Indirect economic impacts

The ORLEN Group is one of the leaders in the Polish labour market, with more than four thousand people working at PKN ORLEN, and in excess of twenty thousand in the entire Group. With their families included, this gives a total of more than 100 thousand people whose lives are closely linked with PKN ORLEN operations.

Investment projects, current repairs as well as inspection and maintenance work carried out by contractors for the ORLEN Group produce jobs for another dozen or so thousand people.

The scope of our social initiatives is wide ranging and matches the extent of our business activity. Out of 33 PKN ORLEN’s direct subsidiaries and jointly-controlled entities, 28 companies, i.e. 84.85% of all companies in the Group, claim to have a CSR agenda. In the areas where PKN ORLEN conducts its operations, we develop dedicated cooperation programmes, such as ‘ORLEN for Płock’ which is designed to improve the quality of life of Płock inhabitants. PKN ORLEN’s contribution towards this objective includes providing assistance to Płock’s healthcare services, emergency services and higher education institutions, promoting Płock’s culture and arts, developing municipal infrastructure, as well as supporting sports projects of key importance to the Płock community. In addition, PKN ORLEN contributes directly to the city’s budget by paying property tax, vehicle tax and perpetual usufruct charges for land. The city of Płock also receives a share of other taxes paid by the Company, i.e. fees for the use of natural environment, corporate income tax (CIT), and personal income tax (PIT). In 2014, total revenues to the Płock budget attributable to PKN ORLEN’s operations amounted to more than PLN 156m.

Włocławek-based ANWIL is one of the key companies of the ORLEN Group − the only producer of polyvinyl chloride (PVC) in Poland and a major player on the European nitrogen fertilizer market. In its CSR activities it focuses on supporting initiatives that directly contribute to the improvement of the living standards and quality of life of the inhabitants of Włocławek. The company also supports cultural, educational, environmental and health-related initiatives, as well as initiatives promoting sports. ANWIL has for many years been a sponsor of the Włocławek basketball team which competes in the men’s premier league. In 2014, it established the ANWIL for Włocławek Foundation, whose budget is devoted exclusively to local initiatives. ANWIL is one of the largest employers in the region: the ANWIL Group has a workforce of nearly 3,000. It should also be noted that the amount contributed by the company to the budget of the city of Włocławek in the form of taxes in 2014 exceeded PLN 32m.

ORLEN Upstream engages in community outreach initiatives in all of its licence areas. As part of its activities, the company supports local sports organisations, educational and social projects, as well as projects promoting pro-environmental attitudes. In 2014, ORLEN Upstream funded equipment for 26 local voluntary fire-fighting units. It also provided support for public buildings in five municipalities by co-financing required renovations and new infrastructure in their surroundings. The beneficiaries of the support included education and care centres, rural day-care centres, local governments’ road infrastructure projects, as well as individual persons. In its procurement processes, ORLEN Upstream gives priority to cooperating with the representatives of local communities and to contracting services and supplies from local businesses. These goals are also expected to be met by the sub-contractors, which induces the development of local entrepreneurship and the local labour market. In 2014, ORLEN Upstream employed 47 inhabitants of local farms situated near its projects. The company also cooperated, directly or indirectly, with 106 service providers (including 85 from the Lublin province) operating in the fields of: transport, construction, roads, electrical installations, hire of equipment and services, waste disposal, clearing of snow, cleaning services, maintenance of green areas, lease of storage space, consulting, notarial services, as well as advertising and catering services.

In 2014, more than 100 local government institutions at municipality, county or province levels benefited from sharing (regulated by law) in the licence fees paid by ORLEN Upstream in connection with its exploration activities. Moreover, before any field work begins and after it is completed, the company examines the surrounding environment and infrastructure. ORLEN Upstream pays particular attention to the transparency of its operations. An example of its efforts in this area is its voluntary participation in a project to assess the environmental impact of oil and gas exploration and appraisal activities involving hydraulic fracturing. Unprecedented in Poland and in Europe in terms of scale, the project was commissioned by the Ministry of the Environment and carried out by the General Directorate for Environmental Protection (GDOŚ).

The Unipetrol Group of the Czech Republic had more than 3,600 employees as at the end of 2014. Approximately 7,500 people were also employed at its cooperating companies. Unipetrol supported communities of the Ústí region by co-financing local infrastructure projects, cultural projects and initiatives promoting sports among young people.

Through our ORLEN Gift from the Heart Foundation, established in 2001, every year we donate considerable amounts to charity and to programmes providing support to those in need and to institutions that cater for public needs. The Foundation regularly sponsors more than 280 foster family group homes all over Poland, which accommodate more than 2,200 children.

In response to the needs and the huge positive potential of PKN ORLEN employees, an employee volunteering programme was established in 2004. Over the decade of its operation, the programme delivered numerous charity projects that engaged hundreds of employees and helped over 3,200 beneficiaries.

PKN ORLEN considers active participation in Polish and international trade associations to be of strategic importance, as it allows the Company’s voice to be heard at both national and European level. Additionally, membership of such organisations gives us the opportunity to participate in the development of the industry policy, and to share experience and cooperate with representatives of other companies.

We attach particular importance to our activity in the following Polish organisations:

  • Polish Organisation of Oil Industry and Trade (POPiHN) – serves as a forum for Polish oil companies to work out common positions on matters vital to the industry and presents the industry’s opinion to Polish public administration authorities. Involvement with POPiHN enables us to actively participate in the development of Polish regulations pertaining to the oil sector.
  • Polish Chamber of Chemical Industry (PIPCH) − our membership of this organisation allows us to participate in discussions on planned legislative changes and influence Polish regulations pertaining to the chemical sector. It additionally gives us the opportunity to participate in the development of EU laws by representing PKN ORLEN’s interests at the European level through involvement in the work of CEFIC (European Chemical Industry Council).
  • PKPP Lewiatan – our membership and active participation in the organisation’s management structures and working groups gives us the opportunity to engage with other entrepreneurs, consultants and experts to express our opinions on existing legislation and take steps to improve it, and to work out positions on new legislative proposals. Through PKPP Lewiatan, PKN ORLEN’s representatives are able to participate in the work of Business Europe’s energy group, which enables the Company to present its arguments and defend its interests at the European level.

Of all the European trade associations to which it belongs, PKN ORLEN considers its membership of European Petroleum Refiners to be of particular importance. The organisation brings together companies accounting for nearly 100% of the EEA’s oil processing capacities. Its activity is currently two-pronged:

  • Through FuelsEurope, whose purpose is to play a constructive role in developing a policy ensuring safe and sustainable production, supply and use of petroleum products, by lending expert support to relevant EU bodies, domestic authorities and the public. Active engagement on the part of PKN ORLEN’s representatives within the organisation’s management structures and working groups gives us the opportunity to participate in creating EU regulations by reviewing legislative proposals and engaging in lobbying activities. The organisation’s high standing and crucial function in the EU legislative system guarantees such actions to be effective. Our experience gathered during the cooperation with FuelsEurope provides a number of examples where provisions important to our interests (for instance provisions on quality requirements applicable to engine fuels or the final versions of regulations on the reduction of emissions from industrial sources, including carbon dioxide emissions) were incorporated into the position of the European Refining Industry.
  • Through CONCAWE, which concentrates on research and development providing objective data on the impact of the European oil industry on the natural environment. It also helps oil companies implement appropriate technical measures to mitigate, among other things, the harmful influence of chemical substances on human health and the environment, which is achievable by implementing the REACH system, counteracting climate change through the ETS system, introducing vegetable oil fuels and reducing the emission of harmful substances produced when petroleum products are processed and used. PKN ORLEN employees engaged in the organisation’s working groups and management structures participate in research work conducted by COCNAVE and have direct access to the work results at each stage of project implementation.