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Safety performance and targets

Safety performance targets for 2006:	Status (for year 2006):	Target 2007
Zero fatalities	Eight worker fatalities: three in the US, one in Australia, and four in joint venture business in Dubai	Zero fatalities
Zero permanently disabling injuries	Five permanently disabling major injuries in the UK	Zero permanently disabling injuries
Each operating company targets sustained AFR reduction in 2006, and to achieve AFR < 0.2 by end 2010	AFR improved 24% from 0.33 to 0.25 Within this total: – UK 0.31 (2005: 0.36) – Europe 0.43 (2005: 0.97) – US 0.14 (2005: 0.17) – Other  0.12 (2005 0.55)	Each operating company aims for zero accidents and injuries in 2007. With an absolute ceiling on AFR of 0.2 by end 2010

We have three prime indicators of safety performance:

• The number of fatalities.
• The Accident Frequency Rate (AFR) i.e. the number of reportable (major and over three-day) accidents per 100,000 hours worked.
• The number of permanently disabling injuries – introduced in 2004 as an additional indicator, with a target of zero to provide a focus on the most serious of accidents.

Performance 2006

Fatalities

We were deeply saddened by the loss of four colleagues in wholly-owned operating companies and four in our Dubai-based joint venture business in 2006.

All fatalities, significant accidents and those with potentially serious consequences are subjected to in-depth investigation including formal root cause analysis. To ensure this process is consistent and robust, we trained 73 (534 in total) principal investigators in the UK, Europe and the US during the year.

Additionally, all fatalities and serious accidents are subject to corporate review by the Chief Executive and any lessons learnt are transferred across the Group. During 2006, six such reviews took place (eight in 2005).

As in previous years, our most serious accidents result from:

• Working near/on plant
• Working near live traffic
• Working at height

Significant effort is put into managing these and other risks.

Major Injuries

We reported 186 major injuries in 2006. 17 operating companies reported the same or fewer major injuries than in 2005.

Over three day injuries

430 injuries resulting in more than three days absence were reported in 2006. 20 businesses reported the same or fewer over three day injuries than in 2005.

Accident Frequency Rate

Since last year, our overall accident frequency rate (AFR) improved by 24%. This is an overall performance improvement of 58% since 2002.

We have maintained the momentum in driving down the AFR, while experiencing continued business growth. Over the last four years the AFR has fallen by 58% whilst workforce numbers have increased by 92%.

Over the same time period, the UK AFR has reduced by 40%, whilst the number of employees has increased by 31%. US operating companies have reduced their AFR by 67%, whilst the number of employees has decreased by 3%.

Notified Dangerous Occurrences

UK operating companies recorded 23 notified dangerous occurrences during 2006.

• UK operating companies recorded 24 dangerous occurences
• 3 damaged pipelines
• 1 collapsing building/structure
• 5 fire/explosions

In the US two notified dangerous occurrences were reported, relating to a short circuit to an overhead line and a train collision.

Nine dangerous occurrences were reported by our Dubai based joint ventures in 2006, four instances of failed lifting equipment, three electrical short circuits and two scaffold collapses.

Our overhead transmission line project in Australia reported one instance of failed lifting equipment.

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