Workplace safety

James Hardie is committed to sustaining a safe working environment and has set safety objectives that focus on:

  • Achieving within our plants an incident rate of less than 2 and a severity rate of less than 20 ¹
  • Eliminating serious bodily harm
  • Achieving zero fatalities

Recognising its critical importance to the Company, James Hardie has made safety one of the scorecard measures that the Board uses to determine the performance of senior executives under the Company’s Long Term Incentive Plan.

For fiscal year 2016, the Company’s global incident rate and severity rate was 1.8 and 42.4, respectively, for our manufacturing plants worldwide.  The increase in the severity rate was directly attributed to two employees being on restricted duty for extended periods of time due to soft tissue injuries.

North America and Europe Fibre Cement safety performance

In fiscal year 2016, the North American and Europe Fibre segment’s focus, from a safety perspective, was to:

  • Broaden the safety culture beyond the manufacturing sector
  • Differentiate between inherent and accepted risks
  • Continue to develop leadership capabilities
  • Focus on the quality and sustainability of existing systems

Looking forward to fiscal year 2017, we will:

  • Align behavioural safety efforts across the global organisation
  • Continue to focus on positive recognition for good safety performance
  • Continue to focus on reducing risk tolerance
  • Concentrate on internalising risk reduction efforts through root cause identification and pro-active coaching

Asia Pacific Fibre Cement safety performance

The Asia Pacific Fibre Cement segment has now achieved six consecutive years of incident and severity rates below its safety goals of “2 and 20”.  In fiscal year 2016 the focus, from a safety perspective, was to:

  • Recognise good safety performance
  • Empower our people to STOP for safety
  • Build a risk intelligent culture
  • Develop leadership capabilities
  • Focus on leading indicators

Looking forward to fiscal year 2017, we will focus on:

  • Critical/high potential risk management
  • Situational leadership
  • Promoting a behavioural based safety focus

¹James Hardie’s incident and severity rates relate to factory employees and does not include our sales force, corporate or administrative employees. The “incident rate” is the number of recordable incidents that occur per 100 employee manhours and “severity rate” is the number of days lost or restricted duty from recordable incidents per 100 employee manhours.


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