At LP, we believe that all work related injuries and occupational illnesses can be prevented, and we are committed to ensuring the health and safety of all employees and contractors. We have developed comprehensive health and safety programs with appropriate executive oversight, regular training, targets that promote continuous improvement, regular first and second party audits, and protocols for remedial action.
Health and Safety Governance and Management
LP’s health and safety program is governed by the LP Environmental, Health and Safety (“EHS”) Protocol Standard. This standard is applicable to all LP locations, wholly owned subsidiaries, and majority owned joint ventures. In cases where LP is not the majority owner of an operation, we encourage the adoption of the LP Protocol or a similar standard. Our EHS Protocol Standard applies to both employees and contractors.
The LP EHS Protocol Standard defines LP’s EHS governance and the implementation of EHS management systems, and we provide an overview of that governance and management here:
Health and Safety Oversight
At a strategic level, health and safety at LP is governed as follows:
- LP Executive Leadership: The Executive team provides high-level direction for corporate EHS standards.
- Corporate EHS: The Corporate EHS team directs, designs, and evaluates specific programs to support the implementation of corporate EHS standards. The group is composed of two Business EHS Managers, , two Operations Environmental Managers, and one EHS Specialist.
- EHS Council: The EHS Council reviews, evaluates and approves development and implementation of EHS standards and health and safety related initiatives. The EHS Council is composed of an Operations Director from each business, Corporate Engineering, Corporate Legal, one Plant Manager from each business, and representatives from Corporate EHS.
At an operating level, Plant EHS Managers are responsible for the implementation of EHS standards and the development of any facility-specific safety programs. Management oversight of these programs is provided by the Business EHS Managers who help to develop and implement facility-specific safety programs. The Business EHS Managers report to their respective VP of Operations, who in turn report to their Business EVP. The Business EVPs are part of the LP Executive Leadership team and report directly to the CEO.
Safety performance is a component of LP’s Management Incentive Plan program, including at the Executive level. Individual and organizational performance goals established for our CEO, Executives and businesses include a requirement to meet or exceed company safety targets.
Health and Safety Management Systems
LP’s EHS Protocol Standard defines the management systems in place to ensure we deliver on our health and safety commitments. These include:
- Training and Communication: Corporate EHS has responsibility for ensuring regular employee and contractor training and communication on our EHS standards.
- Audit: we regularly conduct internal and external audits of EHS Protocol Standard compliance and audit results are shared with our Executive Leadership team and the Board.
- Deviation Process: any deviation from EHS protocols is reviewed by the Corporate EHS group and our legal team and is approved by the VP/GM of the business.
- Renewal: the LP EHS Protocol Standard is regularly reviewed and revised.
Health and Safety Certification
At LP, we believe we adhere to the strictest safety standards in our industry. Our health and safety management systems are developed in line with global best practices, consistent with OHSAS 18001 standards, and are applied consistently across all LP operations.
In order to recognize our employees for their commitment to workplace safety, and as evidence of the rigor of our health and safety management systems, 4 of our 15 U.S. mills have secured U.S. Occupational Safety and Health Administration (OSHA) Voluntary Protection Program (VPP) certification, with Star status. VPP approval is described by OSHA as official recognition of outstanding efforts by employers and employees who have achieved exemplary occupational safety and health standards. Star status is granted for exemplary achievement in the prevention and control of health and safety hazards, and the continuous improvement of health and safety management systems. Star worksites are reevaluated, to ensure they continue to meet the highest level of management commitment and employee involvement, every 3 to 5 years.
The Four Cornerstones of OSHA Voluntary Protection Programs (VPP)
- Management commitment and employee involvement
- Workplace analysis, including hazard reporting and tracking
- Hazard prevention and control, including emergency response and communication
- Training for all employees in all departments, and for contractors
Furthermore, LP employees with recognized health and safety expertise actively participate in VPP verification of other, non-LP facilities. Through their VPP involvement, LP is exposed to, and can therefore benchmark our global standards to, the very latest ideas and best practices in health and safety management.
We seek out VPP approval both to ensure our global health and safety practices are best-in-class and continually improving, and as a way of recognizing the outstanding efforts of our colleagues who strive to keep us safe at work every day. VPP status is also recognized as a competitive advantage for LP by some of our biggest customers.
Health and Safety Targets
LP is committed to continual improvement of health and safety performance. We set internal, annual targets that seek continual safety performance improvements every year. Examples of metrics tracked and targeted include:
- Trailing indicators:
- Total Incident Rate (TIR) (standardized measure of recordable incidents per 100 employees)
- Formal Enforcement Actions (an internally defined metric that includes any safety event that results in a fine)
- Leading indicators:
- Near-miss incidents
- At risk behaviors
- Management system enhancements
We see particular value in tracking, managing and targeting leading safety indicators and intend to over-weight these indicators in our targets going forward.
LP’s TIR for, 2016, 2017 and 2018 was 0.35, 0.50 and 0.42, respectively.
Supply Chain Transparency
LP is also proudly committed to conducting our business at the highest level of legal and ethical standards. We recognize that the United States government and the governments of other countries in which we operate have laws, regulations, and policies which control the import and export of products, human trafficking and slavery, anti-corruption, bribery, extortion, kickbacks or other matters which are applicable to LP’s business activities. LP’s Code of Business Conduct and Ethics mandates that every employee, officer, director and persons authorized to conduct business for LP or on its behalf, fully comply with these laws when not in conflict with U.S. laws. LP regularly trains all employees in the standard of ethical behavior, policies, procedures and legal requirements that define the way we do business.
More information about these efforts are outlined in the California Transparency Supply Chains Act.