The Baker Panel Report - ABSA

RECOMMENDATION #9—BOARD MONITORINGBP’s Board should monitor the implementation of the recommendations of the Panel (including the related commentary) and the ongoingprocess safety performance of BP’s U.S. refineries. The Board should, for a period of at least five calendar years, engage an independentmonitor to report annually to the Board on BP’s progress in implementing the Panel’s recommendations (including the relatedcommentary). The Board should also report publicly on the progress of such implementation and on BP’s ongoing process safetyperformance.Commentary(1) “monitor the implementation of the recommendations”—The Panel believes that it is critically important that steps be taken to ensure thesustainability of the Panel’s recommendations and the implementation of systemic changes contemplated by the recommendations. The Panelbelieves that timely implementation of the recommendations can result in long-lasting improvements in process safety performance at BP’sU.S. refineries. To this end, BP’s Board should monitor the performance by executive, corporate, and refining line management above therefinery level within BP in implementing the recommendations, including the need to hold executive management and refining line managersand supervisors at all levels accountable for process safety performance.To assist in this monitoring role, the Board should, for a period of at least five (5) calendar years, engage an independent person or persons toact as a special monitor to report annually to the Board on BP’s progress in implementing the Panel’s recommendations. BP should provide thespecial monitor with access to required administrative and technical support or services and required resources, including process safety,corporate culture, and refining industry knowledge and expertise. The Board should (a) develop a specific process for ensuring theindependence of the special monitor and any experts, and (b) make the resulting report publicly available on an annual basis.(2) “monitor . . . the ongoing process safety performance of BP’s U.S. refineries”—Because of the potential catastrophic nature of processsafety incidents, BP’s Board should monitor the ongoing process safety performance of the U.S. refineries. In order to do this effectively, theBoard may determine that it needs additional process safety resources and/or expertise. To this end, the Board should assess what resources itneeds to monitor effectively and to be able to challenge the process safety performance as reported to it by BP management.(3) “report publicly on the progress of such implementation and on BP’s ongoing process safety performance”—The Panel also believes thatsustainability and implementation of its recommendations will be served by having BP report publicly on its progress in implementing thePanel’s recommendations and on its process safety performance generally. Accordingly, BP should, on a periodic and at least annual basis,report publicly in reasonable detail on (a) BP’s progress in implementing the Panel’s recommendations, and (b) the process safety performancein the U.S. refineries using leading and lagging indicators as discussed in Recommendation #7 (and the related commentary). This reporting ofinformation should be at least as prominent as the company’s current reporting of its personal safety and environmental performance.Panel’s Recommendations C 256