INTEGRATED
REPORT
2019

Responsibility towards customers

Capitals:

One of the principal aspects of the ORLEN Group's operations is a steady improvement in the quality of its products, services and customer service standards. Customers are a key Stakeholder for the ORLEN Group.

GRI:
  • 103-1
  • 103-2
  • 103-3

An area of particular importance to image building and developing relations with customers and the general public is our service stations  and the way they are managed. A necessary condition for achieving a steady improvement of quality standards and relations with each Stakeholder group is the knowledge of where and what changes are required. Our clients’ feedback, comments and opinions as well as the results of customer satisfaction surveys are an invaluable source of information in this respect. They are complemented by reports issued after inspections and visits by public authorities, held to assess the solutions we employ to ensure health protection, adequate level of security, and compliance of our business with applicable laws and regulations.

It is our key goal to make a connection with our existing and potential customers by developing modern solutions, inspiring positive emotions and emphasising the national character of our brand and company. The ORLEN brand is now widely recognised and respected by Poles, and this success has been achieved with indirect contribution from other trade names: VERVA, EFECTA, Stop Cafe, and O!Shop. Customers’ attachment to the brand is supported by the VITAY loyalty scheme and the FLOTA programme targeted at the B2B segment. In 2019, we launched a co-branding process  at our sites outside Poland, which has already given visibility to the ORLEN brand at all stations of the network abroad. The co-branding project assumes the presence of local brands: Benzina (in the Czech Republic and Slovakia) and Star (in Germany) in combination with the ORLEN Group logo. To raise awareness of the ORLEN brand, the combined logotypes have been displayed on fuel pumps, price totems, and screens inside the service stations.

Intensive efforts were ongoing throughout 2019 to prepare PKN ORLEN to grow the share of non-conventional sources in the car fuel mix. The retail network is being developed to improve the availability of alternative fuels. These activities were undertaken in all countries where ORLEN Group service stations are present. The Group’s range of 39 fast charging stations for electric vehicles (as at the end of 2019) across Poland and chargers at 18 Benzina stations in the Czech Republic was expanded in October 2019 to include our German service stations in Berlin, Hamburg and Lübeck. The Star network in Germany includes two hydrogen refuelling stations, and motorists in the Czech Republic will also be able to fill up their hydrogen-powered vehicles. In 2020, Unipetrol (an ORLEN Group company) will commence the construction of three hydrogen stations in Prague, Litvínov and Brno. In addition, 43 service stations located in the Czech Republic sell CNG.

In 2019, we worked to further develop our food and beverage services – a new format was introduced, combining a convenience store with a modern food and beverage section. It is branded as Stop Cafe 2.0, O!Shop and ORLEN Drive in Poland and the Czech Republic, and Star Connect in Germany. The new model was introduced at new CODO stations, while the existing Stop Cafes and Stop Cafe Bistros were upgraded to the Stop Cafe 2.0 standard. In Poland, the number of stations operating in the new format grew by 169, and the number of sites based on the simplified format increased by 15.

We seek to improve the service quality on a regular basis. Having employed special coaches at our service stations, who are responsible for training the employees and ensuring top quality service from all team members, and with the development of the VITAY and FLOTA loyalty schemes, we can boast a growing base of loyal customers year by year. To meet their expectations and constantly improve service levels, in 2018 PKN ORLEN launched an innovative mobile payments system at its Polish retail chain, called OrlenPay. The mobile application enables payment for fuel directly at the pump and is the first solution of this kind for individual and B2B customers on the fuel market in Poland. It makes fuel purchases much faster and simpler − the customers refuel their cars, pay at the pump, and are free to depart. As the pump quickly becomes available for the next car, other customers have time to do more shopping and buy beverages and food.

As a result of work on new options for trading partners, the ORLEN Group’s fleet and external customers are now also offered electricity supplies. The main benefits to the customer are better terms of sale and the possibility of simplifying and reducing the number of settlements with external suppliers.

Products and services

In 2019, a product range enjoying strong popularity with customers was standard Efecta fuels with specific cleaning properties, which protect both the engine and the fuel system as a whole. They contain the most sophisticated and selected enhancing components, which improve the performance and prolong the engine life. In response to customer expectations, we invested in the infrastructure at our service stations. The number of fuel refuelling sites was steadily increased and breaks in the service caused by LPG deliveries were shortened.

In the case of LPG, since December 1st 2019 all fuel market participants have been subject to new regulations on registering and confirming the product deliveries in the SENT system. The purpose of the new requirements is to further curb grey economy in the fuel sector. PKN ORLEN has complied with the new obligations since they entered into force and is actively involved in the common activities of fuel companies on the market.

The range of goods offered at our service station stores reflects customer expectations and market trends. It includes car care and maintenance products (accessories and car cosmetics, engine fluids) as well as food products (beverages, snacks, foodstuffs). When adding new items to our food product range, we pay particular attention to their ingredients and choose healthy options, i.e. healthy sweets and clean label salty snacks. When supplies are taken in, the expiry dates of all products are checked, and the condition of packaging is verified. This is also done on an ongoing basis at the stores, during resupply of products on display. Our storage standards require that food products be kept separately from chemical products.

PKN ORLEN is developing the food and beverage offering at its service stations by adding items for vegans and vegetarians. New products are prepared based on Polish, local products by Polish manufacturers. Product recipes have been developed exclusively for PKN ORLEN and are not available in other competing networks. In response to signals from Stop Cafe customers, we now also offer a meal for people on gluten-free diet.

The snacks and hot drinks offered at the stations are prepared with a high level of food safety maintained. The stop.cafe coffee, which has already achieved an iconic status, bears the Fairtrade mark as a guarantee that it conforms to the fair trade standards.

In accordance with Directive 2019/904 of the European Parliament and of the Council of June 5th 2019 on reduction of the impact of certain plastic products on the environment (SUP, or single-use plastics), we optimised the amounts of packaging and catering accessories we use and started to replace them with environmentally-friendly single-material versions. Efforts are being made to identify recycled substitutes and prepare appropriate labels to build customer awareness of how the packaging should be handled in order to smoothly enter the recycling process.

Through our service stations, customers can also access a range of various services. These include in particular food services, car wash facilities, and the parcel collection service (‘Station with a Parcel’) provided in cooperation with the Polish Post.

The popularity of our car washes is growing. The automatic washing machines at the ORLEN Group sites have a closed water flow system, which contributes to reduced water consumption and industrial wastewater volumes. Our car wash service standards guarantee high quality of cleaning while limiting the consumption of chemicals. We make every effort to ensure that our equipment provides very good washing quality with the least possible environmental impact. In 2019, 34 car washes were upgraded.

All customers inquiring about the health and safety impacts of non-fuel products and services offered at our service stations are provided with reliable information by the service station personnel. In addition, detailed safety data sheets are available at all stations for the chemical products. Apart from the product composition, they include information on the potential threats and hazards and the procedures to be followed if they should materialise. Disclosure requirements concerning the threats and hazards posed by the chemicals manufactured and used by a company are regulated under Polish and EU laws. MSDS documents are the key tool used under the REACH regulation to ensure information flow along the supply chain. Pursuant to Art. 31 of REACH, the supplier of a substance or mixture is required to deliver to the customer an MSDS document in the official language of the member state in whose territory a given substance or mixture is marketed. The provisions of the Polish Labour Code are equally important. Its Art. 221.2 stipulates that ‘Any user of hazardous substances or hazardous chemical preparations shall have an up-to-date listing of such substances and preparations, as well as relevant MSDS documents. The substances and preparations shall be handled in packagings protecting against noxious action of such substances and preparations, fires and explosions’.

Our MOP Michałowice is the undisputed leader among all service stations in Poland. It received top scores in the five categories of the ‘Service Station of the Year 2019’ competition: innovation at a service station, new facility, service station operating in a motorway service area, catering concept at a service station, and service station of the year 2019. ORLEN DRIVE Michałowice is the first drive through service station in Poland. Motorists can refuel their vehicles, order food or drink and pay without having to get out of the car. Through this project, PKN ORLEN seeks to develop the Quick Service Restaurants model at the service stations. The solutions we have implemented help reduce the time needed to order and receive the products from the Stop Cafe food range.

In response to new consumer trends, including those related to mobility in urban areas and economy of sharing, a car sharing (pay-by-the-minute car hire) service is available at selected ORLEN stations. It is operated in cooperation with Traficar. The Group also partnered with Nextbike Polska in a pilot project to offer bike rental, including both conventional and electric bikes, at selected PKN ORLEN stations in large Polish cities.

Health and safety

Our service stations are a safe place for both customers and employees. All sites are equipped with burglary and robbery alarm systems. Contracts with professional security providers guarantee quick arrival of a patrol if needed. All of our service stations have CCTV systems that record events inside and outside the facilities. The stations also have their own rules for vehicle and human traffic on their premises which, combined with luminescent markings, increase the overall safety level.

The stations with LPG pumps are adapted to enable safe refuelling of gas-powered vehicles. Service station attendants are always ready to assist customers and help them refuel their cars. At most stations, we have doubled the number of LPG refuelling facilities for customers convenience.

All PKN ORLEN service stations apply the HCCP  Food Safety Management System, implemented in 2005 based on the requirements of Codex Alimentarius. The service stations have access to the Technical Documentation of HACCP, which is available via the Station Portal. Its purpose is to guarantee that food products sold at the stations satisfy all the sanitary requirements, are safe, and their quality meets the relevant standards, Both in the case of individually packaged products and all products prepared in accordance with the food offering of the Stop Cafe, Stop Cafe Bistro, and Stop Cafe 2.0 outlets and in the restaurants.

HACCP has a significant impact on the quality of marketed products − record-keeping, monitoring and handling receipt, storage, preparation for sale, and sale of products in line with the HACCP principles helps to enhance product safety and quality.

HACCP, standing for Hazard Analysis and Critical Control Points, is a system used to identify health threats and the risk of their occurrence at various stages of food production and distribution. It helps control and mitigate all hazards to consumer safety and health. Basically a preventive system, HACCP aims to minimise hazards related to food sale, protecting consumers by guaranteeing safety and high quality of purchased foodstuffs. It also protects food manufacturers, who are able to prove that their products are safe if their production processes are run correctly and are properly documented. The HACCP system is regularly audited.

GRI:
  • 416-2

In 2019, there were no incidents of non-compliance with regulations and voluntary codes concerning the health and safety impacts of products and services during their life cycle, by type of outcomes.

The station personnel are instructed to strictly obey the ban on selling alcoholic beverages and tobacco products to minors. Appropriate notices are put up at every site, and awareness training is organised for the staff. Another practice is to make service station personnel sign declarations in which they undertake to observe the Upbringing in Sobriety and Alcoholism Prevention Act, verify the age of potential customers, and refuse a sale if they suspect it could be in breach of the Act. Compliance with this requirement was verified both openly and in a covert manner.

PKN ORLEN consistently takes action to prevent the spread of the coronavirus pandemic. The hand sanitizer produced by the ORLEN Group’s Jedlicze plant and protective masks, mainly from domestic producers, are available for sale at all ORLEN service stations. Ambulance service staff, police officers, fire fighters, municipal police officers, soldiers, Border Guard officers, as well as employees of the National Revenue Administration and Inspectorate of Road Transport are served out of turn and get a free hot beverage. In connection with the coronavirus epidemic, emergency procedures have been implemented at the stations to ensure the safety of customers and employees.

Facilities for the disabled and children

At most stations there are special parking spaces for the disabled and the forecourts are adjusted to their needs. The ORLEN Group is actively modernising its service station network to better meet the needs of people with various dysfunctions. It has implemented standards of planning communication infrastructure in newly built facilities to make them more accessible for the disabled.

1,373 service stations have toilets adapted to the needs of the disables, and at more than 1,000 stations there are special parking spaces for the disabled. At all ORLEN service stations, customers can pay for fuel at the pump via the ORLEN Pay mobile application, using a special QR code displayed on each pump within the network. In 2019, to achive further service improvements, the ‘Mobile Cashier’ pilot programme and the ‘Fast Lane’ were launched. In recent years, over 30 thousand employees of the ORLEN service stations have recived training in services to people with disabilities. The training system was developed in cooperation with the INTEGRATION Foundation.

As far as our youngest travellers are concerned, their comfort is our priority. Many service stations in Poland and in the Czech Republic offer changing tables for babies. We started cooperation with Pampers and opened six new rooms where a carer can heat up food and feed and change a baby in comfortable conditions. Children’s needs are also addressed in our food service (mini menu) and store offer (toys, books and fairy tales). Many stations (mainly located along main transit routes) have playgrounds for kids.

PKN ORLEN is also continuing the Large Family Card programme, which offers discounts for purchases of goods and services as well as fast-track institutional service to families with many children. As a result, the programme beneficiaries can now use a wide range of discounts when buying fuels, Stop Cafe products, or car wash services.

Customer service standards

GRI:
  • 102-43

The ORLEN Group regularly monitors customer satisfaction and loyalty. Polish fuel market is rather unstable due to volatile fuel prices, development of the service stations network, and introduction of new products to food service, fuel and store portfolios. Customers are offered promotions and attractive products, building their loyalty towards the service station they use most frequently. The quality of service is regularly verified based on internal assessments carried out by micromarket managers by means of surveys completed on mobile devices, and using a ‘mystery shopper’ at all CODO and DOFO stations on a quarterly basis.

It is also vital to monitor customer satisfaction with various aspects of service station activities. One of the elements enhancing customer relations is the Company’s approach to customers’ feedback and reaction to complaints. The customers have several options to contact us and express their opinion about a service station or the services: over the Internet, by phone, or personally at service stations. In each case, the contact is registered in the complaints management system, which also records positive opinions and thanks from customers.

In 2019, customers at of the ORLEN Group service stations completed over 467 million transactions.

Over that period, more than 7,659 complaints were received, of which 5,778 were to be handled in accordance with the requirements of the Integrated Management System, and 1,881 were submitted anonymously. 4% of the complaints were recognised as valid. The average waiting time to receive response to a registered complaint is 5.7 days.

The contact form was supplemented with additional problem categories in 2019:

  • Praise – customers thank us for the high standard of service;
  • Mobile payment – a customer report verification channel for customers using the mobile application enabling them to pay for fuel at the pump.

Main issues reported by our customers in 2019

Every customer complaint is analysed individually, in accordance with the adopted procedures.

Care for the natural environment

The ORLEN Group is particularly committed to environmental protection and this commitment also extends to its service stations.

This is particularly important in the case of oils, operating fluids and automotive chemicals. All packaging is checked on delivery and if any damage is discovered the product is returned. Appropriate storage and display policies help mitigate the risk of damage to a product or its packaging and quality deterioration. Our service stations provide containers for used oil and other liquids packaging that may be harmful to the environment. They also provide primary waste collection containers.

All automotive products (oils, fluids, car cosmetics) come with safety data sheets specifying how the product should be stored and what to do in the case of contamination or poisoning.

In the case of fuels, the focus on environmental protection is our priority. Some solutions employed with this objective in mind are double-walled tanks to mitigate the risk of fuels leaking into the ground, fuel leak detection systems, station forecourt surface preventing fuels from seeping into the ground, hydrocarbon separators in forecourt rainwater drainage systems to prevent fuel penetration into the ground or ground water, containment integrity tools during fuel unloading (to significantly reduce vapour emissions), nozzles with the VRS system enabling recirculation of vapour from the car tank directly to a service station tank, and neutralising agents to remove spills or leaks that may occur during refuelling or unloading.

Customer privacy

GRI:
  • 418-1

PKN ORLEN processes personal data in accordance with the applicable personal data   protection laws, including in particular Regulation (EU) 2016/679 of the European Parliament and of the Council of April 27th 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation), and Decision No. 18/2018/DG of the President of the PKN ORLEN Management Board of May 23rd 2018 on the principles of personal data protection at PKN ORLEN.

The PKN ORLEN Management Board appointed a data protection officer (Resolution No. 6066/18 of May 29th 2018).

In 2019, PKN ORLEN recorded two complaints concerning breaches of customer privacy, and no data loss was identified. There were no legitimate complaints at the ORLEN Group companies concerning breaches of personal data protection.

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