CSR 2015+ Outlook

Thanks to our CSR strategy, we are strengthening PKN ORLEN's position as the regional leader not only in business, but also in sustainable development.

For years now we have been setting the highest standards both through our day-to-day market activity and approach to sustainable development. Responsibility has been imprinted in the DNA of the ORLEN Group. We take a long-term approach to responsibility, as attested to by the solutions we have developed, such as the PKN ORLEN’s Core Values and Standards of Conduct and the CSR Strategy for 2015−2017 which defines our approach to various groups of stakeholders and, most of all, offers practical interpretation of our Values.

In accordance with the PKN ORLEN Organisational Rules, the Executive Director for Marketing is responsible for all matters related to the Company’s CSR initiatives. He also acts as Chairman of the CSR Strategy project’s Steering Committee. His responsibilities include regular reporting to the Company’s Management Board and the Supervisory Board’s Corporate Social Responsibility Committee on the status of projects within the Strategy. They include a wide range of social and environmental initiatives, as well as their effect on the Company’s economic performance.

Trends in responsible business and sustainable developmentEffects in the context of CSRPKN ORLEN’s response to the challenges of sustainable development

Strategic approach

Multi-aspect approach to company management – defining long-term business goals taking into account the impact we exert on our operating environment.

Integration of business goals with social responsibility elements.

Integration of the business model with CSR objectives should be instrumental in company value creation.

Responsible management of impacts.

Maximising positive impacts while minimising negative ones.

PKN ORLEN’s CSR Strategy is a management tool which is integrated with the business strategy. According to the CSR Strategy, value growth should be aligned with the interests of external stakeholders and rely on sustainable and responsible use of resources.

CSR objectives are incorporated already at the stage of designing PKN ORLEN’s business strategy. The CSR Strategy and its non-financial KPIs complement our business strategy and allow us to achieve our business goals more effectively.

Responsible investing

Growing importance of socially-responsible business.

The European Commission’s interest in the issue and its possible legislative measures regarding the requirement for investment funds and financial institutions to inform customers of the applied ESG (Environmental, Social, Governance) criteria.

Perception of the Company as less risky.

Positive correlation of social initiatives with financial performance.

Giving up focus on short-term revenues only. PKN ORLEN focuses on a broader perception of the profit generation process, and thus on the manner in which shareholder value is created.

PKN ORLEN has met the criteria for being included in the RESPECT Index for eight years. Investing in companies with high management standards based on values involves less risk and therefore creates an opportunity for higher returns.

An important element considered in the management process is the ESG issues, which may reduce the cost of debt and equity. In the 2014 ranking of companies that best report their ESG data, PKN ORLEN ranked among top three in two categories: sector-based and index-based.

Workplace practices

Generation X, Y, Z – work standards, employer brand.

As research shows, creating jobs and contributing to the economic development and employee advancement are among the most important effects of companies’ activities. Employment reduction, and in Poland also poor working conditions and non-compliance with work standards, are identified as the main negative impacts.

Employee expectations towards the employer are changing, with responsible and value-based conduct increasingly becoming an important factor considered by job seekers, allowing companies to attract and retain the best employees.

Building employee involvement allows businesses to reduce the costs of staff turnover.

Building relationships within the organisation is the foundation of PKN ORLEN’s CSR Strategy. It is thanks to the people, their commitment and personal satisfaction that the Company can achieve its successive goals and consistently develop its business. Therefore, our overriding priority is to consolidate PKN ORLEN’s position as a responsible employer that builds on mutual trust, commitment and effectiveness of its employees.

PKN ORLEN takes care to ensure employee safety and help its staff maintain positive work life balance. Guided by the objective of inspiring and releasing employee potential, we plan to engage actively in the process of diversity management within the organisation.

Communication

Growing role of disclosure of non-financial information.

Comprehensiveness of communication, transparency of the Company and multi-aspect view of its activities.

Risk mitigation.

Maintaining dialogue and building positive relations with stakeholders.

Development of non-financial reporting at PKN ORLEN, from the adoption of the GRI (Global Reporting Initiative) standards in 2008 to the first integrated report published in 2015. External assurance of presented information to professionalise the process and improve reporting quality.

Dialogue with the environment and regular review of the stakeholder map.

Incorporation of ORLEN values into external communication.

Open communication with stakeholders, transparency.

Ecology of the future

Management focused on sustainable development, minimising negative environmental impacts, and benefits for companies.

Implementation of innovative solutions for responsible use of the natural environment and mitigation of negative environmental impacts.

The Company wants to be perceived as a leader of change in a broad spectrum of activities, including increasing Poland’s energy security, new business areas, and care for the natural environment.

Measures taken:

  • Pro-environmental investments,
  • Implementation of high-efficiency pro-environmental projects designed to reduce emission intensity of processes,
  • Development and implementation of the ‘Green Service Station’ project,
  • Monitoring of environmental impacts,
  • Green office,
  • Environmental education.

Supply chain

Management of impacts taking into account ESG criteria.

Supply chain management which integrates economic, social and environmental elements to mitigate risks.

Value chain management.

Building relations with trading partners.

By influencing our immediate business environment we seek to raise standards among our trading partners operating at various levels of the supply chain. Measures taken in this area include:

  • Educating suppliers,
  • Developing common values in the supply chain by incorporating ethical aspects in the relationships with suppliers,
  • High safety standards at the ORLEN Group and its partners,
  • Incorporating social and environmental aspects,
  • Engaging trading partners in social initiatives.

The last few decades and the growing globalisation spurred an unprecedented development in the world, in particular in such areas as social communication, perception of global environmental processes, relations between business and customers/local communities and, importantly, understanding of the meaning of ethical conduct and responsibility in business. Being well aware of their role, PKN ORLEN seeks to anticipate upcoming trends and set new standards. Our CSR Strategy is another important step on this path, allowing us to strengthen our position as the regional leader not only in business, but also in the social area.