Responsible Distribution is a Quality / Systems Management Program designed specifically for the Canadian Chemical Distribution industry. It was initiated and is governed by the Canadian Association of Chemical Distributors (CACD). Its purpose is to contribute to a safer and more responsible industry, continuously improving its performance in the fields of health, safety, the environment, and in all communication with the public.

Adherence to the program is achieved by implementing the Distributor Code of Practice which will govern all actions in meeting the guiding principles of the program as they relate to all aspects of the distribution of chemicals, chemical products and services. Elements of the program include occupational health and safety, transportation, warehousing, bulk handling, repackaging and labeling, emergency response, community awareness, waste management, communication with all stakeholders and the public, self-assessment and audits. The Regulatory Affairs department is responsible for creating, implementing, auditing and updating the program.

Prospec Chemicals (Canada) Ltd. is implementing the program as part of our ongoing commitment to our customers, employees, shareholders, other stakeholders, the public and the environment. It involves doing everything to the best of our ability and getting it right the first time. It means being a company with a high level of integrity and a strong sense of responsibility; a company with ethics and standards that meet or exceed all legal requirements. Responsible Distribution is a program and a process that will ensure the successful operation of our business.

Responsible Distribution® has also become recognized by the Canadian Chemical Producers' Association as the "enabling mechanism" whereby CACD, as an association, has qualified for "partnership" in Responsible Care®, which is a responsible management concept developed by CCPA in the 1980's.

Under CACD's partnership arrangement in Responsible Care®, it has become possible for individual member companies of CACD to apply, on a voluntary basis, for licensed use of CCPA's Responsible Care® logos and trademarks. Prospec Chemicals (Canada) Ltd. has signed on to the partnership arrangement in Responsible Care®.

The safety and health of all employees, customers and the public as well as the protection of our environment is of prime importance to Prospec Chemicals (Canada) Ltd. Our objective is to develop the maximum possible safety and hazard awareness among all employees, thereby preventing accidents. To this end, the following commitments are set out for all of us.

· To responsibly manage the business to ensure that recognized health, safety and environmental standards and all legal requirements are met.
· To ensure that health, safety and environmental hazards associated with company activities are identified, assessed and properly managed.
· To ensure that all employees adhere to health, safety and environmental standards and procedures as laid down in this policy.
· To assess health, safety and environmental concerns before entering into new ventures or activities.
· To work with industrial associations, governments and public groups to promote workable codes of practice.
· To communicate with employees, customers, the public and governments, in a timely fashion, on the health, safety and environmental aspects of the company's operations and products.
· To require each employee to work and act safely at all times and to accept his or her personal responsibility for their health, safety and environmental performance.

This policy statement is an expression of Prospec Chemicals (Canada) Ltd.'s continuing commitment to the best possible health, safety and accident prevention and as a reminder to the important responsibility borne by each and every one of us.

Prospec Chemicals (Canada) Ltd. is committed to Quality Management which involves continuous improvement in all areas of the organization.

Our goals are to maintain or improve the quality of products and the technical service we provide in order to consistently meet our customers' expectations.

We are committed to the Responsible Distribution of products in order to prevent any adverse effects to the Environment and to the Health and Safety of employees, customers and the public in general.

We implement this policy through supplier assessments, corrective action reports, shipping and receiving inspection, process audits and employee training. We address customer concerns through a system of corrective and preventative action reports.

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