The Linde Group, a technology company with global operations, is exposed to a great variety of risks. To identify and evaluate these risks and steer our responses to them, the Linde AG Executive Board has established a comprehensive, systematic and efficient integrated risk management system (Enterprise Risk Management [ERM] system), the basic principles of which are laid down in Group guidelines.

Our risk management system also provides a standardised framework to evaluate CR issues such as environmental, safety, HR and legal risks, along with risks resulting from political, legal and social upheaval or from pandemics.

Different departments, such as our safety, health, environment and quality (SHEQ) department, assess the risks within their areas, for example plant or product safety risks, and channel this information into Group risk management activities.

We investigate alleged compliance violations and violations of occupational and social standards by or at our company or by our suppliers through our Integrity Line reporting system.

> More on risk management and on our compliance programme

At Linde, we have defined global safety, health, environment and quality (SHEQ) standards and responsibilities for our production processes. Our SHEQ management systems enable us to identify and minimise risks in these areas. The management systems are closely aligned with the individual workflows in the various business units. We also involve contractors and other suppliers in our SHEQ management activities.

Our SHEQ Policy steers our management activities alongside binding regional and global standards, which are communicated worldwide via our global database Linde Management Systems and Standards (LiMSS). We implement our SHEQ guidelines, other Group-wide guidelines and legal regulations through various internal management systems. Our aim is to continually improve existing processes across all relevant lines of business. Our global corporate responsibility indicators help us achieve this goal by helping us benchmark our progress and identify scope for improving our SHEQ performance.

We use a wide range of tools and measures to assess whether we are meeting our commitments and standards. These include internal audits on process safety, occupational health and safety, environmental protection and quality at our locations across the globe.

In 2010, we performed or commissioned occupational health and safety audits at over 53 percent of our sites, and environmental protection audits at around 48 percent of our sites.

Proportion of sites in which health, safety and environmental audits have been conducted
The Linde Group

Figure included in the Group Management Report of the Annual Report 2010 of The Linde Group.
Figures include internal and external audits.

We also include findings from our internal statistics and from reports on incidents and near-misses (incident reporting) in our annual audit plan.

In 2010, we focused in particular on audits carried out within the framework of our Major Hazard Review Programme (MHRP) – an initiative for systematically assessing risks that could result in accidents or damage to property or the environment.

We systematically train our employees in the areas of occupational health and safety as well as in product safety and environmental risks. The need for training is regularly assessed at our individual sites, and our training offering is tailored to current requirements. We also run campaigns and initiatives aimed at strengthening employee awareness of the importance of safety and environmental protection.

Proportion of employees who have taken up HSE training opportunities (in percent)
Gases Division

Figure included in the Group Management Report of the Annual Report 2010 of The Linde Group.

Many of our locations are certified to international norms as proof of our high standards on safety, environmental protection and quality.

The ISO 9001 set of standards for quality management is particularly important for our Gases and Engineering Divisions. More than 200 of our sites are certified in accordance with the environmental management standard ISO 14001. Many of our sites are health- and safety-certified in accordance with the OHSAS 18001 (Occupational Health and Safety Assessment Series) or SCC (Safety Certification Contractors) standards.

Proportion of certified sites
The Linde Group

We intend to maintain current levels of certification in our Gases and Engineering Divisions.

In the case of food-grade gases, we provide proof of compliance with the relevant quality standards. Within the framework of the Global Food Safety Initiative (GFSI), we intend to have another 71 sites certified by the end of 2012. This certification includes the ISO 22000 standard (food safety).