ESG

We are committed to providing our Stakeholders with highest-quality products and services while striving to achieve maximum environmental neutrality, energy efficiency and superior security standards.

At present, PKN ORLEN is working on a comprehensive strategy addressing challenges related to the climate impact of its operations. The strategy is to be presented in late 2020.

With this in mind, we treat environmental protection and pollution control as integrated elements.

Implementation of the Environmental Management System  confirms that the overriding objective of PKN ORLEN’s strategy is to achieve, as far as practicable, a neutral impact on our immediate environment.

PKN ORLEN addresses the challenges related to the climate footprint of its operations by developing its business based on innovative low-emission technologies and products, in accordance with the principles of a circular economy. The ORLEN Group invests in best available techniques (BAT) in environmental protection, minimising the environmental impacts of its production, product storage and distribution processes.

For more information on the above issues, see ‘Environmental responsibility and compliance’.

This document also describes policies, initiatives and metrics for key environmental and climate impact aspects, such as water, wastewater, atmospheric emissions (including GHG emissions – CO₂), waste, capital expenditure on environmental protection, environmental charges , number and weight of significant spills. This Report presents the Group’s approach to energy management, information on raw materials and production processes, environmental and climate impact risks and the mitigation measures.

With regard to the foregoing, PKN ORLEN has in place a dedicated procedure to be followed in emergency situations and respects the obligations to notify the relevant services. The Emergency Manual defines the procedure for appointment and operation of Technical Teams and Emergency Teams, as well as the method of calculating losses resulting from an emergency event.

The ORLEN Group initiates educational projects aimed at raising the environmental awareness of its Stakeholders. ORLEN Group companies take part in initiatives such as protecting peregrine falcons, fish stocking of rivers, cleaning of waterfront areas, and beekeeping around production plants. For more information, see ‘Environmental protection efforts and biodiversity’.

We form part of society, which is why we build our relations and cooperation model based on the highest value – People. Society, Employees, Customers, Business Partners and the Environment are the key areas of responsibility in the ORLEN Group CSR Strategy until 2022, implemented since 2019.

The ORLEN Group operates programmes with a nationwide reach, enabling us to bring support to local communities, for instance the ‘My Place on Earth’ or ‘ORLEN for Firefighters’ grant programmes run by the ORLEN Foundation.  ORLEN Group companies are actively involved with local communities, especially in Płock and other places where they operate. The ‘ORLEN for Płock’ programme  has been in place for four years now, with 59 projects completed within its framework in 2019. In 2018, we created an innovative tool for communicating with local communities – the Free Information System for residents of the Płock region. In 2019, we organised regular workshops for representatives of local and public administration and institutions responsible for security in Płock. Last year we also started consultations with the local government authorities as part of the project to extend the olefins complex in Płock. PKN ORLEN is a sponsor of the Grant Fund for Płock Foundation, which has been recognised as one of the 30 best CSR projects in Poland.

Our corporate foundations, i.e. the ORLEN Foundation , the ANWIL for Włocławek Foundation, and the Unipetrol Foundation,  run scholarship programmes for students. In line with our Charitable Giving Policy, the ORLEN Foundation executes charitable projects, with a particular focus on helping foster family group homes, and numerous social outreach initiatives.

Both ORLEN Group employees and third parties participate in various social initiatives as part of the employee volunteering programme. In the past year, employees of the ORLEN Group could submit bottom-up volunteer initiatives and benefit from the financial support of the ORLEN Foundation in their implementation. 400 employees took up the challenge. The best initiatives have been awarded in the Volunteering of the Year Competition. In addition, employees participating in employee volunteering are entitled to a day off with the right to remuneration.

PKN ORLEN supports professional and amateur sports. We also engage in projects protecting the national heritage.

In a significant step towards ensuring a responsible supply chain, PKN ORLEN incorporated responsible business and OHS criteria into its procurement management standard. Compliance with the Supplier Code of Conduct  is a mandatory criterion in the process of trading partner selection at ORLEN Group companies.

As a key player in the fuel and power market in the CEE region, PKN ORLEN runs the proprietary project FFbK. ‘Fuelling the Future’ The initiative is aimed at inspiring debate on key economic, business and social issues as well as sharing of ORLEN’s business knowledge. One of the activities undertaken as part of the project is the publication of original reports. In 2019, we prepared and released a report entitled ’Petrochemicals – Challenges, Solutions and the Future’.

The ORLEN Group’s key social policies and procedures are described in the Non-Financial Report of the ORLEN Group and PKN ORLEN S.A. for 2019.

For more information, see ‘CSR Strategy’, ‘Responsibility towards society’, ‘Responsibility towards suppliers’ and ‘Responsibility towards customers’.

The ORLEN Group’s hiring policy focuses on engaging top quality specialists to perform day-to-day operations as well as to execute strategic projects.

The ORLEN Group employees are offered a wide range of diversified professional advancement activities. The Career Development Session was introduced in 2019 to help plan individual career paths based on the assessment of an employee’s needs and business requirements in a given area. The ORLEN Group also provides its employees with an extensive package of social benefits, including employee benefits and the ‘Family-Friendly Employer’ programme. An employee satisfaction and engagement survey is conducted on a regular basis (every two years).

PKN ORLEN takes steps to recruit and retain human resources that are relevant to the Company’s business areas – current and prospective employees, as well as students and graduates of vocational schools and universities. Being aware of the need for synergies between business and academia, the ORLEN Group actively collaborates with the academic community. For more information, see ‘Responsible employer’ and ‘Our capitals’.

Projects are under way to develop a knowledge-based organisation, unlock the internal potential and share feedback. 2019 saw the continuation of the in-house programme to support innovation among employees, intended to encourage our staff to put forward their ideas and to enable identification of highly-innovative solutions, such as ORLEN Insight – a knowledge-sharing platform, Opportunities Market – a project platform, an in-house platform ORLEN Idea, and a competition for the most innovative project of the year.

PKN ORLEN ensures freedom of trade union activity. It recognises trade unions active at the Company as representatives of all employees in matters concerning their collective rights and interests, within the scope defined by laws of general application. It undertakes to respect the freedom of activity and equality of trade unions and does not discriminate against employees on the grounds of trade union membership or non-membership.

The ORLEN Group’s key HR policies and procedures are described in the Non-Financial Report of the ORLEN Group and PKN ORLEN S.A. for 2019 . For more information on employment and HR programmes, see ‘Responsible employer’.

The ORLEN Group has adopted the Core Values and Standards of Conduct of PKN ORLEN S.A., addressing relationships within the company and interactions with the external environment. The document presents the values which the ORLEN Group employees respect: Responsibility, Development, People, Energy, Reliability

PKN ORLEN has in place internal and external mechanisms to obtain advice on how to report a violation or suspected violation. The Company’s employees and external Stakeholders may report a breach or suspected breach of the ‘Core Values and Standards of Conduct of PKN ORLEN S.A.’  in connection with workplace incidents or employee behaviours. A variant path is defined for reporting and analysing information on actual or suspected breaches, depending on the severity and complexity of the problem and on the confidence of the parties involved.

The ORLEN Group has also adopted the Workplace Bullying Policy, setting out the rules to be followed when a case of harassment is reported, as well as the rights and obligations of employees in such situations. The Policy is complemented by the Rules to Prevent Workplace Bullying, Discrimination, and any Forms of Harassment at PKN ORLEN, which go beyond legal requirements and also include measures designed to prevent any behaviour that could amount to bullying, discrimination, or other forms of harassment.

The ORLEN Group’s key policies and procedures governing human rights are described in the Non-Financial Report of the ORLEN Group and PKN ORLEN S.A. for 2019. For more information about human rights initiatives pursued in 2019, see ‘Respecting human rights’ .

Care for the health and personal safety of employees and other stakeholders is an integral part of our organisational culture and business.In practice, this means that the Group does everything it can to prevent accidents, industrial failures, fires and other unwanted incidents.

We are currently implementing the ORLEN Group’s OHS Strategy for 2017–2021. In 2019, the target values provided for in the Strategy for the combined TRR and T1 PSER were achieved.

All our OHS efforts were aimed at ensuring the highest safety standards. In 2019, the ORLEN Group continued the implementation of uniform safety standards under the ‘Safety Plus+’ project, further promotion of a work safety culture at the ORLEN Group companies by raising the awareness of safe work procedures and inspiring proactive attitudes in employees and contractors, as well as initiatives carried out on multiple fronts to further enhance the ORLEN Group’s Process Safety Management System.

For information on the projects and initiatives undertaken in 2019 with regard to occupational health and safety and process safety, see ‘Safety of employees and contractors’ .

The ORLEN Group’s key OHS policies and procedures are described in the Non-Financial Report of the ORLEN Group and PKN ORLEN S.A. for 2019 .

PKN ORLEN ensures easy and equal access to published information using various communication tools.

As a company listed on the Warsaw Stock Exchange, it applies all the principles included in the Code of Best Practice for WSE Listed Companies 2016.

In 2019, PKN ORLEN launched its Investment Academy project, which anyone who wants to broaden their knowledge about the capital market and safe investing on the stock exchange is welcome to join. It is run as part of ‘ORLEN in Your Portfolio’ – Poland’s first long-term programme for retail investors.

Corporate governance-related issues are discussed in the ‘Corporate governance’ section of the Integrated Report. The section contains the following information:

• Corporate governance rules
• Control, Risk Management and Compliance System
• Major shareholdings
• Special control powers and voting rights
• Amendments to Articles of Association

• General Meeting
• Management and supervisory bodies
• Remuneration policy
• Diversity policy

We operate on the basis of our Integrated Management System, which comprises the following systems: Quality Management System compliant with ISO 9001, Quality Management System compliant with AQAP 2110, Environmental Management System compliant with ISO 14001, Occupational Health and Safety Management System compliant with PN-N-18001, Information Security Management System compliant with PN-ISO/IEC 27001, HACCP Food Safety Management System, ISCC EU certification system and Factory Production Control (ZKP).

These systems meet the highest international management standards and are applied by the Company in its day-to-day efforts to ensure professional customer service and maintain top health protection and environmental standards.

In May 2019, the Integrated Management System underwent a certification audit. As a result, the Group was certified for compliance with the requirements of the respective standards.

For information on the Integrated Management System, see ‘Integrated Management System’.

The ORLEN Group has in place effective functional control, risk management and compliance supervision systems, as well as an internal audit and control function. The simultaneous operation of all those systems and functions allows the Group to exercise ongoing and effective supervision to prevent corruption, illegal bonuses or conflicts of interests.

In 2018, the ORLEN Group adopted an Anti-Corruption Policy and appointed an Anti-Corruption Compliance Officer. Our trading partners, when entering into business relationships with PKN ORLEN, are required to become familiar with the policy and rules for counteracting corruption.

The ORLEN Group’s key policies and procedures governing this area are described in the Non-Financial Report of the ORLEN Group and PKN ORLEN S.A. for 2019 .

For information on policies and procedures governing the counteracting of corruption and bribery and the related key initiatives, see ‘Counteracting corruption and bribery’ .