIRONMENTAL AND SOCIAL REPORT 2008 [ Community Involvement

Association on Historical and At the Herodium with Michalis’ Sougioul music Folklore Studies in Rethymnon

Since its establishment in 1965, the October 2008 brought the 50th anniversary of the death of composer Michalis Association on Historical and Folklore Sougioul, whose life was a major chapter in the field of music for an entire era. He Studies in Rethymnon has had a very composed his melodious and nostalgic songs as easily as breathing, and there was creative history. Its aim is the not a single song of his that did not become a success. collection, recording and publication of A tribute to the composer’s memory was organized on 9 October at the Herodium previously unpublished historical and under the characteristic title «… kai o minas echi ennia!...», which was the title of folklore material, the preservation of one of his biggest successes. MOTOR OIL was one of the sponsors of this tribute. our traditions and the collection of objects of historical and folklore Michalis Sougioultzoglou was born in Aydin, Asia Minor, at the beginning of last interest. It is the founder of the century. In the 1930s, having shortened his name to Sougioul, he created a Historical and Folklore Museum, it has glorious career as a musician, conductor and composer. He composed romantic organized meetings, conferences tangos and waltzes in Greece between the two world wars, impassioned and (local, regional and international), it encouraged the Greeks in World War II with his «war» songs, which were sung by has promoted educational programmes the famous Sophia Vembo, («Pedia, tis Ellados pedia», «Mas horizei o polemos», in Rethymnon and has published the etc.) and was justly considered the composer par excellence of the ’40 epopee. Cretologika Grammata review since After the war, he created a new type of song, which he called «arhontorebetiko», to 1993; the review contains original which the whole of post-war Greece danced and celebrated. articles, with important material «Sougioul could put melody to a phone book,» Alekos Sakellarios used to say with supporting the research and study of his renowned humour. The case of his famous song «Asta ta mallakia sou» has local history. gone down in history. Sakellarios has written the lyrics for a film, but no composer had succeeded in putting music to the difficult lyrics. «Bring it here,» said Sougioul In 2008, MOTOR OIL sponsored the and quickly made the whole of Athens sing that song on the same night! Association on Historical and Folklore The presentation at the Herodium was made by Ilias Logothetis, and Babis Tsertos Studies in Rethymnon for the was the main singer. Other participating artists included Manolis Mitsias, publication of the minutes of the Loukianos Kilaidonis, Stamatis Fasoulis, Eleni Dimou, Spyros Papadopoulos and conference «90 Years from the Union others. of Crete with Free Greece» and of the conference «Mylopotamos from Antiquity until Today».

ENVIRONMENTAL AND SOCIAL REPORT 2008] 87 ]

The second scientific conference Photographic quest at the four corners of Europe entitled «Small scale water and

Community Involvement liquid waste treatment plants», The well-known photographer Pavlos Fysakis set on a photographic expedition organized by the Engineering between 2005 and 2007, the central quest of which were the four geographical Department of Planning and extremities of Europe. His destinations included Greece (Gavdos – southern edge), Regional Development of the Norway (Nordkapp – northern edge), Russia (Urals – eastern edge) and Portugal University of Thessaly in (Sintra/Capo da Roca – western edge). cooperation with the Chemistry Department of the Aristotle On a superficial level, the photographic research involved the creation of portraits of the University of Thessaloniki, in cultural, social and natural environment of the four points that define the European Skiathos from 2 to 4 May 2008. Continent. But the main concern arising from the photography of these locations is We sponsored this conference, the whether a «European identity» exists or not. purpose of which was to present research projects relating to urban In the locations in question, the photographic medium led the photographer to depict a similar atmosphere in these vastly different destinations. Some of his points of reference are: The effect of geographical location on the character and culture of the locals. The complexity of the concept of borders and the drama of their determination. Religion and religious sentiment, which adds symbolism to the continental extremities, from Gavdos where the Apostle Paul was shipwrecked, to the Ural Mountains. The sense of loneliness. The Christian cross, lighthouses, horizons, shadows, walls bearing characteristic motifs and societal symbols recur in their different versions and frame his heroes: the European of the extremities. The Europeans that embrace the continent and reflect its limits.

MOTOR OIL sponsored the publication of a collection of photographs from this photographic expedition, which was awarded at the Photobiennale in Thessaloniki and for which both the Museum of Contemporary Art in Moscow and the Thessaloniki Photography Museum have expressed an interest.

and industrial liquid waste, natural liquid waste treatment systems, decentralized waste treatment systems, small liquid waste treatment plants, economic and technical parameters, sludge management and recycling, treated water recovery and re-use.

88 [ ENVIRONMENTAL AND SOCIAL REPORT 2008 [ Community Involvement

The symposium entitled «Chemical Greek National Opera Metrology», which is a relatively new scientific sector, whose main The Greek National Opera, the only opera in Greece, which has served the noble objective is the production of reliable art of opera and ballet for more than a hundred years, is the point of reference for analytical results and the elimination of the uncertainty of measurements. the public that enjoys such art forms. Over the years, all entities that have Today, issues relating to the quality supported its creative work have done so because they believe in the quality of the of measurements are considered entertainment it provides, and also because they understand the importance of its particularly important and are contribution to Greek culture. directly linked to safety, environmental protection and In year 2008, MOTOR OIL placed its trust in the Greek National Opera and commerce. This symposium, which supported it in the accomplishment of its artistic programme. we sponsored, was organized by the Association of Greek Chemists in cooperation with EURACHEM, a network of European organizations whose aim is to establish an international system for the traceability of chemical measurements and the promotion of quality rules.

The support to the 14th Scientific Conference of Greek Medical Students and the 2nd International Forum of Medical Students and Young Greek Doctors, which took place at the Athens Megaron from 23 to 25 May and were attended by more than 2,000 medical students and healthcare professionals from all over Greece.

.

Internship programme

Each summer, we offer one-month long periods of work experience for a large number of University and Technical School students at various positions in the refinery and in the head office. During their stay, trainees are introduced to the company’s work environment and take part in projects involving team-work with our experienced members of staff who are tasked for this particular purpose. Furthermore, a number of students are offered the possibility of six months’ practical work experience, relevant to their specific areas of study. During 2008, 137 month-long internship positions and 16 six-month positions were offered within the framework of this programme, with a total cost of around 200,000 euros.

ENVIRONMENTAL AND SOCIAL REPORT 2008] 89 ]

Informational visits to the refinery Community Involvement Every year, we organize informational one-day seminars and visits to our refinery for University, Technological, Military Academy and High School Students. During these events, visitors are given guided tours of the refinery and are briefed on technical, commercial and career matters, according to their specific interests, as well as on MOTOR OIL's contribution to society and on its commitment to environmental protection. Within the context of these events, more than 320 people participated in such visits during 2008.

The offering of financial support to The sponsorship to the Children’s the High School of Episkopi – Stage of the National Theatre for the Rethymnon to organize an presentation on the island of educational visit to Thessaloniki, Amorgos, for the island’s children, and to the 1st Junior High School of of a play based on the book by Rethymnon to cover the cost of a Vassilis Mavrogeorgiou «The nicest visit by 12 students, with their story in the world». attendants, to the Finsterwaltergymnasium in The support to the International Rosenheim, Germany, within the Scientific Conference entitled «The framework of an educational former eparchy of Agios Vassilios, student exchange programme. Rethymnon, from antiquity until today: environment, archaeology, The sponsorship to the Association history, society», which was «Pnyka – 21st Century» for organized from 19 to 23 October publication of the book «Alexandros 2008 by the Scientists’ Association Panagoulis – Resistance Leader», in of the Municipality of Lambi. honour of this emblematic personality of the fight against the dictatorship.

90 [ ENVIRONMENTAL AND SOCIAL REPORT 2008 [ Community Involvement

«OIL» Magazine

Since 1971, MOTOR OIL has been the primary publisher of the quarterly magazine, «OIL», which continues to be published on a regular basis. This magazine features high-standard articles on historical, sociological, religious, energy, environmental, scientific and technological topics, and promotes specific important company activities with broad public impact. The magazine has a run of 3,000 copies and is read by a significant number of both public and private organisations, as well as by higher education institutions.

The sponsorship of the Pammitis the play were donated. The financial assistance to the communication group for the Ecclesiastical Council of the Church The donation to the Holy Church of presentation of Euripides’ «Troads». of Saint George of Kalo Horio, Virgin Mary Presentation in This play was presented under the Pediada, Heraklion, for the Rethymnon, (the Cathedral of the aegis of the Ministry of Foreign construction of a church in honour of town), to assist the effort of creating Affairs and the Hellenic Bureau of Saint Anne. an Ecclesiastical Museum, in which the UN High Commission for more than five hundred Refugees, to which all proceeds of ecclesiastical relics currently kept in The following sponsorships made in the church repository are to be year 2008 are also worth mentioning: exhibited. A similar donation for the same purpose was also made in ● Support for the concert of the 2007. Russian State Chamber Orchestra The additional donation – besides Moscow Virtuosi, which took place the ones in 2006 and 2007 – to the at the Herodium on 5 September Holy Church of the Dormition of the 2008. Blessed Virgin in Mastamba, ● Financing of publication of the book Rethymno, for the completion of its «Kato Poros». cultural and social events centre. ● Support for the Cultural Committee of Ermioni Municipality. The assistance to the Ecclesiastical ● Support for the Cultural Educational Council of the Church of Saints Peter Association of Garazos for the and Paul of the Missiria parish establishment of a Cultural Centre. (Rethymnon), for completion of the ● Support for the magazine «Periplous church. Naftikis Istorias» (nautical history and tradition), of the «Kritika Nea»

ENVIRONMENTAL AND SOCIAL REPORT 2008] 91 ]

newspaper, for the special edition entitled «The Economy of Crete in Corinth General Hospital

Community Involvement the 21st century» of the newspaper «Kritiki Epitheorisi» and for other We support the Corinth General Hospital in a systematic and diversified way, important local journals and covering the cost of medical equipment, the cost of improving the infrastructure of newspapers of small readership. buildings, or by supporting scientific events and publications. Over the last ten ● Sponsorship to the Cultural years, our collaboration with the Corinth General Hospital has included the Association «Tourtouli» of Agios following: Georgios, Sitias, for maintenance works on the village Elementary 2008 ● Donation of a portable echo-cardiograph to the Cardiology Clinic. School, and to the Association of ● Sponsorship for the organization of the 1st Cardiometabolic Risk Factors Mygdaliotes for completion of a Conference, 29-31 May 2008. church in the village. 2007 ● Financial assistance towards the organisation of a seminar on cardiology, ● Financial assistance to the paediatrics and intensive care treatment. Drapetsona Municipal ● Coverage of the cost of cleaning and painting works at the «Psychargo» Development Enterprise for the psychiatric clinic. organization of cultural events for 2006 ● Donation of a complete gastroscope-orthoscope. kindergarten children in the ● Financial assistance towards the organisation of the seminar «Treatment Municipality of Drapetsona. of the casualties of major road accidents». ● Financial assistance for the cultural 2005 ● Donation of special surgical equipment for the General Surgery, events of the Pan Cretan Orthopaedics and Urology Departments. Association, the Society of the ● Funding the publication of an information leaflet on the hazards of smoking. Sfakian Diaspora, the Association 2004 ● Donation of a series of medical textbooks to the library of the Hospital. «Cretagenis Zeus», the Pan- ● Financial assistance for the Cardiology Department’s educational Hellenic Federation of Cretan programme. Associations, and the Association of 2003 ● Donation of a plasmaphaeresis device for the Blood Donation Employees of Ekali Municipality. Department. ● Computer donations: one to the 2002 ● Donation for covering part of the cost of building improvements. 86th Elementary School of Kypseli, 2001 ● Donation of medical equipment, including an electrocardiograph, and three to the Organization for for the Internal Medicine Department. Vocational Education and Training, 2000 ● Donation of an 8-12 blood units centrifugation device for the Blood for the Korydallos Vocational Donation Department. Training Institute (IEK). 1999 ● Donation of a fully equipped Laparoscopy unit for the General Surgery Department. Health care and volunteering 1998 ● Donation of a complete laryngoscope for the Otorhinolaryngology Health is a major objective of our social Department. contribution, because the well-being of society is interwoven with the physical and emotional health of its citizens. We support institutions that are involved in health care and we donate medical equipment to hospitals. We systematically support the Corinth General Hospital over the years, and had, in the past, undertaken the cost of all the equipment for a clinic in the University Hospital of Crete.

92 [ ENVIRONMENTAL AND SOCIAL REPORT 2008 [ Community Involvement

We systematically support the Sports Humanitarian Organization «Lifeline Voluntary blood donation Hellas», which was established in For MOTOR OIL, supporting sports 2003 as the Greek branch of Voluntary blood donation is an act of means embracing young people, «Lifeline», a humanitarian, non- generosity and love, and one of the best because involvement in sports profit making organization. Princess ways to prove our social solidarity on a cultivates the body and the spirit, Catherine of Yugoslavia has been personal level. Thousands of patients enhances the sense of sportsmanship the head of «Lifeline» since its requiring blood transfusion are saved and forms healthy personalities. We establishment in 1993. It is mainly thanks to such donations. We encourage support non-professional team sports, active in Serbia and Montenegro, our personnel to participate in blood championships, as well as less popular where it cooperates with local and donation programmes, arranged in sports. We support small clubs and foreign NGOs to assist children, the cooperation with the Corinth General amateur sports associations. elderly, hospitals and social welfare Hospital, for refinery employees, and with foundations, as well as all those the «Metaxa» Hospital for head office In year 2008, the company’s main who are in need. Its principal employees. MOTOR OIL’s personnel have sponsorship activities included: objective is to combat infant been voluntarily donating their blood for mortality in Serbia, where it is the over 23 years and this humanitarian MOTOR OIL was a prize sponsor for highest in Europe, due to the initiative has become an established the «Pastrikakeia 2008» sailing antiquated equipment and major custom. The resulting blood bank covers races, which took place in Faliro bay shortages in obstetric and the needs of the volunteer blood donors, on 10 and 11 May 2008. These paediatrics wards. In year 2008, we of their close relatives, as well as the races have been organized by the assisted «Lifeline Hellas» in its needs of other fellow-men in emergency Hellenic Naval Academy for the last programme for the provision of situations. During 2008, 77 blood units 31 years, with the Piraeus Sailing modern medical equipment for were collected; their total number since Club and the Yacht Club of Greece, infant hospitalization in Serbian 1991 is 2,450. under the aegis of the Hellenic hospitals. Sailing Federation. In 2008, we supported the Hellenic They are named after Navy Cadet I. Association of Volunteer Blood Donors for Pastrikakis, who died heroically on the publication of its periodical. 17 November 1912 as the officer of a landing party in the land operations

ENVIRONMENTAL AND SOCIAL REPORT 2008] 93 ]

« The «Vardinoyanneia» EAA Premium International Track and Field Meeting

MOTOR OIL is a permanent official from Greece) competed in 16 different sponsor of the «Vardinoyanneia» events. The women’s triple jump, the

Community Involvement International Track and Field Meeting, men’s discus throw, the men’s and which has been held every year since women’s 100 metres and the men’s 400 1985 in Rethymnon, Crete, in honour of metres were the events that attracted Pavlos Vardinoyiannis. Organised by the sports fans, who filled the Gallou Atromitos Union of Rethymno, it is held Stadium for yet another year to admire under the aegis of the European Athletics some of the top names in classical Association (EAA) and observes the rules sports, Olympic medallists and world of the International Association of champions. Athletics Federations (IAAF). In the women’s triple jump, Cuban All major Greek athletes and many Savigne Yargelis with 15.20 m snatched foreign sports champions have the victory from Pigi Devetzi, who came competed in the «Vardinoyanneia» second with 14.75 m. meeting. Twenty-seven national records have been achieved as well as In the men’s discus throw, there was a one European Youth record, and a Titan battle between the two top athletes world record in 2001 by the Cuban in the world, eventually won by Javelin thrower, Osleidy Menendez. Lithuanian Virgilijus Alekna with a throw Reflecting the wide participation of of 70.86 m, putting later Beijing Olympic athletes from all over the world, the gold medallist Gerd Kanter from Estonia outstanding scores achieved and the in second place at 68.73 m. high standard of organisation, the «Vardinoyanneia» were promoted to In the women’s 100 metres, victory went the EAA Premium category in 2006. to American Melissa Barber at 11.23", Every year since 2002, the games are while in the men’s 100 metres, Marc being scored top by the European Burns from Trinidad came first with an Athletics Association, thus placed at excellent time of 10.03". the top of their category. The men’s 400 metres was also an Milestones excellent race, with American Angelo 1985 First games on dirt track Taylor coming first at 45.02". A very 2000 Inclusion in the EEA Permit good race was the women’s 100 metres category hurdles, with the first five athletes 2001 World record in women’s javelin coming in at under 13", and Jamaican throwing Delloreen Ennis-London coming first at 2006 Inclusion in the EEA Premium 12.62". category ● The best EAA Permit games 2002, The «Vardinoyannia» meeting is hosted 2003, 2004, 2005 at the Olympic-standards «Pavlos I. ● The best EAA Premium games Vardinoyannis» Gallos Municipal 2006, 2007 Athletics Centre stadium in Rethymno. MOTOR OIL provides a significant During the 24th «Vardinoyanneia», amount of special funding for the which took place on 14 July 2008, a maintenance and upgrading of the total of 309 male amd female athletes stadium’s infrastructure. from 39 different countries (55 of whom

94 [ ENVIRONMENTAL AND SOCIAL REPORT 2008 [ Community Involvement

for the liberation of Chios Island. Major regularly recurring Twenty-eight clubs with more than sponsorships to the following sports 200 boats and 300 athletes clubs: participated in the sailing races. ● The amateur athletics club of Every year, we support the long- the Heraklion Sports Fans Club distance race known as the (OFI), which is one the largest «Spartathlon», by providing a amateur clubs in Greece, with physician and a fully-equipped eight active departments ambulance, as well as supporting the (basketball, track, weightlifting, abreast of the refinery Control and chess, volleyball, water polo, Supply Station. The course of the swimming, football academy). event retraces Pheidippides’ 246-km Track is the most important historic run from Athens to Sparta, in department in Amateur OFI, 490 BC, where he asked the with many significant Spartans for their support against the distinctions over the last few Persian army in Marathon. The 26th years. In 2008 it was listed 4th event was held in 2008. The hyper- in the national classification of marathon started on 26 September the Hellenic Amateur Athletic at the Acropolis Propylaea. The Association, an excellent starting line consisted of 308 position for a regional club. athletes (men and women) from 34 countries, of whom 154 passed the ● The basketball team of the finishing line, including 16 women. Rethymnon Athletics and The first athlete’s time was Gymnastics Club (AGOR), which 22:20:01, the last athlete’s time was ascended to the A1 National 32:36:29, while the oldest athlete to League in 2007. cross the finishing line was 73 years old. The athletes are rewarded with ● The Rethymnon Volleyball Club, an olive branch and water from whose teams play a major role Evrotas River. in Regional Championships.

ENVIRONMENTAL AND SOCIAL REPORT 2008] 95 ]

● The Asteras Rethymnou FC.

Community Involvement ● The «Koronis» Koilada Athletic Club.

● The Spelios Athletic Club.

● The Arkadi Basketball Team.

● The Athletic Club of Episkopi, Rethymnon, Crete.

Also, major sponsorships for the following clubs:

● The historical Apollon Smyrnis Gymnastics Association (founded in 1892 in Smyrna, Asia Minor, and moved to Athens in 1922).

● The Poros Troizinia Sailing Club, which allows more than 80 athletes to train in rowing and kayaking; 8 of these athletes are members of the National Team.

● The Rethymnon Tennis Club.

● The Athletic Club of Anoixi, Athens.

96 [ ENVIRONMENTAL AND SOCIAL REPORT 2008 [Global Compact 97 ] GRI Indicator LA4, LA6-7, LA13-14, HR4-9, SO5, PR1-2, PR8 HR4-9, SO5 LA4, HR5, SO5 HR7, SO5 HR6, SO5 EC7, LA2, LA13-14, HR4, SO5 EN18, EN26, EN30, SO5 EN2-3, EN5-9, EN11, EN16, EN18-22, EN26, EN30, SO5, PR3-4 EN2, EN5-7, EN18, EN26, EN30, SO5 ENVIRONMENTAL AND SOCIAL REPORT 2008 contains information relating to our social contains information Social Report or Description of the Implementation Approach Chapters «Human Resources» and «Health and Safety». Chapters «Human Resources» and «Health and Full compliance with relevant Greek and international legislation. Chapter «Human Resources». Full compliance with relevant Greek and international legislation. Chapter «Human Resources». Chapter «Human Resources». Full compliance with relevant Greek and international legislation. Chapter «Human Resources». Full compliance with relevant Greek and international legislation. Chapter «Human Resources». Chapters «Environment» and «MOTOR OIL’s Profile». Chapters «Environment» and «MOTOR OIL’s Profile». Chapters «Environment» and «MOTOR OIL’s Profile». Chapter «MOTOR OIL’s Profile». Environmental and Social Report Businesses should support and respect the protection of internationally proclaimed human rights. Businesses should make sure that they are not complicit in human rights abuses. Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining. Businesses should uphold the elimination of all forms of forced and compulsory labour. Businesses should uphold the effective abolition of child labour. Businesses should uphold the elimination of discrimination in respect of employment and occupation. Businesses should support a precautionary approach to environmental challenges. Businesses should undertake initiatives to promote greater environmental responsibility. Businesses should encourage the development and diffusion of environmentally friendly technologies. Businesses should work against corruption in all its forms, including extortion and bribery.

∫·Ù¿ Ù˘ ¢È·ÊıÔÚ¿˜ Principle 10 Principle 9 Principle 8 Environment Principle 7 Principle 6 Principle 5 Principle 4 Labour Principle 3 Principle 2 Human Rights Principle 1 The Ten Principles of the Global Compact The Ten Principles of the Global Compact and Reference in the Environmental The Global Compact incorporates ten fundamental principles relating to human rights, labour rights, environmental relating to human rights, labour rights, incorporates ten fundamental principles The Global Compact MOTOR OIL’s protection and anti-corruption. In year 2008, MOTOR OIL voluntarily became a signatory of the UN Global Compact, by ratifying the relevant UN the UN Global Compact, by ratifying the OIL voluntarily became a signatory of In year 2008, MOTOR of the Global Compact Network Hellas. time the company became a member Initiative; at the same Global Compact: Communication on Progress on Communication Compact: Global and environmental practices and their results, which underline our commitment to the Global Compact. our commitment to the Global Compact. and their results, which underline and environmental practices Principles and Boundaries of the Report] 98 Corporate SocialResponsibility. the principlesandobjectivesof sustainable developmentbyapplying efforts andperformanceinachieving stakeholders aboutthecompany's the maincommunicationtoolwithour published everyyearsince2002,is 2008 In eachchapterofthe certification authority. and Social Report 2008 Report Social and clarifications arealsouseful: mentioned. However,thefollowing and calculationofsuchdatais are reported,themethodofcollection performance indicatorsorotherdata Social Report Social The Environmental and Social Report Social and Environmental The Report Application Levels The MOTOROIL Principles andBoundariesoftheReport capital investmentsreferjointly to the valuedetailsofrelevant In the"HealthandSafety"chapter, AVIN OIL,onaconsolidatedbasis. include dataforMOTOROILand the "HumanResources"chapter The informationandindicatorsin [ ENVIRONMENTAL ANDSOCIALREPORT 2008 is notcertifiedbyanexternal Optional Mandatory Third Party Checked Checked Checked , whichhasbeen GRI Self Environmental and Environmental Environmental , andwherever 2008 (2006) oftheGlobalReporting consideration the3rdrevisededition report, wehavetakeninto results overtime.Indraftingthe so astoensurethecomparabilityof similar structureaspreviouseditions, subsidiary, AVINOIL,andhasa The Environmental and Social Report Social and Environmental The CC donations andsponsorshipsrefer chapter, thevaluedetailsof In the"CommunityInvolvement" refinery only. indicators concerntheMOTOROIL OIL andAVINOIL.Theother recycling, referjointlytoMOTOR investments, aswellthedataon value detailsoftherelevant In the"Environment"chapter, particular caseistherefinery. that thecriticalareainthis differentiation isimmaterial,given MOTOR OILHeadOffice.This they donotincludeAVINOILor MOTOR OILrefineryworkplace;i.e. accident indicatorsreferonlytothe MOTOR OILandAVINOIL,butthe concerns MOTOROILandits

Report Externally Assured + BB guidelines atlevelB. achieved theapplicationofthese stakeholders. Webelievethatwehave for bothMOTOROILandits for communicatingthematerialissues these guidelinesprovideasoundbasis Initiative guidelines,inthebeliefthat 2008 indicator. Report Social that includeinformationonthe and Environmental Financial Report 2008 Report Financial company’s website. p.: indicatesthepage(s)of The symbolsusedinthetableare: information relatingtoeachindicator. "Reference" thereferencestosourcesof Indicators, andinthecolumnentitled The followingtablerecordstheGRI

Report Externally Assured + : indicatesreferencetothe OIL. jointly toMOTOROILandAVIN : indicatesreferencetothe AA . Annual

Report Externally Assured + [Principles and Boundaries of the report 99 ] p.: 4 p.: 98 p.: 17 p.: 98 p.: 98 p.: 98 p.: 98 p.: 98 p.: 98 p.: 98 p.: 102 p.: 8-10 p.: 18-21 p.: 18-19 p.: 18-19 p.: 20-21 p.: 21, 56 p.: 99-101 : 17-25, : 33, 80, p.: 17, 19-21 p.: 19-21,57-58 p.: 19-21,57-58 p.: 8-10, : 11 p.: 18-19, 69-70 p.: front cover, 98 p.: 18-19, : 30 p.: 7-8, 17, 19-21 p.: inside front cover of conflicts of interest. p.: 17, : 33, 80, MOTOR OIL Reference MOTOR OIL anticipated in the Rules of Company Procedures. p.: 8-11, : 12-13, safeguards the avoidance p.: 9, : 20-25, 59, p.: 15-16, 38-40, 54-56 Performance evaluation is p.: 6, 9, 13-14, 98, : 19-21 The majority of the non-executive and independent Board Members p.: front cover, front cover, provide assurance for an unbiased p.: back cover, back cover, p.: 8-10, 26 : 9-17,19,80-81,72 global and objective view of the issues. their educational level and social status ENVIRONMENTAL AND SOCIAL REPORT 2008 expertise of Board Members for guiding sustainability strategy. along with of Board Members, 4.7 Process for determining the qualifications and The professional experience 4.144.15 List of stakeholders. Identification of stakeholders. 4.114.12 Application of the precautionary principle. 4.13 to which the organization subscribes or endorses. Externally developed voluntary charters or initiatives Association memberships. 4.94.10 Board procedures for sustainability management. Evaluation of the Board’s performance. 4.8 Mission, values statements, and corporate policies related to sustainable growth strategy. 4.34.4of the Board of Directors. Iindependent and/or non-executive members 4.5 Board of Directors. Mechanisms of communication with the and the performance of the organization. Linkage between the compensation of Management 3.134.1 assurance. External 4.2 Corporate governance structure. bodies. Segregated role of the Management and Governance 3.103.11 Explanation of the reasons for any re-statement of information provided in earlier reports. 3.12 Changes from previous reports. of the Standard GRI Disclosures. Location 3.73.8 the report. Limitations on the scope or boundary of 3.9 Joint ventures, subsidiaries and outsourcing. Data measurement techniques. 3.43.5 Contact point for questions. 3.6 Process for defining report content. Boundary of the report. 4.6 of interest. Processes for the Board to avoid conflicts 2.103.1 received. Awards 3.2 Reporting period. 3.3 Most recent previous report. Reporting cycle. 2.72.8 Markets served. 2.9 Scale of the organization. changes during the reporting period. Significant organizational 2.42.5 headquarters. Location of organization's 2.6 organization operates. Countries in which the legal form. Nature of ownership and 2.12.2 Name of the organization. 2.3 and/or services. Primary brands, products, structure of the organization. Operational/Organizational 1.11.2 Management statement. risks, and opportunities. Description of key impacts, Table of the Global Reporting Initiative Indicators (G3 Content Index) (G3 Content Indicators Initiative Reporting of the Global Table Indicator Description Principles and Boundaries of the Report] 100 A4Mentowomenbasicsalaryratio. LA14 R Forcedorcompulsorylabour. Childlabour. HR7 Operationsthatlimitfreedomofassociationandcollective bargaining. HR6 Incidentsofdiscrimination. HR5 HR4 Disclosure on ManagementApproachHR. DMA HR Breakdownofemployeespercategoryaccordingtogender,agegroup, Performanceandcareerdevelopmentreviews. LA13 Programsforskillsdevelopmentandlifelonglearning. LA12 Averagehoursoftrainingperyearemployee. LA11 Standardinjuryandlostdayrates. LA10 LA7 Workforcerepresentationinjointhealthandsafetycommittees. Percentageofemployeescoveredbycollectivebargainingagreements. LA6 Benefitsprovidedtofull-timeemployees. LA4 Employeeturnover. LA3 Workforceprofile. LA2 LA1 DisclosureonManagementApproachLA. Environmentalprotection investmentsandexpenses. DMA LA Environmentalimpact mitigation. ∂¡30 Solidwaste. ∂¡26 Waterdischarge. ∂¡22 NOx,andSOxemissions. ∂¡21 Emissionsofozone-depleting substances. ∂¡20 Initiativestoreduce greenhousegasemissions. ∂¡19 Greenhousegas emissions. ∂¡18 Landmanagement insensitiveareas. ∂¡16 Effectsofwaterwithdrawal. ∂¡11 Totalwaterwithdrawalbysource. ∂¡9 Initiativestoreduceindirectenergyconsumption. ∂¡8 Initiativestoproduceenergy-efficientorrenewableenergy basedproductsandservices. ∂¡7 Energysaving. ∂¡6 Directenergyconsumptionbyprimarysource. ∂¡5 Percentageofmaterialsusedthatarerecycledinputmaterials. EN3 EN2 Indirecteconomicimpacts. DisclosureonManagementApproachEN DMA EN Infrastructureinvestmentsandservicesprovidedforpublicbenefit. EC9 Localrecruitment. EC8 Localsuppliersapproach. EC7 Coverageofdefinedbenefitplanobligations. EC6 EC3 Directeconomicvaluegeneratedanddistributed,includingrevenues,operatingcosts, EC1 DisclosureonManagementApproachEC Topicsraisedbystakeholders. DMA EC Approachestostakeholderengagement. 4.17 4.16 Description Indicator Table oftheGlobalReportingInitiativeIndicators(G3ContentIndex) [ ENVIRONMENTAL ANDSOCIALREPORT 2008 taxes, andpaymentstocapitalproviders. minority groupmembership,andotherindicatorsofdiversity. employee compensation,donationsandothercommunityinvestments, . -,1-6 92,5-6 :29-30, p.: 7-8,15-16,19-21,53-56, the refineryemployeesrepresentsall The HealthandSafetyCommitteeof . -0 11, :18-20 p.: 7-10,11-14, MOTOR OILReference No suchoperations p.: 57-58,60-62 : 26-28,73-76 the employees. p.: 7-8,24-25 p.: 11-12,74 differentiation No incidents non-existent non-existent There isno p.: 32-36 p.: 23-24 p.: 49-50 p.: 28-32 p.: 25-26 p.: 60-61 p.: 61-62 p.: 17-21 p.: 18-19 p.: 27-28 p.: 32-36 p.: 58-61 p.: 61-62 irrelevant p.: 9-12 p.: 25 p.: 25 p.: 28 p.: 68 p.: 66 p.: 65 p.: 68 p.: 68 p.: 26 p.: 81 p.: 24 p.: 25 p.: 61 p.: 57 p.: 68 : 72 [Principles and Boundaries of the Report 101 ] p.: 51 p.: 50 p.: 17 p.: 50 p.: 7-8 No fines Irrelevant Irrelevant p.: 73-75 No incidents No incidents No incidents No incidents for all our products. MOTOR OIL Reference MOTOR OIL public policy development. public policy development. Material Safety Data sheets associations which participate in associations which participate ENVIRONMENTAL AND SOCIAL REPORT 2008 concerning labeling and product information. regulations and codes. and safety impacts of products and services. and safety impacts of products PR3 Product information. PR4 Non-compliance incidents with regulations and codes PR8PR9 Ccomplaints regarding breaches of customer privacy. Fines for non-compliance of products. SO5 development. Participation in public policy PR2 codes concerning health Non-compliance incidents with regulations and PR5PR6 Customer satisfaction. PR7 Legal compliance of marketing communications programs. with Non-compliance incidents of marketing communications programs We are members of business DMA PR Disclosure on Management Approach PR PR1 Health and safety impacts of products and services. SO1 Impacts on local communities. HR8HR9rights. of human on issues relating to the protection training Security personnel DMA SO on Management Approach SO Disclosure of indigenous people. Violations of rights Table of the Global Reporting Initiative Indicators (G3 Content Index) (G3 Content Indicators Initiative Reporting of the Global Table Indicator Description Environmental and Social Reports of previous years

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