Concept and key functionalities

This Integrated Report is addressed to all ORLEN Group Stakeholders, in particular the capital market participants, customers, subcontractors, suppliers, local communities, and employees.

This Integrated Report includes data on the Polski Koncern Naftowy ORLEN Group (the “ORLEN Group”) and Polski Koncern Naftowy ORLEN S.A. (“PKN ORLEN”, the “Company”) for 2019.

The previous report, for 2018, was published in June 2019 .Integrated reports are issued on an annual basis and are continuously evolving, to reflect changes within the ORLEN Group and in its environment.

There were no significant changes from the previous reporting period in the scope, boundaries, or measurement methods applied in this Report.  What was changed was the data presentation method with respect to the following GRI indicators:

• 102-8 Information on employees and other workers – the 2018 data was restated following a change of the methodology for assigning PKN ORLEN employees to the respective education level categories;
• 302-1 Energy consumption within the organisation – the 2018 data for Total consumption was restated following a change in the calculation method.

Some aspects of the non-financial activities are presented using the examples of selected ORLEN Group companies whose business scope is of key significance to the Group.

Significant changes in the organisation’s size, structure, ownership, and its supply chain  during the reporting period

In 2019, there were no significant changes in the structure or value chain that would result in a change of the business model. The changes made in the Group’s structure were in pursuance of the strategy to focus on core business and allocate the released capital to development of the Group’s business areas that offer the greatest growth potential. In 2019, PKN ORLEN S.A. bought out minority interests in ORLEN KolTrans S.A., thus becoming its sole shareholder. Additionally, PKN ORLEN S.A. purchased shares in ORLEN Usługi Finansowe sp. z o.o. and SIGMA BIS S.A. In consequence, as at December 31st 2019, PKN ORLEN S.A. held, respectively, 100% and 66% of total voting rights in those companies.

2019 was the first full year of implementing the Strategy for 2019−2022, announced on December 20th 2018. The vision for PKN ORLEN’s growth set out in the new strategy fits well with global trends in the use of primary energy sources, technological progress and social processes, which are bound to create new consumer behaviours and expectations. PKN ORLEN aims to focus on solidifying its market position, becoming more customer-oriented, exploiting the integrated value chain, with a growing role of the petrochemical business and prudent continuation of projects in the Upstream segment. The focus on value-creating innovations is an important element of the strategy.

This Report has been prepared in accordance with:

• Art. 49b.1 and Art. 55.2b-e of the Polish Accounting Act of September 29th 1994, as amended, which implements the guidelines of Directive 2014/95/EU of the European Parliament and of the Council of October 22nd 2014 on disclosure of non-financial and diversity information; To comply with the requirements set out in those regulations, in March 2020 we issued the ‘Non-Financial Statement of the ORLEN Group and PKN ORLEN S.A. for 2019’.

• International Financial Reporting Standards (IFRS), including the International Accounting Standards (IAS) and Interpretations of the Standing Interpretations Committee (SIC) and the International Financial Reporting Interpretations Committee (IFRIC), as endorsed by the European Union (EU).

The layout and contents of the publication are based on the recommendations and guidelines of the International Integrated Reporting Council.

Description of the non-financial activities of the ORLEN Group has been prepared in accordance with the international standards for reporting on economic, environmental and social impacts of an organisation – GRI Standards 2016, Core option. The ORLEN Group reports its ESG issues according to those standards .

PKN ORLEN is taking measures to increasingly meet the  Task Force on Climate-related Financial Disclosures guidelines on disclosure of information on climate and also refers to the Sustainalytics ESG Rating.

The publication identifies and presents activities aimed at achieving the Sustainable Development Goals 

The ESG  section presents the ORLEN Group’s best practices and key ESG data.

Preparation of this Report included the following stages:

• Confirmation of significant business and social responsibility issues relevant to the ORLEN Group, and their materiality,
• Confirmation of the Stakeholder Map and relevant reporting aspects,
• Collection of data showing implementation of the policies, strategies and objectives of corporate social responsibility, as well as the due diligence procedures and risk management policies and how they are put into effect at the ORLEN Group,
• Preparation of this ORLEN Group Report for 2019, based on the collected data in accordance with the Polish Accounting Act of December 15th 2016 (Dz.U. of 2017, item 61), GRI Standards 2016 (Core option), and guidelines for integrated reporting issued by the Integrated Reporting Council. This Integrated Report has also been prepared based on the Directors’ Report on the operations of the ORLEN Group and PKN ORLEN S.A. in 2019, the Consolidated Financial Statements of the ORLEN Group for the year ended December 31st 2019 and the Non-Financial Statement of the ORLEN Group and PKN ORLEN S.A. for 2019, all published in March 2020.
• External assurance of this Report based on the ISAE 3000 standard.

This Integrated Report is only available online, with a number of functionalities and tools facilitating access to its contents, including:

• Interactive key performance indicators reflecting current and historical data
• Glossary of financial and industry-specific terms
• Table of GRI Indicators, based on which the non-financial performance is reported
• All multimedia content of this Integrated Report is available in the Multimedia Centre
• Key publications relating to the ORLEN Group’s operations in 2019 are downloadable from the Document Centre
• Selected figures are available in the Charts and Tables Centre and ORLEN in figures
• An instructional video on how to navigate this Report is available in the Help section

This Report also contains interactive infographics, including the business model, the value creation model, and the map of markets.

It is possible to generate a pdf file  of this Report.

Users can complete an interactive questionnaire to provide feedback on this Report.

We have defined our key areas with the principle of integration in mind, which is reflected in the very structure of this Report:

• Our report
  Concept, methodology and key functionalities
• ORLEN Group
  What the organisation deals with and its achievements in each area of operations (business segment)
• Our environment
  The ORLEN Group’s macroeconomic, market, regulatory and other environments
• Governance principles
  The Group’s corporate governance, relation between corporate units and key assumptions underlying management of the ORLEN Group
• Our strategy
  Pillars of our strategy, its implementation and development directions
• Our responsibility
  CSR strategy and its implementation, including in particular social, employee, human rights and anti-corruption and anti-bribery aspects
• Environment and climate
  Environmental issues, including water, effluents, air emissions and waste
• Risks and opportunities
  The enterprise risk management system, opportunities and challenges faced by the ORLEN Group
• Financial results
  To what extent we have achieved our strategic goals
• Outlook 2020+
  Long-term prospects
  

The contents of this Report are not static. Each sub-section is linked to:

• Capitals – The content may be defined by production, intellectual, natural, social, human and financial capitals. This linkage enables easier access to information on the capitals, which often overlap, building the Company value in different areas.
• GRI indicators – This Report presents non-financial data in compliance with the Core version of the Global Reporting Initiative Standards. Each internal page contains information on the relevant GRI indicator, along with several other tools, such as the GRI search and the GRI content index.
• Related sections – Each page of this Report is linked to two other pages with similar or supplementary topics.

It is our policy to arrange for external assurance of or integrated reports by an independent organisation. The auditor performs an independent assessment of profile and specific indicators developed in accordance with the GRI Standards. The ORLEN Group’s Integrated Report for 2019 was audited by BureauVeritas  Polska.

Auditor’s opinion

Download PDF

The Management Board of PKN ORLEN confirms that the ORLEN Group’s Integrated Report for 2019 contains a comprehensive description of the ORLEN Group’s financial and non-financial activities, and gives assurance as to the truthfulness, accuracy and reliability of the information  it contains.

Daniel Obajtek President of the Board

Zbigniew Leszczyński Member of the Board

Józef Węgrecki Member of the Board

Patrycja Klarecka Member of the Board

Michał Róg Member of the Board

Armen Artwich Member of the Board

Jan Szewczyk Member of the Board

Adam Burak Member of the Board